In this modern era of “Digital technology”, we are going fast towards digital money and digital solutions that can replace money or cash transactions. Bitcoin is a form of digital cryptocurrency. Its existence depends upon its acceptance. It does not have any physical existence. Let us know about ‘ Does The Us Government Accept Bitcoin?’.
How Can One Use Bitcoin?
It does not have any physical existence. It is just like you have a specific bitcoin address, through which you can do a transaction on another specific bitcoin.
Does U.S. Government Accept Bitcoin?
Yes, as per data on Google, bitcoin is legal in the U.S.A., and “THE INTERNAL REVENUE SERVICE (IRS)” has more interest in bitcoin. The IRS also issues guidelines for taxpayers. Even you will be surprised to know that the U.S. government owns bitcoin worth $4.08 billion. The U.S. government believes crypto is a property-like thing and not a “currency”. U.S. government not only uses bitcoin for payments but also charges taxes on it, according to its current value.
Converting Bitcoin Into Cash In The U.S.A.
Yes, you can convert bitcoin into cash in the U.S.A. they have three methods for it:-
- Cash-out method.
- Peer-to-peer transaction.
- Third-party broker exchange.
- Cash-out method:- For this, there will be a strong requirement of a third party as an exchange broker. It involves “BITCOIN ATMs”.
- Peer-to-peer transaction:- It is another faster and easier method, in this method, you sell your bitcoin directly to another person.
- Third-party broker exchange:- It is also a simple and faster method of making cash out, as, in this method, we make money just like we take from currency exchange, at the airport.
Exchanging Bitcoin With Money, As We Do In Currency Exchange
- Deposit the Bitcoins into the exchange. They’ll receive your bitcoin and inform you.
- You’ll ask for the withdrawal in the currency of your own choice.
- Withdrawal is done by them, into your account.
- You’ll receive your amount in 5-7 days. (Differs in every country, like their rules and regulations).
NOTE:– You should use the same account number for depositing and withdrawing the amount.
USA’s Position In Using Cryptocurrency
- The U.S.A. is among the top developed countries that use CRYPTOCURRENCY for their transactions.
- The U.S. government is at the top of the list, they use bitcoin more than any other country in the world.
- As per the data, the U.S. government owns bitcoin worth $4.08 billion.
Country That Adopts Bitcoin As An Official Currency
El Salvador, became the first country to adopt bitcoin as an official currency in September 2021.
India’s Position On Bitcoin
- Our government still does not recognize it as a “Legal Tender”.
- The government does not regulate it properly, so, cannot be said that these are secure enough.
- In 2018, RBI announced a ban on the sale and purchase of cryptocurrency for the entities regulated by RBI.
- In 2020, the supreme court passed the verdict, revoking the RBI ban on cryptocurrency trade.
Using Bitcoin
It can be used in two forms :-
- Perform transaction
- Investment in bitcoin
NOTE:- In 2009, one bitcoin was for about 0.04 paisa, but today, one bitcoin cost is more than ₹18 lakhs.
Reason For Introducing Bitcoin
- It is introduced to avoid the control of the third party in the whole system like a bank.
- It does not affect inflation as money does. (As it has a limited and finite supply, which means there will only ever be 21 million bitcoins ever produced).
Advantages of Bitcoin
- No need for any centralized bank system.
- Control on self-money.
- No government interference.
Disadvantages Of Bitcoin
- Not accepted everywhere.
- No involvement of the government so promotes illegal activities.
- Volatile in nature, its value changes every 30 seconds.
- Virtual investment and not real.
- Low credibility.
- Promotes hacking, crime, and terrorism.
Conclusion
You are the decision-maker, and you are responsible for your decision, as per the guidelines of your country, make your investment, always remember, there is a high risk, but high risk also provides high profits. So, take your decision according to your potential.
Frequently Asked Questions
- Can bitcoin be used to make payments of taxes?
It totally depends upon your rules and regulations.
- Is it safe to invest in bitcoin?
No, its prices are not fixed, those just fluctuate.
- Can we control or predict the prices?
No one can do that.
- Can one pay taxes to the US government accept Bitcoin?
Yes, Bitcoin is accepted in the U.S.A. as they use crypto for their transactions.
