2014-03-31 Guardian - Does US IRS saying BTC is property kill it as a currency?

[TheIrishman]

Bitcoin is legally property, says US IRS. Does that kill it as a currency?

http://www.theguardian.com/technology/2014/mar/31/bitcoin-legally-property-irs-currency

<< The cryptocurrency was struck a blow by the powerful Internal Revenue Service. Is it as bad as some fear? >>

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[hilariousandco]

"Does US IRS saying BTC is property kill it as a currency?" I don't see how it does. I'm sure they'll change their mind again when it benefits them to do so.

[Rygon]

No, this ruling was expected and already factored into the price.

[Jutarul]

Bitcoin doesn't need to be a currency to succeed. It just needs to be a good form of money. As such the recent move from the IRS doesn't interfere with that interpretation. In fact the IRS set it self up for a major tax evasion movement, with people materializing losses in the US and declaring profits in hidden offshore accounts. The only losers of the ruling are the little guys who don't have the infrastructure in place to play this game.

[runam0k]

No, this ruling was expected and already factored into the price.

And only affects (honest) US taxpayers.

[marcus_of_augustus]

At worst, it hinders bitcoin as a transactional currency for law abiding USA citizens. Subset use case for a subset of users.

For the $8 trillion gold market, $17 trillion offshore assets market and International transfers ... bitcoin users not affected.

Ironically, most of the very people clamouring the loudest for regulation are going to get everything they ask for and deserve, an arcane unworkable system for daily payments governed by ill-informed bureaucrats producing reams of bureaucratese for no good reason but to make everybody feel safe, warm and fuzzy. Well done, you just reinvented bitcoin in Pay-Pal's image and blew god knows how much venture capital creating a dead fork of an open source project the rest of the world is going to ignore.

[H.Badger]

At worst, it hinders bitcoin as a transactional currency for law abiding USA citizens. Subset use case for a subset of users.

For the $8 trillion gold market, $17 trillion offshore assets market and International transfers ... bitcoin users not affected.

Ironically, most of the very people clamouring the loudest for regulation are going to get everything they ask for and deserve, an arcane unworkable system for daily payments governed by ill-informed bureaucrats producing reams of bureaucratese for no good reason but to make everybody feel safe, warm and fuzzy. Well done, you just reinvented bitcoin in Pay-Pal's image and blew god knows how much venture capital creating a dead fork of an open source project the rest of the world is going to ignore.

It appears we need two Bitcoin economies.  One for the week-kneed, skittish types among us who are willing to sell their souls for regimented security.  Then another Bitcoin for the rest of us.  We need a virtual gated community to keep these self-destructive types at bay.

[frankenmint]

 http://wh.gov/ldYsK

White house petition to amend, we need 100k signatures in 3 weeks guys so show some support if you can!