Fungibility And The 19.6% SavingsThis is really relative and subjective *. The thing that is better: Bitcoin and all other digital currency have been recognized by the IRS and thus creates a foundation. This foundation allows for business plans and capital formation to move forward as prior to the Notice 2014-21 (Bitcoin ruling) one could guess but not be certain.There has been endless debate since this ruling that suggests that the IRS would impose a huge burden on digital currency for typical transactions. The reality is Notice 2014-21 primarily relates to Bitcoin as an investment and the potential of capital gains and losses based on the market price at the time legal tender was converted into Bitcoin and the market price at the time Bitcoin was converted into legal tender. Bitcoin as property: Long-term capital gains taxes are capped at 20%Bitcoin as currency: Potential top rate of 39.6% on federal income taxesThus if one were to buy Japanese Yen and you experience a 50% gain you would have to treat gains or losses as regular income for tax purposes and if you were in the 39.6 tax bracket you would pay 19.6% more. Buy Bitcoin and see a 50% increase you pay just 20% long-term capital gains.Some have presented a debate that Notice 2014-21 creates a premise where Bitcoin has lost Fungibility (A property of a good or a commodity whose individual units are capable of mutual substitution.) Meaning that one Bitcoin can not equally be substituted with another Bitcoin in the manner you and I would trade one $10 bill with another one and not need to concerned about if one is worth more or less if there is not a numismatic value difference. It seems certain that either the Treasury Department or Congress will apply a "personal transaction" exception similar to the one that exists for foreign currency. In fact Keith A. Aqui at the Office of Associate Chief Counsel at the IRS who was tasked to write Notice 2014-21 has clarified this:"The rulings wo not hinder Bitcoin's use on a daily basis for simple purchases. I do not think they have to worry, people using bitcoin to make regular purchases. If the digital currency is not being held as an investment, it wo not be subject to property taxes. It all depends upon your intent in holding onto the bitcoin." -Keith A. Aqui of the Office of Associate Chief Counsel (Income Tax & Accounting), IRS Thus one can conclude the intent of Notice 2014-21 and the resulting clarification that will be released at some future date. At this point most tax professionals suggest when calculating your gain or loss, you must determine "amount realized" and "basis." When buying goods or services with bitcoin, the amount realized is equal to the fair market value of whatever you received. When selling bitcoin, the amount realized is the sales price less any transaction fees.The largest issue for most Bitcoin users is determining the basis. The IRS will permit you to use the FIFO method (First in, First out). Any other method such as LIFO or Average Cost Basis is not advisable, particularly now that foreign currency rules do not apply.At this point one can not ask for a better ruling then Notice 2014-21 and it is certain that after public and professional comments are reviewed by the IRS the "personal transaction" exception will prevail and eliminate any barrier to using Bitcoin as a regular currency.*I am not a tax professional and would seek true domain experience professional advice.___ Page on irs.gov BitBeat: IRS Calls Bitcoin 'Property,' Not Currency - MoneyBeat - WSJ
1. How can I make Bitcoin jump tenfold?
If you are a whale you can buy hundreds of bitcoin with a limit order of 10x it's current price on exchanges
2. What are the chances to attain profit through investing in bitcoin?
In my recommendation, you can go for eToro. It has been around for a while in the UK and throughout Europe, and they are now allowing traders in the United States. They offer a huge variety of digital assets to buy and sell on their platform, and even better, they have a practice trading account. Or try the coin base, it is by far the most popular because you can invest directly with USD. However, you can only currently purchase ethereum, and bitcoin on the platform
3. How true is it that the Bitcoin Revolution is a scam?
From the perspective of a hot head who heavily bought BTC when it used to be $20k per 1 BTC and hoped to make profit it might seem a scam. Investing in crypto is taking a risk (like any other business is) for sure, but it's no scam, it's just a dangerous tool to lose money for those who invest too much with too little thinking
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