Cryptocurrency usage will boost economy or make it worst ?

[yoseph]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

The country will be able to counter that by legalizing and regulating cryptos so that with every transactions the government will be able to make money with the purchase and sale of every cryptocurrency and with the proceeds from that, it's going to be bring economic boost to the country.

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[abeecrypto]

I have thought about this. I think that even with crypto, there will still be usage of the Fiat. And through Fiat, tax can still be applied on Crypto. Probably not directly. Government wouldn’t allow tax to be affected because of the use of crypto. In the end, they will find a way to work with crypto, so that the taxes can keep coming in.

[Ailmand]

Just before big companies can use or accept cryptocurrency government approval or acceptance must take first place. So, I guess b that time crypto will be taxable or it will be treated the same as investment which is taxable.

[7788bitcoin]

Just before big companies can use or accept cryptocurrency government approval or acceptance must take first place. So, I guess b that time crypto will be taxable or it will be treated the same as investment which is taxable.

I am not sure from which country you are from as you are not aware of people giving tax for the profits earned from bitcoin and even if there is no rules and regulation regarding bitcoin in your country you are bound to pay your taxes for the profits you earn and there is no way around it as you will get into trouble if you are earning a good amount of money through crypto trading.

@OP cryptocurrency will give freedom to the people to trade internationally and hence it will boost the economy in that aspect.

[hello_good_sir]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Your thinking way too 1 sided. There is no way where you just avoid tax when you use cryptocurrencies to pay, or sell your goods or services for cryptocurrencies, it's still money and it will be taxed.

A cryptocurrency is still a form of money, it's similar to other investments that hold value, and if you got paid in gold, or bonds for example, those are still able to be taxed - it's impossible to avoid taxes in our world...

Crypto-currencies will be able to boost the income though, we will have a lot more freedom with money and it's an entirely new market sector where people are able to start new businesses and find new jobs - really expanding our markets.

[alyssa85]

Using crypto for purchases shouldn't affect any country's tax revenue as long as a payment processor is used which converts the crypto to fiat.  The consumer still has to pay the sales tax (if any), while the business will still have to pay the revenue tax as usual.  If businesses were accepting crypto outright, things *might* be different, but I've heard that most tax evasion is done by businesses skimming off the top...and that's without using cryptocurrency at all.

I really don't think it would affect the overall economy either way if people started using bitcoin for things.  It probably would affect bitcoin itself, but the economy?  I doubt it.

Most cryptocurrencies have a public ledger, so easy to track income and thus tax liabilities.

Where cryptocurrency might help an economy is in the situation where the banking system is broken. Cryptocurrency at least lets commerce continue unscathed if the banks are in trouble.

[Beparanf]

I think Government is not filled by innocent person.  Before all big corporates do that thing, usually government already know it. Bad thing about it maybe that corporates can considered to breaking the law because of avoid tax and maybe government will say that corporates do money laundry. I think if want to be like that, will be really impossible to happen because government is who held the law.

Government have their ways to detect companies income thru sourcing and doing background checking especially if the companies been too popular but issuing only few bucks in the government. They will soon realize that company is doing something anti law. I doubt if many investors will participate in a company that are not acknowledged by their law and government so thus they are really required to pay taxes.

[binhvo1505]

Yes, that's the point I want to tell people about the harms of using cryptocurrencies as a common currency.
Besides money laundering or tax evasion, people will decide for themselves the value of bitcoin or be manipulated by organizations. The coins in this market are heavily manipulated and using it as a payment method is not good.

[bryant.coleman]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Tax evasion has nothing to do with cryptocurrency adoption and it should be treated as a different subject. And my personal opinion is that tax evasion can be done either with fiat currency or with cryptocurrency. If the latter is being used for such purposes, then the negative effects will be the same as the case when tax evasion is done using fiat.

Now coming to the topic on the effects on economy, I am of the belief that if properly used cryptocurrency can improve the economic and financial situation of the vast majority of people. Some of the groups may get affected, such as the bankers and payment processors. But the government needs to decide whether they want to prioritize the needs of the bankers (who form less than 0.01% of the population) over the general population. 

[Murat]

Nope, When a corporate or business organization start using cryptocurrency for the payment purpose then it will lesses the fees, not a tax because you have to pay tax according to your income from your organisation, every organization should pay tax according to their net profit, every individual must pay the tax following his or her income so there is a lot of scope of paying tax to the government, so I think government should offer to the business organization to pay their payment whatever they choose, I believe if the corporate organization may use crypto then they could reduce their payment fees what they are giving to the local financial organization or bank.

[alexsandria]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

This will be all going problematic and chaotic in some unexpected ways. So stuff that taxes provided to keep going those things tax payers are forced to pay would be all going dry and disappeared government programs and services would be all handled by private sectors and so on. Well on the other hand government should be making rules and regulations. We all be living an honest and much more wealthier living though. On the other hand, taxless living will surely affect both developed and under developed countries in a way that how heavy the country depend on taxes people provides.

[Kyraishi]

I actually have a different theory, I reckon it'll actually be bad for the economy. Crypto-currencies are still a relatively new thing and a lot of people aren't ready to adapt, and if you where to just force them to adapt, it would be a shit show to he honest.

Keep in mind that you won't be able to avoid taxation at all with crypto-currencies, unless you plan on hiding transactions and basically scamming the government...

We need to allow crypto-currencies breathing room for them to be adopted on everyone's terms, not forcibly.

[Argoo]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

Firstly, large corporations and generally all business structures are unlikely to use cryptocurrencies with a high level of price volatility. A particularly decentralized cryptocurrency is not suitable for those business structures that use transactions that are long in time from the moment of agreement to the completion of the transaction. If during this time the cryptocurrency price changes, one of the parties will suffer losses. Roulette is not a business game.

Secondly, we must pay taxes on activities in cryptocurrency. Only with this approach will states legalize cryptocurrency and create infrastructure for its development.

Also, cryptocurrency should go in parallel with national money and integrate into a single financial system. Only in this case will it benefit the state economy and will contribute to its development.

[EdvinZ]

Money transfers in cryptocurrency are very fast and their cost is often very low. This factor is very important for all partners in any business. In addition, the cryptocurrency excludes intermediaries in money transfers, which can freeze accounts, make money transfers for several days. I think the use of cryptocurrency can greatly improve the efficiency of all business processes.

[sirminesalot]

Just before big companies can use or accept cryptocurrency government approval or acceptance must take first place. So, I guess b that time crypto will be taxable or it will be treated the same as investment which is taxable.

maybe it's a breakthrough for economic development using cryptocurrency and in my opinion the good and bad results of using cryptocurrency depend on the intentions and objectives of the investors themselves because it will also affect the yield of the cryptocurrency itself one of them if the legality of investing in currencies crypto will certainly produce taxes and taxes for the growth of a country's economy

[Eclipse26]

No. Entities can't just accept cryptocurrency as a mode of payment. A corporation needs to follow the regulation and laws given by the government for them to be able to run their businesses. A company can accept crypto as payment if it's legally accepted in their country. And when crypto is legally accepted, the government will regulate it and it includes paying taxes. Crypto is not a way for an entity to avoid tax. They're responsible to pay taxes.

[BitHodler]

Money transfers in cryptocurrency are very fast and their cost is often very low. This factor is very important for all partners in any business. In addition, the cryptocurrency excludes intermediaries in money transfers, which can freeze accounts, make money transfers for several days. I think the use of cryptocurrency can greatly improve the efficiency of all business processes.

Crypto offers much faster value transfers, but the thing is that there is little actual adoption, and just as important, there is little liquidity to allow a multi million transaction to be cashed out swiftly.

I know there is an OTC market, but it's not something people or even businesses are willing to explore because it just doesn't make sense.... they already have a working financial system that does the job well enough.

It's mostly the common man who's going to benefit from crypto because low value transactions can be cashed out without problems basically on any platform as long as you go through KYC verification.

[Obito]

What if all those big corporates and businesses starts using crypto as a mode of payment just to avoid tax which will cause a direct loss to the government which uses tax for the betterment of the country. This might not affect corrupt countries as it doesn't matter because tax money goes to politician's coffers but what about developed nations?

It will just boost self-interest of the company or whoever accepts bitcoin as a payment though it is convenient to live in a taxless society. But taxes do bring improvement in economy such as improvement of infrastructure and so on. So if it will be eradicated it will surely bring big big problem to society, improvement will be slowed.

[andycarrol]

I think this will make the world economic conditions improve because any transaction you want will not be difficult anymore because all transactions will be very easy when all payments can be paid using cryptocurrency which is proven to be more efficient and its use is very easy and transactions become fast.

[clickerz]

Money transfers in cryptocurrency are very fast and their cost is often very low. This factor is very important for all partners in any business. In addition, the cryptocurrency excludes intermediaries in money transfers, which can freeze accounts, make money transfers for several days. I think the use of cryptocurrency can greatly improve the efficiency of all business processes.

Yes it will improve the efficiency of doing business and finally help the economy. Not directly , but its domino effects will do improve businesses. When sending payments  is fasts and reliable, movement of products will follow. It can help a lot of people,and help stimulate economy.Its good to have an additional  option in transacting businesses through blockchain technology.