If enough places accept digital currencies directly this statement will be false. It is a pretty bold statement. and probably myopic to speak of 'always' as an absolute.
As long as nations require their citizens to pay taxes in fiat, then my statement will always be true. It doesn't matter how many goods or services can be purchased in Bitcoins, Litecoin, Feathercoin or other Crypto-currencies. If income is taxed and taxes are paid in fiat, then you will need to exchange your CC for fiat.
You are of course by definition wrong for other types or other focused exchanges. In fact, it is partially due to this being a monstrous task that other types of exchanges are desirable when the overhead of those tasks is not desired. Especially the absurd kyc requirements that have every tom dick and harry business keeping copies of IDs, and asking the same stupid verification questions. So a break in to any of these leaks enough information to use your identfy elsewhere.
Again my discussion and the crux of my statement involved fiat to CC exchanges. CC to CC exchange doesn't even require a central entity. In just a few years, all of these transactions can be done through a p2p network without the need for trust or escrow. In short, the business model you are advocating is obsolete and thus irrelevant to this conversation.
Think it is a coincidence we have a rise in identity theft with the rise in kyc laws?
This statement only serves to support my OP. I assert that exchanges have unique information security challenges and require enormous amounts of trust. Your point only serves to validate the core premise of Peatio that seeks to handle these issues in a more transparent and collaborative manner than they have been addressed by the incumbents.
You are making my points for me. The high overhead and additional risks create a demand for other types of exchanges when you do not need to take on these risks.
Does your government accept taxes in CC? If not, then you are simply wrong. If you receive payment for goods or services in a CC, then you must convert a percentage into fiat to pay your taxes unless your intention is to be a criminal. Even if you as an individual decide to embrace this lifestyle, businesses cannot.
I actually hope it stays that way. I would prefer to see more exchanges that do not offer fiat as an option.
Again, you clearly do not understand that one does not require a centralized exchange for CC to CC transactions. The technology exists to accomplish these transactions in a completely trust and escrow free environment without any middleman. You are advocating a business model that would lead to financial ruin.
