Ohio’s Treasurer Robert Sprague has notified that businesses will no longer be able to pay taxes via Bitcoin. In less than a year of developing a website, OhioCrypto.com, that allowed the payment of taxes through Bitcoin, Sprague announced that it would be taken down and would not function until they receive a formal judgment from the Attorney General.
Ohio became the first state to accept cryptocurrencies for tax payments in the US as it established the website back in November 2018. The website allowed businesses to register and pay their taxes with Bitcoin which was conducted via a third party payment processor, BitPay.
The reason for the suspension was elaborated in the press release shared by Sprague. According to the document, the website was required to gain consent from the Board of Deposit before launching the same.
Canada’s Richmond Hill and Innisfil followed the footsteps of Ohio, as both the towns announced the acceptance of cryptocurrencies as a payment choice for property taxes.
Additionally, Sprague disclosed that fewer than ten businesses made use of the portal to pay their taxes using Bitcoin in the last ten months. His press release further read,
“It is vital that Ohio explores innovative, new technologies and processes that continue to drive Ohio into the future. However, we must make sure any new processes that are implemented, such as OhioCrypto.com, are established in accordance with Ohio law.”
Attorney General Dave Yost was asked by the State Board of Deposit to study the legalities of how the website was functioning and if BitPay constituted a “financial transaction device.”
Josh Mandel, who saw Bitcoin as a legitimate form of currency, was the treasurer of Ohio when the online portal was launched.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”