At which point it will be worth zero. So you sucked a bunch of fiat out of the economy but the feds are left holding nothing. When the government seizes assets it's because they want the assets.
I don't think it would be worth zero if other people are still trading it. I'm not saying every government would do it, but even if it's just the US, the value of BitCoin is not going to drop to zero just because some Americans can't trade.
Similarly, the government needs assets to stave off the consequences of hyper-inflation from money printing. That's one aspect of what they do, but BitCoin is not an asset. The biggest threat to a new digital currency is a rival currency. Criminalizing may be necessary to force a buy-in to a Digital Wallet.
Again, this makes no sense at all. At that moment, all crypto will become worthless. No one will buy it so how do you think "transferring" is going to work? Or do you just expect the international market to buy it from Americans?
I don't understand why you think it will be worthless. Lots of things are criminalized and still valuable.
You're required to report gains/losses on taxable events the same way you are with any investment asset, but AFAIK there is absolutely no requirement to report your holdings otherwise.
I don't see this as different. Considering volatility, you'll have gains and losses to report. The more you report, the more of a target you become.
It's very different in a practical sense. If anyone reading this has crypto holdings, you're giving them false information about what they need to report.
Well, I certainly hope that no one is fucking stupid enough to take tax advise from rabid anti-communists on an internet forum. That would be really stupid. I don't even think I would take my own tax advice.
Anyways, I don't think it's going to go away, someone's going to want to exploit the fact that it exists, and get a cut of it in some way. Probably a more likely solution is that they introduce some kind of special Crypto-Capital-Gains tax, or that you can't trade crypto without an authorized wallet from a major bank. Something that makes sure the banks get to profit no matter what.
I don't think it would be worth zero if other people are still trading it. I'm not saying every government would do it, but even if it's just the US, the value of BitCoin is not going to drop to zero just because some Americans can't trade.
Similarly, the government needs assets to stave off the consequences of hyper-inflation from money printing. That's one aspect of what they do, but BitCoin is not an asset. The biggest threat to a new digital currency is a rival currency. Criminalizing may be necessary to force a buy-in to a Digital Wallet.
I don't understand why you think it will be worthless. Lots of things are criminalized and still valuable.
I don't see this as different. Considering volatility, you'll have gains and losses to report. The more you report, the more of a target you become.
Well, I certainly hope that no one is fucking stupid enough to take tax advise from rabid anti-communists on an internet forum. That would be really stupid. I don't even think I would take my own tax advice.
Anyways, I don't think it's going to go away, someone's going to want to exploit the fact that it exists, and get a cut of it in some way. Probably a more likely solution is that they introduce some kind of special Crypto-Capital-Gains tax, or that you can't trade crypto without an authorized wallet from a major bank. Something that makes sure the banks get to profit no matter what.