Does Bitcoin create a hole in the cycle of economy?

[reighbut2017]

This is all from the realm of fantasy since governments of different countries will never allow such a thing! They will buy up the main shares of crypto-currency and control its price. And if they can control the price, then the whole meaning of the crypto currency is lost

Yes its true, this creates a hole in economy if the government did not legalize bitcoin because they can't impose taxes on tranactions so in order to control bitcoin the gov't should legalize first for them to enforce the law on establishment to obey and pay taxes.

[HabBear]

Your friend has a great curiosity. It's a good discussion to have.

First, taxes are participatory. They require the income earner (be it your friend or the business he purchased that pen from) to pay the taxes to the government. So the hole your friends speaks of isn't driven by crypto currency, it's driven by people wanting to evade paying their taxes!

Second, crypto currency makes the flow of money across borders easier. The market is opened up, which means earning and spending can happen more freely regardless of border...this feature will spread the money around and open the opportunity for tax obligations to be spread to other countries. Which will help some countries more so than others.

But this isn't a hole in the cycle of the economy.

And in pure economic terms, a freer market is a stronger market. Cryptocurrency creates competition in markets that have remained the same for decades, ignoring the technological revolution. It's time for whole industries to change as a result of cryptocurrency.

[Margaretlove]

well, anything can happen. BTC tend to take the trust of people.

[James Fleming]

What about the the claim that a good currency needs to be stable? Users need confidence that the money they're paid in isn't going to lose its value. The argument is that Cryptos are so far too volatile to be useful as widely accepted medium of exchange.

[Sydney Chapman]

I'm an enthusiastic bitcoiner as well, but I don't consider anybody with a different opinion to be economically illiterate.
Otherwise you're right on point. Bitcoiner should start developing their own knowledge instead of relying on other people to explain economics to them.

[si2000]

about what a hole can generally be said, bitcoin on the contrary helps to solve the problems of the economy!

[OutlawFat]

This is ridiculous  Many governments for years have had indirect ways to trace your income whether you declare it or not. So, in this way I don’t really see a big difference between good old cash that is traditionally used in the ‘shadow economy’/ ‘black market.’ Whenever a person tries to evade payment of taxes, s/he will easily succeed in it. At least for some time But then the IRS and other authorities come into play. Remember Al Capone? Had he used btc, I believe the result would have been the same So, not to worry, btc just cannot “create a hole in the cycle of economy.”

[ambisyon]

I think that will depend on the government in each country considering cryptocurrency will evolve in the businees community and I believe that would be a part of the discussion when that kind of situation will be establisbed.  It would be normal for the government to tax the goods and services since that is just how government works.

[1van__]

Only there that it is not taxed and allows people not to share money with the state

[si2000]

On the contrary! bitcoin can help the economy in its development!

[Klarks_C]

Does Bitcoin create a hole in the cycle of economy?

I don't think, and I would say No!

 For the simple reason that morally speaking a government do not own a right to cute taxes as he sees fit.
 ( I imply by that that if you don't want to pay taxes to a government , you have the right morally and legally to defend in first your action until a judgment (equitable) is pronounced. Not the repression that will inflict you the government )

 Secondly, If everyone in the planet uses cryptocurrency governments would not escape the rule.

[Indrawan77]

Many economic expert already predicted that scenario, and the way to handle the problem is through regulation, too many crypto usage without regulation from government going to end up with economic instability, like crypto, fiat also need to be spend and circulate to make the economic healthier, without the flow it can cause serious problem

[soros008]

Great posts.. However, have you ever thought about a Tax free world and government providing money to people rather as a Universal Basic Income after the disruption of jobs through AI ?

[Klarks_C]

This is ridiculous  Many governments for years have had indirect ways to trace your income whether you declare it or not. So, in this way I don’t really see a big difference between good old cash that is traditionally used in the ‘shadow economy’/ ‘black market.’ Whenever a person tries to evade payment of taxes, s/he will easily succeed in it. At least for some time But then the IRS and other authorities come into play. Remember Al Capone? Had he used btc, I believe the result would have been the same So, not to worry, btc just cannot “create a hole in the cycle of economy.”

It is a legit question that can across to the mind of any beginner.
  From the (production), the next bloc who will created, to the possessor of the last fraction of bitcoin from this bloc. The Bitcoin across  with so many events unknowns and unpredictable toward the "actual economy", and with gives that would act by so unpredictable and unknown way!

 That's why earlier in the beginning ,(2012 ~ 2014-2015), we'd remarked governments and decidants moving  in favor toward apprehend Bitcoin and integrate it (to the economic model).

[Klarks_C]

What about the the claim that a good currency needs to be stable? Users need confidence that the money they're paid in isn't going to lose its value. The argument is that Cryptos are so far too volatile to be useful as widely accepted medium of exchange.

So the Bitcoin is yet 8 years old, so the idea (I think), is that Bitcoin is good investment to the leading to the freedom of the peoples

[Crypto one]

Governments can always force business to add vat too what they sells in bitcoins. Just like they add vat to what they sell in fiat currency.
I can't see the big difference here.

Crypto itself can leave a hole in every country economic, for now the country can't control the money flow, and when they print more fiat, bitcoins just gets more expensive.

[RockBar0]

Many economic expert already predicted that scenario, and the way to handle the problem is through regulation, too many crypto usage without regulation from government going to end up with economic instability, like crypto, fiat also need to be spend and circulate to make the economic healthier, without the flow it can cause serious problem

It can happen too. Trusting too much in e-money will neglect the basic money. The cash flow will have to flow further flow of the market. Only so can increase the revenue and profit of all markets. Especially electronic money in the financial market economy. Everything needs to be linked together so that economic development continues.

[jhonvir666]

it all comes from the field of fantasy because governments are their own countries that are never allowed in such matters! They buy the very first shares of a crypto-currency and control their prices. And if they get the price, all the meaning of money in a crypto will disappear.