Cryptocurrency usage will boost economy or make it worst ?

[supercanada1]

IMO, legal companies that conduct business development through cryptocurrency still pay their taxes. even like binance, I think they will still pay taxes, because all the revenue they get will still be seen by the local government. so, the development of cryptocurrency will certainly benefit the government, it's just that the challenge is fluctual prices and also a big risk.

The government will not be harmed of any fluctuations as they are ensure to receive taxes from legit companies that involve with cryptos.
It's a good help for the economy as they will continue gaining, the very reason that many countries are now seeing the potentials of this industry.
If more adoptions and company that will embrace and adopt the market then more taxes will be provided to the government.

The only threat that governments have from bitcoin and other decentralized currencies is the loss of power and control over money. People who are holding these coins can definitely be not controlled by legal authorities. Their assets cannot be tracked or recorded. This also affects the tax system. The fluctuations have nothing harmful in them. They are required in order to get some profits from digital coins.

[Lagduf]

"Money" - whether fiat or crypto does not matter - has very little to do with the performance of the economy.
You can use gold, or whale teeth, or bits, but the point is that money is always a "representation" of value.
It is like asking "how much heat a thermometer?"

That's true but cryptocurrency doesn't represent as a country's own currency because it is decentralized meanwhile for a country to stabilize their economy they need to have control over the economy itself and the currency. The volatility might also contribute to make the economy unstable because the point of government having a currency is to give the citizens a tool to trade that's stable. Imagine a country that uses crypto for example alts that could drop its value overnight then it will mean a huge crisis for the country. currency definitely matter a lot and have something to do with the performance of the economy.

[meliodas]

IMO, legal companies that conduct business development through cryptocurrency still pay their taxes. even like binance, I think they will still pay taxes, because all the revenue they get will still be seen by the local government. so, the development of cryptocurrency will certainly benefit the government, it's just that the challenge is fluctual prices and also a big risk.

The government will not be harmed of any fluctuations as they are ensure to receive taxes from legit companies that involve with cryptos.
It's a good help for the economy as they will continue gaining, the very reason that many countries are now seeing the potentials of this industry.
If more adoptions and company that will embrace and adopt the market then more taxes will be provided to the government.

The only threat that governments have from bitcoin and other decentralized currencies is the loss of power and control over money. People who are holding these coins can definitely be not controlled by legal authorities. Their assets cannot be tracked or recorded. This also affects the tax system. The fluctuations have nothing harmful in them. They are required in order to get some profits from digital coins.

I don't think that the tax system will change because of the cryptocurrency because even though cryptocurrencies are decentralized, they still need to follow the rules and regulation of a certain country. Some of the countries that I know are already implementing taxation in cryptocurrency so they can also get benefits from this growing market.

[wxa7115]

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?

I really think that if cryptocurrencies become a common way to pay for products and services then tax evasion will become quite common and governments will be unable to stop it, this will most likely lead those countries to try to regulate heavily this market or in some cases to ban cryptocurrencies but all of those attempts to try to control this market are going to fail and at the end governments will have no other choice but to become smaller.

Governments are simply too big, and this is not good for the economy because now the economy has to sustain a government that is trying to do too many things for which it was not elected, politicians are not going to like this one bit but I think that is where we are headed.

[Vishnu.Reang]

The only threat that governments have from bitcoin and other decentralized currencies is the loss of power and control over money. People who are holding these coins can definitely be not controlled by legal authorities. Their assets cannot be tracked or recorded. This also affects the tax system. The fluctuations have nothing harmful in them. They are required in order to get some profits from digital coins.

Ironically, this was one of the reasons why the Libra project (by Facebook) faced a lot of criticism during the recently concluded senate hearings. When the politicians are not comfortable with the freedom offered by a centralized currency such as Libra, just imagine how much scared will they be about Bitcoin. It is decentralized and outside the control of any entity or corporation.

[panganib999]

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?

If this will be the case, There are two sides of speculations. Some says that the global economy will surely boost and Financial stability experts has been telling that cryptocurrencies aren't a threat to the economy but actually has a great potential in boosting it and that potential should not be underestimated. But the European central bank is considering another problem, it is about how the prime monetary system would be affected and economy itself. The economy might be affected because the blockchain is designed to exclude intermediaries transforming the existing financial system. However. blockchain is being seen to still have a potential to be effectively used for banking system.

[TinaK]

If you see the complete economy definitely we would say cryptocurrency will make the economy fall down very much but if you see the individual person growth this cryptocurrency will hello everyone to earn and make their own money without any unwanted fees and taxes used by the government and business peoples.
Since the government is looking from us but finally the complete the world's business strategy obviously they were looking from us.

[henmark]

I don't know for sure, but I have always been interested in knowing how things will turn out to be if companies will do things like this and avoid making use of fiat and switching to cryptocurrency to avoid paying tax. The way I see it, I think that things will turn out pretty bad and that will cause the government to be serious about eliminating cryptocurrency for good when they see that nobody is paying the tax as they should anymore. Or maybe if there is a way, they might be able to subject crypto users to pay their taxes.

But the way I see it, I think that will only be possible if they are making use of centralized exchanges and wallets that collects information about users so that they can be traced. If not that way, I don't see how it can be possible with other wallets that decentralized.

[supercanada1]

"Money" - whether fiat or crypto does not matter - has very little to do with the performance of the economy.
You can use gold, or whale teeth, or bits, but the point is that money is always a "representation" of value.
It is like asking "how much heat a thermometer?"

That's true but cryptocurrency doesn't represent as a country's own currency because it is decentralized meanwhile for a country to stabilize their economy they need to have control over the economy itself and the currency. The volatility might also contribute to make the economy unstable because the point of government having a currency is to give the citizens a tool to trade that's stable. Imagine a country that uses crypto for example alts that could drop its value overnight then it will mean a huge crisis for the country. currency definitely matter a lot and have something to do with the performance of the economy.

If governments will launch their own coins then definitely it will be centralized and represent that country economically. It is just a matter of time before this happens. Indeed, government cannot control the decentralized coin and this is the whole reason why they are afraid of legalizing bitcoin and other such type. But then again, they cant either suppress them. Volatility is the need of present time.

[BonfireBob]

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?

Both, some people gain millions from BTC and other Crypto investments, and some of people lost everything they had on the ICO bubble. So IMO it can make economy better and worse

[Barbut]

Good question, with one logical answer! Crypto is better than fiat! If something is better, faster and more secure it will boost whatever needs to be boosted. If we imagine cryptocurrencies as a tool, that is better then any other tool invented before, it's logical to think that this tool will replace all other tools eventually!

[Shasha80]

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?

I think it is impossible for big corporate and businesses to avoid taxes by using crypto as a means of payment.
Because the government will immediately know this, because to set up a company and run a business needs a permit
government. Thus all company activities are under government supervision, so it is clearly impossible to avoid taxes.
If crypto currency is only used by people to avoid taxes, it will make a country's economic conditions worse, because of how
even the government needs tax revenue from its citizens in order to obtain funds to develop the country's economy.

[Emitdama]

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?

Is that even possible ? If that's possible the government will ban cryptocurrencies for good and anyone caught using crypto assets will serve serious punishments, especially companies that are caught using it will face serious issues. So, I don't think any of them would like to try such a thing. But, I know for sure that if any company is making use of cryptocurrency they are still going to be paying tax while they are making use of it.

Both, some people gain millions from BTC and other Crypto investments, and some of people lost everything they had on the ICO bubble. So IMO it can make economy better and worse

I don't know if it does have any impact on our economy. Maybe when in a particular country and there are lots of investors holding crypto assets and making profits, if they withdraw it to their country bank it might in some way boost the economy. I don't know if this is right or not.

[CarnagexD]

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?

Is that even possible ? If that's possible the government will ban cryptocurrencies for good and anyone caught using crypto assets will serve serious punishments, especially companies that are caught using it will face serious issues. So, I don't think any of them would like to try such a thing. But, I know for sure that if any company is making use of cryptocurrency they are still going to be paying tax while they are making use of it.

I don't think this is possible. First of all, All income generated must be submitted for tax computation and that means any profit generated by such business will have a tax ratio based on the total acquired profit even if it is fiat or crypto or even a property acquisition. Secondly, Government cannot total ban cryptocurrency, what they can do is to prohibit the use of it but it seems like that could've the worst solution to have if ever. Just like exchanges, they are proper businesses under legal papers with the government and they are paying their taxes where they are registered.

Both, some people gain millions from BTC and other Crypto investments, and some of people lost everything they had on the ICO bubble. So IMO it can make economy better and worse

I don't know if it does have any impact on our economy. Maybe when in a particular country and there are lots of investors holding crypto assets and making profits, if they withdraw it to their country bank it might in some way boost the economy. I don't know if this is right or not.

Our world is becoming more and more of technology based society, maybe sooner or later we'll start to use crypto more often. I can say it has impacted the economy since late 2017 as the growth rate of people using digital currency increased and banks are considering blockchain to integrate with their system and by these things cryptocurrency will surely play a vital role in the future.

[Triffin]

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?

Both, some people gain millions from BTC and other Crypto investments, and some of people lost everything they had on the ICO bubble. So IMO it can make economy better and worse

Now ICOs are not exactly crypto currencies and the usage of these assets at a large scale will definitely improve economy. Even at present, anyone who invests in the right coin like bitcoin and then use it in the beneficial way, is able to improve his financial status. It is totally up to us, common people, whether we are willing to help ourselves by investing in bitcoin and altcoins or not.

[sana54210]

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?

Is that even possible ? If that's possible the government will ban cryptocurrencies for good and anyone caught using crypto assets will serve serious punishments, especially companies that are caught using it will face serious issues. So, I don't think any of them would like to try such a thing. But, I know for sure that if any company is making use of cryptocurrency they are still going to be paying tax while they are making use of it.

With the way that they are following these exchange up, it would even be very difficult for any big organization to be able to avoid tax because government will make sure that the exchange submit the detail of those that are using the exchange to them and I think form their history of deposit, they will be able to know the amount that has been transacted through them, so as long as centralized exchange do exist, it will never be possible for the government to miss out of the tax which is why you don't see them bother about scrapping cryptocurrency again.

China was once against cryptocurrency that they even planned on stopping their miner, but you have seen how they have made a U-turn from that and have fully accepted it because they must have found a very big way around the tax that has been of concerned to them.

[wxa7115]

The only threat that governments have from bitcoin and other decentralized currencies is the loss of power and control over money. People who are holding these coins can definitely be not controlled by legal authorities. Their assets cannot be tracked or recorded. This also affects the tax system. The fluctuations have nothing harmful in them. They are required in order to get some profits from digital coins.

Ironically, this was one of the reasons why the Libra project (by Facebook) faced a lot of criticism during the recently concluded senate hearings. When the politicians are not comfortable with the freedom offered by a centralized currency such as Libra, just imagine how much scared will they be about Bitcoin. It is decentralized and outside the control of any entity or corporation.

The Libra project never had any chance of actually becoming a reality, as soon as it was announced governments understood how dangerous it was to allow a private company as strong as Facebook to create their own currency, if they had allowed this I have no doubts that in a few years it would have become the most popular way to pay over the Internet.

But Facebook learned a very hard lesson you cannot try to take away one of the things that makes governments so powerful and do it while you are a centralized institution, so the project was easily shutdown like many others in the past, something which is impossible to do to bitcoin due to its decentralized nature.

[Hippocrypto]

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?

Both, some people gain millions from BTC and other Crypto investments, and some of people lost everything they had on the ICO bubble. So IMO it can make economy better and worse

Now ICOs are not exactly crypto currencies and the usage of these assets at a large scale will definitely improve economy. Even at present, anyone who invests in the right coin like bitcoin and then use it in the beneficial way, is able to improve his financial status. It is totally up to us, common people, whether we are willing to help ourselves by investing in bitcoin and altcoins or not.

Every investment that has potential market value that sustains for long term, can help the economy. Choosing the type of coins which to be included in our sets of holdings, was quite not easy since it involves more risk. The only ways to deal with those pressures, was picking those highly recognized coins which bitcoin is one of the top and others may follow as well.

[Ayiranorea]

When something has got the ability to generate more market circulation automatically the growth will happen positive. In this regard cryptocurrency having its own value causes price moves relative to the market circulation. Though it is manipulative there is a simple fact of demand to supply that too making changes in the market. Economy change in a country won't be much affected positive or negative by bitcoin as it is a very small market when we consider a country's economy altogether.

[Distinctin]

When something has got the ability to generate more market circulation automatically the growth will happen positive. In this regard cryptocurrency having its own value causes price moves relative to the market circulation. Though it is manipulative there is a simple fact of demand to supply that too making changes in the market. Economy change in a country won't be much affected positive or negative by bitcoin as it is a very small market when we consider a country's economy altogether.

But can't leave to the fact that authorities will pursue them for taxes.
Yes, it gonna have a positive impact on the economic capabilities of the company but can't think that the government will let these things happen cause they won't get any from them. Taxes are very important to the government and it is something we need to understand that we also need to help our country and paying taxes is a big help.