Crypto adoption

[unusualfacts30]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

people expect way too much from the government than they're capable of. Global crypto adoption is years away since there are places where people are not tech savvy and they rely on fiat for their day to day operation. They cannot stop people from making ponzi schemes but I suppose people would learn from their mistakes and correct it accordingly. no government interference needed.

[1714903273]

1714903273

[1714903273]

1714903273

[1714903273]

1714903273

[sunsilk]

These scams will exist forever, if these schemes will be eradicated on our generation there will be another type of scam that will be born soon. To fight these scammers, they have to implement higher sanctions for these scammers.

And for the taxation, they can simply apply the natural law of taxation that the local government have been doing to us. For local exchanges, they can do the job easily if its just for collecting the taxes through crypto profits.

[Dudeperfect]

Well, in such case, the government would probably tax miners and miners will collect the tax from the users so that is one of the possibilities. However, it is not an obstacle to the growth of the industry but the real issue lies in the lack of mass maturity which causes huge losses to the users and especially the newbies. We must have to deal with those fundamental issues before dealing with other factors, in my honest opinion.

[South Park]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

That is not as difficult as you may think, if cryptocurrencies become so popular that you can pay with them almost everywhere the government could create a policy that says that business owners need to open a cryptocurrency wallet with a bank, then the bank gives you your addresses but they also keep a copy of your private keys and then each time that you receive a payment in your business with cryptocurrencies they deduct a tax out of it.

[Biscutard]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

Most of these questions are found in legal section of this forum and i have something to say then if the government wants to get involve in all of this stuff in cryptocurrency market, they have to do something like how china did it on most scams in their country. Some country may take tax from your cryptocurrency gain while some are not, so it varies from different countries to see a certain rules.

[cybernetik7]

I am sure about that some of cryptocurrencies like BTC and ETH may get a complete adoption. But these coins don't have the ability to make everybody tax free for payments. If online companies accept cryptocurrencies, governments can easily track most of the transactions are done. Like internet providers, these companies have to obey some regulations and goverments may have a control on crypto market without focusing on customers.

[Akpuv]

Once cryptocurrency becomes fully adopted, all the issues raised here will be taken care of. Extracting tax from tax payers through cryptocurrency will still be handled similar to fiat tax payments. There will be records to trace monies collected.

[Finestream]

I am sure about that some of cryptocurrencies like BTC and ETH may get a complete adoption. But these coins don't have the ability to make everybody tax free for payments. If online companies accept cryptocurrencies, governments can easily track most of the transactions are done. Like internet providers, these companies have to obey some regulations and goverments may have a control on crypto market without focusing on customers.

I think tax will always be there.Even if we will be using cryptos already in the near future,the government can always trace our transactions knowing cryptocurrency has always its transparency.Maybe  the items or goods that we will buy,tax is already included in the price that we are paying.

[Tramirostronix]

Once cryptocurrency becomes fully adopted, all the issues raised here will be taken care of. Extracting tax from tax payers through cryptocurrency will still be handled similar to fiat tax payments. There will be records to trace monies collected.

I agree, but it will not be the same control and because of whales some gov will be afraid to give to "strangers" the control of the system, no ?

[Harrisonimo]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

The question of how government can tax or trace earnings can be made easy if the government now agrees to be identified fully with cryptocurrency in its respective country. A particular fee can be placed on each transactions made of a particular amount in a month depending on the volume of what is being  traded.

[Kemarit]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then?

Remember coins like Bitcoin is not truly anonymous. Everything can be tracked in blockchain and I'm sure government will do everything on their part to run after people who doesn't pay crypto tax. There will be strict penalties for sure.

Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

Regulations. But then again it can only cover a certain portion and not everyone is free from ponzis or scam. But they will kept reminding us, so they have done their share. Its really up to us to whether we can be a victim of this criminals or not, used our common sense and due diligence or better yet not to invest on them so that we will not be another statistics.

[mrcash02]

Crypto would just replace the currently currency we use. And governments would tax it in a very simple way: You know that a business to exist has to be declared to the government, so the business' owner pays the respective taxes to the government (in this case in Crypto-Currency). Then he will have to declare who are his employees, how much they are being paid, etc... So the government can calculate where the money is going, how much each one has to be charged, considering the local politics and rules.

And if the person is a government's employee it can be even easier to be tracked.

Ponzies are forbidden in many places, people try to hide it like they try hidding fiat ponzies. It's not different and the tracking methods rely on intelligence of authorities on both cases.

[goldreset]

These scams will exist forever, if these schemes will be eradicated on our generation there will be another type of scam that will be born soon. To fight these scammers, they have to implement higher sanctions for these scammers.

And for the taxation, they can simply apply the natural law of taxation that the local government have been doing to us. For local exchanges, they can do the job easily if its just for collecting the taxes through crypto profits.

Scams began since Barter trade. It just got more creative along with existence of gold... and then paper money. It will never end.

[darkangel020716]

How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

Even if you are not holding actual fiat anymore you are still paying taxes, how do you think businesses that accept credit/debit card payments and Paypal transfer are paying their taxes even if they are receiving money anymore? Even if these companies are accepting cryptocurrencies the government has the ability to track all the transactions done and it maybe done easier especially when blockchain is involve with cryptocurrencies. There is really no escape on paying your taxes and mass adoption would only signify that the government allowed cryptocurrencies in their country.

Yeah this is true,  the mass adoption of each countries in crypto currencies signifies that government allowed it to use legally. Meaning all the transaction that you converted your crypto into fiat are traced and already given taxes to the government. If you just simply analys the flow,  government also gets a % of it.

[Ridwan Fauzi]

In the current state of cryptocurrency, I have great confidence if the government it wan't to adopt cryptocurrency as a payment system or as another function. And it may have been a contradiction for every fraud and ponzi scheme to be managed properly by someone who does not have full power. Except, there is a country that dares to help make a regulation to reduce fraud and ponzi schemes and is well managed then I bet they will be able to handle it. The decentralization system is very complex, it can only be overcome by regulations that cover only a country.

[Tonnakyray_21]

Bitcoin and blockchain are created to avoid government regulation. I think that it i one of the biggest advantages of Bitcoin. I would not like it it if was so regulated.

[Dodoymabs]

How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

Even if you are not holding actual fiat anymore you are still paying taxes, how do you think businesses that accept credit/debit card payments and Paypal transfer are paying their taxes even if they are receiving money anymore? Even if these companies are accepting cryptocurrencies the government has the ability to track all the transactions done and it maybe done easier especially when blockchain is involve with cryptocurrencies. There is really no escape on paying your taxes and mass adoption would only signify that the government allowed cryptocurrencies in their country.

Yeah this is true,  the mass adoption of each countries in crypto currencies signifies that government allowed it to use legally. Meaning all the transaction that you converted your crypto into fiat are traced and already given taxes to the government. If you just simply analys the flow,  government also gets a % of it.

I agree, there's definitely a percentage which belongs to the government. Local wallet always have a transaction fee and some of it are probably connected to the government.

[Capt00]

If crypto does gain massive adoption and you are able to pay for things in crypto, there would be less of a reason for people to cash out into fiat. How would government collect taxes from crypto gains then? Also, if something like ETH becomes big, how is the government gonna stop people from making pyramids, ponzis, and scams in general?

Ever since even digital money has not yet discovered there are already a scam and fraudulent, even in time of barter items there was also fraud and scam. Collecting taxes maybe government directly to the wallet into the users by tracing every transaction users have. In that way, they can deduct high fees as a payment of taxes, the government can't stop being scam and fraud but they can avoid or control with it.

[aoluain]

I am sure about that some of cryptocurrencies like BTC and ETH may get a complete adoption. But these coins don't have the ability to make everybody tax free for payments. If online companies accept cryptocurrencies, governments can easily track most of the transactions are done. Like internet providers, these companies have to obey some regulations and goverments may have a control on crypto market without focusing on customers.

It is too easy to say that there will be a tax problem for retailers and not for the individual.

I understand what the OP is asking if crypto gets so widespread that nobody is using
FIAT hiw is tax collected? Firstly crypto is not going to get that widespread that people
will use it, use it to buy stuff and that enough retailers will accept that tax will be a major
issue. This is in the case of decentralised crypto of course.

[@rt27]

People doesn't like to sacrifice their profit into another thing that they even don't know the basic foundation.
Only the risk takers wants to engage into challenging part of crypto which volatile and intangible system.
If cryptos will be adopted worldwide there will have an instant rapid growth of demands that could result to taking crypto more seriously than before.