/biz/ - Business & Finance

>>28969743
>what is stopping a better coin from taking its place in 10 years? Are you just relying on first movers advantage?
Yeah, kinda. I think BTC has the most clout and staying power thanks to its recognition, technology be damned. People have been calling BTC's tech shit for years but it's still where the money ends up. The market isn't always logical or practical. In a world where cryptocurrency is treated as currency I think multiple coins will end up viable but BTC will stick around for safe savings kind of like the index fund equivalent of crypto holdings.

>>28969930
Crypto is taxed like property/stocks, so you pay capital gains tax on the difference between your original purchase price and the price at the time of the transaction. Pic related are the current US capital gains rate. Short term means it's been less than 12 months since your purchase and long term means you've held it for more than 12 months.
Spending crypto at a store is considered by the IRS to be equivalent to selling that crypto for USD in that moment to purchase the item, so you are enacting a sale of crypto and incurring capital gains tax in addition to the typical sales tax (and the gas fees, of course).
Sending crypto to someone else's wallet is also considered selling crypto for USD and then instantly buying the crypto again but storing it in the other person's wallet.

It's just a fucking mess. Imagine if you had to calculate, record, track, and report the relative value of your dollars at every single purchase so that the government could not only tax the sale and your income, but also tax the difference in value of your money from the day you got paid to the day you spent it at the store.

If you use a wallet like Coinbase that tracks all those things for you and produces tax documents at the end of the year it's manageable, but God help you if you have your own wallet and have to manually track the value of your crypto at the time of every purchase all year round.