Bitcoin is Currently Selling for 16622.35 USD on December 11, 2017
In comparison to the current price of Bitcoin going for $16,622.35, when we reported on this cryptocurrency in March earlier this year, the currency was going for $1,041.
Over the past year the price of Bitcoin has went up drastically, and one main reason that I find to be a major factor is the main users are working the system to increase the price as much as possible before tax season hits in 2018.
TIME reported that the revenue made off of Bitcoin will be taxed and accounted for leading into the 2018 tax season. As I predicted in March, if Bitcoin were to surpass the $1,041 price point, it would find stability. I am making a second prediction: if Bitcoin’s price doesn’t dramatically drops after Tuesday, April 17, 2018; the currency will become a new standard for Americans, and people of developed world.
In addition, the creator of Bitcoin will be taxed heavily for gains in 2018, and will most likely have to sell a percentage of their shares to pay taxes. This will result in a devaluation of the currency.
In a move to draw in more investors Bitcoin has started trading with the CBOF. The main problem is that Bitcoin has not successfully made it through a gigantic year of price increase, along with government taxation in history. The federal government will go to tax investors with Bitcoin, and this will have a negative domino effect that will most likely play out during 2018. Some investors will tax their gains properly, but there will be a large percentage of individuals that will have to clear a sales tax and a capital gains tax.
If all these investors can properly carve out a section of their gains, the currency will make it past the bubble in April 2018, but if it attempt to avoid paying taxes; the federal government will have the data to collect one way or another.
Along with the rise in Bitcoin, the rise in inflation of the USD in comparison to different global currencies has also shifted. This shift has caused many international investors to use Bitcoin and the blockchain to make transactions.
Once Bitcoin achieved a stable user base over $1,000 per share, the currency went from being an unstable currency to make transactions, to being a temporary form of digital currency that investors could use to make transactions.
The Panama Papers outed many investors with billions of dollars in transactions to be able to hide their finances to avoid paying taxes. Bitcoin may have become a new alternative for these investors, but the federal government will have access to track transactions.
Take a quick glance of the differences between Bitcoin and blockchain, and get ready for next tax season. Additionally, find out more on the trends of Bitcoin with the secondary video below.