Just why not, still investment. Now you are able to gather almost any crypto for long-term.
No longer considered investment. Now considered taxable income.
To me this is a big deal and a lot of miners forget to account for this as the tax amount can be fairly high at 30 percent or more depending on your tax bracket.
I think in this scenario it's okay. He made 2x gains, He didn't cash out he borrowed and use his coins as collateral. I don't know what rate he's paying but I know maker Dai borrowing fees went up high at 16- 20 percent credit card levels.
So he still has skin in the game for more upside without getting left in the dust mining at higher difficulty if price rise.
This. Nexo's loan rate is 16%. And yeah It's non-taxable until I use Crypto to pay off the loan. Since I'm running this as a sole-proprietorship under Schedule C(In America) it's counts as 15% income taxable.