Tax season takes down dreams. Digital wallets drain at floor prices. Not everybody is going to make it.
Jam-packed digital wallets are filling the sky after 2021’s NFT mania, which grew on Ethereum alone to almost $41 billion in value. Severe volatility (Ethereum ranged between $1,042 and $4,865) combined with countless taxable transactions makes for the perfect storm. But hardly anyone is able to escape the prying eyes of their national revenue services come tax season.
One must prepare carefully for taxes, or one might be forced to sell NFTs to pay for what one owes after a crypto windfall. Governments worldwide have watched the frenzy curiously but are now mercilessly claiming their share.