BITCOIN MONEY OR PROPERTY? WHY IT MATTERS?
Well Bitcoins are widely accepted as a great medium of exchange, so why do many governments consider them as property for tax purpose?
Well, by refusing classify bitcoin as a currency, tax authorities can effectively treat bitcoins as any other property. What’s that mean?
It’s not money. Let’s impose consumption tax.
In Singapore, for example, buying goods or services using virtual currencies is considered as a barter trade. Let say you buy an iphone by using bitcoins. The GST could apply to both bitcoins and the iphone.
Capital gain tax must be reported, regardless of how the owner actually uses it.
If I buy a bitcoin for $ 300 and buy a book denominated in bitcoin when it’s worth $ 600. Theoretically, I have a $ 300 gain that I should be taxed on. If it’s money, the story is different. For instance, if I buy a hamburger denominated in US dollar, and I pay $ 2 I don’t have a gain or loss on the currency used.
DO YOU THINK BITCOIN IS MONEY, PROPERTY OR NEITHER? PLEASE LEAVE YOUR COMMENT @HAIDUONG
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Thanks. I'll try it