Leister

Ethereum has a market cap of $253 billion.

dollars which i would argue is slightly low not greatly low but slightly low time will tell what happens with crypto in the next couple of weeks especially if we don't get clarity with clarity act and we don't get other legislation designed to improve the state of everything with cryptocurrency speaking of cryptocurrency in general you might be confused or oblivious if you're in the united states

regarding the tax situation if you've not been if you've been ducking taxes you've not been paying taxes you're not paying attention this part of the episode is for you because you may have not noticed the irs has flipped the script on the rules for taxation of crypto a while ago i gave a message that said if we don't fix the tax situation if we don't clean this up

get some clarity around taxation with respect to cryptocurrency it's going to be a problem for adoption here we are let me try to simplify what the irs has essentially said what the irs has essentially said is regardless of whether it's a self-custody wallet or a custodial exchange anytime you do a transaction of some kind they're treating that as a taxable event and they

are requiring the various exchanges and brokers, not just exchanges, but also brokers, to collect and document all of these different transactional activities, provide a statement of gross proceeds, and it's referred to as Form 1099-DA.

This is including certain transactions for the purposes of financial basis, but not all of them.

That's the key point people are missing.

It's not comprehensive.

It does not capture every single transaction that they expect you to, not just because of the self custody, but simply because there's ambiguity when we say every single transaction needs to be accounted for.

So let me give you the set, the example that they quoted.

You get some Bitcoin.

Let's say you go to the Bitcoin ATM.

I just had a lady I was next to.

She got some Bitcoin at the ATM, Bitcoin ATM, get the Bitcoin goes to your self custody wallet.

That's a taxable event because you purchased it.

Then you go into the exchange.

So let's say you're going to transfer, transfer it over to exchange to let sit there.

The transfer is a taxable event, believe it or not, which is stupid, but they treat it as a taxable event because there is a bit of conversion that happens.

When it's an exchange, there's a conversion inbound.

That's why they refer to as a spread.