Preparing Taxes for Poker and Crypto/Bitcoin

Online Poker Game with Chips

If you nurture a passion for online poker game, you must stay acquainted with laws that regulate this virtual gaming platform. Players that earn considerable amounts are needed to abide by the taxation rules to avoid legal complications. This brings us to the question of crypto currency dealings that basically run these online legal gambling sites.

Since transactions taking place in poker games is based on digital currencies, players cannot ignore the crypto tax at any expense. Governments have tightened their control over these virtual dealings and every instance of winning and loses must be reported to the Internal Revenue Service of the US.

Although there are several types of crypto-coins available in the digital financial market, most of the poker game platforms are based on Bitcoins. This article sheds light on how you can proceed with tax preparation while playing pokers and earning in crypto currencies.

Why do the online gaming sites prefer using bitcoins/crypto currencies?

Digital currencies such as Bitcoins, ripple, litecoin and ethereum have become absolute favorites for online game sites. Similarly, the virtual poker games depend on this crypto fortune for its security and flexibility. However, players have often been observed to use these digital coins to place sport bets. Due to its breakability to micro decimals, online poker players can micro-bets on games as well. These factors have lent substantial ease to the players for whom online gaming is an obsession. For obtaining a tax estimate on any of your wins, you must keep access to tax calculating crypto software.

The taxation agency aims to deduct substantially as a form of tax from any type of game win. It could be winning in card game, casinos, bets on racetracks, lotteries, game-show and also pokers. All these come under taxable incomes. Generally, the government demands approximately 20-25% of every game winning that is to be deducted as taxes.

What problems do the online poker/game players encounter?

The foremost problem faced by the online gamers is meticulous compliance requirements with protracted and intricate taxation filing process. Furthermore, winners are almost always reluctant to abide by taxation rules since they do not wish to part with their earnings. Earlier when crypto currencies were devoid of the governmental watch, there was still a scope of tax manipulations. However, the scenario has completely altered in the recent years.

One must realize that government’s intervention in crypto-currency management is here to stay for an infinite period of time. The growing popularity of digital currencies has further invited attention of domestic and international tax regulation agencies. Therefore, it is better to accept the reality and thereby getting prepared for record compilations and tax filing. If the online gaming site you access deals in bitcoin transactions, then be quick to go through bitcoin tax help online.

If you have recently won an online game abroad, then you are still required to abide by every tax legislative requirement. You are wrong to hold the notion that an online earning acquired from another country will save you from tax payment. Upon analyzing previous legal cases, it has been found that online gaming accounts are mandatorily required to fulfill Foreign Bank and Financial Accounts (FBAR) obligations. Therefore, evading tax payment is never wise decision. Not only will you be compelled to pay the due taxes, but will also be required to pay heavy interest and penalties.

How can you make tax payment preparations?

Tax payment

The only solution to the issues discussed above is the correct preparation strategy. Let us next delve into how you can get your earnings organized for tax deductions.

Maintain every record

If you are a passionate poker player or have fascination with any other online game, then you have to keep trace of all your playing records. You can use any of the trackable apps online to search and compile the receipts of all the poker games you have played till date. It keeps a track of all your losses and wins that assists in tax filings for the legal requirement.

Always plan ahead

The entire nexus of online games is rested on digital currencies. Therefore, any winning amounts you receive are in form of either bitcoin or any other crypto currency. It is essential that you plan ahead the management of the earnings that you have made. For an instance, you can take help of reliable bitcoin tax software to separate the taxable money amount from the rest of the spared earning.

Long range saving objectives and accounts

There are various emergent corporation and associates that now provide expert guidance to the professional poker players. They stress on saving schemes and objectives thereby assisting the players to remain tax complaint all throughout his career. The consultants educate the players in functioning of crypto-currencies and guide them on the usage of crypto currency tax software. These firms also distinguish between beginners and experts in this game. This classification helps them to strategize personalized taxation filing plans for individual players.

Online gaming sites have gone global by the virtue of digitalization in last few years. It has necessitated the players to become more vigilant on the taxation front as the governmental control over crypto currency trading is steadily on the rise. This article is aimed at enlightening its readers that are online gamers for understanding the Nitty-gritty of online games and their tax implications. One can easily take help of online software for attaining tax compilations and filings.…

Bitcoin Furures Trading Could Burst Cryptocurency

Wondering to know the reason behind the Bitcoin futures trading? If yes, then, you are absolutely in the perfect place.

We all know that Bitcoin is the hottest and most trending subject of discussion among the people nowadays, especially youth of the current generation, and so, it is very obvious to have inquisitive to know that how bitcoin futures could burst the cryptocurrency’s bubble.

Let us have a brief discussion over it.

Bitcoin and Chicago Board of Exchange:

When the Chicago Board of exchange became the first major derivative to exchange to launch Bitcoin futures on December 10, then, the endless Bitcoin mania became more attractive.

When the price movements were excessive, then, trading was halted twice due to CBOE speed breakers.

The Chicago Mercantile Exchange(CME) group followed the launch of Bitcoin futures at CBOE. Nasdaq is also preparing for a similar launch in the second-half of 2018.

Bitcoins futures allow traders to conjecture about the price of Bitcoin later. Let us consider a real-life situation, the January contract for Bitcoin was trading around US$18,300, up from an opening price of US$15,000.

At the launch of the futures, there was such a high enthusiasm that the Bitcoin price touched an all-time high of US$17,382.64  after one day of CBOE trading.

After hearing this, bitcoin lovers may feel very happy, but it could lead to failure for the cryptocurrency for the long run.

It would probably have been possible that bitcoin future may end up lowering the price of Bitcoin.

Future trading brings a number of new choices for the investors to bet against Bitcoin and also allows them to settle the contracts in dollars.

Futures Lessons:

Though the crypto futures is new to the people as well as market, we must be aware of the futures contract trading dates back to ancient times.

In 1750 BC in Mesopotamia the Babylonian king, Hammurabi, introduced a legal code, the code consisted stipulations for trading goods at a future date for an agreed-upon price.

A good contract can easily be understood in terms of buying and selling an asset at a future date at the decided amount.

One party to the contract agrees to buy a given quantity of the asset (such as stocks or bonds) or commodities (oil, gold, Bitcoin), and take the delivery on a future date while the other party agrees to deliver the asset.

Here come some new terms, “Hedgers” and “Speculators”. These both are involved in future markets. Hedgers are concerned about saving and protecting themselves from future price drops, they buy or sell the asset.

They lock the price of the commodity at no risk of dropping it. On the other hand, speculators make assumptions.

They assume the possible risks. In case if the market goes against them, then, they will lose more than that if they have earned. And Here’s Comes the solution when you ask how margin trading works? Do check it out.

The Rise of Bitcoins and other Cryptocurrencies:

Source: Bitcoin Futures on Delta Exchange

One of the most trending and popular stories of 2017 was a drastic rise in Bitcoin, not only Bitcoins, Other forms of cryptocurrencies as well.

At the beginning of the year 2017, the cost of bitcoin was still under $1,000 before beginning a meteoric rise that would peak in December at just under $20,000. Then, the price of bitcoin and other cryptocurrencies fell off.

In 2018 alone, bitcoin prices started at $12,000, spiked to above $17,000, dropped down to just a shade over $7,000, before rising back to $10,000.

Because of continuous rise and fall of the price of cryptocurrencies, some believers such as Xapo CEO Wences Casares predicts that bitcoin prices could go as high as $1 million while the investor Warren Buffett believes cryptocurrencies will not have a good ending.

Well, nothing can be predicted according to the current scenario as nobody knows the future. There may or may not be a good ending of cryptocurrencies, this is something beyond assumption as well as imagination.

Final Words:

So, this was all about Bitcoin futures and how Bitcoin futures trading could burst the cryptocurrency’s bubble.

Here, we covered all the necessary details regarding the subject such as CBOE plans and decisions, future lessons, the rise of Bitcoins and other cryptocurrencies and some other assumptions and predictions related to trade ethereum futures.

We tried our best to give you all the required details about the Bitcoins futures. If you still have any doubts or queries, just feel free to contact and ask us.

If you have some other details regarding the subject or some other assumptions which you think can be a part of the content, must share with us. It will be good to have a two-way conversation.

Hope the content must have helped you.…

Experts call Google’s Bitcoin Ban ‘Unethical’ and ‘Heavy Handed’

Industry experts are calling Google’s decision to ban all bitcoin and crypto advertisements on it platform a harsh and unethical decision. The internet giant’s new policy will come into effect this month. Other social networking stalwarts, Facebook and Twitter have already put a ban on these ads.

The company announced the ban in March. It wrote in a blogpost, “Ads for the following will no longer be allowed to serve … Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice.”

The announcement comes at a time when Google, along with Facebook have reportedly been interested in this new space, especially in the blockchain technology. With their personal interest, the market is speculating that the ban isn’t solely because of regulatory pressure to confront criminality. The two companies may be removing all their competition from their platform, long before they launch their own services.

Phillip Nunn, CEO of Blackmore Group, a Manchester-based investment firm said, “I understand that Facebook and Google are under a lot of pressure to regulate what their users are reading, but they are still advertising gambling websites and other unethical practices.”

“I suspect the ban has been implemented to fit in with potential plans to introduce their own cryptocurrency to the market in the near future and therefore removing other crypto adverts allows them to do it on their own terms,” he added.

Google’s cryptocurrency ambitions were revealed when one of the company’s executives approach Vitarik Buterin, the founder of Ethereum. The company’s Ether coins are the second most valuable currency in the digital coins market and its blockchain has been used to create several other digital coins. The company wanted to bring him on their side for a new hush project. The entrepreneur asked his Twitter followers if he should accept the company’s offer but after receiving more than 2,000 votes, he deleted the tweet.

Google never commented on the story publicly. In fact, the company has stayed mum about its plans to launch a currency or even a blockchain based project. The only lead we have is a spokesperson’s comment made in March which suggests that the company was looking into blockchain. He added, “Like many new technologies, we have individuals in various teams exploring potential use of blockchain, but it’s too early for us to speculate about any possible uses or plans.”

Facebook doesn’t want to stay behind in this race. In May, the company announced its biggest ever management reshuffle. Facebook Messenger’s Head David Marcus was called into a new exploratory blockchain group that will reported to the company’s CTO Mike Schroepfer.

The efficacy of the new Google plan is still unknown, but it is highly likely that it may not meet the same fate as Facebook. The company’s new policy that came out in January was easily circumvented by marketers. They simply used ‘c-currency’ instead of ‘cryptocurrency’ to get rid of the ban. Though the two companies are under pressure to do their bit and stop frauds from happening on their platform, these bans are self-imposed.…