Bitcoin saw an enormous success in the late 2020. I had expected that governments will introduce regulations and taxation. And it seems like the time has come too! But as the law of gravity states, what has taken off has to, at some point, fall down. Will this halt the raise of the crypto currency? Or could this be the fall of the bitcoin?
Here is some info from South Korea:
“On Jan. 8, the South Korean government issued an amendment to introduce a tax on cryptocurrency trading profits. It will be enacted in February, and profits from buying and selling cryptos in South Korea will be taxed at 20% starting in 2022.”
It is still too early to speculate where the bitcoin wind will blow. It is still a very risky asset , even though the owners of bitcoin will tell you otherwise.
people buy bitcoins for two reasons, because they believe in the long term this investment will bring them lots of money and because they believe in decentralisation.
My prediction for 2021 is that bitcoin will continue to rise, at least until September. Once more and more governments put regulations then the price will start falling. This will be the time when the illusion of decentralised currency will fall. At that time only the banks will remain and they might try to replace bitcoin with similar currency that is under their control and make the usage of other crypto currencies way too expensive.
What do you think?