The post The Urgent Need for Bitcoin Tax Reform to Encourage Everyday Use appeared on BitcoinEthereumNews.com.

The debt based monetary system has become quite extreme. On one hand, the US crossed the $35 trillion national debt milestone, placing a $104k burden on every US citizen. On the other hand, the Congressional Budget Office (CBO) puts federal expenditures for 2024 at 24.2% of GDP. This divergence between profligate spending and debt ballooning puts the economy on a narrow path. It is exceedingly unlikely that USG would opt to reduce spending, most of which goes to social programs, entitlements and the military. The latter alone is the key ingredient that backs USD as world currency. Conversely, this entails another Fed balance sheet expansion, with three 0.25% rate cuts this year already priced in. In turn, non-currency assets like equities, gold and Bitcoin are poised for growth yet again. At the root of this dynamic is the question of information validity. Just as the US Bureau of Labor Statistics is expected to revise down job figures by up to one million between April 2023 and March 2024, the information corruption is visible with central banking itself. If the Federal Reserve can increase M2 money supply by 27% in 2020-21, the money itself loses informational coherence. It is this why investors then seek equities, gold and Bitcoin. These assets become vehicles of value because currency loses its ability to reliably relay value. The problem is, they are also taxed as a way to subdue the velocity of exiting the central banking system. This is especially pertinent for Bitcoin, a unique asset that is both a store of value but could be made as a daily transaction driver. The question then poses itself, is a legalistic landscape viable in which low-value Bitcoin transactions are exempt from federal taxation? Bitcoin’s Usage and Currency Substitution Suitability To understand the regulatory path forward, we…

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Filed under: News - @ September 16, 2024 4:27 pm