Bitcoin Forum

I doubt many of you care at this moment what Bitcoin is capable of achieving.

Most likely one of the most efficient automated taxation schemes on planet Earth.

I believe many of you gamblers and builders of the Bitcoin ecosystem haven't paid a dime yet to any of your local governments (that require them).

It's starts with voluntary taxation (exchange fees and transaction fees) but just wait until just the right "Federal Reserve" type coin gets released and fully adopted.

Then be prepared to repeat history as you breathe life into the new "State of Government".

Easy money comes at a large price.

Nothing in life is free.

Are you ready to sell your seed right up the river?

So quick to lay a brick on a building that should be condemned?

WHEN LARGE FINANCIAL INSTITUTIONS ADOPT BLOCKCHAIN TECHNOLOGY IT IS BECAUSE THEY SEE ABSOLUTE UNTESTABLE POWER.

The animals start the engine and then they show the world how bad you are mucking it up then they take it over.

It's that simple.

Bagged, tagged, and taxed.

I am not sure but doesn't the fact that Bitcoin runs on a decentralised system bypass taxes. The community is in charge of Bitcoin right.

My second point everyone wouldn't have to pay taxes because they don't gamble or trade. Taxes only apply for gamblers or traders as you said.

:)

That's true, and Bitcoin isn't easy or free.


It's up to each one of us to decide to use a private blockchain or not :D

governments cannot automaticly remove bitcoin out of someones bitcoin private key. but they can take fiat out of bank accounts with a court order.

with a few laws, governments can 'threaten' its residents that if they hold bitcoin they need to pay a percentage of bitcoin value to the government or face legal action.

at the moment in most developed countries, bitcoin is classed as an asset. and so any income or gains you make from your assets need to be declared and taxed.
at the moment bitcoin is treated as a civil thing (finance), meaning there are some loopholes, but if they raised it to criminal, then things can get nasty

its not about the currency.. taxes are predominently about where you reside and the laws of the land you reside on. no matter what the currency is.

I'm conused as to what this is about but do know that I am currently not in any debt to my local government.
I do not need to pay tax as I do not have to pay tax when changing from Bitcoin to Fiat (my government say that Bitcoin is a currency in itself and is taxable in the same way as Fiat).
I also do not need to pay income tax as my signature does not earn me more than ~$150 a week or ~$1300 a month.

I think you have a great point, sooner or later the government is going to charge us with bitcoin tax, that is the reason there are a lot of the user dont want the government to interfere with bitcoin, but sooner or later the rules is going to happen, let just see when and how is the regulation

I think that's the point of it being decentralised. It is really hard for people to track  it.
If hacking can take place in Bitcoin, so can tax evasion.


I think you keep forgetting the term of sanity?
This seems a bit rant like and is quite odd (not usually the thing done with people who have Bitcoin).

Yes, pay your taxes so that the governments can fund wars to get more oil and also to bail out banks, after they printed
fake fiat money with zero value. You are backing the wrong horse, if you want people to support such corrupt practices. Our governments should protect us from banks and corrupt politicians, and then utilize our tax money to render basic services to keep us safe, and to protect our interest.

Your masters cannot complain, if they waste our tax contributions to fund unethical practices. We will pay what is due, because we are forced to do it, not because we want to do it. ^hmmmm^

I think you are referring to transaction fee/miners fee in blockchain can be used as paying tax while doing financial transaction. And i also think that is possible if government launch blockchain based currency but centralized and only miners for the chain should be of government, So that all transaction fee goes to government pocket.

But the current bitcoin network is not compatible for taxation other than if government implement tax on deposit and withdraw on bitcoin trading platform.

They used to double tax bitcoins where i live, 10% when purchasing and another 10% when selling. I'm glad the government changed that stupid law.

I get paid a percentage of my wage in bitcoin and nothing has changed from when i used to get paid completely in fiat, still running on PAYG (pay as you go tax)

If you don't put any money on the banks, there is nothing they can do about this. No banks, no taxes. I want bitcoin to be more mainstream, so more sellers would accept bitcoin and i wouldnt forced to use Fiat but it seems it is not going to happen any time soon. People have gotten sick over their goverments and their shady acts that is why they dont wanna fuel up them with their taxes.

Not sure where you live, but here even if you don't have a bank account, you'll be forced to pay tax if you own a house, or have work that even pays you cash in your hand. If you're registered as citizen, but don't have work or any holdings at all, then you at least have to fill in a yearly tax report about what you have done. Even when you haven't done anything. There is no way to avoid it as citizen. Because if you don't fill it in..... They'll fine you heavily.

If you earn the bitcoin privately, then you might do not have to pay the income tax. That is similar to be paid in cash.

every country that has taxes is like this and i doubt that there is any place that don't take taxes, you pay them if you have a job and a salary, if you own some property like house, or even you are paying taxes when paying the bills or buying stuff.

Have thought about this and imagined when will this happen. Because it is true. Nothing is free in this world. Everything should be controlled or you pay if you want to be a little free.

Someday, it will be done. It might take long but it will be.

you do not pay taxes if you have no source of income (or almost no income). this of course begs the question how you survive. the almost only way i see would be to live completely self sufficient. but if you live in a nice place and buy nice things then the government will want to now how this is possible. if you can not explain and prove this, then they will start to take away things. and if you are not able to pay you fine (no income remember) you will end up in jail.

This is going to be a shitfest when the governments figure out how to reliably link bitcoin holdings to people..

Don't think because it cannot be directly traced to you that you don't have to pay taxes.. It is just like any other money you own. If you hold more than a certain amount, the government will tax you at one point. And you may even get fined if you do not disclose your holdings in the years before that happens.

And think about it, there is a reason we pay taxes since the ancient Egyptians 3000 BC. It was introduced as a way to provide for government spending without inflation. How are the governments going to subsidize schools, healthcare, defense, police? Taxes are needed and you should pay them.

in other words you have to live on the street and sleep under a bridge if you don't want to pay taxes.

and i don't know how other countries work but where i live (as i said in my previous comment) you are paying taxes even when you pay for your electric bill for example. there is part in the bill clearly showing the amount that you are paying extra and as tax on your using of these services.

It's obviously If we render something we need to pay for it nothing is free. In bitcoin also it's same case we need to get pay for work what we are doing.  It's all based upon the skillset what we have so utilise and earn through it.

to me if state impose tax on bitcoin its mean that they have accepted bitcoin that will be really a good decision, and it must be in favour of bitcoin, through this bitcoin will become more popular in the people.

This is why federal altcoins will not work. People use bitcoin ad it's one of the only things that they have total control of. (Does not mean they can't be forced into giving access to other people)

Guys I am not talking about paying zero tax. Of course you have to pay something in order to survive but the government doesnt need to know about your bitcoins. If you dont tell them about it they wont fucking know a thing. If they dont know it, they wont tax you for it. So, keep your bitcoins in your private wallet and you will be safe.

As Herbert2020 also said in a previous post, you need to be some sort of a homeless man with no holdings at all in order to avoid the tax agency. Having that said, if you have an ID card or a passport, then you're at least forced to fill in a tax report once a year. If you don't do it this or next year, then you'll have to do it at the time you take a better position in life and have a house or something like that. Otherwise you'll need to stay homeless without holdings for your entire life.

Sooner or later the government will fill us with taxes BTC . that is the reason there are many users do not want the government to interfere with BTC . I think fast or later rule that will happen . We'll see how the government had a role in this bitcoin tax .

Where do you live? That seems like something that could be avoided pretty easily and I've never heard of a law like that.

I think if the government imposes a tax on bitcoin then it will also make bitcoin regulated by the government? And I think bitcoin will not be regulated by the government because of the decentralized nature of bitcoin. But it is possible it could also happen in the future. hehe IMO

The government will un doubtfully somehow figure out how to tax all crypto currencies. 

thats true, people like to have control of their own money so they will definitely choose bitcoins instead of a coin that is created by government

Impossible.  You don't know shit about bitcoin if you say such things.

governments dont need to care about who paid you, or need to care about how much you were paid to start a civil recovery process on you (tax fine)

there are many non-blockchain ways to red flag someone. for instance
if they see someone applying for a mortgage, but have filed tax forms to say they have no income... red flag
but if they see someone buying a house outright, but have filed tax forms to say they have no income... red flag
seeing someone apply for car insurance on a modest priced car. red flag
poor people cannot really afford to maintain a low priced car with no income. so if governments see you driving a car.. red flag
even things like passports and plane tickets.. red flag
their bank account statement shows funds moving in and out that technically should not exist to such a poor person

then all they need to do is make a court order to get you to investigate yourself, where you have to provide proof of payment, etc as to how you were able to maintain a less than poor lifestyle while being poor. while they just sit back and work out how much to fine you to settle their minds. or how much time to put you in jail if they drum up a story that you got funds through criminal activity. whereby you are then really pressured to prove where funds came from including proving it was 'legit'

this is why so many poor people get hit with tax fines.. because its easy to spot a poor person with money then it is for a rich person.

these government tactic end up making poor people paranoid.
EG
even going so far as having no insurance so that they really really need to be watching what they do when they drive.
concentrating harder to not get a speeding ticket, parking ticket, to avoid red flags about a vehicle.
yes you can register a car to a "trust" or offshore entity. but u cant get car insurance on a trust.

cant have any registered property or insure your house/property
ending up as a nomad living in squats (ref: amir taaki as prime example)

At my country there are not yet rules for bitcoin and another cryptos coins, the users of bitcoin is still low too. I think it will need much time until the government take tax from bitcoin.

they wont take tax from bitcoin.directly.
but they will treat is as they do any foreign currency.

EG
if your european, and you work for dollars. keeping it in an american bank account(imagine like keeping bitcoin as bitcoin) the European tax authorities wont do much. but as soon as you convert it to euro's or try spending it in europe. Bam, income tax

if your european, and you invest in an american company. keeping it in an american sharebroker account(imagine like keeping bitcoin as bitcoin) the European tax authorities wont do much. but as soon as you convert it to euro's. Bam, capital gains tax

if your european, and get funded via another currency, even if you find ways to pay your landlord, grocery store and other things in that foreign currency, if they notice you registered a new house, car, or other modest priced item, Bam civil investigation and fine.

the only way to avoid red flags for doing normal things. is to be fiat rich in the first place, then nothing normal will look out of place
having money gives you loop holes.
EG having funds in a bank, writing a cheque but then cancelling it before the recipient can cash it is fine
not having funds in a bank, writing a cheque that bounces, is nt fine
yet the recipient is victimised the same way.(not getting paid)

ordering something on ebay, paying for it but then requesting a chargeback, is fine
ordering something on ebay, and just not paying, is not fine.
yet the recipient is victimised the same way.(not getting paid)

I think if bitcoin could be given tax Government must work extra hard because each person can have many addresses right ? so even though the government has know one of their address. they could make a manipulation. so that they will be spared from the tax? I think it will be difficult for the government to regulate this.

not really.
it doesnt matter where or how the funds are stored. if they want to tax you, they can.

even if you put all of your families funds into a trust(multisig is bitcoin equivelent) or spread each families funds into 2000 different accounts(addresses)
when you try spending them on real world items/property, your stung. then its up to you to investigate yourself or face a random large fine amount that they have pulled out of thin air.
its how they work. if they see you are suppose to be pennyless but find out you drive a nice car. they then look at not only the car but everything.
by charging a guy a few hundred dollars to visit you and take inventory of everything you own.
and then put a magic number against it to say this must be your income to be able to afford these 'luxuries' ..
they then add on the costs of this inventory gathering exercise and add that onto the bill you owe.
you then have to prove the opposite by showing how you could legitimately get all of those 'luxuries', while they sit back and let you dig your own grave, or wait for you to cut them a cheque

i agree with franky1 on almost all points.
funny how people think taxes work somehow differently with bitcoin. also some seem to know nothing about taxes at all.
i can just advice you to educate yourself, since not knowing is no excuse if the law knocks on your door.
 

The only thing bitcoin needs at the governments are they allow bitcoin and maybe bring a tax, a small one. Otherwise its better stay the way it is, no one will declare their bitcoin if they think to tax them above the profit people may take. I doubt countries can really control all bitcoiners portfolio and tax them, bitcoin is freedom currencie, if that ends bitcoin value should hit 0.

We all know about the Governments of this world never accepting the idea of anonymity. Through Bitcoin, we can finally be free but it won't take long. I am surprised they didn't take Bitcoin over iet, but I guess they will A.S.A.P.

of course there is no direct tax implemented in bitcoin. this is the same with fiat. nobody cuts a piece of your money and sends it to the government. but if you sell an item then in the price is a tax included. this does not depend on the currency. if you do not do it then the state will eventually find out and you get fined or worse. the same goes for income, where you have once a year tell the government how much you earned. if they want then they can look further into it. and this is where the problems usually start. 

You are not getting the full picture. Just because "federalgovermentcoin" gets released, doesn't mean people will stop supporting bitcoin, to the contrary, bitcoin will be even a stronger niche for those that want to escape government control potentially pushing the price to the actual moon , so please don't talk nonsense and think next time.

Bitcoins don't fall into your wallet from heaven.You either buy them with your cash/debit cards or earn them.In the first case,you already are paying to your banks as a service charge for the purchase,in the late part,you're still paying the exchanges to liquidate the coins which is "service charged" for sure.Those exchanges don't run illegally,they indeed pay taxes.

I think the OP may need to put a little less "conspiracy sugar" in his morning coffee.

The "big institutions" can create all the blockchains they want with all the taxes and government oversight they want... and the various governments of the world can do the same... and everyone can feel free to ignore them and continue using Bitcoin (or whatever new and improved cryptocurrency that comes along) that remains decentralised and without the taxes etc.

The Bank of England studied the advantages of it issuing its own Bitcoin-like digital currency. It found using the currency could increase the United Kingdom GDP by $80 billion because it would reduce interest rates and financial transaction charges.

The study doesn't mention tax, but a Bank of England coin would probably make it easier to collect it. On the other hand it's not likely a Bank of England coin could destroy Bitcoin, so Bitcoin users would be unaffected.

https://cointelegraph.com/news/digital-currencies-like-bitcoin-could-increase-uk-gdp-by-80-billion

Well, I did not pay a dime because there are no taxes on bitcoin in my country and even if there was I doubt most of us would, You pay taxes on goods but with something you can hold like bitcoin I don't think it will be fair if they add a every year tax. That's my opinion.

what is the country you life in? i envy you. i always enjoy to learn something new and maybe i would visit and lern something about the culture.

I really dont get what you are talking about?  it makes no sense, why would anyone use or adopt a cetral bank crypto?

With bitcoin around I am not really sure if Taxes are certain anymore. I remember a lot of memes around the net when the panama papers leak were happening and even someone here was posting memes like "Panama papers leak , bitcoin user not affected" . And this was so even before bitcoin. The only thing which is sure is only death.

basically you have to pay taxes on every transaction/trade you make. there are exceptions and also nobody will care if you sell some candy to your sibling without taxes, but by law you should pay taxes for that.
as it is not practical and there is no way for a state to enforce this rules 100% you make usually once a year a statement about your income and based on that you pay taxes. further more you a bound by law to make a true statement or you could get fined or jail time. most of the statements are just check if they are formally ok. some are look upon closer and suspicious ones investigated. so with or without bitcoin there is plenty of room to not pay taxes, but this is illegal. since many people think bitcoin is anonymous (it is not) the think they do not have to pay taxes with bitcoin. which is simply not true and a crime. and if you rather choose to belief a meme on some internet forum then a layer, well suit yourself. you have been warned and i will not be sorry for you. maybe nothing will ever happen to you, but i do not want to take my chances.     

Bitcoin cant be applied taxes. You can Convert your fiat into bitcoins adn distribute bitcoin in many different wallets. No one can caught you that how much worth bitcoins you have and therefore no taxes can be applied on bitcoins.

While I don't agree with everything OP says there are some things I do agree with him on, and this is not one of those things.

Voluntary taxation would have to immediately go to forced taxation if it was to ever get that far, mostly due to the fact that no-one would voluntarily be taxed on their Bitcoin and most people would just ignore it. A "Fed-coin" that could spring up would also likely be ignored by a majority of people because everyone already has other forms of digital banking, and this means that unless a "Fed-coin" was pushed and required as the only form of payment (which would be viewed as a detriment and probably in a poor manner to anyone who was already a part of the previous financial system), there is no reason for a Fed-coin to exist, because no-one would use it.

Bitcoin cannot be taxed. When you reach a really high amount of bitcoins you send them to your hardware wallet and you are not stupid enough to do the exchange in your state if they have strong rules regarding taxes like US or UK for example. You are smart you buy a ticket for Panama, Belize, Virgin Islands and all these countries where exists more business than persons alive. You open an account there in a bank there, exchange coins, and keep the money there. The banks there don't usually give a damn from where this money come from, so enjoy your liberty with bitcoins.

great now you have 2 million bitcoin worth even more and can do nothing with it. why would you want that? let us say you buy a nice house or car. well i do not know where you life, but in most places around the world the government will want to know where you have the money from for this nice house/car, since you did not pay any taxes. and then either you pay them or they will just take your stuff away. it is that simple.

As long as I'm earning bitcoins and I don't exchange it for Fiat, how will the Income tax authorities become aware of me earning Bitcoins? Also, if I don't provide or relate any Bitcoin related income with my personal details/kyc then still is it possible for them to track the source of income and then I'd have to pay taxes for it?

if you earning them buy selling you stuff they can make a connection quit easy. if you trade or something like this it is harder and probably not worth the effort for them.
it is possible, but not likely since it is a question of how they spent their resources. they will prefer a big fish over a small, but it is still illegal and if they get you, you will have to pay and also take the consequences.
but as stated above. most people with money want to spent it somehow and this is where they most likely get you.   

I am pretty sure the government will eventually attract a tax of bitcoin through the exchanger without having to spend a lot of energy, the government will press exchangers concerning transparency of transaction for calculate how much tax they get. so goverment will not care how many new gambling site or how many online shop has accept bitcoin, they just need lock 1, that is exchange.

i do not think this would work, since the users will simply go to an exchange that does not cooperate with the government. also exchanges only trade with existing bitcoins. the government would have to look also at the miniers and every private trade of the exchanges. 

AGREED!
The op is stupid.
Nobody will use any other crypto currency as widely accepted as Bitcoin because the services, vendors, relators, beepi.com overprice.com godaddy.com purse.io (thus amazon.com), and point of sale services do not exist for other crypto currency!   So Others will not grow or be used.

If others are taxed or controlled by government, then that is MORE reason people will stay with bitcoin and NOT adopt the others.  No matter what the government says, they cannot stop bitcoin anymore than they can pass laws to stop the sale of Alcohol or drugs.  Those still sell and sold when illegal.  Right or wrong, they sell.

All these people are stupid if they think there can be a tax on bitcoin, or if they think the NSA can track everyones bitcoin down to the exact owner or how much they had.

Simply because anyone can open a bitcoin wallet at any moment, anonymously, keeps bitcoin anonymous if someone puts any half ass effort into it.

I have over 102 bitcoin right this moment, so unless these idiots have more than me, maybe they should shut up with all their idiot talk.

that is a strong argument. you have more bitcoins then me, so you must be smarter then me.
so it should be easy for you to explain me one simple thing.
at some point you will want to use your bitcoin, because if you do not, then what is the point in having them.
let us say you want to buy a car. how do you do that?
with your real name? a fake one? or maybe even anonymous?
how do you explain to the government where this car is from and how you paid for it?
because if you can not explain it, they will have to assume you are involved in some kind of crime.

Hello and thank you.  I accept that complement.
1.  How to buy a car?  Go to Beepi.com   They accept bitcoin, give you a free squishy toy car, phone mount, pen, and 2 thermal cups with every car purchase as advertisement swag.  They also do all of the paperwork for you, registration, license plate, and will get you car insurance.  It is like a 5 star service with a concierge.  They will deliver your car to you with a big blue bow on the hood.  Also I notice they detail the living crap out of the car so it is spotless when you recieve it.  The car warranty from them is about 6 months, but you get a manufacturers warranty as well, because they don't sell any cars over 60k miles.  So it is safe to assume all cars on Beepi are decent, and new enough to have the origional warranty in MOST cases.
2.  Real name?  Obviously. lol
3.  Fake name?  Or Anonymous?  (I will count those as the same thing, same question).  Yes of course.
Get yourself an LLC, register it yourself for $50 state fee from New Mexico.  NOT California because they are $600+ per year!  NM is $50 one time, $0 yearly, and zero yearly tax, zero yearly reporting requirement.  Legalzoom.com will sell you a registered agent service.  Every LLC must have a street address (not PO box) for legal papers to be served incase of a law suit.  (the main purpose of an LLC is to protect against a law suit).  For $150 per year (you only need to pay once, and may abandon the service.) you will have legal zoom provide one of their Corporations to act as your "registered agent" representative of your LLC to answer the door, receive mail and forward any mail for your LLC to you.
You will only care about that and only need that once, or a few times so 1 year is more than enough time for you to receive the NM LLC certificate, and your car insurance, registration and title paperwork in the mail sent to that address.
They will then forward the mail to you or your PO box, or your hotel, or your cousin's friend's uncle's baby mama's house.

Then you have a car purchased with bitcoin, registered to an LLC, under a registered agent's address who isnt you, who forwards your mail anywhere you tell them.

4.  If the government asks you where the car is from.  Who are you?  You are the person driving the car.  Tell them it is a company car.  A Limited Liability Corporation vehicle.  It belongs to the LLC, not you.  So that is not for you to know.  They can ask the LLC.  The LLC of course will not reply without a lawyer or at all.  Because the LLC doesn't give a fuck about taxes, back taxes or anything else.   If the IRC wants to tax the state of New Mexico which may or may not have received yearly or quarterly tax information and payments... they can take that up with NM who does not have a yearly reporting requirement.  If the IRS manages to get NM to do anything and NM sends a mean letter to your registered agent, and if you bother to receive mail at that point, and someone wants taxes... it will be 5 years before any legal action is taken against the LLC.  By then expect to lose by default because you will not care.  And you will have simply transferred the car to another person or LLC years ago because if you do all of this, it is because you have enough money to go buy a NEW car and have no interest in driving a 5 year old car.  Or if you keep it, you changed it to yet another LLC within 5 years.  The IRS issue wins, and the LLC has no assets to be seized or sold.  The old LLC is abandon or dissolved.  Pro tip, you may add a dissolve date to the LLC at the time you create the LLC.


LLCs are what EVERY business uses to register a vehicle.
As an American it is your duty NOT to pay taxes that fund issues you do not support.
But you must lie to the stupid poor people that incorrectly think it is the law to pay taxes.  Otherwise they will annoy you.

Well since the government in our didnt accept bitcoin yet as a way e-currency then their is no such way that they will able to get taxes from us. Well i think that is also the reason why government does not accept it because it may be hard for them to monitor

Yeah, it was pretty disappointing. But I believe for sure that in the future the Government will find a way to it when users bitcoin in each country has a very large amount/portion of their citizens using bitcoin for each transaction, because if the Government did not immediately find a solution then Government revenues will be reduced. because digital currency is acknowledged the Government did not get the input

Like you said transaction fees, that means who ever wish to send bitcoin will need to pay transaction fee, no matter is it for gambling or trading, or buying pizza. From beginning I was thinking about this connection between governments and blockchain/bitcoin. I always thought how interesting will be when they decide to get into blockchain/bitcoins, and how they are just investigate what is this all about. Now I think they don't know what to do with btc, cause in beginning they thought bitcoin don't have future, and all of a sudden btc worth a lot, and more and more people are joining. They didn't expect this, and now entering and taxing bitcoin will be hard for them. There is TOR`s, VPN`s and other services, anyone can skip government tax system.

Yep. That's highly possible that you can easily skip taxes and it's very hard to trace.
If you use TOR then your IP is almost completely hidden and is very hard to trace (unless there are instrumental methods avaliable to test it).
Things are also encrypted by VPNs and Tor and are much harder to get to the root sender. Also, i they come into it too late then it's there fault. We cannot work on a voluntary status as the largest company is always going to be the one that can avoid tax. When the largest comapanies, in fiat, cannot be tracked in their ta avasion (such as google) then there's no hope for the government tracking Bitcoin.

In my minds, at first, bitcoin is made to avoid the system is giving by government because the government is very giving limitations for their civilians. like sending a large of an amount of another people, maybe you will always get examination before.

well, you have made some interesting points and maybe this would even work. but i am not going to find out. once for lack of bitcoins in this quantity, but also as i see the potential to fuck up at one point, so i rather do not take the risk. if you think i am stupid because of that, then this is fine with me. but i know i would live with the constant fear of making a mistake and i guess i would need to move a lot (or is there a different system for a house/flat?).
there are clever ways to minimize the taxes you pay, but your solution is one step to far for me. maybe if i would have bitcoins by the thousands i would be more appealing to me. 

The country from where i am residing , still the government have not disclosed anything about bitcoin. and their is no tax law about bitcoin, ya but if we want then we can take bitcoin as an asset like gold and silver or we can take it as short term profit from trading , if we are doing trading just like we are doing trading in equity exchanges. It is upto us what we have to do till their is any law formed for bitcoin.

But it is also true that if Bitcoin is disclosed as illegal money laundering then who ever is holding or have been found of bitcoin users they will be facing the problems.

Yes, of course our government should really have to put some limitations especially it involves money. They are doing it  to avoid money fraud or laundering which may gives our country into a bad situation against the other countries.

scant poster, long time lurker here, OP is right.
i've thought about this myself over the past few years.

he's not talking about current systems. so the whole example of registering a car in NM is barely a counter-point.

instead... imagine a not too distant future, where you had to use btc or some other digital currency. and every wallet is registered, like a social security#.
perhaps you want to buy a car from a friend. you both agree 5000. taxes due.

today, you can give him 5000 cash and register paperwork for sale of 100. taxes on 100.
future, "they" (governments/banks/irs, etc) will detect transfer of 5000. all taxes due.

what about work under the table or "off the books", for cash? today its possible. future... nevermore. with digital currency, blockchains everywhere, on everything and a mandatory wallet thats registered to you? Doubtful.

remember, if you've ever bought bitcoin using a marketplace (coinbase, bitstamp, bitfinex, etc, etc) they know who you are and what youre holding. all the feds have to do is ask and those companies are usually all too happy to comply.

"well then, i'll move the coins from my Bitstamp wallet to a new wallet and they'll never know"

no. they have blockchain analysis, clustering analysis for this. and companies like coinbase in the US are already required to us it us it to comply with KYC/AML (know your customer / antimoney laundering) banking laws.

anyway, its a bit troubling when you think about it. ironic too. people (or a person) started this whole thing, and it could be our entire undoing.

very precise, it is very good thing to do and I am sure the Government will be able to provide a solution using bitcoin. I think it is indeed highly vulnerable to laundering bitcoin or fraud, for the nature of anonymous bitcoin making criminals can freely do so without a known identity

I dont think that you might say bitcoin is certain.
It is a thing that has a price, and everything may become worthless or priceless. You dont know what is going to happen in next 10 years, maybe some bug that will allow to make a loop on mining bitcoins?
You dont know, that is why bitcoin is not a certain thing.

this would only work if people had to use such a GovCoin, because they would not do it unless forced.
only one wallet per person would have to be allowed and also everybody on earth would have to participate.
still black markets, frauds, fakes and other criminal activities around would be common.
this does not sounds like it is possible in the next 20 years.
they want it, but it is not that easy.

Now I began to wonder. Thinking all of this can come true in the near future. If it is getting bigger then someone might want to come in without knocking and say "hey pay something to us or give us some shares" That would be a real big problem.

Bitcoin do really have disadvantages  in terms of security  it may be beneficial  to its users but if it is used in illegal activities, identifying  the criminals really would be a though job

I think Bitcoins has no taxes

That is true. So far you don't have to pay taxes on Bitcoin. At least not in my country. But they say that only tax and death areq certain, now someone has also added Bitcoin.  :)

But these are just odd ways of tracing people. Sure it is done like this and people can detect different things that people are doing, however, it is always difficult to truly detect something like that.
A person on a good job to simply say "yeah, I bought them that car" could really put a hole in the governments scheme for example.
Though it is unlikely you'd get a person to do that it could still happen.

How hard is it to implement the taxes? If you think about it throughoutly, it would take only a few days to do it. It could work like this: BTC owners need to pay a tax for using BTC. If you're found of trying to evade the tax, you're sent in jail. And America wouldn't surprise me with a similar act.

Forever is defined as:  Never ending.   Yes I HAVE made Bitcoin QT transactions, peer to peer, QT to QT, with zero fee.  Even made transactions to myself from wallet to wallet.  It takes time but is a zero fee.  It is not forever.  Do you understand the difference between 1 hour and infinity?

I did not suggest anything illegal.  If you are too scared to get an LLC I will not change your mind.  It is legal, but it isn't for everyone.
Also a car does not cost 1000s of bitcoins.  1000 BTC would be 580,000 so I hope you are being more reasonable than that.


Every wallet cannot be registered.  People will make their own.  Would you like me to tell you how to make your own, anonymous, by yourself, and unregistered?  lol
Car transfer taxes are NOT based on the reported value.  They are based on the blue book value MINUS any and all cost of UNVERIFIED claims of needed repair to bring it up to bluebook condition.   Ever buy a car before?  You are about 20 years out of date.
So please don't attempt to talk about the future.

You also know nothing about BTC tumblers, how to open an anonymous account, or transfer BTC around.  Analyze all you want, there is NO secret mathematical algorithm to identify the difference between one BTC account OWNER or another, or the difference between spent coin and transferred coin.

Also a Florida court recently ruled that bitcoin is NOT money.  So no banking law applies.  Even if the Gov wanted to, they could never enforce laws over BTC.  Ask New York how well the ban on BTC transactions is going.  (A license is required to deal with bitcoin in new york.   In the BTC community, no fucks were given. )

different from my country. the government knew about bitcoin and they have passed laws that virtual money and bitcoin is not the responsibility for the government. each person has a responsibility to himself. and bitcoin is not banned inmy country. but even so. the government does not give the slightest tax on bitcoin or virtual money

Not yet. Not now. But someday it will. If this price grew more those crocodiles will look for chances if they could go in also and get some out of it. They wont let an enormous amount just doing anything by itself.

Also here in my country that government not yet imposed tax in digital currency and it is good to most users in here my country that we can exchange or spend bitcoin free to tax that is why every time i spend my bitcoin i feel discounted in every transaction i made.

i don't pay for taxes too because in my country, government don't said that its legal or no, beside that people on my country, especially in my city almost not know what is bitcoin, only few people which play buy and sell bitcoin, trade and gamble. my government only cares about people have business in offline so i think for next years, it will be free of taxes unless the government make policy about bitcoin.

Bitcoin users are increasing and so as its transactions and the government is aware of this that's why they would find a way to get their share of the pie through taxes. They are enjoying it when people use fiat currency because they have their share and now that a new currency has been circulating that they don't have control yet, they will find a way to get hold of it since there is a possibility that their budget will be lessen due to transactions that they can't charge taxes on.

The benefit of bitcoin is that we are not paying any taxes as it is not a currency recognize by the government, so we can prevent from double taxation sometimes impose by the corrupt government, to be practical we should just save our money in our wallet so the government will not determine our net worth.

Yeah, they tax you when you buy and they tax you when you sell. You cannot avoid taxes. Good thing they are not taxing bitcoin yet. I can still hide some of my money in bitcoin and lessen my taxes. It is so painful to pay taxes when you see very few improvements in the community.

me too. I am also using bitcoin as a tax free currency. and I don't think It tax will ever apply on bitcoin.
bitcoin is a digital currnency. people will not even know who's have how much bitcoin. then how could govt charge tax on it.?

They are free to do so until the government legalize bitcoin and treat it as a currency, Then they can take taxes on it, IMO they shouldn't pay a dime until that is the case.

of course bitcoins have no taxes if you send it without a fee though if you include it then you might need to pay some money

of course there are no rules or regulations governing that bitcoin users have to pay taxes on their fortunes in bitcoin. of course it will never happen. the government will surely find it difficult to adjust the tax financing of each user. because the government would not be possible to know how much wealth each user

I think it is impossible for the government to be giving taxes to the bitcoin users. bitcoin users have many ways to avoid their taxes.
they can use a mixer so that they can not be detected by the government. I think giving ideas for bitcoin enacted tax is a strange idea

Those greedy monsters will do something to create a tax. Maybe not now but they will specially when they see a lot of growth in price of bitcoin. They will make a law someday that will be about taxes when it comes to online currencies.

well basically you are right in my opinion though if you buy something then you would still have to pay taxes such as vat and stuff like that

it's not impossible but it's like a miracle for the government, and what a way of government for giving tax into the member always changes their address for every day or weeks? using bitcoin is a one-way making stupidity for the government. they can't give tax with as they want.

Agreed it is not impossible that government will be accepted and impose tax every transaction of bitcoin but this is not good for the users of bitcoin because as of now we are happy to use bitcoin without tax incurred in every transaction while if government take advantage to impose tax in bitcoin i think we can not enjoy the rebates in every transaction we made.

they can never impose taxes for "evert transaction" of bitcoin. for that they need to know where every transaction is coming from and where it is goind. they can only take taxes from the businesees and that is all.

Even if bitcoin is decentralized it does not mean that it is free of tax.  When you exchange it to currency there is a certain fee and I think partbof it goes to tax.  And I do not think the government does not know about it where in fact some banks here in our country supports and allow bitcoin teansactions.  There is just certain fees but it was not that large.  Otherwise they will banned it and stop the bitcoins if ever there is no return of benefits to them.

How can they impose a tax on anonymous thing, maybe for some platform that require its client to comply with the KYC policy has a chance that its clients will be impose a tax due for every transaction. The government will impose tax if possible as that is their goal to increase tax collections for the country.

I'm reading this and in case that governments really start to tax bitcoins, can we start to use other crypto currency? Or OP thinks that governments and big companies will tax entire blockchain technology?
I'm not sure when something like this can happen, I'm sure that governments are thinking about how to get into blockchain, but for now they are on a side just watching.

They wil not going to tax bitcoin directly that you will received but rather the exchanger whenever you will convert it to fiat or going to buy some that's why legit exchanger have some fees especially the local one registered to respective country.

Since the service is about money changing or anything involved about money, they must comply with the regulations and law.

I don`t see where is the problem.Everyone has to pay their taxes.

If you earnings are in bitcoins,you have to pay taxes.Bitcoin is not tax free.

I`m not ready to sell my seed right up the river. ;D

thats true, bitcoins will never have any taxes to be honest, in my opinion thats why it is such a great currency

I think so too, if the government accept bitcoin then it’ll bring both good news and bad news. The good thing is that bitcoin will become more popular and more well-known to the people and they might start using it but the unpleasant news is that the government might put some taxes on bitcoin and it’ll cause some serious problems.

However, it’s mission impossible for them to give taxes at least with nowadays technology so we don’t have to worry much about this.

I agreed, Since Bitcoin growing everyday it can't be stop by anyone neither the goverment of each country can't control it, that's why in the last they will adopt the bitcoin system has because the community grab the advantage of it. I think that's the right time for them to apply taxes  to all bitcoin users, but not now, it sooner or later.

I am in Australia and the law was not that easy to get around in the start, all exchanges operating here charged the customer a 10% gst tax when they purchase coins and unless you did a p2p trade via localbitcoins or something you would have to pay the 10% tax to sell those coins also.

Damn that is robbing people already. Too high to pay. That is like letting people know to not use it. Is this some kind of a movement for making it fall?

Well, I did not pay a dime because there are no taxes on bitcoin in my country and even if there was I doubt most of us would, You pay taxes on goods but with something you can hold like bitcoin I don't think it will be fair if they add a every year tax. That's my opinion.

It was probably started by big banks pressuring the government as a means to stop bitcoin adoption but it didn't last, the double tax is no longer charged.

you are right, you will always need to pay some fees with bitcoins because ou need to pay the fees for the transactions

The bitcoin fee for the transactioin is very cheap at the moment. It is about $0.15 on average, lower than credit card fees.

That is very true and correct my friend. Trading and exchange platforms are the new sharks in virtual currency. They are the new face of banking systems and we speak of decentralization there are no such things. The problem is not with fiat in which many blames the banks and governments and they say that's the reason for their shift to bitcoins but look around you even in cryptocurrencies the problem in fiat currency is reappearing but why? It's because the problem is greed and we humans cannot free ourselves from that. As long as greed is there currency maybe in the form of fiat and virtual will face the same fate. So if the government put taxes to bitcoin then let it be it will benefit the community.

basically you are right, exchanges will make a lot of profit from the people in my opinion, besides that we cannot avoid taxes for our country

Well i guess taxes are certain for sure .well i cant guarantee for bitcoins . And taxes have to paid for gambling and traders ..well dont worry that anything will happen .just keep on doing bitcoins ..enjoy it to the fulllest ..kudoos :)

Yes there are two things possible either choose bitcoin which is taxless or choose paper money which include taxes. And let's super impose both and make a better system which be reliable, affordable and secure then normal paper currency and online banking system. Money is everything so let's eradicate the barriers from paper currency

The original layout to this discussion was stating they want bitcoin and I disagree with this. They want the technology it provides for sure,I will not argue this as it does make it easy to tax the people when every aspect is connected to them in a non anonymous way. Taxation currently only comes to those that are caught in the honeypot called Coinbase and it should have been clear for most of us that they where going down this road long ago. So no sudden shakeup and the tax pirates are taking the lowbearing fruit as they say.

Taxation will come in the future but not for bitcoin,it will be replaced with a backdoor driven coin that has no ways of hiding who you are.
The negative interest rate will be walked in hand in hand with the new setup.


You can wave the fee and face a longer wait,that is the price of business and not a ingrained tax system.

The average Joe is still quite unaware of bitcoin,so I do not know how they factor into the discussion of taxation in the future. Unless you are implying that this will be a forced thing and if that is the case I still think it will be another crypto other than bitcoin to push this agenda.

If they find a way to tax you all, just move to a more anonymous altcoin, don't let the government rules you!

By the way when they start to do this will be too late, they can't deal with us.

I would prefer "Two things are certain: Death and Taxes." I think Bitcoin will not be here forever. There is a great possibility that governments will ditch paper money and go into their own cryptocurrency.

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Pay Bitcoin Taxes With LibraTax: The New Automatic Bitcoin Tax Filing Software 0
BY JONAS CHOKUN ON AUGUST 20, 2014 - UPDATED ON AUGUST 20TH, 2014 BITCOIN VALUES
how to pay bitcoin taxes

Bitcoin taxes made easy! One of the biggest challenges for bitcoin investors since bitcoin comes out of no where can created a bunch of bitcoin millionaires is how to handle taxes from profits or less from bitcoin investments. Some cryptocurrency users have no idea how to deal with the headaches the IRS created when they announced that bitcoin will be taxed as income and loss not as a currency.

Yes!i agree!almost all of us wanted to avoid tax!who would not? Many people are using bitcoins because of its low fees. Bitcoin charge is very minimal than tax. It can be in a tolerable amount. Tax are being use by the government for the improvement of the country, but most of taxes goes directly to the pocket of some corrupt government officials. So why put ysx on bitcoins. better to get off with bitcoins.

Definitely there's possibilities for those governments to make up their own digital currency instead of counting on bitcoin for the sake of their own security and to build up their economy to be better. but i guess it's not going to be a problem because bitcoin is not aiming to be the main currency of a country but to be universally used in this planet

So true.  They wont be using something that says FREEDOM in its definition.  ;D

They dont want us to be free from taxes which makes them rich. Where would they get their money for buying their hobbies and other stuffs which are expensive if we don't pay them tax anymore.  ;D

Yeah i know one day the government will find a way to taxed us, for now the government still plan and observe how is the way, there is no way that government will let us earn something without being taxed, that is why before the government make any rules we need to used bitcoin as much as we can and enjoy as much as we can

It basically doesn't really matter what you hold. If you hold something with a certain value that can be converted to fiat, the government will see it as something that is part of your total wealth. In that regard, it's easy to assume that you need to declare what you have, and after that you pay tax what the government think you owe them.

However, with Bitcoin there is basically no way the government (unless the government demands information from exchanges) to see what you have, and how much profit you have been making. It's your silence that will allow you to avoid paying tax over your coins. But if you're a completely honest citizen, and declare everything according to the law, then you are shooting yourself in your foot because of your honesty. 99% of the people will simply not declare any of their coins. I am part of that 99% as well. :P

Being honest simply doesn't make any sense because most if not all governments are exploiting their population and contrived a multitude of laws to justify that. They enforced fiat for use as a means of payment, with which they are stealing wealth from ordinary people that create this wealth with their own hands. People can try to evade taxes, but fiat itself is a tax in its own right, which is hard to escape.

Bitcoin and Tax: the way I look at it, just like my school days, during exams period, every semester brings about stricter supervision but you will still find out there is still exam malpractice, People will always find a way to get around tax, that is how God create human mind

I don't quite understand how Donald Trump's victory may have affected the IRS' decision to poke their nose into Coinbase records. All in all, we could expect Trump to be somewhat negative toward taxes. For sure, he might have been evading some of them himself during his long business career. Or are they trying to imitate wild activity before he fires them all?

IRS, you are fired!

I still don't get it. Are you going to say that the IRS is playing against Donald? If so, what does it all have to do with Bitcoin in general and the IRS interest in finally putting their boot on Coinbase's neck in particular? If Hillary won, would they refrain from meddling with Coinbase? Is the latter affiliated with the Clintons in some obscure way?

What's the catch?

I'd rather think that you don't know yourself what you are talking about mate. If you disagree with that, you may want to explain what you actually meant to say by linking Trump's victory to the IRS poking a stick at Coinbase. I don't see any real connection between these two events. Beside some insane conspiracy theory, of course. They should have contemplated doing that even before Trump won the elections.

Which Hillary was expected to win, by the way.

What's so wrong with having to pay tax, anyway ? Isn't tax what paid for the road in front of your house ?

Each user manages their own Bitcoins, and why people choose the currency, which is their property.

https://wealth.barclays.com/content/dam/bwpublic/global/images/aspect-ratio-1-6/OCP%20BSL/printing-dollars.jpg

Paper money is already a tax in its own right. Because openly taxing people through seigniorage (inflation tax) would be an outrage even for the most corrupt governments and would lead to people abandoning that currency, like what happened in Zimbabwe, governments have contrived a myriad of other ways to tax people and yet more ways to justify doing that.

For example, the road in front of your house.

I think it's a problem, because bitcoin user should not pay it, the presence of the tax will tereskpos bitcoin user identity and certainly no longer anonymous from bitcoin

I don't believe there are taxes any where in the world for Bitcoin as they are a decentralised currency, no country into the world control them so no tax in near future. So I don't see any need to panic for this. As and when it shall come surely some loophole shall be discovered.

Well the government can't print bitcoins, so again, what is wrong with taxing bitcoins ?

Well we are not fortune teller but i fell that it can be happen we know government are greedy and corrupt so bitcoin money they will take an action in the future and ask for taxes..  even it is decentralized currency..
This is just my own thought but there is still possibility that it can be happen in the future.

In my own view i could really say that government could not able to control and impose taxes on bitcoin hence its a code and you will really need quantum computers to access into the blockchain maybe they could able to impose tax but only to those merchants who do accept bitcoin as a payment but on the bitcoin itself i dont think its not possible.

what if i say to you bitcoin was never anonymous  ::)
And about the tax, i'm ok with it... as long as it is a small percentage. Here where i live taxes eat people alive... it's just too much and the government still doest give a good service to the people.

This is something that shoul happen on the next years, legalize bitcoin would mean have to tax them, as long the countries dont make the tax too big, i dont believe it can damage directly anybody, as long our identity keep safe. Imagine some hacker acess the portal where we can make the payments and collect all adress and users bitcoin ammounts, we would be starting a war, and this is what scares me, even having a low ammount ot coins, i do like my privacy.

I agree with this. Taxation is sort of inevitable thing that is going to happen to btc if it is to be recognized by the governments and if it is to become a lot more popular than it is now. My guess is that it might slowly ruin the whole idea of btc, people might just start using another currency and we will have some kind of the war between taxations and new currencies to use till they aren't taxed. However, there are good things coming along with taxation. Ability to pay in the supermarkets or buy tickets using btc, for example.

It won't work. We already have to pay taxes for the miners (and sometimes it's expensive), if governments start taking more fees, our profit will decrease considerably and people won't want to use BTCs. The things must continue as it is now, paying taxes only for the miners.

This is the perks of being popular of bitcoin now, governments will try to use it for their countries benefit (as might they say) but for us bitcoiners it is a negative impact we use bitcoin to gain more and if ever it will be acknowledge by the government chances really is our btc will be lessen . Just like in our Jobs no matter how increase happens it cant be enough because the increase in tax goes high too.

Bitcoin is already recognized in the US. Correct me if I'm wrong on this, but in the US Bitcoin is legally considered to be a traded commodity, so it is already taxed like any other commodity being traded in the US commodity markets such as precious metals or crude oil markets. In Europe Bitcoin seems to be quite legal too, though it is mostly considered as a foreign currency, and as such it shouldn't be taxable.

It's taxed, but not very well enforced iirc. From what I know it has been recognized by judges in the past when it came to police seizures of property of whatever, but I don't know if the IRS is going hard when it comes to taxing Bitcoin users.

While I agree that Bitcoin, in its current state, should be nontaxable, there are some dues that have to be paid. Those can come later, though.

It still not an official about these thoughts, I mean it just speculation.
Even so, it will different depend on which government issues the regulations about this due to every country have different in perspective and how they run governance. However, these situations could be happen in many countries and we just have to prepared and set backup plans.

There is no way the Government to impose taxes on bitcoins. The main reason is that it does not consider it as money therefore no income. Especially, in the provided services in many countries is considered as an agreement between two parties. To buy/sell goods it turns it to local fiat currency so it’s taxed. If she decides is easy to request the records of transactions from banks or exchanges. If it does though it will officially accept it’s existence as money like other fiat and so on

the first dought that hit me is why should i pay anything to government when they are not directly or indirectly doing anything on this system they are not even giving there names its just a government free system and on the second thought government or fedral agencies are free to take whatever action they want to make country more market achiving or better

People will always find way to evade tax with or without Bitcoin, I know because the way Bitcoin is designed it encouraged tax evasion, but I know people that do always declare their Bitcoin profit frequently.

We do, however bitcoin gives us the opportunity to evade tax without a legal implication. We will not be prosecuted as there's no law that prohibit of using bitcoin and requiring us to report the income we generated here.

Well maybe in us, it is just funny that there were still a lot of person try to evade taxation and we all know that we sometimes do it. The only difference here is that it was US and in our country it might not been the same with them. What if the coinbase gives what IRS wants? and we try to say that 50% of those users came from US and they've been asked to pay their tax. How about those 50% outside US are they safe enough?

I think bitcoin did not have tax. Becouse fee in exchange and transaction is like charge cost, transaction fee is for minner becouse they do their job to help the transaction.

It is upto you to show the Bitcoin transaction in tax or not, in my country I can show bitcoin as shortterm investment and trading as short term profit or loss. Until i dont use bitcoin for any other illegal goods purchasing i dont have to worry for it.

The CFTC (the agency supervising commodity markets in the US) had warned a few Bitcoin startups over a year ago about using Bitcoin derivatives, such as commodity options. In their ruling they also defined Bitcoin as a commodity. This ruling is important since it properly differentiates Bitcoin from securities, which are supervised by another agency, the Securities and Exchange Comission.

Be sure governments will charge their price to legalize bitcoin, and they will do those since they realize the ammount being spent at crypto world, their are not getting any cent from those investments, paying an extra tax will happen soon or later, people will keep use btc the same way as now, and with the legalization people will be investing more at bitcoin and crypto world.

but the bitcoin is already legal property in many countries.

Yes i guess it will never happen, too difficult to collect taxes from bitcoin. I am pretty sure the government will find it difficult to track the transaction because of too many transactions in days.

The developers and the miners will never allow such measures to pass but its very obvious that banks and governments will use bitcoin technology to create their own coin and to watch their citizens even more closely, but that will only make bitcoin more valuable and desirable, so they will be creating their own downfall with that move.

The fee is for miners since they are using hardware to mine and get confirm those transaction..
I hope that government won't be legalize bitcoin with taxes involve because they are corrupted and i think they will increase the taxes plus the miners fee for every transaction..

its not always true that law and order or federal reserves will take over everything they see. bitcoin has given us idea of achieving new heights now even if bitcoin anyhow gets extent we humans can still make great creations and modifications even improvements. we are living in 2017 century and nothing is impossible at this time

You already have to pay taxes on income earned through Bitcoin operations, so called capital gains tax, where it is applicable. If Bitcoin is legally recognized as a commodity or property as it is in the US, you most likely have to pay this tax when you sell your bitcoins for fiat. In this case, the government doesn't need to regulate Bitcoin in any specific way at all.

i think it is not so much difficult for the government to trace the transaction if they want to investigate but the reason that still there is no tax on bitcoin is that bitcoin is not yest consider as legal currency and their is now law to put tax on such thing which have no legal value they will certainly put tax on bitcoin but first they have to tern it as legal currency.

Bitcoin is not a current currency of some countries. Bitcoin is decentralized and not controlled by anyone. As I know, bitcoin is an illegal currency to use in some countries. It means any kind of transactions are not getting responsibility from the government.
Taxes is one of many kind of government responsibility. Maybe in some exchangers they take a few percent for income tax from users account.

The US government wanting to tax bitcoin is a good thing. By doing so they're legitimizing bitcoin. I see no problems here as I'm not interested in bitcoin to make money tax free, but to change the world.

I agree on this.  Tax is needed to be implemented to legitimize the usage of bitcoin.  If tax is implemented then bitcoin will be in the mainstream in no time.  Also this will bring an increase in adoption that will result in increase in  Bitcoin price.

Tax does not need to be included in the code so you can pay your taxes, it is very likely that any gains  bitcoin users had with the rally are already subject to tax, so we don’t need to add that to the source code.

You mean to say at least by paying taxes we need to make bitcoins legitimate ? Need to agree.

Anything received as payment for goods or services, including bitcoin, is taxable. If you earn income in bitcoin in the exchange of services with another person, it would become subject to income tax. In some places, if you earn money by trading bitcoins the gains could be taxed based on market value at the end of each tax year. So, no wonder if we happen to pay tax for using bitcoins in future. This is obviously certain.

Yes that's what I meant, by recognizing bitcoin and taxing it, they're essentially legitimizing it which I believe to be a good thing.