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Tax Blog

Will this be the end of Bit-Coin?

Cryptocurrency has had lots of fare share in the news as of late, and overall in prospective approach. What is this new form of currency is the largest question in the past. Today, it’s more how the U.S. killed cryptocurrency.

Speculators would agree and disagree as to the death of Bit-Coin or other cryptocurrency, but the reality is this, investors balked and pulled out after the passing of the Tax Cuts and Jobs Act in December. Why though?

Well one article placed a positive spin on the 50% reversal the reality is that you should be worried. Yes the person is correct, in its early years at the first question of Bit-Coin’s death they suffered an 80% loss in investment, they somehow managed to pull together and reach the highest growth recorded for the company. Why the growth?

Well simply they won classification as property in the American tax world, making the exchange subject to tax free provisions, other aptitudes recognition brought was more investor dive in to the hot new market trend. This all led to the $20,000+ surge in value, until the signing of the TCJA 2017. What happened?

Specifically, the TCJA was targeting cryptocurrency, and investors saw that and jumped ship faster than the rich and wealthy from the Titanic, (they always have an inside edge). Bit-Coin nosedived and from the high value it was at, it is similar as a jump of the Empire State building versus a jump off the country bridge years ago at the last fall.

Is Bit-Coin dead? Personally, no, I don’t think it will be, but the climb is going to Everest level determination for the company.

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