AMC Entertainment Holdings (NYSE: AMC) It does everything in its power to be associated with millions of young retail investors to a large extent. CEO Adam Aaron has boosted the multicast operators’ offerings with taped concerts, live NFL games, and eventually esports events.
AMC announced last month that it would accept Bitcoin (CRYPTO: BTC) As payment for movie tickets or franchisee purchases before the end of the year. Aaron tweeted last week that he will accept too Ethereum (CRYPTO: ETH)And Litecoin (CRYPTO: LTC), And Bitcoin Cash (CRYPTO: BCH) When Bitcoin jobs go live later this year. He polled his followers this week to see if Dogecoin (CRYPTO: DOGE) It should be the fifth crypto option for AMC purchases. Spoiler alert: Aron now has to see how he can make Dogecoin possible as a payment platform.
A meme stock encasing itself in cryptic buzzwords may sound overkill, but that’s where we find ourselves now. I’m a fan of AMC’s thought outside the box office, and I’ve also been an investor in cryptocurrencies since last year. I can see why the news is exciting, but if you’re smart, you probably won’t be paying for your AMC purchases with cryptocurrency. Let’s go over a few reasons why you should resist the call of wild cryptocurrency to buy your next ticket or a tub of popcorn.
1. Cryptocurrency purchases are taxable events
As an investment, cryptocurrency follows the same tax rules for stocks, real estate, and other property. When you sell – that’s exactly what you do when you exchange some Litecoin to get to know your family eternity In November – it’s a taxable event. If the cryptocurrency you sell to buy an AMC movie ticket is worth more than what you previously paid for, you have a capital gain on your hands. If you sell at a loss, this is a capital loss that can be used to offset gains elsewhere for the year.
Do you really want to keep accurate transaction records so you don’t run into the IRS because of the novelty of buying an $8 cup of soda with Dogecoin? You might take a big chance and not report the transaction on your 1040 in the spring of next year, assuming the IRS won’t review a small crypto investor. Good luck with that.
#AMC Bitcoin will be accepted by the end of the year.
IRS Audit Meeting Circa 2024:
IRS: Remember the popcorn you bought for the Matrix 4?
You: Ah, is that why I’m flagged back in 2021?
The IRS: A tax evader?
You: AMC number charged me sales tax.
IRS: Capital Gains Tax on Cryptocurrencies, Boy!
– Rick Munnarez (Market) August 10, 2021
2. You can earn cryptocurrency when you buy instead
Cryptocurrency transfer is not a free trial. It remains to be seen if AMC will cover the transaction fees associated with trading some Ethereum for its own sake eternity Tickets for later this year. Queen Piece (NASDAQ: currency) – Leading cryptocurrency trading platform – charges 2.49% transaction fee on all cryptocurrencies using its brand Visa Credit card. The only fee-free currency you can use with a Coinbase card is its own currency USD . coin. Using any of the four – or five possible – types of encryption that AMC talks about will cost more than just paying fiat. We’ll see if AMC is willing to back the transaction or if it will charge additional fees for crypto here.
It’s easy to avoid all this mess just by using your Coinbase Visa card to earn cryptocurrency instead of burning it. As long as you make sure your Coinbase account is loaded with enough US dollar coins to cover your purchases, you can pay with a Coinbase card just as you would any other Visa credit or debit card. Buying or selling US dollars is free on Coinbase. And for every dollar spent on the card, you can choose between getting 1% back in Bitcoin or 4% back Excellent lumen. Oh, and you don’t have to wait for AMC on this one. You have had the power all along by applying for a Coinbase card if you have an active account on the trading platform.
3. Let your investments work
If you don’t have a credit card to earn cryptocurrency, just pay with cash, plastic, or the digital payment platform of your choice for AMC. If you are a true investor in cryptocurrencies, you buy tokens and stablecoins for their power of appreciation. You won’t buy movie tickets from AMC stock if Aron allows you to. right? Why would you pay for Bitcoin Cash that you hope will be worth more in the future?
Remember the story of the man who paid 10,000 bitcoins for a pair of pizzas twelve years ago? Don’t be that guy. Keep your cipher active – unless it’s perfect timing that your movie outing coincides with a crypto transaction you’re about to make.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.