Taxation in Cryptocurrency

The pace at which technology is advancing is quite unpredictable. About a few years ago, there was emergence of crypto currency. Apparently, most of the today’s technological growth is highly determined by the growth of computing systems. Advancement in computing systems makes work easier in commissioning and completing most tasks. In the financial industry, crypto currency is vastly taking over the paper money industry. So rather than being debt or credit, that can be successfully used to settle payment for goods and services the digital currencies cannot be classified as literal money. Individual and the businesses trading in digital currency Digital currency as we know it can be owned individually or by a trading business. Even though the cryptocurrency society which is largely monopolized by Bitcoin does not adhere to any governmental rule or authority it has its own system of governance that controls the safety and security of passing around the digital currencies (News Limited, 2018).

The Australian goods and services taxation proposes that the digital currency be taxed just like normal goods and services – which of course do not make sense. When purchasing products from businesses that accept the cryptocurrencies, which of course do not have static value but rather their value keep getting dynamic with the time, it makes it very hard to completely comprehend how the tax laws will work. The Australian Taxation Office is working round the clock to ensure every possible product purchased through this currency faces a federal taxation (Elizabeth, 2017). The effects of these on the surrounding businesses are quite numerous. Then there is the question of services. How about services done outdoor for example cleaning services which may later be settled through cryptocurrencies.

The digital currency support services as well and therefore it's very necessary to consider the effects of settling services using this type of currency. Bitcoin however faces a lot of criticism from its users as well as from its acquisition (Andrew, 2018). Acquiring a bitcoin is quite very expensive and the price keeps going up. This is very different from the point and time in which it was initiated. Apparently in a business to consumer model only raises the final cost of a product or service. How does this happen. In other words, this totally makes it very difficult to completely comprehend to completely install the bitcoin taxation process. There could be very many reasons why it is necessary to file a reasonable way of taxing the digital currency products, but it is clearly very complicated.

Considering that there are very imminent conditions in which one would clearly say the double taxation process is a legal extortion, well how much more do we need to put in place in order to control the cryptocurrencies flow successfully? The legislators do not take into account the effects the same currency to other nations. Well the disparity between these nations makes the currency very questionable and loses its end meaning as an alternative for money. Different nations have different economic prowess. The Australian Financial Review. 11 January 2018. https://global-factiva-com. dbgw. lis. curtin. edu. au/du/article. aspx/?accessionno=BBPUB00020170921ed9l000cj&fcpil=en&napc=S&sa_from=&cat=a Jade Gailberger. “Taxman on alert to reap returns from crypto boom”.