Nearly anyone in Colorado pays taxes using crypto.

Just over$ 57, 000 of the income tax collected in Colorado since 2022 has been paid using crypto, or 0.0005 % of that amount.

In September 2022, the State of Colorado began accepting crypto-based income payments in accordance with a scheme introduced by Governor Jared Polis.

However, according to figures released by the Colorado Department of Revenue, just eight payments made using crypto in 2022 totaling simply$ 16, 426.

This rose to 22 payments and a total of$ 23, 241 in 2023, before declining again in 2024 to$ 17, 544, albeit across 48 payments.

Colorado was the first position to develop innovative solutions and take bitcoin as a form of state funding, according to Elizabeth Kosar, director of contacts for the Colorado Department of Revenue, in a press release from .

Kosar also made it clear that Colorado doesn’t actually get any blockchain because it does, according to Kosar, uses PayPal Cryptocurrencies Hub to exchange digital assets into U.S. bucks at the point of sale.

Although studies on possession suggests that 20 % of American voters have owned or used bitcoin at some point, for information may destroy any idea that cryptocurrency is a major source of revenue in the country.

Given that formed currencies like Bitcoin serve more as retailers of value than as trade platforms, Bitcoin supporters aren’t surprised that very few Coloradan inhabitants have used the option to use blockchain to pay taxes.

The one rule of Bitcoin, according to Michael Saylor, is to NEVER sell ( or spend ) your Bitcoin, according to Lou Kerner, the founder of the Web3 live events community CryptoMondays, in a statement.

The price of Bitcoin has increased by about 320 % since September 2022, and the cryptocurrency has also reported positive annual returns in September 2023 ( 30 % ) and September 2024 ( 125 % ).

Utah is the only other U.S. position right now to take bitcoin payments for income purposes, but Louisiana does so in exchange for various services and fines.

Starting in the middle of this year, the city of Detroit will begin accepting tax payments for digital assets using the same PayPal conversion service that is used in Colorado and Utah ( while Louisiana uses Bead Pay ).

Given that the possession of crypto has increased over the past few years, it is possible that more states and more countries will start accepting tax payments via bitcoin.

However, experts like Kerner doubt whether store-of-value tokens like Bitcoin will ever be used in a sizable portion of crypto-based tax bills.

Cryptocurrencies will eventually become the norm for online transactions, he predicted. It’s just more effective for all, they say.