Hello there,

email me at robert.chernish@gmail.com for personalized high-level tax advice. thank you.

Here is my commentary on taxing at the transaction level…

it already happens automatically by the blockchain as a service fee. This is called a transaction fee. The whole tax system depends on such minute details as these, and businesses are free to label their business process in new ways, which in some ways, makes traditional tax law outdated.

You want payouts, then you buy the coin, and let it appreciate, or buy mining equipment to earn a portion of the transaction fees. That is the basic premise of revenue generation on a blockchain. Some of them can allow business transactions, business development, and inter-industry scalabaility in a very short time. It is not magic, but it does remove the need for alot of overhead costs, and also increases revenue generation options that traditional businesses didn’t possess.

Coin exchanges also charge commissions on every trade. Buy and selling of goods, services, for coins is taxed by the parties involved, and taxing should only be done at the bank account level, as this is where the order is maintained.

If you are taxing at the transaction level, you are basical cutting a business short, and no-one likes that. Everyone wants their business to succeed. From blogs, to crafting sites, and soda shops on the corner, people want to be free to create, and crypto offers them this. Taxing creations is not a good business. The crypto sphere is too small for taxing transactions, and in fact, one can think that the transaction fee from the blockchain should be tax enough.

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Besides, the exchanges already charge commissions on transactions, and the only place to tax is at the bank level. Period. This is where the money comes and go from. That is all that the Banks and Governments care about. You can do whatever you want on the internet, within reason, and the banks enjoy it when you bring back nice monetary returns because it means more money for them.

In fact, you will see banks give money to businesses to buy bitcoin and altcoins, and in fact, there is going to be some major scaled up trading at the national and international level done by large national exchanges. This is likely where most of the money will end up, but because of the use value, some of these currencies will survive based on use-cases.

Others are not even monetary, they are virtual, like golf tokens in a golf game, so taxation becomes a moot point unless it’s at the bank level. Cracking down on anything higher than the bank level inhibits business freedoms, and takes a lot of fun out of technology and the internet. Being able to send virtual tokens to my maid makes it alot easier than going to the front desk to pay. The use-cases are endless….

Those moving money onto the markets are basically making an investment in a digital asset, and prior to the clarification on the virtual assets, the taxation policy was non-existent. During this time, any large bank moves would have been done by the banks themselves, or high level investors who had access to money.

Any large accounts that came up would been recognized at a bank, after all, the banks and bitcoin have always worked together, just like the money supply and banks work together.

Maybe Bitcoin isn’t so new at all. Anyway, the point is that many times I made profits on coin trades, and when going to cash out, the money would sometimes get lost in the process.

As a result, there is a taxation flaw in taxing until the money has cleared to the bank.

So people can trade their coins on exchanges, and then send to other exchanges and trade and don’t pay tax until they bring the money back to the bank.

Make sense?

Let’s say I invest 12,000 in a Bitcoin and I trade the bitcoins for other shares, stocks, coins, digital assets, in digital marketplaces, and asking my friends for coins, and making bets and playing games with my coins, and then I know I have to pay the bank and get money to make some purchases, so I cash out 20,000. That is a gain of 8,000 dollars, which I pay tax as income, since you can’t tax the initial 12,000 I put in.

Make sense?

This happens at the bank level. Don’t forget there are large National Banks too, that most people don’t even get to use, and are reserved for large purchases. This is where the majority of all the money is, and it is these global banks that would likely yield the best results for taxation purposes, as they will be spending billions and trillions of dollars on these coins.

Banks will always be involved as gatekeepers of the financial system and are an absolutely necessary process because banks help protect people’s identity, and actually will give you money to buy capital assets, investments, and small to medium business. This is called Business Banking. In fact, the whole concept of Bitcoin and Altcoins cater perfectly to the Banking System because it already provides people the means to use real money to buy virtual coins and do virtual business, and then convert back to real money for everyday shopping, and large capital investments.

It just adds another piece of scaffold to the banking system, and is absolutely imperative that banks work to adopt these systems at all possible levels, because it helps create infrastructure across the supercomputing system, and technological demand at the personal level.

This is also extremely easy to adapt to machines that act as beacons or communicators or relays or nodes within system.

Thus, the taxing becomes a level strictly at the balance sheet at the banks level with transaction logging, and there are computing systems that already do this.

This is the way it has been, and always will be, and yes these transactions, are probably already stored on a blockchain somewhere. So pinning down transaction on the exchange level or virtual level should be done by the blockchain itself, which is why transaction often charge something. This encourages people to buy the supply because it in itself holds a “transaction tax” value.

So go on, buy some coins, have a little fun, and try and make some profits, but remember how much you pull from the bank, and how much the bank likes to play with to, and everyone will be happy.

This is already common knowledge as most banks will not allow people to use their credit cards to buy altcoins, but people still do it anyway. But this person could just as easily go use their credit card and go on a cruise line trip, but the advantage of using money to buy altcoins often has a lot better payout than a purchase cost with no return.

The Difference with buying this money is it’s appreciation rate because it is subject to global demand, and allows for innovative work-arounds to existing archaic and outdated systems, which invites old money buyers to invest in the new systems as a means of making profit.

So you want to know about tax?

When these old money investors, put money into the system, that is called an investment. When the money is sent back to the bank, it can be taxed as personal business income, corporate business income, or capital gains tax, depending on your investment amount. These tax brackets are the same as the existing business income, capital gains tax, and there is no need to change.

So there is no need to worry about the trading on exchanges at the personal level, but rather monitoring the exchanges themselves to see who is doing large volume, but again, that is going to happen at the bank level, and banks already have a good understanding of the financial system.

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