Holy Cow, I Have to Pay Taxes on My Crypto
A stark reminder that blockchain activity is as real as it gets
My financial play area had an unexpectedly serious message for me: It was time to file my taxes — on my cryptocurrency activity.
Scanning the email from Coinbase, it struck me, perhaps for the first time, that Bitcoin, Ethereum, and half a dozen or more of the cryptocurrencies I currently own or trade in, are not play money. It’s not Monopoly money. Though, to be fair, I’ve never willingly taken real U.S. currency and exchanged it for the multicolored board game funds.
Ever since the blockchain revolution began almost a decade ago, opponents have argued that it’s not real. That the digital fiat based on the immutable chain is ephemeral, without value, and for dupes.
Billions of dollars invested in, and businesses increasingly built upon the currencies and systems that support cryptocurrencies would beg otherwise. And yet, there is something to this day about the buying, selling, trading, and NFTs of it all that does feel like funny money — especially if, like me, you’re not deeply invested.
My entire crypto portfolio is worth less than $200 (far less after the bottom dropped out of the cryptocurrency market some weeks ago). But I admit to treating the investment of…
