Gail Eddy, Nederland. When I read last month that the State of Ohio has begun to accept tax payments in Bitcoins, I knew that the legitimacy of cryptocurrency has turned a corner. Normally I see the use of Bitcoins limited to investing or collecting ransoms for reasons varying from malware placed in my computer to last week’s example of a bomb placed in my office building. This act by Ohio sets a whole new precedent. Frankly, I expected to see this first in a state which has legalized recreational marijuana, not in a state which has only just started to offer a medical marijuana program.
According to the Cincinnati Enquirer, “Ohio became the first state in the nation to accept the cryptocurrency, Bitcoin, for 23 different business taxes ranging from sales tax to severance taxes on oil and gas. A business signs up through OhioCrypto.com, enters their tax payment information then pays through a third-party processor, BitPay. There is a minimal fee for the transaction compared with 2.5 percent assessed when businesses use credit cards.”
Where could I use Cryptocurrency? Well, if you lived in Ohio and ran a business, you could obviously use it to pay your taxes. You can also use Bitcoins to pay for your vacations through CheapAIr and Expedia, food such as Subway and PizzaForCoins, Technology with NewEgg, Microsoft and Dish, Jewelry at Reeds, and coffee at Starbucks, which will begin accepting Bitcoins in 2019.
How would I do that? First, you’ll need to set up a Bitcoin or other cryptocurrency wallet. There are a number of different kinds and brands of wallets available. Here are two articles that explain how to choose a wallet that will work well for you:
*https://atomicwallet.io/how-to-choose-bitcoin-wallet
*https://bitcoinist.com/best-bitcoin-wallet/
Be sure to understand the fee structure, privacy and security prior to setting up your own wallet. Read the fine print!
Taxes. In the US, the IRS considers Bitcoins and other cryptocurrencies to be a form of property. This means that each transaction must be recorded for gains and losses and filed with your tax return. Please ask your accountant for more detailed information.
How much does a Bitcoin cost? Like other currencies, the price of Bitcoins fluctuates. After hitting a high of about 1 Bitcoin = $17,000 last year, Bitcoins are currently trading just under $4,000.
Bitcoins are used outside of the United States too. Countries with very high inflation rates see Bitcoins and other cryptocurrencies as a stable form of currency.
Please let us know if you have other questions about cryptocurrency.
Chris Eddy of Geek For Hire, Inc. has been providing computer service to families and small businesses with Macs and PCs for the past fifteen years. His company is highly rated by both the BBB (Better Business Bureau) and by Angie’s List. You can find more at www.GeekForHireInc.com or give us a call 303-618-0154. Geek For Hire, Inc. provides onsite service (Tier 3) to the Denver / Boulder / Front Range area as well as remote service throughout North America.
