With the world switching to technology, it is bound to feel petrified of lacking behind if we fail to adapt to Crypto payments. Cryptos may also seem attractive because the transactions are considered to be secure and of lightning speed. What is more fascinating is how they also charge lower transaction fees that vary from 1% to 4%. But is it really worth this brainstorming?
Although Crypto is a fairly good investment, we may not suggest buying things from it just yet. Here’s why!
1. Irreversible Transactions
If you are buying something through Cryptos, you have to keep in mind that the transactions that you have made can not be reversed. The person who has received the payment through Cryptos is the only one who can return it. In many cases, you might be denied a refund and will face inefficiency at a great level. If the team has a lot of refunds on their plate, they might even refund the wrong amount or forget to send the money. This can cause high inconvenience in the long run.
In the case of bank payments, you can lodge a complaint to the bank regarding the transaction with the wrong amount. However, in the case of Cryptos, there is no one you can turn to when your transaction has been messed up.
2. Payment Of Capital Gains Tax For Each Transaction
The Income Tax authorities consider Cryptos as property when it comes to paying taxes. So, whenever you buy or sell Cryptos, you have to show it on your Income Tax Return and pay tax on the gross market value. But if you are purchasing items using Crypto, a large chunk of your money may have to be given away as capital gains tax. This also implies that you will have to maintain a record of the Crypto value from the day you used it to purchase things. Eventually, it will be quite a hassle, leaving you in a pit hole of problems.
3. The Risk Factor Is Unavoidable
Yes, Cryptos are immune to inflation, but their price fluctuation still makes them one of the most volatile assets. Bitcoins have approximately faced a volatility level of 8% in 3 months only. So, it is far to say that the Government does not have any control over the prices of Cryptos. This makes it even riskier for you.
Suppose you need to make a payment immediately and Crypto is at an all-time high; you are bound to face a loss. Firstly, you have to pay with Crypto of a higher value. Secondly, you will have to pay capital gains tax on the higher value.
Quick Note!
Look out for your benefits instead of fearing that you will stay backdated. However, you can expect that experts will take out solutions to these problems in the coming years, and then you can start using Cryptos as a safe mode of payment. But for now, if you wish to invest in Cryptos for the standout features and benefits that it has to offer, we highly recommend it. Visit Quantumai right now for more on it.