Are ADA rewards from delegating to a pool taxed as income or capital gains?
Hello, I have been doing a lot of research into how to do my due diligence and pay all taxes incurred from cryptocurrency transactions.
Cardano's system is hard for me to be certain about. On one hand, when we delegate to a pool, it is like we are "loaning" our ADA to the pool operator and gaining interest on our ADA, which would be taxed like capital gains. On the other hand, the currency stays in our wallet and it has been said that we are helping to "mine" the cryptocurrency, which would make it taxed as income.
So I decided to ask you all: is receiving ADA rewards from delegating to a pool taxed as income or capital gains?
Edit: I am in the USA, so asking about how taxes work there.
On June 2, along with IOHK the developers of the Cardano blockchain, a cross-chain bridge connecting the Cardano and Nervos networks was announced. We would like to provide an update on how the buildi...