should government involvement be there ?

[jatin729]

Hello guyz how are you?
i know you are so excited about price increasing of bitcoin but there maybe one confusion born if price will still grow like this.
I am not kidding. bitcoin has an average capital is  around 70000000000 USD and who operates  that  large amount.  we operate, there is no Government involvement.
According to me many countries governments will try to standardize bitcoin as an official currency, that means there would be banks instead of exchanges.
 For example now a days we are buying goods with our local currencies whether it is USD, NZD, INR or etc.. and we pay some amount of taxes. These taxes directly go to government.
let's assume if all transaction will be held with bitcoins than what will happen ?
Simply answer government will be in lose because tax thief will easily cheat government while using bitcoins.

well how they can cheat ?
Simple when we send bitcoin to someone than what we  need one wallet address and some satoshi fee for confirm transactions.
who own fee, A miner it can be slushpool  or any other miner. so i just want to convey there is no government involvement at all.
even the government has not known there was transaction took by an consumer.

This is 100% sure that government will taken care and create some rules and regulations that we should have to follow .





 

[iamTom123]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

[Hamstead]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

If bitcoin become legal in any country, of course a tax will be collected and that's a big money. Anyway isn't bad because its  a big help also to the government and they only generate income from the tax that they are collected from the people. And beside, the community also can benefits on it and I have no worries about that unless it is abuse by the government. And possible there is a strict policy and controled be imposed by the government.

[mobnepal]

Without proper regulation no any government will allow bitcoin trading but I think that is just an excuse from them to collect high tax on the profit traders are making from bitcoin. However as bitcoin is anonymous, anyone can trade bitcoin on P2P environment to not get detected by authority or not to pay any taxes on profit.

I am doing same.

[stompix]

The taxes are paid by the the customer in the price but in reality they are taken from the merchants that receives the money.

So no mater what you try to do you can't avoid paying the taxes. It's the merchant that can risk his business and will try to avoid paying them by cutting down on the number of goods or services he claims he has done in reality.
It's the same now with cash.

Too risky for a small business in some countries.

[erikalui]

Australia and Japan have already considered making bitcoin a legal currency and now even India is thinking about imposing taxes on bitcoins and legalizing it considering that so many people escape paying taxes by holding bitcoins. The taxes are going to be huge as unlike shares, bitcoin price fluctuations are high and in my country, the taxes on fiat itself are so high, I can't imagine how much will they charge for bitcoins.

Tracking bitcoins is an easy process where they can just ban domains like blockchain and make everyone use coinbase/xapo kinda wallets only if they want their money to be considered white. That way, even fiat can be used in money laundering and tax thieves will find some way or the other to use black money.

[Yoandy10]

I think government involvement will be a favorable thing for cryptocurrencies. The number one reason is that it will legitimize crypto. A lot of people have doubts about crypto because of the stigma on the streets - that it is used mostly by criminals. Which may be true, but so is the US Dollar. Anyway, legitimation  is imperative for worldwide acceptance and continued growth.

As far as taxes go, I think only purchases should be taxed, not incomes or transactions. I have a problem with my transactions being taxed if I send a relative a gift, for example.

[deisik]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

Do they really have this power?

Apart from that, they likely don't need it altogether since they can just raid the exchanges which they don't quite like (read the ones which don't pay for licenses or anything to that tune). Anyway, how are they going to tax transactions according to you? Make web wallets collect some extra fees? People would just stop using these wallets in less than no time, and you can be dead sure the throne won't be empty for long. What other viable ways are available to them? I don't think there is any which wouldn't mean destroying Bitcoin at the same time

[bamboylee]

So far in our country, it is the exchanges that the government is regulating. Bitcoin traders are still not taxed. It will be a daunting task for the government to run after those bitcoin traders to tax them. I do not think they will be able to tax them at all.

[Yoandy10]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

Do they really have this power?

Apart from that, they likely don't need it altogether since they can just raid the exchanges which they don't quite like (read the ones which don't pay for licenses or anything to that tune). Anyway, how are they going to tax transactions according to you? Make web wallets collect some extra fees? People would just stop using these wallets in less than no time, and you can be dead sure the throne won't be empty for long. What other viable ways are available to them? I don't think there is any which wouldn't mean destroying Bitcoin at the same time

You make some valid points. I think if there is any way to tax it would be through the exchanges. But, I also think it is possible to withdraw a portion of each transaction in a mined block, through the blockchain network. In fact, I think that would be the easier way. It would be like an additional network fee. Don't you think?

[fullypak]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

Do they really have this power?

Apart from that, they likely don't need it altogether since they can just raid the exchanges which they don't quite like (read the ones which don't pay for licenses or anything to that tune). Anyway, how are they going to tax transactions according to you? Make web wallets collect some extra fees? People would just stop using these wallets in less than no time, and you can be dead sure the throne won't be empty for long. What other viable ways are available to them? I don't think there is any which wouldn't mean destroying Bitcoin at the same time

I think there is no way to put a tax on our transaction, and there is one chance how means we will convert our bitcoins to fiat in any exchange site and the site will send money to our bank account. So they will track that transaction and they can out tax. Apart from this, they can not find our transaction. This is not a tax for our BTC transaction this is a tax for our total income. 

[Zicadis]

We can not run away from paying tax because most of the  times when we want to spend our bitcoins for some personal needs we pay these taxes regardless because they are unavoidable costs but bitcoin being decentralized it will be difficult for the government to effectively collect these taxes as people will find ways to evade them unless they target exchanges.

[SirPereira]

To be honest and like I have said in one or two other topics I replied to, paying for goods at a worldwide stage is still very distant from happening.

I can see it start to happen in the next 5-10 years if the constant rate of BTC value is kept. Don't forget that the only reason why you are taking such a question is because of the hype BTC got this year caused by its sudden growth.

Until here nobody believed BTC and they are now seeing that a digital currency may possibly live in such world.

For governments to get a word on this, BTC in my opinion has still much to prove and to grow, until we start to have those worries at all.

[iluvpie60]

Government getting involved in Bitcon is a very slippery slope which is already likely happening.

Now which government is it? A lot of info I see about Chinese government giving tax deductions and free electricity to miners and stuff like that. Just recently someone in a Western state in the USA got some kind of 500,000 USD grant for his bitcoin operation. Not sure how he pulled it off.

But taxpayer money is subdizing him getting rich! Very slippery slope because it could be used as corruption. Pay off a politician to give you lax restrictions on your BTC farm, and you make tons of money...

[leonair]

You have a point but it is too early to over think that way because as we all know even the cyber crime laws is not that so strong in implementing unless the authorities have the full evidence of the perpetrator to make an action. Taxing cryptocurrencies maybe possible but I think that will happen now, Bitcoin essence is to be decentralize and no authority will regulate it but when it comes to a single country maybe they can but they need to build a specific department that will do that and it will take time, so be calm.

[Beerwizzard]

The government dont have control over blochchain but it can still try to track people using bitcoins. Also it controlls the proucers of different goods and they also pay taxes. Using means for them that they won't be able to hide different amount of revenue (so in some cases btc will give more instruments to control someone else's activity). Cutting or removing taxes is good anyway so bitcoin will only harm sick systems that should be cured.

[freebutcaged]

I think you just realized a few facts about Bitcoin mate, congratulations how long did it take you to get it? these things were in the open from the 0 day.

This is the beauty and the reason for price increasing, people finally realizing the endless benefits of using Bitcoin which is the biggest and strongest of

All cryptocurrencies, just wait to see how US and other advanced countries start bashing anyone using crypto, it will only take another $70B to be added

To the market share.

[orions.belt19]

The government can impose tax based on the transaction and I know that the government can be creative enough to find ways and means to this effect. For example, they can be charging wallet providers for all of their transactions and these fees will eventually be passed to the consumers...sometimes without is noticing of it because it is already an add-on feature.

The government has the power to tax, that we must remember at all times. In many countries, not declaring and paying correct amount of tax has big penalties attached into it so people are always making sure that they are not violating the law otherwise it can be a big hell to thresh out with once you are entangled with the government authorities. 

Yes, I agree because the government has the power of taxation. This what they'll most likely do, impose taxes on Bitcoin if a country's government were to regulate it. Imposing taxes allows the government to generate revenue, and the government will surely use it up to their advantage.

Tax exemption is punishable by law and one thing they can do to avoid this is to come up with some sort of tracking system for bitcoin transactions so that no one may get away with it. If the government were to regulate Bitcoin, I'm pretty sure that they'll come up with various rules and regulations just to gain control.

[iram1011]

Who says government is not getting involved in Bitcoin?

Government of most of the countries are paying close attention to the growth of cryptocurrencies. They are very well aware of the loss they would encounter if Bitcoin or Altcoin cover a trillion dollars marketcap. Many have already legalized Bitcoin with regulations. They are now controlling exchanges and are taxing people. This is enough a needed step at present. Other countries like China and Russia are on their path to build their own Cryptocurrency in the dream of overtaking Bitcoin. They all won't leave Bitcoin as it is that is for sure. Many countries will follow as for example India is considering.

[iamTom123]

Australia and Japan have already considered making bitcoin a legal currency and now even India is thinking about imposing taxes on bitcoins and legalizing it considering that so many people escape paying taxes by holding bitcoins. The taxes are going to be huge as unlike shares, bitcoin price fluctuations are high and in my country, the taxes on fiat itself are so high, I can't imagine how much will they charge for bitcoins. Tracking bitcoins is an easy process where they can just ban domains like blockchain and make everyone use coinbase/xapo kinda wallets only if they want their money to be considered white. That way, even fiat can be used in money laundering and tax thieves will find some way or the other to use black money.

This is now becoming like a give and take system with the government (any government for that matter) as they also want to remained in control with taxation and on big issues like illegal activities (drugs, human trafficking, terrorism, etc). And this is something we the people have to understand as we know that there are only two certain things in this world: one is tax and the other is death.

Personally, I have no qualms with the government imposing tax as long as it is still fair and is not meant to kill something that is really innovative and the funds collected should be returned to the people in terms of better services. Imposing tax can also mean one thing: the government is already recognizing the source of the tax and they now have the responsibility of protecting that source.

The way is working together with cooperation and willingness to talk to each other rather than just imposed anything out of the blue.