Should Bitcoin Be Accepted As Wages? Know These Factors First TechRadar

Bitcoin trading started in 2009 without any source from its direction or owner. No one to date knows who invented this digital coin, however, many speculations and names have arisen. “Satoshi Nakamoto” is alleged to be the pseudonymous person(s) claiming to be based in Japan, as the inventor of bitcoin. However, these are still unconfirmed as of today. But that hasn’t stopped the Bitcoin frenzy from stunning the market world.

Bitcoin gained popularity in early 2017 and became the very first cryptocurrency to actually be used. Bitcoin is decentralized and readily available. However, the idea of ​​adopting bitcoin as a way to buy goods and services is still not widely accepted, but many businesses, retailers and platforms have kept a broader mindset in favor of it. use of bitcoin as a medium for the exchange of services and payments.

According to data from CoinMarketCap, the Bitcoin price today is $46,644.46 with a 24-hour trading volume of $32,264,225,286. Over the past 24 hours, Bitcoin has jumped 1.49%. Bitcoin has a supply limit of 21 million BTC coins, while currently the circulating supply is over 19 million BTC coins.

Bitcoin remains the largest cryptocurrency in the market even when it corrected from its all-time high of $64,863.10 on April 14, 2021. The digital coin surpassed the market capitalization of $1 trillion in April from last year. However, experts are optimistic about Bitcoin’s future.

But should Bitcoin be used as a means of earning a salary?

Notably, Bitcoins were created for a process known as mining. They are allowed to be exchanged for other currencies, products and services, however, the digital coin is also criticized for illegal transactions. Not only that, Bitcoin has also been criticized for the large amount of electricity used for mining, price volatility, and thefts on exchanges.

Many renowned experts have called Bitcoin a speculative bubble that will eventually burst. It just means that Bitcoin price has a high volatility frequency and just like a soap bubble, it can burst drastically. However, some experts saw Bitcoin as a game changer for the cryptocurrency market and the start of a new era in the world of commerce with an imprint of the expansion of the blockchain industry.

Some local and national governments have officially started using Bitcoin to some extent, especially a country called El Salvador which has adopted BTC as legal tender.

After the wild ride of 2017, Bitcoin’s performance motivated many to opt for the coin as payment for goods and services, but this idea was quickly dismissed as regulators around the world decided to tighten the lock around it. of cryptocurrency trading.

Last month, the Indian government issued strict tax rules on crypto trading. The Lok Sabha approved the Virtual Digital Asset (VDA) or “Crypto Tax” tax rules proposed in the 2022-23 Budget by approving the Finance Bill 2022. These new tax rules came into effect on 01 April 2022.

Under the new tax rules, in India a capital gains tax of 30% is imposed on crypto transactions. In addition, a loss incurred on the transfer of the virtual asset will no longer be able to be compensated by any income calculated under the “other” provision of the Information Technology Act, because the word “other” has been removed. Additionally, 1% withholding tax (TDS) on Indians buying or selling crypto as well as crypto gift taxes have been imposed.

Regarding India’s tax rules, Probir Roy Chowdhury, Partner, J. Sagar Associates (JSA) said, “While many players in the cryptocurrency industry initially welcomed the inclusion of ‘digital assets virtual” in the 2022 Finance Bill (“Finance Bill”) – announced as the implicit acceptance of cryptocurrency by the government, a closer examination of the finance bill demonstrates the government’s reluctance to encourage the growth in this space.”

Also, it should be remembered that no major economy has accepted Bitcoin as legal tender. Many countries, including India, are exploring their own mechanisms to launch central bank-backed digital coins (CBDCs). RBI will introduce India’s digital currency in FY23.

Moreover, even though many services use Bitcoin as an exchange. But, basically, it is not used. There are many services like groceries or other goods purchases from local stores where Bitcoin is still a stranger. Bitcoin is not widely used by locals, and chances are you still have to rely on your country’s currency for such services.

However, many companies, especially e-commerce platforms around the world, have started preparing to use Bitcoin as a payment method. However, widespread acceptance is still a far-fetched reality.

Additionally, many banks have banned in major countries from using bitcoin or crypto as a means of payment. Indian banks have also been cautious about crypto transactions due to their secrecy nature.

Bitcoin can be used to buy NFTs, purchase properties in the virtual world, play games and products on e-commerce platforms that have allowed Bitcoin as a payment method.

Bitcoin is open source, publicly available without any central bank or regulator support. Thus, no one controls Bitcoin and everyone can participate.

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Should Bitcoin Be Accepted As Wages? Know These Factors First TechRadar


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