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Cash Wood, the CEO of Arc Investment Management (CEO), who has been admired as the “golden hand of Wall Street,” for predicting price rally such as Tesla and Bitcoin, advised investors not to use Bitcoin as a payment method.
CEO Wood attended a webcast event hosted by the Chicago Options Exchange (CBOE) on the 25th (local time) and warned, “If you are an investor who has made an investment in Bitcoin, you should not use it for payment.”
“If you pay with bitcoin to purchase a product, the US Internal Revenue Service (IRS) will require you to pay a huge amount of tax,” he said. “I don’t want you to do such transactions until the tax system surrounding virtual assets changes to some extent in the future.” said.
The day before, US economic media CNBC warned that “Elan Musk, Tesla CEO, said that you can buy Tesla with bitcoin, but that could mean you have to pay more taxes.”
The U.S. Internal Revenue Service (IRS) classifies virtual assets such as bitcoin as assets other than legal currency, so buying a car with bitcoin is subject to capital gains tax.
Tesla costs about 38,000 to 80,000 dollars, depending on the model, and the current bitcoin price is over 50,000 dollars each, so you can buy a Tesla car with just 1 or 2 bitcoins. However, an investor who bought bitcoin for about $6700 a year ago has now earned more than 5 times and has to pay 10 to 37% of total income as income tax, and if the holding period is more than one year, up to 20% more capital gains tax. .