certain business users and gdax users who have received at least 20,000 cash for sales of cryptocurrency related to at least 200 transactions in a calendar year. It could go to a 1,000,000 or it could go. M points to an argument that miners will then find the process unaffordable, leading to a reduction in the number of miners, a centralization process of the Bitcoin network, and numerous negative effects on the Bitcoin system. Air drops are considered ordinary income on the day of the air drop. But while fraudulent credit-card purchases are reversible, bitcoin transactions are not. Coming forward now actually could be the difference between criminal penalties and simply paying interest.
To be sure, only a minority of bitcoin miners and bitcoin exchanges have said they will support the new currency. The reporting of gains/losses and cost basis is still in beta and not guaranteed to be accurate. But that doesn't mean the value of investors' holdings will double. The future of bitcoin and bitcoins price remains uncertain. Taxpayers should stay ahead of the game rather than be reactionary. When the digital currency officially forked and split in two: bitcoin cash and bitcoin.
Exchanging one token for another for example, using Ethereum to purchase an altcoin creates a taxable event. Dollars or another currency at a gain is a taxable event, as it is treated as being sold, thus generating capital gains. Investors who have their bitcoin on exchanges or wallets that support the new currency will soon see their holdings double, with one unit in bitcoin cash added for every bitcoin.