CRYPTOCURRENCIES & AUSTRALIAN TAX
So you’ve put some hard earned cash into the newest investment sector known as cryptocurrencies, made a gain but not sure what, if any, tax implications investing in cryptocurrencies has.
Unfortunately for those lucky enough to be in the green there are tax implications, similar to that of share investing, which I will touch on later.
Firstly, cryptocurrencies were made famous by Bitcoin and it’s extreme volatility. Overall the value of Bitcoin has soared since Bitcoins inception in 2009 from USD$0.003 March 2010 to currently USD$10,313. That is a staggering 3,437,666% increase!
In amongst that huge gain is several times where Bitcoin has dropped up to 50-75% value in a matter of days, meaning investment is not for the feint hearted.
Meaning USD$10 in March 2010 then would get you 3,333.33333333 Bitcoins, those Bitcoins would right now be worth USD$34,376,666.67 if you managed to stave off the temptation to sell along the way or lik...