We wrote the same sentence, but I am posting it anyway...”greed and speculation today becomes genuine mass distrust and dislike of all things cryptocoin/token tomorrow.”
It’s all fun and games until the IRS comes knocking at your door for failing to pay taxes on each and every cryptokitty transaction.
People thought blockchain and Bitcoin was a way to escape fiat...turns out mining is taxed as ordinary income, investing transactions as capital gains, and the IRS only accepts fiat.
People thought Ethereum smart contracts were a way to escape the legal system (the code being Law and all)...turns out people could’nt trust these smart contracts to do what they thought and were marketed to do (DAO); turns out the code isn’t the Law because the parties to the smart contracts could just fork and break the contract; and it turns out the SEC can actually regulate and prosecute ICOs that violate securities laws.
Who wants to file a tax return and pay ordinary income on every cryptokitty they birth or capital gains on every cryptokitty they sell?
Maybe I can get ahead of the ball and start offering “stripe atlas for self directed IRA LLCs for tax free cryptocoin/kitty trading”.
You'll need to support a lot more than just importing Coinbase transactions. The site bitcoin.tax lets you import from 17 different sources and, despite its name, handles nearly all digital currencies, not just bitcoin.
However, nothing currently exists that seamlessly handles scenarios like cryptokitties, or when tokens are automatically bought/sold behind-the-scenes of a dapp via 0x, etc.
It’s all fun and games until the IRS comes knocking at your door for failing to pay taxes on each and every cryptokitty transaction.
People thought blockchain and Bitcoin was a way to escape fiat...turns out mining is taxed as ordinary income, investing transactions as capital gains, and the IRS only accepts fiat.
People thought Ethereum smart contracts were a way to escape the legal system (the code being Law and all)...turns out people could’nt trust these smart contracts to do what they thought and were marketed to do (DAO); turns out the code isn’t the Law because the parties to the smart contracts could just fork and break the contract; and it turns out the SEC can actually regulate and prosecute ICOs that violate securities laws.
Who wants to file a tax return and pay ordinary income on every cryptokitty they birth or capital gains on every cryptokitty they sell?
Maybe I can get ahead of the ball and start offering “stripe atlas for self directed IRA LLCs for tax free cryptocoin/kitty trading”.