Crypto currency

[WASP]

It’s being linked to illegal activities due to increased difficulty in tracing. I think some countries have banned it which makes me wonder if it’s really going to be universally accepted.

Then there is the tax issue. How is that treated? Is there scope to easily avoid?

It's still the wild west in terms of trading and is unlikely to go mainstream without regulation but that will happen. Being digital, it's extremely trackable when monitored and regulated. More so than the paper economy or other asset forms which is why I am confident digital currency will become mainstream down the track. Yes, there tax issues to consider but also benefits. Like all things, there is a right and wrong way of handling this. For example, from 1 July 2017 sales and purchases of digital currency are not subject to GST for personal use or for micro business if you aren't registered for GST (It was prior to that date). That means there are no GST consequences which arise when you use digital currency to pay for goods and services. Digital currency is simply seen as a method of payment and it is treated the same (tax wise) as using money as payment.