ON THE RADIO: Bitcoin Other Cryptocurrency Users In For Tax Nightmare

Anyone who reads this site or listens to my radio program knows I am not a convert to digital cryptocurrencies.  Forget the fact that at last count there were more than 1400 of them.

The real question I have and that nobody has been able to answer logically is: which alt currency is used and accepted for regular consumers to buy things they need and pay bills and taxes?

So far nobody has an answer for that.  Although I am told to read this book or visit this site or listen to that podcast.  Its not a question that requires a complicated answer at all.  You should be able to list businesses and countries that accept such currency.

And the second question is if nobody or hardly anyone accepts any alt currency as payment, how is it that these things, like Bitcoin, are valued so high.  Last time I checked, Bitcoin was valued at over $9,000 real dollars per “coin”.

Well the IRS sees this as a revenue generating source.  And the IRS seems to have decided that cryptocurrency is like all other investments.  Subject to Capitol Gains taxes.  Which means every time you buy a cup of coffee with a Bitcoin, you will owe the government Capitol Gains taxes.

Its an accounting nightmare.  And if and when the IRS start auditing and cracking down on alt currency investors, it could and probably will mean the end of them as we currently know them.

But then, who am I to ask such logical questions?

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The Washington Post: ‘It’s going to be a nightmare’: Some bitcoin investors are in for a rocky tax season