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0 pointssumeno5y ago0 comments

Doesn't this assume you only get liquidated below your initial purchase price?

With something as volatile as cryptocurrency it's not exactly a crazy idea that you'd buy at say $30k, take a loan at $60k and get liquidated at $50k and get stuck with a big tax bill

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555555y ago

Yes but in that case you did enjoy 20k of capital gains and so it makes sense* to pay tax on the 20k gain. There is no issue.

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