Trick Or Treat ?

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Yesterday there was an article about the new law being proposed in Spain legalizing cryptocurrency for purchasing property and paying insurance. As much as it is a big step towards mass adoption we have to look at why this is being proposed. There is always an ulterior motive when Governments offer something the crypto world really wants.

The idea of paying for a luxury villa somewhere with some Hive or another coin sounds appealing but not at the expense of declaring what you have. Hive is going to be big in the future as it is just that good what we have on offer here and is only a matter of time before we see the benefits of the work we have all done. In the coming years there will be ways to pay for things without having to declare what you have. The Government makes taxes on property purchases anyway so they need to come up with a better proposal as I wouldn't fall for this stunt.

The obvious without highlighting it is they want everyone to declare their crypto earnings so they can recoup the taxes. Taxes that were not around 10 years ago and they already make off the normal way so why crypto all of a sudden. The bigger the adoption of crypto the harder the Governments are going to have to fight for what they would call their fair share. I thought the idea of crypto was to get away from this type of nonsense as taxing is such a grey area in crypto. Every country has different percentages so why not choose a country with less penalties and set up something that helps you. This is going to be a huge problem the more our stakes rise in value and is a good problem in many ways as then you are worth something.

Just because you may have done well on one investment it doesn't mean you are now ready to hand over everything as we all know the markets can turn within hours due to the volatility. My thinking of what is fair is to tax whatever profits you withdraw and not what is sitting on the exchanges or in your wallets. If you don't ever withdraw then you never have to pay should be the argument.

The idea of paying off a mortgage or something tangible via crypto sounds like a winner but having to declare what you have is not that enticing and they had better find another solution. Once they have you listed then you are done for life as being able to hide things may not be that easy in 10 years time.

Spain is the first one to propose this and others will generally follow as every Government is trying to find more revenue via taxing. This is why Governments come across as anti crypto as they have no idea what and how to control it. In many ways they cannot as adoption and technology is moving too fast for them to write new policies as by the time they are ready crypto is already on another phase.

Governments are coming across as desperate as who in their right mind would declare what they have when countries are making it more appealing to investors by offering tax deals or havens. Portugal is definitely one country that has benefitted by the tax breaks they have given crypto investors and many other countries will try and offer something similar or better in the future. What is stopping you from registering an account in a tax friendly country and paying your taxes there and are abiding by the rules?

My thoughts are you don't mind paying your way as long as the system is also fair. If I make on one trade and lose on another then taxing me on the profitable trade is not happening. Crypto was seen as the enemy and still is in many parts of the world yet they still want to benefit from it through heavy taxation. I see this as having your cake and eating it trying to stop investors from actually making a success out of their crypto trading. The last people I am telling is the government as they just cannot be trusted as they always have an ulterior motive or agenda.

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