Will Bitcoin take a loss when the IRS gets a hold of the blockchain?
According to Bitcoin.com, the IRS has purchased software from a blockchain analysis group called Chainalysis. Reportedly the new software will allow the IRS to track bitcoin and other cryptocurrency addresses for the purpose of finding users profiting from Bitcoin without paying taxes on them. Back in 2014 the US government passed a ruling which classified Bitcoin as a property as opposed to currency, effectively subjecting it to Capital Gains tax.
Here is a screenshot of the letter from Chainalysis to the IRS
This new software will help enforce this law, which beforehand was more or less based on the honor system. Some speculate this may burst the Bitcoin bubble. Only time will tell.
Screenshot provided by Fortune magazine
i would think so, this is where a currency like ripple would thrive, because it works with banks and governments.
Possibly, but there is a large base of people that use Bitcoin and other crypto in an effort to circumvent the government and banks all together.
@originalworks
@OriginalWorks Mention Bot activated by @thechief. The @OriginalWorks bot has determined this post by @thechief to be original material and upvoted it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
For more information, Click Here!