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RE: Will Coinbase support Ethereum staking? If yes then Ethereum will easily become the most attractive asset to hold
Definitely Income. In order for it to be considered dividend, Ethereum (the company) will have to share their “profits”. Which they are not doing. They are allowing individual users to benefit from one of the abilities of the token. It’s not mandatory to stake the token. Therefore makes it an option for the holder or a source of income. Like when you choose to rent your house. It’s a source of income. Not the house paying you dividend. I think, but what do I know.
Well that is problematic from a tax perspective because if ETH doesn't grow a lot each year then it might be more attractive to just buy stocks which pay similar dividends but with lower taxes and similar growth.
Agree. I believe that's going to be one of the challenges of crypto reaching the masses. Once we are done with the fast growth of the tokens, the long term gains will rely on selling the tokens you were able to mine, by POW or POS. I still think there are loopholes to avoid the high taxation, like the ones people saw with last year's gains, corporate taxes can be a solution. By creating an LLC, Net Income could be reduced by different expenses, thus lowering the pass through income. Definitely a work in progress, but hopefully we can find a way to make it more appealing, and less of a tax burden.