Posts Tagged "Bitcoin"

So, Bitcoin Is Not Real Money?

Posted by on Sep 9, 2014 in Blog

So, Bitcoin Is Not Real Money?

As the whole world talks about Bitcoin and more and more people are going crazy about this new kind of money, the Australian Taxation Office (ATO) decided to act like a wet blanket. In short, the ATO decided the crypto-currency is NOT real money and it should not be perceived and treated as if it is. Instead, Bitcoin is being compared to a barter transaction and should ultimately be treated as such. While all this may be very well for the ATO and their money regulation methods and processes, many ask themselves what the consequences will be. According to the specialists, the new regulation will not affect individual Bitcoin users to a great extent, but it will have a serious (and absolutely negative impact) on the business, especially on those businesses trading with Bitcoin and earning from its growth. From now on, Bitcoin will experience the effect of the so-called ‘double-whammy’ GST payment. This means that businesses who trade services in exchange for Bitcoin will charge 10% GST on them, the same as usual. However, from now on they will have to pay another 10% GST when converting Bitcoin to ‘real’ money. On the other hand, those who say that the individual...

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