Why Bitcoin (BTC) Should Not be Taxed?

Pomp  SHARED: Will Staking & Mining Be Tax Free? Bitcoin and other cryptocurrencies are treated as property, not currencies, in the United States. This means the production of more private property through mining & staking should be tax free, right?

COMMUNITY RESPONSE:  IRS will not tax unsold staking rewards. Mining is essentially the same concept in both proof of stake (staking rewards) and proof of work (ie, bitcoin rewards)

If ETH’s goal is to become legal tender (not sure if it is), wouldn’t staking rewards require income tax though? Seems like it would have to be one or the other.

If this happens, Bitcoin mining will be one of the most tax efficient items out there without this I still feel BTC mining is one of the most tax efficient. Using leverage to buy ASICS you’ve got a set up similar to real estate except even more powerful

The Internet thrived in the US because of the Internet Tax Freedom Act. Similarly, we need a Crypto Tax Freedom Act. There should be zero capital gains tax on crypto for the remainder of this decade. We need to enable US citizens to accumulate as much Bitcoin as possible.

Last year, $2tn collected taxes vs $40tn printed money.  Why not pour nitrous on the economy by abolishing taxes – this system is banana republic territory.

Good point. If I own land and I improve that property with a solar array, I can write off the solar equipment in the first year using bonus depreciation. If I store the electricity in a battery bank, I don’t pay taxes until I sell the electricity. BTC shouldn’t be different.

It should be pointed out that when I sell said electricity, my basis would be zero (assuming I fully depreciated all equipment used to produce it) so the IRS is not missing out on anything.  They just have to wait for me to sell. BTC shouldn’t be any different.

POS are securities. So, staking rewards would be considered the same as a stock dividend (i.e. Paid in kind dividend) and subject to income tax. Mining BTC (property) requires expenditure of work/energy & wouldn’t be taxed just like digging up gold in the backyard wouldn’t.

That’s a slippery slope, since miners also provide a service and get paid both in BTC and in fees to do it. As you know, fees will become the biggest miner revenue in the longer term.

Meanwhile in the UK gov says depositing tokens in defi / staking could be itself a taxable event.

Nothing worse than having to pay the us government thousands of dollars in capital gains.  Should be it – perhaps. But if $ is generated from it, the government is going to want their share of the action.

Definitely no tax. The fiscal authorities can simply hire an expert and staking in their own departments, if they want rewards.  In the future every single individual will be responsible for his property. No need of governments.

Don’t miss out on Bitcoin. It’s an economic entity where supply is unaffected by the demand.  Bitcoin forever.