- bitcoin isn't usable as a transactional currency. it costs $30-40 per transaction. Plus other currencies are gaining steam, and offering other choices for people to transact
- bitcoin isn't rare to be a store of value.....everyday there's a new viable cryptocurrency springing up
- bitcoin isn't safer than dollar.....it can drop 90% in any day; no official entity is going to prop it up and make sure it doesn't crash. it can be banned by countries (and has been by a few)
- bitcoin isn't easy than square cash or visa or wires.....it can take several weeks to send money. plus the transaction fees are high
What makes bitcoin 'rare' isn't the fact that it's a cryptocurrency, just like what makes a dollar 'rare' isn't the fact that it's a piece of paper.
It's the network (i.e. hash power) behind it.
Can you please explain in clear terms how a wash trade pushes up the value of bitcoin?
I can see it increasing the volume but not the value.
If you are a holder, or HODL as the kids say, then you get the benefit of long term rates, if you are a short term trader then you pay the short term capital gains rates, just like any other currency/commodity. trade.
Concrete rules will bring in more conservative money.
This was the last loop hole that some people were concerned about wrt to taxes and virtual currency trading.