Bitcoin (crypto currencies) as a legal means of payment

in cryptocurrency •  7 months ago

So far many people have been using crypto currency as an investment vehicle. They are less concerned about the real word uses at this point in time. However, things are still in the infancy phase. The technology and the market will mature over time and there is a lot of potential yet to come.

There is one promising piece of news is that the German Federal Ministry of Finance has signed a decree which will serve to recognize bitcoin as a legal payment. This would also mean that users of the cryptocurrency will not have to pay additional taxes on the transactions made with the currency.

In 2015, the European court determined that bitcoin currency VAT taxation would be abolished when buying good and services.

It has also mentioned that miner fees will not be taxed.

Throughout the world though, the debate still exists, is bitcoin a currency or a commodity? In the United States the IRS considers bitcoin property, so each transaction of Bitcoin is technically a sale of property and subject to capital gains tax.

Do you feel that it is fair for Bitcoin and other cryptocurrencies should be considered a commodity?

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