In my opinion, it's wiser to invest your savings. Because saving itself, for example, putting your money in a piggy bank or any containers, it takes time before it increases. However if you have enough money, you can invest them. If you're not familiar or it's only your first time, then you can invest at least 5-10% of your income then save the rest on your piggy bank or whatever you call it. It is helpful especially when you knows how to handle money that much. Also, it will let you know the process of investment and techniques in order to gain what you really want.
Saving money slowly decreases wealth over time as money loses value due to inflation. On the other side, investment carries risk of loss of principal and no investment is truly "safe" from loss. Both of these things need to be understood in order to devise a savings and investment strategy that is right for a particular individual. Sitting on cash is the most conservative thing you can do as the only risk to the value is loss of wealth over time due to inflation, which is comparatively low. Even putting money in a savings account generally will not keep up with the inflation rate, so it only slightly lowers the loss of value while increasing the risk of loss due to investment activity (e.g., if the bank fails). More active investments can increase your wealth, but also carry much higher risks of loss due to failure of the business. There's no totally safe place to put money, anything you do or don't do with it invariably carries risk. |
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Hello guys, To me, it seems pretty strange that people actually continues buying btc now... I understood why they wanted to invest in btc before, after the Chyprus crisis, and all the articles in the media. But now? I don't get it. Bitcoin is useless, and will most likely never be used as a currency. I spent hours trying to get my first bitcoins (satoshi actually), and after working for ages, I only got 0.002 btc, which does not even allow me to proceed to a transaction (the fees are higherthan that amount  ). When you compare it with CC or paypal, it seems that they are free to use in comparison! Not to mention the time required to actually proceed to a transaction which can be anything between 1 minute and ... 1 year (or more?). The only possible reason I see people are buying btc is that they (truly) believe that the price will increase, and want to make more profit. I think that 99.99 % of the bitcoins exchanged are never withdrawn from the exchangers, and the people are only waiting to make some profits. What makes them believe that the price will rise? Because the amount of bitcoins is limited? Because lost coins can never be recovered? I have no clue. An other problem is the "mining" part. Soon, the difficulty will increase, CPU and GPU mining will be useless. People will stop mining bitcoins and try LTC or something easy to get... The interest in btc will decrease. Other issues: - security. Not a single company was able to provide a "professional" service. Bitcoin-24 has a serious problem ( https://bitcointalk.org/index.php?topic=174600.0 ). Even mtgox was critized for the lags, problems with missing coins, money, delay, and so on ... The hacks are countless (you can see new topics about that every day ...). I can't see anything positive about btc, and still can't get why people are buying it. Can any captain obvious explains? Thanks. Many people are still buying bitcoin because they know it will still be worth it soon even though right now you can see it is a stupid decision. Way back, many people became regretful about not believing in bitcoin wherein they sold all they have after a hard dump but then all of a sudden, a pump occured that exceeded everyone's expectation leaving those people who held their bitcoin benefit a lot from it. I think far more people are sitting on losses than you realize. People were buying all the way up from $5,000 to $19,000, which happened in less than a year. And the higher it went, the more attention it got and the more people that piled into it. Then it crashed hard and it's been routinely below $10,000 for over the past couple months and isn't able to break above that. Heck, it can't even hold above $8,000 right now. All those people who bought in above $8,000 are sitting on losses, which correspond to the time when the most people were buying. So my view of things is that a great many people have been burned, and there aren't enough new people coming into Bitcoin to move the price up. The pool of potential investors is not growing, which is not good for price appreciation, but may be good for price consistency. |
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"Morgan Stanley, One of the biggest banks in the world: Cryptocurrency could help Banks reduce fees and even save them from a financial crisis. Are we on the verge of revolution? Things are getting more interesting in the cryptoverse, as more interesting research is being carried out. Every sector in the world is clutching on to cryptocurrencies and the technology that powers them – Blockchain. A report released by a team of researchers at Morgan Stanley revealed that Bitcoin and cryptocurrencies could help central banks to cut interests rates, which would help reduce the impact of any financial crisis in the future. " https://cryptopotato.com/morgan-stanley-says-banks-could-use-cryptocurrencies-to-mitigate-financial-crises/Thoughts? I think it'd be very interesting to see banks use cryptos in a lot of areas and it's the first step in the right direction. Would love to see this grow. You should actually read why central banks might want to use crypto, it's for nothing good. "Freely circulating paper notes and coins (cash) limits the ability of the central banks to force negative deposit rates. A digital version of cash could theoretically allow negative deposit rates to be charged on all money in circulation within any economy." Essentially, the "benefit" of crypto to the central banks would be that you don't have to have your money deposited in a bank in order for the central bank to hit you with negative interest and directly steal money you have saved. If all money were digital like in a crypto-based economy, the central bank could force negative interest rates on every person in the economy, regardless of where they have their money. If you think this is in anyway a beneficial thing, that's frightening. This is a major argument against ever adopting a crypto-based or completely digital system. |
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This is not a rocket science, anyone who sees the fake or false news, the black propaganda against Bitcoin would know that it is something made for Bitcoin to look bad in the eyes of the people. Who else would it be but those, Banks, big corporations and governments which are all connected and all have their own selfish agenda in hating Bitcoin.
Bitcoin doesn't need help looking bad, the facts alone are enough. It doesn't hold a stable value, it isn't particularly useful for transactions or storing value, and all the hype around Bitcoin is from people who want to go up in value because they think it's the ticket to getting rich quick. The more baseless hype that gets thrown around, the more damaging the potential fall is when Bitcoin doesn't achieve those lofty valuations in a short period of time. The current drop in price from $20,000 to now below $8,000 is mainly a reckoning as the mass delusion wears off as Bitcoin fails to sustain the mass hype hysteria that gripped the market at the end of last year. Banks don't have too much to worry about because they offer actual utility, no matter how much you hate them. |
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Hello guys, To me, it seems pretty strange that people actually continues buying btc now... I understood why they wanted to invest in btc before, after the Chyprus crisis, and all the articles in the media. But now? I don't get it. Bitcoin is useless, and will most likely never be used as a currency. I spent hours trying to get my first bitcoins (satoshi actually), and after working for ages, I only got 0.002 btc, which does not even allow me to proceed to a transaction (the fees are higherthan that amount ). When you compare it with CC or paypal, it seems that they are free to use in comparison! Not to mention the time required to actually proceed to a transaction which can be anything between 1 minute and ... 1 year (or more?). The only possible reason I see people are buying btc is that they (truly) believe that the price will increase, and want to make more profit. I think that 99.99 % of the bitcoins exchanged are never withdrawn from the exchangers, and the people are only waiting to make some profits. What makes them believe that the price will rise? Because the amount of bitcoins is limited? Because lost coins can never be recovered? I have no clue. An other problem is the "mining" part. Soon, the difficulty will increase, CPU and GPU mining will be useless. People will stop mining bitcoins and try LTC or something easy to get... The interest in btc will decrease. Other issues: - security. Not a single company was able to provide a "professional" service. Bitcoin-24 has a serious problem ( https://bitcointalk.org/index.php?topic=174600.0 ). Even mtgox was critized for the lags, problems with missing coins, money, delay, and so on ... The hacks are countless (you can see new topics about that every day ...). I can't see anything positive about btc, and still can't get why people are buying it. Can any captain obvious explains? Thanks. Here we are five years later and many original complaints are still relevant, while some others we can look on with the benefit of hindsight. Bitcoin is useless, and will most likely never be used as a currency. Five years later and this is more true than not. I wouldn't call it useless, but it's certainly not being used regularly as a currency. Much more as a speculative investment and gambling medium than anything else (gambling both in the sense of speculation and as a token for internet gambling games). I only got 0.002 btc, which does not even allow me to proceed to a transaction (the fees are higherthan that amount ). When you compare it with CC or paypal, it seems that they are free to use in comparison! Transaction fees have come down significantly, but it was true that for over a year the network was crippled by high sky-high transaction fees and a perpetual backlog of hundreds of thousands of unconfirmed transactions. The network was pretty unreliable during that time period. Now, PayPal is potentially cheaper (depending on how you transact), but for your standard transactions Bitcoin probably has a slight advantage, although PayPal wins the speed comparison. An other problem is the "mining" part. Soon, the difficulty will increase, CPU and GPU mining will be useless. People will stop mining bitcoins and try LTC or something easy to get... The interest in btc will decrease. This didn't really pan out. People still mine and generally haven't lost interest, although I don't think anyone 5 years ago would have predicted how fast the difficulty would rise. Even mtgox was critized for the lags, problems with missing coins, money, delay, and so on ... Lol. This was still about a year before Mt. Gox shut down. If only people had any idea of what was to come. |
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So, you wanna know what is really happening? the US government are taxing those who are in possesion of bitcoins and they are being obliged to file before the first week of June. Now, here is the deal: if they appear to have no bitcoins by June, they would only be taxed for what they have earned prior. But if they have bitcoins, there will be a different computation for their taxes... that definitely caused a mass selling. Now do the math.
This is nonsense. First, the tax deadline was April 15th and obligations would have been over before June. Second, that's not how the tax obligations work. You can't sell your Bitcoins by a specific date to avoid paying taxes on them. Third, if this was true, you would expect that the bear market would have ended by the start of June, but it hasn't. We've had a couple spikes here and there in a long and sustained downward trend. The spikes have been short lived and soon revert to the downward trend Bitcoin has been experiencing since the all time high in December. Your theory does not explain what has happened or is still happening. |
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It might be a good idea to use bitcoin as a means of payment, but some people are still not familiar with bitcoin, and some countries are opposed to the existence of bitcoins that could damage the real currency. This is still causing controversy to realize bitcoin as a legitimate payment currency, in the absence of a tax then there are some losses to the state because the State needs a source of revenue to finance its expenses, one of its sources is a tax. If we do not pay taxes those who use the richest means they are the most exploited natural resources and use public facilities. in economic activity and no income, in the absence of a tax then distribution, income distribution does not exist, and the gap between the rich and the poor gets bigger. Means to share with fellow beings, for living in the same world. Some tax money is used to preserve nature that has benefited humans.
If everyone was using Bitcoin, you would still have to pay taxes just the same as if you were using the local fiat. Transacting in Bitcoin doesn't magically exempt anyone from the obligation to pay taxes, and it's not any harder or easier to evade taxes if you're using Bitcoin than if you're using pure cash. Both systems would are built on businesses reporting their sales data and making tax payments. So state opposition to Bitcoin and crypto is not tax-based, but more likely the fact that it's been completely unregulated and rife with scammers. Loss of economic activity due to people being swindled is in the state's interest, since the state has the burden of providing law and order and also wants to foster economic prosperity. |
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I was thinking about Modern Portfolio Theory and Bitcoin. I did a little research about it and will share my thoughts with you guys. As stated here ( https://www.turtletrader.com/modern-portfolio-theory/) Modern portfolio theory is standard practice in the smart investor’s portfolio. MPT places a non-correlated investment, a predefined percentage managed futures component, into a typical bond and equity portfolio. Risk is diversified away from the bond and equity positions into non-correlated managed futures positions. Higher portfolio returns with a reduction in risk is the end result.
As you can see in this chart, from the same website, 100% bonds is riskier than 80% bonds and 20% stocks.  A greate challenge to investors is to find non-correlated assets. This is where bitcoin comes in. Bitcoin is a new asset class with high returns, non-correlated to any other assets.Pension funds, hedge funds, and many other funds are probably willing to buy bitcoin, as it is non-correlated to any other assets. But they can't for legal reasons. But they can buy a Bitcoin ETF, or maybe a Bitcoin Future. Soon money will come, when those legal instruments are available for them. Remember, to lower the risk of your portfolio bitcoin should be something like 3% of your overall portfolio, maybe even less. This articles covers a little about the subject too. https://medium.com/@dustin_byington/why-owning-bitcoin-reduces-risk-8163309ec2f1Edit: Vitalik Buterin saying the same thing, that cryptocurrencies reduces risk. http://Https://www.youtube.com/watch?v=VosfxChTxVgIt seems this is only addressing volatility risk, and adding an instrument to your portfolio that is far more volatile than either stocks or bonds may reduce your volatility risk while significantly increasing your overall risk. Also, modern portfolio theory is predicated on the concept of non-correlated assets, and I'm not sure that crypto is an uncorrelated asset to traditional equities. We'll find out better when there's a big market downturn what happens to crypto, but my prediction is Bitcoin and other cryptos tank along with the market, and probably harder due to their purely speculative nature. When things turn bad, speculative assets decrease in value the most. So because crypto isn't a non-correlated asset, and because it's far more volatile than traditional assets (stocks and bonds), you cannot reduce your overall investment risk by buying it. |
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Very interesting question, which I have never thought of... Of course, at once all countries will release their currencies with a high price, but then everything is stabilized. Each country is delivered to hope that the visit has lost and delivered a "keep the mark" high prices at once, but then the market will all put in place.
Countries are not going to release their own cryptos. There's no reason to. Each country already has their own fiat currency that they can completely control, and the currencies already operate digitally, so there is no benefit or purpose to issuing a state-denominated crypto. The US dollar is the most robust digital currency in the world currently, and Bitcoin specifically or cypto generally is never going to come close to the level of adoption or utility the US dollar already commands. In every country, even in the most developed, there is a large turnover of fiat money that is not taxed. The release of own crypto will allow to establish control over all money.And the main crypto currencies (btc, eth, etc.) will be used for international payments as now $ USA. Converting to crypto doesn't necessarily address the issue about untaxed fiat money. Having access to the blockchain doesn't do anything towards identification of income transactions vs. any other type of transaction, and the disruption to the economy of switching systems would be devastating. Further, there's nothing crypto can do in terms of "control over all money" that fiat systems can't do better, and that they already don't do better. Fiat is already under total control of the government, and can be manipulated at will to affect the economy as needed. One possible use is for remittance or international transfer, but it's already used for that and already functions alongside the fiat system, not as a replacement for it. |
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I see that many of you actually liked the concept of 20 % method wherein you allot 20% of your earnings to be saved as emergency fund.
So I was thinking, if that 20% allotted will be invested in a time deposit kind of account, will it still be possible to earn as much or invest it in cryptocurrency? Or maybe just let the money sleep until such time you will need it?
What will be a wise kove to do with the noney you have saved up?
Emergency funds are not to be deposited in a time deposit account. Time deposit accounts have specific time before you can withdraw it and you can never tell when you are in need of it. Also it is not wise to invest emergency funds because you are doing away with the main purpose of such savings. You can still withdraw from a time deposit account if you need the money, the only reason not to would be you forfeit interest owed to you for withdrawing early. Putting the money in a liquid account for ease of access and that pays some sort of interest or provides a return, like a time deposit account (CD) or simply a savings account, is far preferable to holding cash. The reason is cash depreciates over time, pretty slowly in most cases, but it loses value nonetheless. In a time deposit account or savings account, the interest earned reduces the loss of value due to inflation, if it doesn't entirely make up for it. And in the case of the time deposit account where you have to withdraw early and forfeit the interest, you're no worse off than if you held cash for that time and have the potential to be better off if you don't need to withdraw it early, which holding cash provides no upside. So logically, there's only potential benefit to a time deposit account and only potential detriment to holding cash. |
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In your opinion, what are the best way to serve country economically? #1 News media has become too centralized and monopolized. In the USA there should be an anti trust lawsuit or a repeal of the telecommunications act of 1996 which allowed the news media to become too centralized under Bill Clinton's administration. There are too many agendas being pushed in the media and too much bias. Example of this is the media's trend towards being anti bitcoin. Better information, more independent news, these things will help the public to be better educated and informed and help them to support the right policies. #2 The glass steagall act which was repealed in 1999 might need to be reinstated. Better separation of investment banking from commercial banking could produce less risk in derivatives and bank trading producing a more stable and prosperous economy. #3 State subsidized bitcoin and crypto. State provided investment funding in more objective and fair analysis and media coverage of the benefits of crypto currencies in providing value to economies and neglected demographics. The list of ways to better serve a nation economically would be long. I think the above would constitute a good start. #1 is a problem in that we now live in a world where media is both too centralized and incapable of existing profitably if broken apart. The world has changed too much and information is now cheap to access. It used to be that the primary sources of information were newspapers and newscasts, but the internet blew that up and opened the floodgates of in terms of access to information. That means that people aren't willing to pay for it anymore. There is also far too much competition for attention now as well, and the market as a whole is so fractionalized that no media company on its own holds enough eyeballs to appeal to advertisers enough to be able to charge enough to support the cost of good journalism. That's why there has been so much consolidation, hoping to make up in scale what has been lost through fractionalization. Now, we're damned if we do and damned if we don't. |
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It's not like people "agree" to pay taxes. They are obliged to. Taxes are used for building and maintaining roads that we use everyday. Taxes are used for providing public transportation. And so much more.
As a quote said: There are two things you can't avoid. Death and Taxes.
Short answer: something something prison. Fuller answer: The doesn't have a "voluntary" system. Anything that is enforced with prison or the threat or use of force is not a voluntary action. It is compelled. There are additionally financial penalties for not paying taxes, which are similarly enforced through force or the threat of use of force. If it was truly voluntary, it wouldn't be called taxes; it would be people donating money to the government so it can afford to function. |
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Gold does seem undervalued right now. And countries are indeed expressing their support it seems like a bull market in precious metals is imminent, except it's only a matter of when it will happen.Precious metals prices have actually been extremely quiet in most of this decade, and that to me is just another sign that that particular asset class will probably thrive soon. Gold was $1660/ounce in 2013. Gold will have all time high price of $2100/ounce. -30% fall in stock markets will bring all the money to gold and silver. There was a 30% fall in the stock market during the financial crisis and it didn't "bring all the money to gold and silver" so there's no basis for this conclusion and the one recent data point we have for it actually works against the conclusion. People who are bullish on gold seem to habitually over estimate what gold is going to do, and this general trend has held mostly true with Bitcoin as well. No matter how high it goes, people are convinced it will continue to put up quick 4x or 5x returns. In short, mass delusions. It's likely Bitcoin reached the moon already and nobody realized it because they were blinded by greed. |
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I really miss those disclaimers those who give financial / investment advice used in past eras where they said: "said person is not currently invested in the thing they're currently offering advice on". Objective and independent analysis is critical in gauging things like future price projections. Its very hard for someone to be either objective or independent if they invested $50,000 in gold/silver or $50,000 in bitcoin which is often the case for those offering investment "advice". And so perhaps it is a worthwhile goal to be cautious and practice "caveat emptor"(buyer beware) when pondering things some say.
I think the three main variables when considering future bitcoin price might be broken down thusly.
1. The state of the us dollar and european euro. If debt and deficit increases for either the USA or EU the value of bitcoin and crypto should increase. Concern over the stability and reliability of fiat currency is one of the main overriding factors determining how badly precious metals and crypto currencies are in demand for a populace which is seeking ways to maintain the value of their wealth in the face of worse case scenario fiat devaluation or hyperinflation. Currently there are many nations in the world which are dealing with currency devaluation/hyperinflation scenarios. The USA and EU may be the last to feel the threat of this but inevitably if nothing crucial changes they are both likely to end up in trouble eventually.
2. Worldwide regulation and potential legal crackdowns on bitcoin and crypto. How and when this is implemented could have a future impact on price. I think everyone knows most potential scenarios here.
3. Lastly I think demand and the size of crypto's userbase is the final main factor. How educated and informed crypto's userbase is and how well they support the right altcoins and policies could make a massive difference.
Of course this is all off the top of my head so maybe not the best breakdown but hopefully I gave someone something worth pondering or reading.
I think of the three you listed, number three is the most important and impactful. I don't see number two having a serious negative affect since it would only be improving the structure crypto exists within and bringing more confidence to the system. If number one is having any meaningful impact, the world has already gone to hell and is may be irredeemable. At that point, the last thing you should be worried about is how much money you're making with crypto, because the world likely doesn't function the way it does currently with people economically confident enough to speculate and invest and are probably just struggling to survive. Number three is what impacts the price now, and if that stops being the case it's probably because number one happened and goodbye world economic stability. |
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I think today is the perfect time to buy bitcoin, because the bitcoin price is low now, and many people are panic to sell their btc low price.
The perpect time to buy is when the market is in red, and right now the market is red so it is the perpect time to buy bitcoin and other cryptocurrency that have a good future like ethereum, waves and tron, My advice is buy now and just hold it. When price is down so you should buy bitcoin but I think you can anytime buy this currency because its price is more increase and that's why you will get best profit, so don't wait for its low price because that's why your time will lose. This is pretty terrible advice. The price has been steadily dropping for about 5 straight months with irregular and short lived spikes that are easily and quickly erased. If you were following your own advice, you should have been buying for the past 5 months at $19,000 all the way down to $15,000 all the way down to $10,000 all the way down to $7,500. And if you were doing that, you've down a lot of money right now because you've been blindly buying just because the price was lower than it was right previously. None of you know when to buy, so stop pretending like you know what's going on or you're going to continue to delude yourself into losses. |
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Very interesting question, which I have never thought of... Of course, at once all countries will release their currencies with a high price, but then everything is stabilized. Each country is delivered to hope that the visit has lost and delivered a "keep the mark" high prices at once, but then the market will all put in place.
Countries are not going to release their own cryptos. There's no reason to. Each country already has their own fiat currency that they can completely control, and the currencies already operate digitally, so there is no benefit or purpose to issuing a state-denominated crypto. The US dollar is the most robust digital currency in the world currently, and Bitcoin specifically or cypto generally is never going to come close to the level of adoption or utility the US dollar already commands. |
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You can regulate the circulation of bitcoin inside the country and the procedure for its exchange and use on exchanges, exchangers, banks, etc. You can regulate the procedure for its taxation, ICO. This is entirely permissible. However, one should not allow states to try to regulate the basic principles of the existence of bitcoin - decentralization, relative anonymity, confidentiality and some other of its technical characteristics.
It sounds terrible man. Market regulations are not good for they will limit the services Bitcoin offers. Government would be able to alter the prices or the supply of the coins and might even implement tax on earnings that comes through Bitcoin. Having said that, I feel very bad about it but I hope the government has no intention of entering the crypto market or implementing any kind of regulations. "Market regulations are not good for they will limit the services Bitcoin offers." Market regulations are inevitable and necessary. There are far too many scammers who have stolen far too much money in the absence of regulated exchanges. There may be a small decrease in service providers who won't go into business because of the regulations, but this is a small price to pay for providing confidence and accountability in the system. "Government would be able to alter the prices or the supply of the coins..." False. The government wouldn't and couldn't do this. To suggest they could is to announce you don't understand how Bitcoin works. "... and might even implement tax on earnings that comes through Bitcoin." Hate to be the one to break this to you, but this is already in place. You are required to pay tax on your Bitcoin earnings, both in terms of earnings and capital gains. |
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About damn time. Bitcoin is exactly the type of thing you would expect from an unregulated market and the reason we need these financial regulations. I have no doubt that spoofing and other methods of market manipulation are taking place. Those with the means of manipulating the market for their own gain are absolutely taking advantage of their ability to move the market to their own benefit. After all, if there's no regulation or monitoring of the trading systems, why wouldn't you? These fraudulent practices are still illegal and they still exploit people who don't have the ability to know when they're at the disadvantage. Our whole system is predicated on notion of equal opportunity, and clearly that is absent in this market. I am very interested in how this probe will turn out. |
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I was reading the Speculation section from the Economics forum yesterday, and two guys from the BTC Foundation said that 2018 will be the last time that Bitcoin will be under $10,000. I believe that this statement was made to lessen the worry that comes about every time that BTC drops. I don't know how anyone could make that statement in full faith though, as the nature of altcoins is its very volatility. Since it is not tied to normal economic conditions as fiat currency is, I don't quite see where that prediction comes from. The fact that many economies are talking about some type of oversight does show that acceptance is gaining and perhaps is a harbinger of more stable, and higher, prices.
Nobody has any control over the price so nobody has any reasonable expectation about what the price is going to do in the future. Prognostications by anyone, even people from the BTC Foundation, are rather worthless. It seems more likely they're trying to stoke demand since weak demand has been slowly deflating the price for awhile now. As members of the BTC Foundation, I expect they probably have significant Bitcoin holdings and are probably worried about how those holdings have depreciated in value over the last 6 or so months. Because of this, I would view such "predictions" as not only baseless (like any other price prediction), but also self-motivated and conflict-oriented. After all, I'm sure none of these guys would have ever predicted at the time Bitcoin was trading above $19,000 that it would ever again see a price below $7,000, and as we all know it reached that less than 6 months later! And that's why their predictions are worthless. |
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Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks
Essentially, if everything is denominated in Bitcoin there would be no change to how taxes work. When you pay income tax, your employer would still be required to withhold all the applicable taxes and pay them to the state and national government, and at the end of the year you would still be required to file taxes and pay whatever shortcomings you owe or file for your overpayment refund. When buying things, sales taxes would still be charged by the business and you would still pay the sales tax, which the business would then be responsible for forwarding to the government. In short, there's absolutely no reason to think or expect that switching to a fully Bitcoin-denominated economy would result in any changes to the tax system whatsoever. |
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