- Are you aware that the USA is one of the few countries in the world where buying, selling and using Bitcoins is legal?
- Do you know about the taxation norms and rules surrounding the use of Bitcoins in the United States of America?
- Have you tried buying Bitcoins in the USA from a Crypto Exchange and Trading Platform in the USA?
When the Bitcoin and Blockchain technology was first introduced to the world, the USA was the epicenter of all the action. Most of the leading names, investors, exchanges and trading platforms for cryptocurrencies first emerged in the USA.
However, in recent years, the country has adopted an ambivalent stance on crypto. This has led many other countries in Europe (including Eastern Europe) to take the lead in the further development of the new technology.
In this article, we will focus on some important areas of using, buying, selling and trading Bitcoins in the USA. We will also look at the taxation structure and regulations surrounding Bitcoins in the country.
USA and Bitcoins: Exploring the Relationship
Let us start with the most important aspect of them all- legality. As you are writing this article, cryptocurrencies, including Bitcoin are ‘legal’. This means that you cannot go to jail or face charges if you are buying or selling cryptocurrencies in a manner prescribed by the authorities.
In 2014, the IRS stated that Bitcoins are ‘virtual currencies’. The IRS uses that term for Bitcoin and other cryptocurrencies. However, as Bitcoin operated in a highly decentralized form, there is no need to attach Social Security Numbers (SSNs) to the same.
This also means that you do not have to disclose your bank accounts or attach the same when you are engaging with Bitcoins in the USA. The biggest acknowledgment of Bitcoin in the USA came as late as July 2020, when a US Federal Court stated that Bitcoin is a form of money.
The Court stated that Bitcoin is a form of money and should is subject to the Washington DC Money Transmitters Act. This made the crypto accept a formal tone and acceptance.
What does the US Government think of Bitcoins?
The current US President, Donald Trump has made his opinion on cryptocurrencies and Bitcoin quite public. He stated that as a form of currency, the value of Bitcoin is derived from ‘thin air’. The different ministers in the cabinet, including Steve Mnuchin, the Secretary of the Treasury, have adopted this tone.
In the past few months, there has been a consistent flagging off cryptocurrencies and increasing regulations surrounding the same. At a time when the entire world is exploring the technology and adoption of cryptocurrencies, the USA is falling back.
Many experts are of the view that at a time when the world’s economic leader should have taken a lead, they are getting scared of the same. However, some legislators have started to explore and invest in technologies leading to the adoption of the ‘Digital Dollar’.
What does the future hold for Bitcoin use in the USA?
The USA government has started to consider Bitcoin and other cryptocurrencies as a form of threat. They feel that Bitcoin and other cryptocurrencies can challenge the dominance of the dollar as a global wealth reserve. This is coming at a time when the Chinese are at an advanced stage of the development of the Digital Yuan.
However, there is some good news. Wall Street has come on board and has now started to realize the benefits of Bitcoins as a sound and stable form of investment. Many Wall Street firms are leading huge investments into Bitcoins and lobbying hard with the government.
From an investor standpoint, the rise in the valuation of Bitcoin is something great. This is why many retail investors are now want to Invest In Bitcoin to further their income and secure their investments for the future.