Re: Bitcoin is not made to apply taxes on it - BTC economic model is different
Bitcoins created by mining are self-generated capital. Hence, the provisions of capital gains would not apply at all. Accordingly, the income tax authorities may choose to tax the value of bitcoins received from mining under the head Income from other sources.
You are right there is a tax on whatever kind of earnings you make, whether you earn by crypto trading or you earn by mining them. One can evade taxes by using DEX but in all seriousness, I wouldn't recommend doing it because firstly you will be caught at some point and secondly the DEX have still not managed to sort the high transaction fees associated with Ethereum.Bitcoin is not made to apply taxes on it as Bitcoins Economic model is different. If governments want to earn money through cryptocurrency, they must invest in it.
I guess you must explain why government should not apply tax on cryptos. Even I agree that government may invest into cryptos, but why not apply tax? If you have any other valid point for your argument, please add that as well which may help us to understand your perspective more easily.Taxes does not only have downsides. Taxes means for a specified asset you can declare both gains AND losses. In other words, if your gains are taxed in year 1 and you have losses in year 2, you can also declare the losses and reduce your overall taxable income. The taxation coin has two sides so to say.
You ned to use a wise strategy to maximize your positive outcome in the end.