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Cathie Wood: BTC investors shouldn’t transact until tax code changed

Selling or transacting your Bitcoin isn’t worth the tax burden, according to the CEO of Ark Invest.
Cathie Wood, the founder and CEO of Ark Invest, is cautioning investors not to sell or transact their Bitcoin (BTC) until the United States Internal Revenue Agency, or IRS, introduces more sensible tax policies on digital assets.In a webcast hosted by Cboe, Wood said transacting with BTC could lead to massive tax liabilities. “The IRS has something to say about this, so if you have huge gains in your Bitcoin, I don’t think I would bear much in the way of transactions until we get maybe some changes on the tax front,” Wood said, according to Markets Insider. Using Bitcoin for transactions and selling it for profit have become attractive options for long-term holders. The flagship cryptocurrency recently spiked above $61,000 en route to new all-time highs. And while the BTC price has corrected sharply from its recent peak, it’s still up 80% on the year. Bitcoin holders in the United States are also now able to use their BTC to buy Tesla automobiles. At current values, a basic Tesla Model 3 could be bought for around 0.72 BTC.But whether you sell Bitcoin for profit or use it to buy a Tesla vehicle, it’s considered a taxable event – at least, in the United States. That’s because the IRS treats Bitcoin as property rather than currency. Until that changes, it may be counterintuitive to transact in the cryptocurrency. Although Wood’s comments …
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