What crypto promoters never tell you is that every one of them is a classic pyramid scheme, and pyramids built out of thin air. Bitcoin was the first and largest and gained a lot of cred as a "cool new thing", but now there are countless sketchy or scam cryptos and that has painted the entire sector with a wide tar brush stating ONE BIG SCAM STAY AWAY. The China ban was just the beginning. It is taking other countries more time to organize a regulatory and taxation system for cryptos, but they will likely all announce these before the new year if they want to collect taxes and stop money laundering, capital flight and criminals hiding their movements using this "invisible" currency. But cryptos are not really currency or money or anything physical. They are not even useful software. They are a kind of digital pickpocketing of a digital wallet you fill with real money but which, if history is any guide, will be emptied of value in due time. The 17% drop two nights ago was overdue. Even stocks of excellent companies need to correct sometimes if they become too bloated and popular. Cryptos have become very popular during the covid period. But the motives for owning cryptos are 1) Hiding your money 2) Evading taxes 3) Get rich scheme hopes 4) It's where the cool kids play, right? 5) To avoid weak currencies in 4th world countries like El Salvador and Afghanistan. Last year I noticed the IRA 1040's first question to the tax filer was "Do you or have you owned cryptos?" You check the box yes and you could be audited or at least red flagged. You will have to open up your digital wallet and show the IRS. Or else you can lie and that is a crime. So far I doubt many have ever paid taxes on crypto gains. Meanwhile, the senate is trying to decide how to fund the BBB bill and collecting taxes is one of the main ways they plan to do it. The EU, UK and India have also been making statements pointing to their disdain for cryptos and their intention to do something about it. In fact the head of the Bank of England said that "you may lose all your money", and anyone putting real money into sketchy cryptos know that in many cases that has already happened. Even Mark Cuban lost 100% on one crypto flier. Anyway, we shall see what the bottom is for Bitcoins and cryptos. In the past, using the wash sale loophole, crypto owners have been able to take losses and buy back lower at the same time. My guess is that this loophole will be filled any day now and maybe even be retroactive, so look out below.
Submitted December 05, 2021 at 07:38AM by Immediate-Assist-598 https://ift.tt/3xY7aus
