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The 2018 Year of Cryptocurrency Challenge – Week 13

TheMerkle Bitcoin Taxes Tips

At the beginning of 2018, I wrote an article outlining a New Year’s resolution that I thought could help boost cryptocurrency adoption and awareness in 2018, as long as enough people were doing it. Last week was the twelfth installment of my challenge. Since then, I’ve filed my taxes – which required an at-length conversation with a tax professional about cryptocurrencies – and I realized just how insane the current tax code in the US is for cryptocurrency.

TRY TO SPEAK TO AS MANY PEOPLE ABOUT CRYPTOCURRENCY AS YOU POSSIBLY CAN

As we all know, every time you use a cryptocurrency in the US, it is considered a taxable event, so every transaction needs to be reported. Not only is this annoying, but the IRS has provided little clarity on the matter, and many tax professionals are left baffled when people like me come into their offices.

  1. This year, I chose to have someone else review my taxes prior to sending them in, just to be sure. However, it became apparent once I started presenting my Form 8949 worksheet that they didn’t really know how to handle it. “Are you a day trader?” was something multiple people in the office asked me. They didn’t understand why a brokerage had not provided me with a consolidated 1099 for these “trades”, and I had to repeatedly explain the P2P nature of cryptocurrency. In the end, we worked it out, but I left realizing just how much more work cryptocurrency communities need to do in both educating people and pressuring governments for more sensible cryptocurrency tax policies.
  2. I work out of a WeWork every now and then. I ran into some of the community managers there (they take care of the building and plan events for members) who asked what exactly cryptocurrency was. They had heard so much about it recently, but were mostly focused on the price – and its recent correction. Again, much of my conversation was focused on shifting the crux of the discussion to the technology and away from the price. They ended up being really impressed by the idea of responsibility being placed back on the individual. I ended up sending them a link to Andreas Antonopoulos’s YouTube channel so they could watch someone more eloquent than myself explain it further.

LEARN SOMETHING NEW ABOUT CRYPTO

This week, I learned about a delightful program to make reporting taxes on crypto really easy. I used bitcoin.tax and it actually gave me a lot of really interesting insights into my cryptocurrency activity this past year, in one consolidated place. Not to seem like I’m shilling it (I promise this isn’t paid promotion, I’m just a data geek), it was really interesting to get this kind of breakdown, and know that I can access these reports next year too. Again, hopefully the IRS will adopt more reasonable tax laws such that we won’t need things like bitcoin.tax to report Dogecoin dust transactions.

BE GENEROUS – GIVE AND USE YOUR COINS

This week I gave away the paper wallet of Doge that I’d received from the Shibe Mint (from which I bought some physical, precious metal Dogecoin). It wasn’t much, but I think I’m just exhausted from the idea of having to report many transactions next year on my taxes. I think this fatigue will pass soon, though.

Did filing crypto transactions on your taxes also take a bit out of you? Otherwise, how goes your challenge? Tell us on Twitter or in the comments below!

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Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund

After leaving his position as an executive at Steven Cohen’s Point72 hedge fund, Travis Kling decided to start his own crypto-focused fund. This was a big and bullish announcement back then, but it still wasn’t enough to save the crypto market, which crashed only a month later. The following nine months were almost completely ruled by the bears, which has brought a lot of damage to the crypto world. Still, according to new reports, Kling has never given up on this project, and it seems that he will finally be ready to launch the new hedge fund over the next month. The dates have not been set yet, and it is possible that the fund’s launch will be as soon as in about two weeks. Former Point72 Manager Plans the Launch of His Own Crypto Fund The fund has been expected for a long time now, and according to what is known, it will be based in Delaware. Some reports even managed to find out that the name of the fund will supposedly be “Ikigai”. While nobody known for sure when the fund’s launch is actually going to be, it is known that it will happen in October. At first, the fund will be backed by a certain amount of capital that Kling’s unnamed partners have invested. However, later down the line, after the project starts its development properly, Kling plans to search for additional investors. Additionally, he will also add $15 million on November 1st, according to the reports. Eventually, by the time the mid-2019 arrives, Kling hopes that the fund will grow and expand to around $100 million. He even expects Ikigai’s venture branch to rise to $33M in capital invested. As for the foreign investors interested in the fund, they will be capable of allocating capital through investment vehicle based on the Cayman Islands. A Multi-Trillion Asset Class? During one of his recent interviews, Kling stated that he truly believes in the project, as well as the concept, and those willing to back it. This, more than anything, indicates that the project is more than just an attempt to generate large profits. Kling stated that he expects this to become a multi-trillion asset class that will expand to touch everyday life. He stated in an interview: It’s still very early, but the development and growth of this technology will be exponential. The firm will have a 13-person team that is said to be located in Los Angeles, while the fund will seemingly follow the regulations implemented by the Delaware government. Many believe that Ikigai’s launch will come on October 1st and that most of the allocated capital will remain in cash, at least at first. This is due to the fact that the investors are still trying to find a secure way into the crypto world. The post Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund appeared first on NewsBTC.

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