By Nathan C. Goldman and Christina M. Lewellen
In July of 2022, Bitcoin, arguably the world’s most recognizable cryptocurrency, fell to below $20,000. This level marked a significant decline from its high of over $68,000 in November 2021. For most of the last several years, investors were interested in understanding the tax implications of their cryptocurrency holdings from the perspective of how their gains will be taxed. Now that cryptocurrency has declined in value, we turn our attention to the tax implications of cryptocurrency losses.
The Taxation of Cryptocurrency
Like our previous article discussed, the government taxes cryptocurrency as a capital asset, similarly to the taxation of sales of stock or commodities like gold. This departure from its namesake of a ‘currency’ seems a bit odd. However, cryptocurrency is not something that is freely traded for goods and services, nor does it maintain a steady price. Thus, its characteristics are much more aligned with a stock rather...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...