Let's suppose that Bitcoin became universal (used everywhere you go)

[mylyn2327]

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

If ever it will happen Government won't just sit down but they will do something to put regulations on usage of bitcoin/cryptos. And I don't think it will happen, because surely government will opposed to it.

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[Supercrypt]

Governments couldn't manipulate Bitcoin to affect their own economies and inflate it to make their bills effectively smaller. They would be giving up a huge amount of control.

A control they are losing already and cannot do anything about it. I agree with the OP as there would be some pretty good level of tax evasion. God may bless satoshi! The rules may be hard for a lot of countries, the government may want to instigate some level of fear, but the fact is that tracking down P2P transactions is going to be pretty hard since everything is done over the net, and except anyone is making use of exchanges, wallets are not tied to anyone's name.

A way to go get back at them for all the bondage they have placed us all these while. I hope this does not end up to be just a dream anyway.

[Dudeperfect]

Well, that's not the case. Even in the case of the fiat system, you are supposed to declare your earnings and pay the appropriate tax on it. As per the claim of income tax department of my country, less than 1% cases are taken from scrutiny every year so the same system can be applied in crypto too. You have to declare your income and pay appropriate tax on it and if they found anything suspicious then the government will take it for scrutiny.

[Harrow30]

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

If and when bitcoin/cryptocurrencies become accepted globally,  then there will be an agreement with the government  of the countries on how they will get their taxes deducted. The best possible way is via the transaction fees; meaning the developers/programmers will be worked with or absorbed  where necessary. So,  this is achievable even with the blockchain technology.

[timerland]

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

Taxes can still be collected, even if you're using bitcoin to transact.

Bitcoin is only a currency, just like every major fiat currency over the world. Bitcoin and taxes are not mutually exclusive. Just like cash, if someone uses bitcoin, and they are obliged to pay x amount of tax, then they still have to pay it.

It's not like bitcoin is a magical tax-haven. If bitcoin was to go mainstream, trust that the government will defend their revenue by implementing new rules and such. Don't worry about a country failing because of bitcoin, it's simply illogical.

[Cinemo]

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

That is not impossible to be happen cause we are all know that bitcoin can buy things and also bitcoin is decentralized we can buy any cryptocurrencies using bitcoin cause there are various cryptocurrency that can use in various way. In that case we can ise bitcoin as a universal purposes cause anything .will do or will help

[huige007]

This would be great, we dont need then ever go to an exchange, loose a fee percent and whatever else difficulties with currencies...

Bitcoin is still an international currency and can be used in almost every country across the Europe and in America. It is however banned in many countries as well due to their own reason and cannot be accessed in those countries. But Bitcoin really has that power to be called an international currency because it was harshly criticized in the start and despite the hurdles in it way, it came a long way. In my opinion which is an excerpt from all the articles I read by the crypto experts, Bitcoin has a great future.

[East2011]

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

 Wrong.  If you pay with Bitcoin at a business, the business will collect the tax owing on your purchase (it will be part of the total price).  If you get Bitcoin as income, generally the company you work for will remit the taxes to the gov't.  If you don't pay your property tax, your property will be confiscated and sold for taxes owing.  You don't have to worry about governments; they'll get their money out of you one way or another.

 

Well explained. But how can the poor people use bitcoin in their daily lives. If they don't even have gadgets and they don't have access in the internet.

[dollarneed]

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

instead it makes it easier for the government to keep an eye on their citizens, let's assume that everyone has a static address to transact as we know the transaction on the blockchain is public and permanently recorded out there so it will prevent money laundering, and the government can easily check your assets so you cannot evade paying the taxes. However, it's not decentralized anymore.

[billknight]

If Bitcoin becomes popular around the world then I think everyone will save a lot of time. Because we can pay for anything outside the store with just a few simple Bitcoin submissions

[richminded]

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

In some country people who get profit from bitcoin is still taxable, just like in U.S so I see this as a good market if bitcoin is accepted in many countries but don't expect bitcoin will replace cryptocurrency because the government will not allow it since fiat money place a big role in the economy of one country.

[valentine401]

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

In that case we should still need the fiat but then people can choose on what kind of payment method they prefer, they can choose on both cryptocurrency and paper money so that every can still earn cryptocurrency and live a wealthy life by trading in the market to earn income.

[slyfox]

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

There are only two possibilities, first that the scenario you are presenting never happens, after all no government can survive without taxes and the developers of bitcoin will never allow that in the code, the second scenario is that happens and governments will need to learn to exist without taxes, so governments will have to be very small compared to what we have now.

[spongegar]

I'm pretty sure once crypto currencies are widely used and it is used for goods and services then governments would actually place a tax on it. Besides, businesses places taxes over their products and at the end the government collect them. I think it would still be business as usual, only this time with a more efficient currency.

[Sled]

It will become a huge achievement for bitcoin if we will see that bitcoin will become universal or being used wherever your go because that is a totally freedom and that means that you can use your bitcoin like a regular money or currency and there is no need for people to be skeptical because they can see that bitcoin is having a huge progress.

[Smitt]

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.

[jaysabi]

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.

[Webetcoins]

That is a very fine to hear that bitcoin will became a universal , where ever you go , it  makes our transaction more easy and the payments anywhere you made is so fluid, and you do not have problem in making activities anywhere around the world.

Everyone who is a bitcoin user wants it to be legal all over the world and the reasons are pretty obvious. Everybody wants a freedom from currency conversions because they often suck badly. When we will be having one currency, we all are going to be united as well in real meanings. People will be able to respect each other more and interactions are going to increase as well. I am waiting for it to happen soon. 

[Finestream]

That is a very fine to hear that bitcoin will became a universal , where ever you go , it  makes our transaction more easy and the payments anywhere you made is so fluid, and you do not have problem in making activities anywhere around the world.

Everyone who is a bitcoin user wants it to be legal all over the world and the reasons are pretty obvious. Everybody wants a freedom from currency conversions because they often suck badly. When we will be having one currency, we all are going to be united as well in real meanings. People will be able to respect each other more and interactions are going to increase as well. I am waiting for it to happen soon. 

Everything will have its own reason to happen and it will definitely take place in due time.But along with that,there are also new obligations that will arise like paying taxes with bitcoin.We should be responsible with that if we really want to continue paying bitcoin in our daily transactions.Of course if you are employed,the employer will be the one to deduct it from your salary and then remit it to BIR.

[BitHodler]

There are only two possibilities, first that the scenario you are presenting never happens, after all no government can survive without taxes and the developers of bitcoin will never allow that in the code, the second scenario is that happens and governments will need to learn to exist without taxes, so governments will have to be very small compared to what we have now.

In both cases it's not viable for the government. Theoretically they could survive without tax income, but it would require them to be productive on their own, and not many countries work like that.

The system is largely build up to use every entity in the economy as cash cow, which is something that has been going on for decades now. I don't ever think the government will change a working system.

The mass will follow the government's path, where the few brave and smart people will look to distance themselves from it. Governments know that, and as long as they have the sheeples (the mass) following them, they are secured.