Taxation is a way of recognizing Bitcoin as a legal currency, which also means that Bitcoin's scope of application will be larger than before.
Yeah, once you start taxing something the scope of applications goes down as everybody wants to fill a form every time he spends some coins he has bought 10$ cheaper. Also, if you would have paid attention Ron Paul's idea is that bitcoin is money so it shouldn't be taxed! Right not it's viewed as property and is taxed accordingly!
In case somebody wonders where this comes from here is the article:
https://cointelegraph.com/news/ron-paul-legalize-and-tax-bitcoin-like-moneyFormer presidential candidate and congressman Ron Paul has renewed calls for Bitcoin to be legalized as money and not taxed.
"Right now, if you buy and sell gold, you get it taxed, they can do that. If you make a profit in Bitcoin, you read stories about people being taxed on it. You can't tax money, you don't tax it. If you bought a dollar a year ago and it went down 10%, you can't take a loss because your dollar lost value."
But good luck with that, the last thing US lawmakers are thinking right now is exempting things from taxes:
U.S. Treasury calls for stricter cryptocurrency compliance with IRSAnd because bitcoin is money the state must provide a special financial institution for bitcoin.
Oh yeah, let's add some more bureaucracy, more laws and regulations, and pay more people for what?
What's the real need for any of those?
I haven't heard of any country legalizing bitcoin so talking 'taxes on bitcoin are too far.
On what planet do you live?