I hate it but I DID sell some Bitcoin recently..
I made some Bitcoin recently that I will have to pay taxes on..
It was keeping me up at night that if by the off chance Bitcoin dumps then I would be stuck paying taxes on its price when I acquired it, no matter it’s current price..
So basically by the off chance Bitcoin really took a fall, I could be stuck paying more taxes than what the coin was worth at all, and that could REALLY hurt me..
So, I played it safe and sold just enough to cover what taxes I’ll have to pay, which is making me sleep much more comfy..
Apparently, wash sale rules do not apply to bitcoin YET (there are rumblings thatthis would change in 2022).
Therefore, if someone had a profitable trade, but now in a trade that is in minus, he/she can quickly sell and a second later re-buy, claim the loss and STILL have the exact same number of bitcoins...could be an interesting proposition. The only caveat is that I don't know if Turbotax software "knows" that bitcoin doesn't have a wash sell rule.
Not a financial advice, just an observation