Bitcoin has been on the rise for quite some time now. And if one asks Bitcoin experts why it is, they will answer that Bitcoin’s growing popularity can be explained by several factors.
First of all, Bitcoin prices are surging because not only are more people buying Bitcoin, but also Bitcoin owners are starting to use Bitcoin as a payment method rather than keeping their assets in Bitcoin-only wallets without transferring any further.
Another reason why Bitcoin is gaining momentum at this rate is that even though the U.S. is at the forefront when it comes to Bitcoin trading, Bitcoin has been catching on in countries such as Japan and South Korea where Bitcoin’s value has risen significantly over the last few years
And finally, Bitcoin is gaining traction because of Bitcoin’s biggest price surge ever in late 2017 when Bitcoin reached a record price of nearly $20 000 per Bitcoin in November just to drop back down to December highs near $11500 after a series of disappointing news from China and India that put further pressure on Bitcoin prices worldwide.
Overall though, Bitcoin isn’t done yet and is still going strong after seven years since its inception proving itself as a viable cryptocurrency for not only online payments but also real-life use cases which will only become more common if Bitcoin succeeds in the future.For the more information visit yuanpaygroup.org
Recently Bitcoin has been facing a lot of challenges and good news at the same time. Although Bitcoin price has risen recently to $12,500 USD, there were some concerns over Bitcoin’s usage in India and Australia.
Worldwide Reputation of Bitcoin
In India, Bitcoin traders will be forced to pay tax on capital gains after selling or buying Bitcoin. While this seems like bad news to Bitcoin traders and users, the government did put forward some words about how they wish for Bitcoin to thrive: “The government does not recognize cryptocurrency [Bitcoin] as legal currency as of now” [1]. This means that even though Bitcoin is being taxed by the Indian government, it still encourages people to use Bitcoin rather than other currencies such as Fiat currency. Although it may seem like Bitcoin has been made illegal in India, Bitcoin trading will still go on as Bitcoin is not banned. Bitcoin has also been recognized by the Indian government as an asset that can be sold or bought.
Bitcoin was recently made legal to use for payment for services done in Japan, but Bitcoin was given a value-added tax which means Bitcoin traders have to pay taxes depending on how much Bitcoin they trade [2]. This is good news for Bitcoin users because it gives Bitcoin more recognition and allows Bitcoin to be seen as currency rather than just an asset. The only bad thing about this is the fact that Bitcoin’s price could drop slightly due to this new law put forward by the Japanese government.
In Australia, there are similar laws being put into place for Bitcoin traders. Bitcoin will be considered a commodity in Australia, this means Bitcoin can be bought and sold using Bitcoin but Bitcoin is not recognized as legal tender [3]. This shows Bitcoin has been labelled an asset rather than a currency which could impact how Bitcoin’s price reacts in the short term.
In Europe, Bitcoin is seeing some good news from France and Spain too. In France Bitcoin transactions under €1000 have been made exempt from French VAT [4]. Since Bitcoin is currently being recognized as a digital service, any purchase or sale of Bitcoin that does not exceed €100,000 yearly will not have to pay VAT on it [5]. This makes it easier for people in France to buy and sell their Bitcoins without having to worry about Bitcoin’s price fluctuations due to Bitcoin being taxed.
Spain has also made Bitcoin exempt from their 20% VAT tax, but Bitcoin has been labelled as a service rather than an asset or currency [6]. This means Bitcoin traders will have to pay up to 20% VAT on Bitcoin trades depending if Bitcoin is considered a service or not. Although Bitcoin may be considered a service in Spain for now, Bitcoin could still be recognized as legal tender and become exempt from VAT in the future as France did.
Despite Bitcoin having some challenges these last few weeks, there has also been good news for Bitcoin too. In countries such as Japan and France Bitcoin is starting to see more recognition where it could’ve only traded as an asset before.
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