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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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Bitcoin Millionaire Airdrops Millions of Dollars in Hong Kong

The Bitcoin industry has allowed wealthy individuals to do some very unusual things. In most cases however, those developments will not make any media headlines. The literal fiat currency airdrop executed by Wong Ching Kit, a Bitcoin millionaire, will raise a lot of questions. It may be a positive sign for the struggling industry as well. A Fiat Currency Airdrop to Promote Bitcoin Those who invested in Bitcoin at a very early stage have made millions over and over again over the past few years. Especially if they managed to hold onto their BTC holdings until the all-time high of $19,500 was reached in late 2017. Whether or not Wong Ching Kit sold his holdings prior to that date will always remain in question. The end result is how this 24-year-old is a Bitcoin millionaire residing in Hong Kong. Over the years, he has amassed a significant portfolio and associated value accordingly. During these troublesome times for Bitcoin and other currencies, he decided to airdrop some money in the real world. Although airdrops are nothing new in the world of cryptocurrencies, they usually involve digital tokens and assets. For Wong Ching Kit, he decided to distribute over 100 million Hong Kong Dollar this week. That is worth at least $13m, which was given away to random people. Chinese 24 year old Bitcoin Millionaire Wong ching kit 黄鉦杰 AKA bi shao ye 币少爷 (Mr coin ) throws 100’s of millions of HKD from the roof top. He said “he feels as if he is god and he is responsible to teach the world about bitcoin.” Is this a sign of a bullrun incoming or ?! pic.twitter.com/IfgKykB0ME — Mia Tam (@_blockandchain_) December 16, 2018 To make this cash airdrop successful, Wong Ching Kit decided to throw the money off a rooftop in Hong Kong. During this event, he also proclaimed to “feel like a god” and “being responsible for teaching the world about Bitcoin”. Two very serious claims, although it seems the latter one may be interpreted in many different ways. Unfortunately, he was also later arrested when he was heading back in his Lamborghini. Police arrested him for causing a disorder in a public place. The main question is what this person aims to achieve by giving away millions of HKD for no apparent reason. It can be seen as a sign of how investing in Bitcoin will always be a good option to make money down the line. One could also say his youthful age simply got the best of his common sense and he acted on a whim. Various images of the stash of money being dropped from the sky have surfaced on Twitter ever since. It is something that makes many people wishful they were part of it. A cash airdrop doesn’t happen all that often, especially not for such large amounts. Even so, this person can seemingly pare the money without losing sleep over it. Giving something back to the rest of the world is a noble gesture, though one that will always be criticized. For the Bitcoin industry, this may not necessarily be the signal most people are looking for. There will always be those who claim this person should just reinvest the money and keep the price afloat. Even so, people are entitled to use their money as they see fit. If they want to make it rain Hong Kong Dollars, that is their prerogative to do at any given time. A very remarkable airdrop first and foremost and one that will be remembered for some time to come. The post Bitcoin Millionaire Airdrops Millions of Dollars in Hong Kong appeared first on NullTX.

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