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You Can Now Pay Taxes Using Crypto. What Does this Mean for the Industry?

By 11/27/2018 No Comments


You can now pay your taxes using cryptocurrencies, only if you live in the state of Ohio in the U.S. What does this mean for the crypto community? And while many major digital currencies have been consolidating, the Ethereum based EOS saw sharp declines on Tuesday. With that, I’ll also take a look at EOS crypto token’s price action on the charts.

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Ohio Becomes First U.S. State to Allow Taxpayers Pay Taxes Using Crypto

Cryptocurrencies and taxes have been having a complicated relationship for a while. In the beginning, rarely any crypto holder was paying taxes on their digital assets, but after the 2017 market hype, many governments including the U.S. decided it’s time for them to grab a piece of the crypto cake and cracked down on crypto taxes. But ironically, you weren’t able to pay your taxes using crypto– until now that is.

According to OhioCrypto.com, a website launched by the Treasurer of the State of Ohio, Josh Mandel, Ohio will become the first state in the U.S. to allow some taxpayers to make their payments in crypto.   I say “some” because this privilege is currently limited only to businesses operating in Ohio. Offering the service to individuals is also on Mandel’s agenda.

Now, what does this mean for the crypto industry? It’s time to let your imagination go wild. If an American government body is receiving payments in cryptocurrencies, what incentives do you think they’ll have to support the crypto market? You guessed right, and that is why I believe no matter how low cryptocurrencies may drop, recovery will remain on the horizon.

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EOS Among Top Losers on Tuesday. What’s Next?

Talking about cryptos that fall, the Ethereum-based platform, EOS was among the worst performers in top ten tokens in terms of market cap. It dropped over 6 percent against the US dollar during Tuesday’s trading session, a week after the EOS network announced EOSIO’s version 1.5.0-rc1 on November 21st.

Trading against Bitcoin, the EOS/BTC pair created a jaw-dropping bearish engulfing candlestick on the daily chart, breaking below the ever-thinning Ichimoku cloud. The last time EOS dropped this much against Bitcoin was on October 11 of this year, and the losses were limited to that day. Other than these irregular one-day drops, EOS has been mainly consolidating within a very narrow range between 0.00088 and 0.00077.

EOS/BTC DAILY CHART - TECHNICAL ANALYSIS

EOS/BTC DAILY CHART – TECHNICAL ANALYSIS

EOS/USD is a different story

Versus the USD, on the other hand, it’s painting a different picture. After breaking below a key support level and the daily Ichimoku cloud at around $5, the EOS/USD pair has been on a free-fall and appears to be aiming for the next support levels at $2.61 and even 49 cents respectively.

EOS/USD DAILY CHART - TECHNICAL ANALYSIS

EOS/USD DAILY CHART – TECHNICAL ANALYSIS

With that, EOS needs to up its game in the dApp world if it wants to get buyers on its side. What do you think about the EOS network? And which state are you looking forward to making crypto tax payments legal next?  Let me know in the comments, and subscribe to get more of my updates.

Invest responsibly,

Kiana

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