I am sure it will be another cypto crash. Too much hype at the moment it can’t end good.
I just wonder how btc and other crypto crash will affect tether? it will be bellow usd, o it will maintain 1 to 1?
I dont want to cash out my money to my bank, I would like to hold my money in tether before crypto crashes
It’s backed by USD, so will stay stable.
I hope so, will hold it on my hard wallet, I dont want to hold in my bank, because these motherf*ckers can rob me and also will need to pay taxes after cash out.
So I will back on cripto when winter over, this way I will avoid these taxes, only will pay taxes what I spend on.
I just wonder how people dont understand this idea: you cashout you pay taxes, you exchange to usdt you avoid taxes, so the idea pay taxes only what you spend, for example you planning to buy a house, car or smth.
This is not true. At least in Austria. Any change is a tax relevant event. So ADA/usdt change will cause taxation. Not the actual cashout.
how they will know you own specific amount of usdt if you hold it on hardwallet?
for example I sell all my ada for usdt and after 2 years back to buy ada again for low price, yes I will need to pay taxes for the purchase later, but I am taking about exchanging ada to usdt to you crypto wallet vs exchanging ada to usd to your bank account.
For me this makes no difference. That they will not find out does not make it non-taxable.
USDT either is a stablecoin or it isn’t. Therefore 1 USDT can only ever be worth either 1 USD or nothing.
You’d be WAY safer with USDC. USDT is going to cause the crypto crash like it did in 2018.
Why it is safer? I have no clue
It is taxable, but it is huge different: just do the math: you cashout 1m, as in my county I pay 15 percent profit fee, if I hold in usdt I back to buy crypto with 1mil also, I dont pay fee, when from my bank I back to buy crypto only with 850k usd, not 1m. Let say I double my investment it is 2 mil, from your bank it is 1.7 mil.
So now you pay taxes from 2mil and another way you taxes from 850k, because you invested 850k and you pay for profit. Both 15 percent as in my country
How you cant see this math? You loss more than 100k in taxes
I like the dimensions you calculate in
Can’t tell you how it is in your country. Just saying in Austria I need to pay the tax for the profits based on the date when I changed ADA to USDT. If I do it twice I have 2 times a value increase which causes TAX.
Only if I hold longer than 1 year no tax is calculated. If I pay it out to my banking account does not make a differency in terms of how much tax is required to be payed. Again, for my country.
Or say it differently.
In Austria it is not about the difference between Paying crypto and getting some increased Value back on my banking account. It’s about every individual change of a currency to another one. If there is a value increase i need to pay tax for it (except after a 1 year waiting time)
In the UK you would need to pay tax when you “exchange your tokens for a different type of cryptoasset” … you might have to look up what your tax man wants from you…
This is the UK law :
“The Capital Gains tax-free allowance is: £12,300”
( no tax on 12300£/2021 )
For more then 12300£ profit :
" You might need to pay Capital Gains Tax when you:
- sell your tokens
- exchange your tokens for a different type of cryptoasset
- use your tokens to pay for goods or services
- give away your tokens to another person"
As said before, converting to USDT instead of real fiat doesn’t absolve you of paying capital gains tax, at least in most countries. Few countries like France specifically decided that exchanging crypto for crypto is not a taxable event, but that’s the exception rather than the rule.
And while they might not be able to find out that you haven’t paid your taxes right now, I believe most tax agencies will have this capabilities in 10 to 15 years. Remember, everything is stored on the Blockchain forever. If you get audited in 15 years, you’ll have to pay punitive interests and penalties over these 15 years.
And regarding USDT, it will remain around $1 as long as Tether remains solvent (and people think they are solvent). Otherwise it will go to zero. I personally don’t think they are solvent which is why I refuse to hold USDT.
so do you think if crypto will crash, usdt and usdc crash too?
even it is taxable converting to usdt, it is much safer to hold usdt or usdc in wallet, than in bank.
when you have money in bank it is not your money, it is bank money, if bank will want will freeze your account, close your account, limit your account and so on. when I have money in my hard wallet, it is like holding physical gold in your hands. I agree to pay taxes, but banks are legal global mafia and I want hedge aginst them as much as possible.
There was an article on cointelegraph regarding the reserves behind USDT yesterday:
what if you exchange to gold or silver?
Not fully agreeing to that. On the bank I have some insurance from the EU “Einlagensicherung”. So if the bank crashes I still would get some money out. Of course this is a different scenario like my money being freezed.
Comparing to a crypto exchange. If they are getting insolvent, hacked or closed for legal reason no one will pay me out. So am I really more save with USDT on an exchange? I would doubt it. Maybe I’m more save when having it on my own wallet do not depend on a single exchange. But still there is a central point which controls the reserves for USDT which may fail more easy than the overall banking system.
So all of this seems quite unrealistic to me. But on a high level I would think having my USD in my banking account is more save than having USDT on some crypto exchange.
Thanks for the precision. For those interested there is a dedicated Telegram channel (only for France).
crypto exchange is qual to banks, kraken closed my account without any real reasons, I applied to them for support to help me and they closed my account there. Good I just moved my all crypto to safe wallet before they did that. holding big sums only in hard wallets. Central banks going to crisis because of the printing money and the fiat will have inflation this is another part of the fiat and bank also the limitation and close accounts threats, look at what Yellen said also ECB “big bang” migration is comming next year, it will be big changes in banking system they already published the documentation in they official website
@TadCryp If you want to cut to the chase I would highly suggest contacting a tax accountant or lawyer familiar with the laws in your country. Many of these laws are changing right now as governments around the world are starting to pay attention to cryptocurrency for the first time in earnest. Anything people say here should not be construed as legal or tax advice!
That said, over here in the USA the government has added a specific question about crypto assets to their tax form. Currently it seems they are willing to treat it as either income or capital gains depending on the date of acquisition similar to stocks or other investments. They get this information from the exchanges so until you trigger a “taxable event” as defined by your government you should be OK. For example in the more traditional financial system you can buy stocks all year long but you only pay taxes on “realized gains” when you sell at a profit, collect dividends, etc.