These are my own personal views on how the Australian Tax Office should be approaching the crypto revolution. Public consultation is a positive step forward. Hopefully they’ll take on board a common sense approach and interact more with those on the inside of this revolution.
The ATO has put out a public consultation on their application of antiquated existing tax law and the new crypto revolution. Through their ‘Let’s Talk’ portal anyone can make a public submission on the treatment of crypto for tax purposes. I’ve made my submission already, and I felt it important to share my feedback to the ATO with you as well.
There’s a spate of horrible news doing the rounds about bitcoin. It’s got nothing to do with the value, price, or even the technological progress of bitcoin. It’s the media and those in power using bitcoin as a scapegoat. They’ve found respite, a diversion from the spotlight that’s been sharply focused on them recently.
Bitcoin isn’t the best asset coming out of the crypto space. Well, not yet anyway. The best assets in the crypto world are the toll bridges all crypto investors have to go through. The ASX Ltd [ASX:ASX] is a great company. They are one of the most profitable market operators in the world. They act as a toll bridge between investors and securities like stocks, futures and options.
I wondered, is crypto really mainstream? Or is it still just a fringe idea, an edge of the bell curve concept that most people still have no real idea about? My conclusion is that most of the mainstream say they’re in crypto, but the reality is they’re really not.
Litecoin’s biggest challenge is facing problems with widespread acceptance. This is a problem not only litecoin has to deal with, but all cryptos.
Strongin believes that crypto will likely trade to nothing due to a lack of intrinsic value. He compared crypto to the dotcom bubble of the late 90s.
Many believe buying bitcoin is equivalent to gambling. But over the weekend you could have actually gambled with bitcoin. Last week, Neds, an online Aussie wagering company, said they will launch a fully functioning cryptocurrency betting site. Customers can deposit, bet and withdraw in bitcoin.
Unfortunately, such quick and easy gains give many investors an unrealistic view of how markets work. This is what changes the psychology of markets and sees money pour into stocks, pushing them higher. This is exactly what happened in crypto markets at the end of last year. This is how bubbles form. Bubbles are a result of belief. Busts are a result of disbelief.
First came the curious. Then as the price rose, the speculators bought in. And in 2017, amidst incredible price rises, massive numbers of new investors bought on the fear of missing out. Those same late-comers have scrambled to get right back out again as the price crashed in January. Their fear of missing out has been transformed into plain old fear.