Crypto News | Bitcoin Taxes Behind Price Decline?

It is no secret that the price of Bitcoin has incurred some hefty losses over the last two weeks, dropping from around $11,500 on March 5, to around $8,200 today. Yet, when we take a look at this week only, there have been some fluctuations, with several brief sub-$8,000 excursions, but the BTC price exactly a week ago was as low as $8,500, a mere $300 above today’s levels. Nevertheless, the overall trend is bearish. After investigating the root causes behind the price drop, many experts have come to believe that it may in part be due to Bitcoin taxes, which are due to be paid in April in the United States. Many first-time investors have made considerable gains in 2017, Bitcoin’s record year. However, they haven’t taken the Bitcoin taxes into account. The fear of not having enough money to pay these taxes may be behind the selloff, according to Cathie Wood of ARK Invest. Buying and selling Bitcoin is a taxable event, since Bitcoin counts as property, not currency. Whether you put your money in fiat currencies or altcoins afterwards, it doesn’t matter – you can still be taxed up to 39% for “short-term capital gains”.

In other words, the price of Bitcoin could be expected to rise sharply between April and September. Another thing that may actually turn out to be good news for Bitcoin is the yesterday’s announcement of Google banning cryptocurrency ads. While many altcoins lost a lot of their value over the last 24 hours, Craig Cole of CryptoMaps believes that this move may benefit the top cryptocurrencies, including Ripple, Ethereum, Litecoin, and Bitcoin Cash. The reason is simple: these cryptocurrencies are already so well known that they do not need advertising. In a way, Google will be taking care of their competition.

Does this mean that ICOs are now a thing of the past? Maybe. In fact, more and more crypto-related startups are opting for “airdrops” instead of ICOs. Airdrops are free token giveaways, such as the one staged by Onchain, the company behind the Ontology network. Airdrops generate a lot of interest, a lot of followers and a lot of free press, which goes a long way towards promoting the tokens. With the top cryptocurrencies actually benefitting from Google’s ban and new cryptocurrencies also finding ways to gain a following, we can see how quickly and how easily the cryptocurrency industry can adapt to sudden shocks. After so much ado about … you know how it goes, the cogs just keep on turning, and the world goes on as usual.

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Author: Max Rothstein

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