1. You still have to pay capital gains taxes.  A short-term capital gain regardless of how long you hold it.

2.  All the currencies he mentions have inflated too.

Canadian dollars  >1000% since 1971
Australian dollars >1000% since 1971
Euros >100% since 1998
Mexican Pesos - no data but sure it is up
Swiss Francs  >300% since 1971
British Pounds > 600% since 1971
Swedish Krona - no data but like all governments it is up

But you get the point, government uses currency inflation as a means to tax since it is hidden and there is generally about a 4 year lag before the price inflation hits. 

The best stimulus you can give your country is a deflation rebate, balanced budgets and surpluses.

If pokerstars.eu and full tilt gets off easy there would be no reason for them not to use bitcoin.  However, why can't we log into ftp.  Thus the path between us and ftp must be blocked, which is an illegal act because poker is legal to play.

You could not have a bitcoin poker website or bitcoin sever using bitcoin.  The Doj would shut it down.  Server to server would not work because you could cheat.  The site would still have to be overseas and you hope the doj would not shut it down. 

Is bitcoin legal to have and use?  I think I read in the past it is legal to have your own currency in the United States.  Ithaca and Madison Hours is an an example.  It is not legal tender and legal tender laws do not apply.  If bitcoin is legal to use is there any risk of the government shutting down bitcoin?  Today, many in poker think it is legal to be played overseas and to transfer money from the site to your bank account.  The DOJ said no.  There are tons of online currencies, paypal dollars, 2nd life $L Linden dollars (their servers are in the USA), ...

However, this also does not prevent a hacker or government from trying to take the system down for the fun of it.

 

It is work, commodity based money like gold retains its value because it is rare and recognized as money.  It is also fiat, but can act alone as a bitcoin type currency.  Labor on matter is wealth and money involves trade between two forms of wealth. 

I also had a hard time grasping why anyone would want digital BTC valued at nothing with no man hours behind it.  All currencies of the world are either commodity based or fiat.  Fiat meaning demanded to be used by governments under order of guns.  Then I thought about anti-matter or negative infinity, then it hit me BTC is anti-fiat currency.  Due to the corrupt nature of all other currencies, the wasteful taxes, the poor spending, the banking fees, the rules and regulations attached to the currency, BTC will have value as anti-fiat currency.  It is free to use, no sales taxes (you should pay them), no rules, no income tax.  Since it is everything fiat money is not, it has value as currency.  As a result it will attract negative elements such as gambling, prostitution, drugs, terrorism, and other illegal activities.  But at the same time it allow the poor to retain their labor rather than see it lost to inflation tax.  It will allow businesses to open which are closed to the poor that can't afford permits and rent.

So what is the ultimate end? government shutdown!

Is this analogy correct?

Debt can be also considered as negative money.  You go to Sears with a credit card and no cash, and leave with a tv.

The national debt grew by 3 trillion in 2 years.  Then dumping 25% of the bonds might cause rates to go up.  The fed will just buy some of them.

Another use.  Full Tilt Poker can stay open and use bitcoin to transfer money between players.  killer app.  winning gone.

Will see how the volume goes today.

The recent rally in bitcoin may be because of this indictment.  Maybe one of the 11 arrested knew the hammer was coming down and decided to put his money into bitcoin, to save a couple hundred K just in case.  Bitcoin has another use, similar to offshore accounts.

How about this.  You start with a Japan donations site say 10 people donate, one donates $5, the other $4, the third $1, ...
You take the total after 2 months deadline say total is $50.  Set the total bitcoins at $10 million BTC.  The guy that donated $4 gets 4/50*10000000 bitcoins.  Up to a maximum of 1%.  

All and all it is over and kind of fun the way you did it.  

Is it possible to freeze the number of gpu coins at the end of the year.  End that method.  Hold the Japan relief lotto for the rest of the year.  Then on New Years Eve distribute the rest of the bitcoin and then cap total bitcoins at $20 million BTC or $10 million BTC.  End the inflation.  It actually might increase interest.

How is it fair giving all the coins to people with the best equipment.  Yes I can buy the equipment but I live in California and have to pay the high electricity prices since it is run by unions, government, and monopolies.   

I think there should be law that the CEO get no pay, stock options, or bonuses. That is how google and aapl work.  The directors should be selected by being the largest shareholders, no voting.  They too should get no pay or options.

If bitcoin does not crash or hacked there will be no reason to start another currency.  No shop will switch.  The reason as any object be it alpaca socks or paypal is sold or bought as time goes on bitcoin will get more and more fair.  You going to screw a shop out of their savings gl. 

Imho they goofed when they started it they should have just given everyone 1000 coins on such and such date, then after that date no more bitcoin.  Someone maybe in a window of within 2 years will do that and end bitcoin.  Mining is one of the most unfair ways to distribute bitcoin, such a brain dead idea.  However, it is better than giving it all to the founders.

I don't think sales tax apply.  You are required to pay sales tax in dollars.  Many states don't collect them.  However, the businesses do have to pay income tax on sales and if you gain on your bitcoin - capital gains as collectibles.  When you buy actual bitcoin you are buying collectible so sales tax may apply.

A stock on the NYSE is suppose to represent ownership in a public corporation.  If you own 10,000 shares in a stock with 100,000 shares diluted outstanding.  You own 10% of the company.  Small shareholders can be screwed by the large shareholders as well as the CEOs. 

When you trade stocks all you are doing is transferring ownership.

None but if the pegger ever decides to close shop and walk away the economy will collapse and the loans will collapse.  Watch the 2 Bill Still videos I recommended.

twoplustwo

I think you need to have a business that earns bitcoin then use the exchange to transfer to $.

There might be a good reason for someone to control the currency.  BTC has a built in transaction cost mechanism also all the USD/BTC exchanges seem to have a fee involved.  It is in their best interest for these guys to maintain a peg to bitcoin in USD.  Something to think about.  Thus they profit on all transactions.  If I was megawealthy.  I would try to peg bitcoin to a certain amount maybe 1/100th ounce of silver, then run an exchange service.  Just callme JP Morgan or Rothschild.

AAPL AZO NVR ... You buy companies with real earnings.  Gold and silver good too.