IS Cryptocurrency Taxable?

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As the tax season begins, people all around are starting to think of the event as well as how they are going to file the information. Most use a professional on the subject for help. Of course, these professionals always have to ask certain questions based on what the government wants to know. From whether you gamble to your housing arrangement, all of this information is vital to know. A new question is to enter that pool in the upcoming year: “Do you invest in bitcoin or other cryptocurrencies?”

            Some might wonder why that is important. Well, to explain that, one must first know what bitcoin itself is. In short, bitcoin is a digital currency with no direct group controlling it. Transactions using this currency are always final, and there is a limited amount of it. This limited number out there drastically increases the demand for it. If you want to get into the finer details, there are countless digital articles explaining the intricacies of these digital currencies, otherwise known as cryptocurrencies.

            Even with all of that, the big question still remains. Why does the government need to know whether or not someone has these digital currencies? Similarly to the gambling aspect, a person has to pay taxes on the amount of money gained. For the time being, no one needs to disclose how much cryptocurrency had, but simply whether or not it is invested in. As the tax world continuously changes, so does the relevant information surrounding it. Cryptocurrency is just another cog in the professional wheel of taxes.