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crypto analysis crypto taxes Jul 26, 2023

Clinton explores the transformative potential of artificial intelligence (AI) and Central Bank Digital Currencies (CBDCs) with his guest, David Canedo. They discuss the impact of AI language models like ChatGPT and the implications of CBDC integration in tax calculations in the crypto industry. (TCDS-11)

CBDCs and ChatGPT.

Clinton Donnelly interviewed David Canedo. They delved into the fascinating realm of artificial intelligence (AI) and Central Bank Digital Currencies (CBDC). In their recent conversation, they explored the potential impact of AI language models like ChatGPT and discussed the integration of CBDC into tax calculations and the crypto industry. This article expands on their insightful conversation, shedding light on the transformative power of AI and CBDC in various aspects of our lives.

The rise of AI and ChatGPT.

Clinton Donnelly expressed his intrigue with ChatGPT-4, an AI language model that has gained significant attention. He shared a personal anecdote about a friend who relies on ChatGPT to generate code for trading cryptocurrencies, significantly reducing time and costs compared to traditional programming methods. This revolutionary tool is transforming the programming landscape and capturing the interest of developers worldwide.

David Canedo emphasized the disruptive nature of AI and its current popularity, noting the shift in attention from blockchain technology to AI in recent times. He highlighted how AI is enabling scalable access to human knowledge, making it an extraordinary development in technology.

Exploring AI's potential.

David expanded on the various possibilities offered by AI language models like ChatGPT. While acknowledging their immense power and ability to enhance productivity, he clarified that they are not yet capable of fully replacing human expertise. Human oversight is crucial to ensuring coherence and accuracy in the generated content. However, David underlined the importance of embracing AI tools to improve productivity and exploring new avenues in different domains. He revealed that Glassnode is actively investigating the integration of AI tools like ChatGPT within their company to automate processes and enhance customer support.

CBDC and its Implications.

The conversation then shifted to CBDC, which has emerged as a hot topic within the crypto community. David acknowledged the concerns surrounding privacy, particularly in countries with more authoritarian regimes. He emphasized the disruptive potential of CBDC, comparing it to the transformative impact of AI. Shifting from physical cash to digital currencies opens up a plethora of possibilities, such as real-time tax returns and automated sales tax calculations. David revealed that Glassnode is actively exploring potential use cases and considering their involvement in supporting CBDC development.

Tax challenges in the crypto industry.

Clinton shed light on the unique tax challenges faced by crypto investors. He highlighted the experiences of high-frequency traders, who continue to generate profits even during market downturns. However, the crypto market's volatility and the losses incurred by some investors created a dilemma when it comes to tax calculations.

Clinton explained that many investors hesitated to engage professional tax services due to the costs involved in calculating losses that may not be immediately claimable. To address this issue, Clinton and his team offer alternative approaches, such as estimating losses and carrying them forward to future years when profits can offset them. Additionally, they explored installment agreements and deductions for losses resulting from scams or frauds.

Conclusion.

In this thought-provoking episode, Clinton and David shed light on the significant impact of AI and CBDC on our lives. AI continues to revolutionize industries, empowering individuals and businesses with increased productivity and efficiency. Meanwhile, CBDC integration offers new possibilities in financial transactions, but also raises important considerations regarding privacy and data management.

The tax implications of these advancements are paramount, especially within the crypto industry. As the world moves toward AI and CBDC, it becomes crucial to navigate the changes effectively, leveraging their benefits while addressing challenges. By embracing technological innovations, we can forge a path towards a more efficient and interconnected future.

The full interview.

View the full interview on The Clinton Donnelly Show.

DISCLAIMER: Opinions and perspectives of the author, host, and guests. It should not be construed as U.S. taxpayer advice. There are often multiple interpretations of tax law. Various strategies may be suited to specific individuals and for particular situations. Seek out professional tax, legal, or financial advice from CryptoTaxAudit or from other reputable companies.

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