What would happen if Bitcoin became a legal currency?

[deisik]

Then the competition for all of us will going to be tough enough as that is going to add a lot of users if this is going to be implemented. And for sure many people are going to start up businesses with bitcoins so if making bitcoin is going to be a legal currency to a country then that is going to boost the whole bitcoin industry.

Bitcoin is legal in most countries...

As I understand it from what the OP meant to say in the opening post, he was referring to Bitcoin as a legal tender, with which you can legally pay (or collect, for that matter) taxes and duties. Given that, Bitcoin is nowhere near this, not in a single country (if we don't consider some pseudo "states" like Sealand). The Russian government was going to officially recognize it as a "foreign currency", though...

But this still doesn't cut it as a legal tender

The bitcoin might not be the legal tender. But if a government can accpet it as a tax payment, that is excellent.

I think you don't quite understand what legal tender actually means. Below is a definition of legal tender in the US (emphasis added):

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts

Basically, officially accepting something as a payment for taxes makes it into a legal tender. Legal tender is not what you pay for goods in a shopping mall. It is what you pay to authorities and what they accept as payment for compulsory financial contributions imposed on you by themselves. You may not like it, but they don't care

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[Doamader]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

[FLoving]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

[deisik]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

Not until there is a global government ruling over the world. On the other hand, let's assume for a moment that the Chinese Politburo decided to heavily tax Bitcoin miners (since most mining pools are Chinese). The miners would have to raise the transaction fees. But because transaction fees are the buyer's market, all they can do essentially boils down to not including transactions with fees lower that they consider sufficient. Obviously, people start to transact less, the price of Bitcoin begins to plummet...

And the Chinese miners get outcompeted by less demanding miners and eventually end up thrown out of business

[Shady]

As such, Bitcoin is an actively traded currency now so there's loads to expect for future reference.

Truly though, if BTC becomes more mainstream than it is and is adopted officially in OPEC / Reserve Exchanges the price + startup potential will rise significantly.

[Supercrypt]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

Yes you are right. But government will be able to track us whenever we are converting bitcoin into local currency by using bank accounts or cards.
Other than these, when we are sticking like paying others direct bitcoin payments and converting bitcoins into cash using local exchangers in person then no one will be able to track us so there will not be any possibility of taxing.

[ajun96]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

I think although bitcoin be legal even though it will be difficult for the government to be able to provide a tax on bitcoin users in their country, if it does occur naturally called anonymous bitcoin advantages will be lost, so what the benefits bitcoin will be an attraction of bitcoin lol?

[ObscureBean]

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

I'm amazed at how naive a lot of people seem to be here on the forum  You really think the government can't know who is using Bitcoin if they really want to?? They've got the world's brightest minds working for them, for all we know, they've already worked out an accurate system to bind real identities to Bitcoin addresses. Remember you get your internet from an ISP and these guys would bend over backwards for the government.

[nindie]

if bitcoin legal curency
all the world regulated and legalcy bitcoin
can pay tax fee, your must verified identifity addres and wallet

[DeDordtenaar]

The main thing would be the government start to tax bitcoin transaction and people which to buy and sell it, it would be legalized for a price, soo people would raise their prices accordingly the fees being taked. And the funny thing would be say to my friends that said im doing something ilegal, earn bitcoins, they were very wrong and lost time being following the law.

yeah one thing into thinking the government is how to get profit from a foreign company, certainly when bitcoin be legal in a country of course the government will impose a tax policy to provide to bitcoin, but I do not know. is it a tax provision in bitcoin can be effective or not

[deisik]

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

I'm amazed at how naive a lot of people seem to be here on the forum  You really think the government can't know who is using Bitcoin if they really want to?? They've got the world's brightest minds working for them, for all we know, they've already worked out an accurate system to bind real identities to Bitcoin addresses. Remember you get your internet from an ISP and these guys would bend over backwards for the government.

Though I agree that there are a lot of naive people sticking around the forum nowadays (certainly much more than some 3 years ago), but you obviously don't consider yourself to be one them, right? But how could you forget that there are quite a few governments in the world, many of which are not quite friendly toward each other? So what a government could do to someone who is simply beyond their reach, even if they managed somehow to bind this individual to his Bitcoin address?

Obviously, having the world's brightest minds is nowhere near enough

[Doamader]

But I think the government will unable to find that who is using bitcoin and who is not using so they will not be able to start tax on them but only a fees for transaction is possible for the government to keep on the people.

I'm amazed at how naive a lot of people seem to be here on the forum  You really think the government can't know who is using Bitcoin if they really want to?? They've got the world's brightest minds working for them, for all we know, they've already worked out an accurate system to bind real identities to Bitcoin addresses. Remember you get your internet from an ISP and these guys would bend over backwards for the government.

Each country has plenty acess to how much money each banks does have, from their costumers. People do save their money at banks its hard to find a person today that doesnt save at bank, at home its something no one does, its a risky thing to make such. Countries interest into bitcoin would be their tax, even if they dont know who is at crypto world, some of us are making a good income at it and will need to justify where those money is coming, or atleast need to hide it with small ammounts.

[diodio5]

if bitcoin legal curency
all the world regulated and legalcy bitcoin
can pay tax fee, your must verified identifity addres and wallet

I think this policy will not be applied no one can change the system of bitcoin. and bitcoin will be kept anonymous until whenever, so even if you are required to pay taxes you could manipulate your bitcoin amount in other bitcoin address. moreover anonymous bitcoin government not certainly will know it

[FlightyPouch]

If bitcoin became the legal currency, I think it will be easier. Some illegal transactions will be tracked because if you dont know, government are tracking us without knowing it. We dont need to carry wallets, there will be no snatchers and hold upers..but in disadvantage i know hackers and scammers will really be a good job for bad guys. So bitcoin being the legal currency can wait for years or centuries

[blackmachinegun]

if bitcoin legal curency
all the world regulated and legalcy bitcoin
can pay tax fee, your must verified identifity addres and wallet

yeah it could have been done and it might be happening in the future where the bitcoin be legal and accepted by the government but instead would bitcoin should provide income to the government in the form of taxes. it can be done, but certainly there is a lot of data manipulation that happened so it will not be effective

[BitMaxz]

if bitcoin legal curency
all the world regulated and legalcy bitcoin
can pay tax fee, your must verified identifity addres and wallet

yeah it could have been done and it might be happening in the future where the bitcoin be legal and accepted by the government but instead would bitcoin should provide income to the government in the form of taxes. it can be done, but certainly there is a lot of data manipulation that happened so it will not be effective

Honestly i dont want that bitcoin will be involve in bitcoin since our government are corrupt so it can affect our freedome with bitcoin.. we are paying only for transaction fee a small amount of fee that can increase in the future if we are associated with government.. we are choosing bitcoin because we are need freedome. do you think if bitcoin is connected to government those gambling online will be still active here in my country all gambling are close because of regulations rules..

[outatime1]

I think it is actually legal in most countries, but it is just not accepted as payment at many places. It is still too new and different to have fully caught on yet.

[madwica]

I think it is actually legal in most countries, but it is just not accepted as payment at many places. It is still too new and different to have fully caught on yet.

Correct bitcoin is already legal decentralized currency we can spend it internationally, here in my country bitcoin is popular in more people even only few stores are accepting bitcoin as their mode of payment and i am hoping that in the future all stores will start to add bitcoin in their more of payment.

[deisik]

if bitcoin legal curency
all the world regulated and legalcy bitcoin
can pay tax fee, your must verified identifity addres and wallet

yeah it could have been done and it might be happening in the future where the bitcoin be legal and accepted by the government but instead would bitcoin should provide income to the government in the form of taxes. it can be done, but certainly there is a lot of data manipulation that happened so it will not be effective

Honestly i dont want that bitcoin will be involve in bitcoin since our government are corrupt so it can affect our freedome with bitcoin.. we are paying only for transaction fee a small amount of fee that can increase in the future if we are associated with government.. we are choosing bitcoin because we are need freedome. do you think if bitcoin is connected to government those gambling online will be still active here in my country all gambling are close because of regulations rules..

I don't know about your country, but if Bitcoin gets regulated to the gills and, as a result, online gambling sites won't be able to use it, they will simply start using another coin. That seems to be the reason why some Canadian dice sites switched from Bitcoin to Clamcoin (though I can be wrong on this). In any case, online gambling won't go away just because Bitcoin gets regulated up to the point where it can no longer be used for gambling or just gets outright banned...

Dog fights are almost universally banned, but fighting dogs still prosper somehow

[drwtsn32]

If bitcoin became a legal currency, many people will notice bitcoin and start using bitcoins. It will give a good impact into bitcoin for sure and the price of bitcoin can increase.

More and more people will start using it, yes. But a "good impact" may not be a good way to put it because we can't know for sure if being popular is beneficial to the bitcoin industry.