Ban Bitcoin ...

With 64 days left this year, the Federal Reserve is coming out with some news again. And this news is not what crypto owners were hoping for. The Federal Reserve is calling for additional taxes on crypto or even a ban on Bitcoin! Why now all of a sudden, you might ask yourself. Let's put it this way, governments do not want you to be independent. After all, we all have to pay for budget deficits! And since America now has a budget deficit that has increased significantly in a relatively short period, people are looking for a way to solve this. They have figured out that enough money is circulating in the crypto market to provide a solution. Why not, right? Why should a government have to look for itself to keep expenditure and income in balance, and why wouldn't you keep part of your reserves in crypto yourself to benefit from the growth? Okay, I know that crypto is volatile and that a country can't just do that. But to always immediately look the other way and call for additional taxes and even a ban on Bitcoin ... I'm getting tired of it! We will have to wait and see how it goes. The US is in many ways the forerunner and Europe follows the US, but here it seems to be the other way around. The US would, if it goes through, follow European examples in this for once.

Italians "Happily" Pay Crypto Tax

Look at Italy, people have until January 1st to declare their crypto in their tax papers. If they do this, they get a 'gift'. Instead of paying 26% tax on profits above €2000, they can then 'consider themselves lucky' with a tax of only 14%. You see, as usual, this can only be done by a government. How do you make someone happy by paying 14% tax? Well, by only allowing this special rate to apply for 2 months and then almost doubling the tax rate. That government is nice.

The End Of Portuguese Crypto Paradise

Now you might think that you might as well leave for Portugal with all your crypto. Uh, nope! Portugal used to be a crypto paradise within Europe, but that is also a thing of the past. There, a capital gains tax of 28% now applies to crypto.

Governments Are Not the Only Danger in Crypto

So on the one hand, the crypto world has the 'danger' of ever higher taxes if you are an honest crypto owner who simply follows the imposed rules that we were trying to avoid. Because hey, wasn't crypto originally intended to have financial freedom in a decentralized system where no one party has the power? Well, let's forget that because that's not how it works in this world where ALL finances are controlled, including crypto. But the crypto world also has another major problem. And that is the many scams that you will always have to watch out for.

Crime Pays

The EXW scam story came out of Austria last year. Several very lively criminals have raised around 20 million euros by scamming around 40,000 investors. With such an amount, you would expect them to be able to get by for a while, right? Until you hear what they spent their acquired wealth on. It is almost unbelievable, but in less than a year a large part of the money has already been spent. You could make a Hollywood blockbuster about it. Partying in the most expensive clubs in Dubai, traveling between the different cities in private jets, buying a luxurious expensive villa in Dubai, and not having an ordinary swimming pool built in it but a large shark tank! And of course, this excessive entertainment was more fun if you could share it. The native Austrians didn’t seem to have many friends to share their wealth with. But you can always buy exciting company! The prostitutes were probably quite pleased. Okay, granted, just over a hundred thousand out of a total of 20 million euros isn’t that extravagant. Well, anyway, the game is over. The sentences have been pronounced and unfortunately, in my opinion, they are far too low. Two of the criminals were sentenced to five years, two were sentenced to thirty months and one was sentenced to eighteen months in prison. Five others have been acquitted, and other people involved are still in hiding. These punishments don't seem to me to be a deterrent. It may be me, but I somehow feel that crime pays more than just honest hard work these days.

Back To Work

I have no idea how you feel about it, feel free to let me know in the comments. For me, a 'normal work week' starts again after writing these market musings. Even though I feel that crime pays more than just honest hard work, I was not cut out to be a criminal. Have a nice week everyone.