Bitcoin Forum

Something that has been unclear to me is how will governments survive when fiat is nowhere to be seen and all or most monetary transactions happen via cryptocurrencies.

 Since one of the most attractive aspects of crypto is that its anonymous and decentralized, how will governments be able to keep track of money and tax it.

It's really not that anonymous. The past few weeks more and more regulations require you to show your ID before you can open an account on an exchange or withdraw funds. I think in the future governments will make some kind of internet passport and internet tax.

They can identify the culprit of some transacation through the identification on their wallet address or there could be one user here in bitcoin which is solely working for the government maybe part of investigatory agency of the government that is doing investigatio here and all over the bitcoin network. Bitcoin can also survive government imtervention through following it's imposed rules and regulations.

Lol! Your question should be the other way around. It should have been "How the cryptos will survive if all government bans it". Never underestimate the power of the government systems and the enforcement agencies. Bitcoin or any other cryptos are decentralized but not completely anonymous. Every single transaction is tracked and recorded in a public ledger called blockchain. Definitely there are ways to cover up the trail of a fund using the crypto mixing service, but if governments want, they can destroy the entire crypto business. So don't think how a government will survive if majority of the people start doing crypto transfer, instead think how the crypto market will survive if all governments turn against it.

The question "How the cryptos will survive if all government bans it" has been asked often. I think the OP's question is interesting, because it makes us wonder about a hypothetical world where Bitcoin has replaced fiat. What would be the consequences? What would government look like in such a world? How should society adapt?

Government will be government there are so many ways for them to survive. They had the power to do anything they want, they can disable crypto transactions or make their own cryptocurrency and force their citizens to use it. This is how the government works, everything is possible to them even people loves decentralization.


Registration of exchanges and by requiring users to send their verification through ID's and this is what's happening now. They can tax the exchange and if possible soon they'll track those crypto users who are earning with it and avoiding tax, everything is possible to them.

It's only a matter the time until the inverse of your question becomes true. Governments always try to regulate everything, with the rise of exchanges and such asking for ID it's really undermining the crypto currency purpose: anonymity. Maybe us, to protect our privacy must fight to have privacy survive and find new ways to prevent govs. from knowing more than they should

firstly governments dont care about bitcoin. governments are comfortably sitting on their legislations that keep fiat in circulation.

in short.. as a real example
the UK does not care about the Euro currency becoming popular because the UK has legislation to keep the pound in circulation. so the euro could be used more popularly wherever it likes hand to hand, but the banks, taxes, fines and salaries of the UK will still be measured in pounds.

popularity will not cause a economic change.. legislative repeals need to be done.
bitcoin wont change things through a popularity contest. it has to be a political contest.

They'll be forced to reveal them true selves to the masses. With future features making Bitcoin truly anonymous, the government won't have the convenience of a paper trail to keep everyone in compliance while simply skimming off the top.

They'll have to go back to demanding payments tied to your physical assets, such as real estate. The question is whether or not this can be scaled, it hasn't been done with a world population around 8 Billion people before.

When people are forced to hand over lump sums rather than have it sneakily tied to all their transactions, the size of government will surely decrease. We'll see government departments wither away and die as they should, and we'll likely see turn of the 20th sized governments.

Most governments do not accept bitcoin because of its anonymity, which makes it difficult for the government to control bitcoin transactions. But in the future, when countries find ways to manage bitcoins, bitcoin may be more concerned.

nash at that moment will grow what the revolution says
changes in the way of thinking humans menjafi more modern.
today has begun to grow the digital age
where everything is fast and practical.
and does not rule out that the government will start to vary the way in order to control the bitcoin transactions

My opinion on this is, they will try to hard regulate it as much as possible, since this is somehow kinda "new technology" even if Bitcoin is here for years already. New in therms how this type of technology is growing and expanding, maybe in few years EVEN WITH ALL REGULATIONS it will evolve so much hopefully not in favor of regulations, but in therms "free market", and that there is no need anymore for "middle man" government or anything. This is just "imaginative speculation" but it would be really nice(even if it doesnt look possible). Whenever some attack happens(or hard regulation) Bitcoin can and will evolve thanks to community!

government can got taxes from the goods  everytime needs people to buy daily comsuption  taxes will included base on the price of goods have an 10 to 12 percent taxes goes to the fund of government, i think if this happen regulation for bitcoin comes how to get taxes the government.

Governments will create their own just like  how Russia just did and probably tax every transaction just like how they do with fiat currencies.  They can also try to take the exchanges been fiat and some other cryptocurrencies.  They will find a way or if they can't they will try to make it illegal.  One way or another they will try to get their taxes.

Hopefully that doesn't happen. If they try to hard regulate Bitcoin Exchanges, trading fee may go up, and day traders wouldn't really like that :(

It's hard to put taxes on these Crypto's and most of the people want to legalize, but Govt might put Ban to these Cryptos.

people are greedy not to pay taxes and they may pay only some low cost goods using Crypto if the Crypto currencies will be in future.

Just think do you like to pay tax when you are able to buy save some money?

Now you see Xenforo license need to pay tax using Paypal, but if they accept Bitcoin none will pay that tax.

It is very unlikely fiat is going to disappear, however let's suppose that it happens governments will have no option but to become smaller since governments depend greatly in printing their own currencies to sustain themselves, now they will be able to charge taxes but it is going to be a lot harder to extract them from the population so only taxes that are unavoidable will be paid to the state.

Fiat cannot be killed by cryptocurrencies. Technology, and the world as a whole aren't advanced enough to go completely digital. Infrastructure issues and accessibility issues have to be addressed. Heck, not even everyone in the world has access to the internet. You can't really deprive them of money can you?

Governments will still tax as they usually do. Businesses will need permits to operate, and their financial activity may even be more transparent thanks to the blockchain. Private individuals will need to declare their income as they always do. I don't think it's going to be a big issue, honestly.

First of all, Clear your mind and accept the truth that fiat will never be killed, fiat is there forever. Sorry to tell you the truth, Government is still powerful enough to stop all the cryptocurrency transactions or activities, same way they can also revamp the usage of fiat and impose to use it, easy right?.
Fiat will always be there and it will never replaced and can never replaced by Cryptocurrency. Second, Government can survive and do whatever they want to maintain the supremacy,relevance and the usage of Fiat. Third, Taxation is still based on what the regulations will be imposed by the Government , though there are Bitcoin exchanges, they can regulate it and tax the users.

Maybe you dont know this but governement can do anything. Of course they wouldnt admit it but its possible. And it just takes time for them to track it because you sign online forms and such before transaction so its only a matter of time before they can track it. And ithink in the future government will adapt when fiat is not around anymore (though very unlikely)

Don`t worry about governments, take care of your money. Nations runs on money collected in form taxes from its citizens. Governments are smart enough , they know what and where you are earning and investing. Though bitcoin is a decentralised, autonomous currency it has to face with fiat currency. How will you buy bitcoins, with the help of bank accounts. Whenever you sell bitcoins the money get deposited in banks. Banks are controlled by governments, so your transaction get recorded. Bitcoin is yet to reach all classes of society, so all transactions are not possible only by using bitcoins. Many governments have declared income from bitcoin as a capital gain.

I've been thinking about a question for a long time... "Isn't it better, if the world accepts Bitcoin and alt coins, while the Fiat currencies system being totally canceled?" It might be a little bit silly, but this question always pop out from my mind  ::)

If demand is greater than government can expect, of course they will legalize bitcoin as soon as possible.
Bitcoin is changing how people transaction especially when everything is go online, everyone seeking cheap currency as bitcoin is born is the right time !

If you look at the history of Bitcoin, the reason why Satoshi Nakamoto created Bitcoin, you understand it was never meant to be a currency integrated into government. It was a rebellion against government financial policy. The purpose of Bitcoin is to change government, but currently government tries to change Bitcoin.

Governments are powerful. And from what I'm reading many people on this forum think that bitcoin is immune to governments. It will be an interesting road ahead.

Don't worry much about governments rather look and try to find success for yourself with Bitcoin. As long as there will be taxes governments will always survive and they say 2 things are sure in this world death and taxes. Governments have also other means at their disposal which can guarantee their survival. The governments if not all, almost all track us, they know what they do, what pages of internet we browse unless we use TOR to bypass their surveillance and what habits do we have. These are all advantages to the government in order to give them means of survival.

The power of the government comes from the people. Without their support there's no government. Politicians tend to forget that.

Although I'd like to live in a world without governments it's a natural thing for people to live in groups as it's safer and you can divide work and share knowledge. Another natural step is to get a group of leaders because if every single person would have the same voice you'd never get anything done. The grip of the government can weaken but it won't disappear. It is there because people want it to be.