ARK Investment Management Founder and CEO Katy Wood recommended that crypto investors not make any transactions with bitcoin until the IRS changes its rhetoric regarding cryptocurrencies. She spoke about this during a webcast organized by the Cboe exchange, writes RBC Crypto with reference to Business Insider. In her opinion, when conducting transactions in bitcoins, investors may face high taxes.
Wood notes that the IRS treats Bitcoin and other cryptocurrencies as “property,” like stocks and bonds, and not as a currency. When an investor exchanges digital money for fiat or uses it to buy goods, these transactions are subject to capital gains tax. The amount of tax for a transaction with bitcoin will depend on how long the investor has owned the crypto asset and how much profit he has received.
Earlier, Tesla CEO Elon Musk announced that the company’s electric vehicles can now be purchased for Bitcoin. So far, only residents of the United States can take advantage of this opportunity, but the entrepreneur promised that by the end of the year, residents of other countries will also be able to do this. Musk also noted that Tesla will not convert the received bitcoins to fiat.
At the end of February, Katie Wood already spoke out about Bitcoin, calling it a better risk hedging tool than gold. The head of ARK Invest believes that the main cryptocurrency can be used in many areas, but now the coin is best suited for protecting against risks.
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