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Twitter Bans Cryptocurrency Ads But IRS Is Serious About Imposing Taxes

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Twitter joined tech giants Google and Facebook in banning advertisements related to cryptocurrencies causing bitcoin to fall from $8,316 to $7,920 as of 1740 GMT today. The reason for the ban by Twitter as reported is their concerns about scammers appearing on social media as legitimate investment companies. The ban, starting tomorrow, will cover advertising for Initial Coin Offerings, token sales, cryptocurrency exchanges and wallet services. The ban will be fully enforceable within 30 days.

According to experts, the main reason for the fall of bitcoin at such announcements is that most of the new investors are trading them on raw emotion. But the truth is that such falls are short lived and crypto currencies always bounce back to normal. Earlier in January Facebook banned crypto advertisements with some fall in the bitcoin but in March it surged to $9000 for the first time since its fall in 2017.

Twitter’s reason for the ban would sound meaningful if you search Twitter for hashtag crypto on Twitter. Various offers, most of them very clearly impossible to offer in reality, are waiting to prey on the unsuspecting potential investor. On March 7, Bloomberg reported that Twitter would act similarly to Facebook in the wake of scams using social media.

But at the same time comes the news that the Internal Revenue Service is serious about imposing taxes on virtual currency. The IRS considers cryptocurrency as “property for U.S. federal tax purposes,” and that “general tax principles that apply to property transactions apply to transactions using virtual currency.“ It may be bad news for your wallet, but the implication is that the authorities have already accepted crypto assets as legitimate. Here you will find the IRS guide and answers to FAQs on the subject.

On March 16, CNN reported that Trump’s New Economic Adviser aims to lower taxes on crypto assets encouraging potential investors. Since crypto-currencies are hard to trace except when someone is buying or selling them, CNN Money journalist Anna Bahney advises that it is wise to report crypto assets to the revenue services.

Based on the past behaviour of crypto currencies, especially bitcoin, although these assets are a prime example of behavioural finance, in keeping with the general principles of financial market forecasting, it is clear that they will bounce back as emotions die down. Bitcoin itself is the prime example for that scenario too.

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