Will Tax-Free Crypto Convert $1.5 Trillion into Bitcoin?

US company iTrustCapital said allowing customers to invest in Bitcoin tax-free has led to a cryptocurrency boom in recent months.

CoinTelegraph pointed out that according to the iTrustCapital trading platform, there are increasing numbers of investors who are transferring their current retirement accounts outside of traditional financial institutions, which usually only provide them with shares and bonds.

Cryptocurrency boom due to tax credit

The report emphasised that interest in cryptocurrencies has gained clear momentum recently.

This is largely due to influential advertising campaigns. Also, many people now see Bitcoin as a safe haven against inflation and the massive sell-off in the stock market.

Another influencing factor is the Internal Revenue Service’s insistence on clamping down on cryptocurrencies.

According to iTrustCapital, there is no exception for investors and they must pay tax on every Bitcoin transaction.

Anthony Bertolino, one of the company’s most prominent managers, said that the buying and selling process via iTrustCapital accounts does not differ from dealing with Coinbase.

He stressed that the process is very easy, merely needing to enter the account and make three clicks.

He continued by saying, “What makes us different from others is that our customers do not feel any concern about taxes, because transactions are tax-free.”

Bitcoin’s future with tax relief

Bitcoin is very popular with the younger generation, and large inflows of capital are expected in the coming years.

ITrustCapital said its tax-free model will help increase the demand for Bitcoin even further.

“We expect technologies like blockchain and digital assets to create a new sector, as well as access to pension capital,” said Tim Schaller, an economist.

He stressed that the move to exempt cryptocurrencies from taxes in the company will boost the number of Bitcoin users.

Schaller expects that $1.5 trillion of capital could convert to new assets over a period of five to seven years.

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Mohamed Tharwat 20 Articles
Cairo-based journalist, specialized in economics and finance markets