When will the bitcoiners realize bitcoin is just fiat with enforced tax

[Flexystar]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

When you pay the network fee where does it go? It goes to the miners and who are the miners? Well as far as I know they are not the government so I think we can safely say that we are not paying the taxes. Now if you are trading Bitcoin on an exchanger that has done your KYC and they are sharing your financial records with the authority and if you are asked to pay the taxes on that “income” then that’s actual tax on your crypto mate.

As long as you are in the peer to peer economy I hardly think that it’s gonna be a tax issue. Simpel nobody know a you have bitcoin if you don’t go through any KYC channel.

[1714847962]

1714847962

[1714847962]

1714847962

[dimonstration]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

Bitcoin has limited supply and most importantly its decentralized unlike Fiat that has unlimited supply and government has full control over it. Bitcoin in general doesn’t work like you are suggesting. The government is just controlling the people to treat as fiat but Bitcoin itself doesn’t have tax and network fee is just a transaction fee.

Bitcoin is far better than Fiat because it doesn’t have inflation due to its limited supply.

[hugeblack]

In many cases, network fees do not exceed 10% of the transaction value, and if you know more details about how Bitcoin works, you will always pay low fees on average. Taxes vary from one country to another, but in general, the tax is applied only to transactions in which profits were made, such as buying 1 Bitcoin at a price of $26,000 and selling it at a value of $26,000,000.
If you make a loss, you don't have to pay tax.


So, in all cases, given the historical data of Bitcoin, a loss is rarely achieved if Bitcoin is considered a long-term investment with a length of more than the average of 5 years.

[Bananington]

Bitcoin is digital money firstly before even considering it as fiat which expressly sums up to legal tender of a country. What distinguishes BTC from a countries fiat is that it is a universal currency. Irrespective of the country one is in or region they are from, BTC is BTC and the network fee is same as long as an exchange or P2P system is used to process payments and trade.
It is clear also that any financial processor one uses to facilitate any transactions nowadays is charged or taxed, be it for fiat or BTC a fee is always paid to complete the transaction.

The control one also has over their BTC is not same as compared to fiat wherein every transaction details and reference is just there for anyone to see. The anonymity is the catch, except for these days where regulators are changing the decentralized game to a more centralized one inorder to have better control over it.

[Faisal2202]

Then what's wrong with paying tax on the crypto we have instead, just like in fiat or any other investment on which we have to pay annually or any time-specific tax, but on crypto or BTC we only have to pay tax at the time of deposit and withdrawal, and that's for only that time when one is making transactions?

Many people are still facing the issue of tax and want to save themselves from huge taxes. That is something everyone wants to save themselves from, but think for a second: those who have huge amounts of Bitcoin will pay tax for it. I do not think that's why, somewhere in the world, they have resources too. They will keep that territory under their control and will not legalize crypto there for the sake of tax, and besides Canada, there are many other countries in the world where people do not have to pay tax on their transactions.

[usekevin]

Then what's wrong with paying tax on the crypto we have instead, just like in fiat or any other investment on which we have to pay annually or any time-specific tax, but on crypto or BTC we only have to pay tax at the time of deposit and withdrawal, and that's for only that time when one is making transactions?

Many people are still facing the issue of tax and want to save themselves from huge taxes. That is something everyone wants to save themselves from, but think for a second: those who have huge amounts of Bitcoin will pay tax for it. I do not think that's why, somewhere in the world, they have resources too. They will keep that territory under their control and will not legalize crypto there for the sake of tax, and besides Canada, there are many other countries in the world where people do not have to pay tax on their transactions.

Since we are earning from the crypto community,we can pay some tax to our country.Because our little tax may help the government to create a better scheme for our people.If your country is more poor,you need to contribute some money to the country development.The traders are maximum income tax payers and they need to pay 1% TDS on every trading.The one percent may not seems high,but when the trader made the trade.He also need to pay the exchange fee on every trade.

[Raflesia]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

Firstly, you must be able to distinguish between taxes and fees because in the end it will be very different in terms of meaning and function.
Do you think transaction fees will ultimately be used by someone to regulate bitcoin to be more accepted like when we pay taxes that are converted to infrastructure?

But in the end providing more understanding will also be useless because it seems that since your account was created your job is only to find loopholes and create an opinion that bitcoin is something bad so in this case I will not argue with you because it is useless.

[serjent05]

Bitcoin transaction fee is not an enforced tax.

Taxes are mandatory contributions levied on individuals or corporations by a government entity

This is different from the money paid as fee in wire transfer and some other means of fiat payment.

Fiat and bitcoin are completely different. Fiat has no fixed supply, it is centralized, not censorship resistant and it is an inflationary asset which is just the opposite of bitcoin which has limited supply, it is decentralized, censorship resistant and it is a deflationary asset in long term if compared with fiat.

I highly agree and Bitcoin is not a fiat currency since it has no backing of any government since it is not issued by the government and is not even backed by the person who created it although has an open market that dictates it value the reason for its volatility.

Fiat Money
Fiat money is the money we all know and are familiar with.

The most straightforward definition of this term comes straight from Investopedia: “Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.”

I believe @OP needs to read this article to know the difference between fiat money and Bitcoin: https://empireflippers.com/bitcoin-and-our-marketplace/

[Blitzboy]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

Firstly, you must be able to distinguish between taxes and fees because in the end it will be very different in terms of meaning and function.
Do you think transaction fees will ultimately be used by someone to regulate bitcoin to be more accepted like when we pay taxes that are converted to infrastructure?

But in the end providing more understanding will also be useless because it seems that since your account was created your job is only to find loopholes and create an opinion that bitcoin is something bad so in this case I will not argue with you because it is useless.

Although it's sad that you were trapped in the storm, it also serves as a valuable lesson. Its simple to get carried away when the market is optimistic and everyone is talking about exponential growth. Even seasoned investors fall into that psychological trap; if you like, you can call it "collective enthusiasm".

Never, however, should the foundations be disregarded. No matter how alluring Bitcoin may seem or how compelling the rumors may be, they are not a replacement for a carefully thought-out investment plan. Discipline is just as crucial in bullish times as it is in bearish ones. Dont let skyrocketing prices fool you; plan your getaway instead. In that regard, keeping an eye on various price points and being abreast of market alterations are essential to not passing up chances to make money. Finding the right balance between ambition and caution is crucial.

[Faisal2202]

Since we are earning from the crypto community,we can pay some tax to our country.Because our little tax may help the government to create a better scheme for our people.If your country is more poor,you need to contribute some money to the country development.The traders are maximum income tax payers and they need to pay 1% TDS on every trading.The one percent may not seems high,but when the trader made the trade.He also need to pay the exchange fee on every trade.

Totally agreed, We should pay tax as by paying tax the condition of one country might improve as there will be more funds in reserves. The transactions fee of exchanges you are talking about are too less I mean I do not even care about them but the transaction fee on BTC blockchain or ETH blockchain are high and due to this reasons many people avoid using both in there shops or business for payment purposes.

And the 1% TDS is really not that much but it do matter when the amount is big. Sometimes ago I read a topic here about India accepted crypto but put huge tax on the users and I think that's also good at least that tax will help people as well as governments in many ways.

[BVeyron]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

Actually it's true, there is only one difference: the overall amount of crypto is limited, and after some time (even after reaching 21M) the overall amount will be decreasing due to accounts getting lost continuously. So cryptocurencies are protected from inflation due to overproduction of money. However, they are vulnerable to inflation in a different way: some hodlers can accumulate so much cryptomoney that the amount will be nearly endless in comparison with an average person, so they can become crypto tycoons (just like now we have global banking system: several rich people rule everything). So cryptotycoons will be able to launch inflation if they wish so, in the same way as worlds richest banks and tycoons do it now.

[Abiky]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

There's no such thing as "free lunch". You'd need to pay a fee for your transaction to go through the Blockchain. Otherwise, the network would be extremely-vulnerable against spam attacks. It would result in higher network congestion to a point where BTC will become unusable. Fees are just a way to protect the network from attackers while supporting the miners. I wouldn't call them an "enforced tax" mechanism, but rather a contribution to the network itself. Everyone benefits in the process. Miners will profit, while you get to enjoy financial freedom.

What's disturbing is how every transaction is visible on the public BTC blockchain. You don't want prying eyes knowing your utmost sensitive info. Fortunately, we have both custodial and non-custodial mixers to use Bitcoin in a private and anonymous way. If that's not enough, you could simply convert BTC to XMR for complete peace of mind. Who knows if BTC becomes a part of our daily life in the future? Just my thoughts

[fruktik]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

Well, what kind of nonsense are you writing about levying tax (commissions) on transactions in cryptocurrency, as with fiat transactions? As many have already written to you in the answers, then familiarize yourself with how the network functions. Then many technical points and more will become clear to you. Why ask such questions when all the answers have long been given to them? Use the forum search. Start with the beginners section. Everything is there.

[Jet Cash]

A fiat currency is a currency with no asset base behind it. Bitcoin is a crypto medium of echange with a vitual asset backing that has real value. In fact it is the only crypto that has a hard asset value to back it up. I keep tryting to think of a way to create an alternative, but so far i haven't mamaged. Any alternative is likely to be hit by a 51% attack before it got off the ground.

[Hanadawa]

The most basic difference is, As I quote from one of the economic websites: difference-between-tax-and-fees

In the first place, a tax is a compulsory contribution made by a taxpayer. A fee, by definition, is a voluntary payment. Secondly, as far as tax is concerned, there is no direct give-and-take relationship between the taxpayer and the tax-levying authority.

So, if you say Bitcoin has a tax, it means that Bitcoin has a fixed value, whereas as we already know, the fee required for each transaction varies between fast or slow depending on how much fee we will issue.
What makes BTC different too is that BTC is decentralized whereas taxes are centralized. BTC has a fixed supply whereas FIAT is currently no longer pegged to gold.

[Sim_card]

OP, you need to take your time to study and DYOR so that you will get the proper understanding between fiat and bitcion,transaction fee and tax. When using bitcoin for transaction, there are miners who help add this transaction to the blockchain which is the fee that you pay for them to help you make your transaction successful. Who will render a service for free,then how will be feed. I don't want what job that you are doing,do you tell that at the end of the week or month that you don't need the pay,that you did it voluntarily? I doubt,this is the same with the tx fee. @Charles-Tim has stated the difference between fiat and bitcion, so check it out for yourself.

[Blitzboy]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

There's no such thing as "free lunch". You'd need to pay a fee for your transaction to go through the Blockchain. Otherwise, the network would be extremely-vulnerable against spam attacks. It would result in higher network congestion to a point where BTC will become unusable. Fees are just a way to protect the network from attackers while supporting the miners. I wouldn't call them an "enforced tax" mechanism, but rather a contribution to the network itself. Everyone benefits in the process. Miners will profit, while you get to enjoy financial freedom.

What's disturbing is how every transaction is visible on the public BTC blockchain. You don't want prying eyes knowing your utmost sensitive info. Fortunately, we have both custodial and non-custodial mixers to use Bitcoin in a private and anonymous way. If that's not enough, you could simply convert BTC to XMR for complete peace of mind. Who knows if BTC becomes a part of our daily life in the future? Just my thoughts

the fee is not an "enforced tax," as you say. You're right; its a contribution. Fees stabilize the system, prevent spam, and keep the network running like a well-oiled machine. Yeah, I agree with your point, miners need to eat too, and these fees keep their servers humming. Its the invisible hand of economics showing its genius again, but in a digital landscape.

However, on the issue of privacy, I find it bothersome. A public ledger? Transparency can be double-edged. On one hand, its the epitome of decentralized ideology; on the other hand, its a privacy nightmare. Sure, you have mixers, but isnt that like putting a band-aid on a bullet hole? Converting BTC to XMR is an option, but its also an extra step that veers off the straightforward path Bitcoin promises.

[irhact]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

I don't think bitcoiners are scared of paying taxes, we're law abiding citizen therefore we're required to pay our taxes and we'll do just that. Bitcoin is very different from fiats and one of the ways is how the network is been handled. Fiats is centralized and our transaction are been highly monitored by the government. When using fiat we didn't have the freedom to do with our money want we want as there are limits to transaction done daily from our accounts.

But when you're operating using bitcoin and not keeping your coin on a centralized exchange or wallet, you're free to access your money whenever you want and spent them as it pleases you without having to verify your identity like the banks request to monitor you.

[tbct_mt2]

the fee is not an "enforced tax," as you say. You're right; its a contribution. Fees stabilize the system, prevent spam, and keep the network running like a well-oiled machine. Yeah, I agree with your point, miners need to eat too, and these fees keep their servers humming. Its the invisible hand of economics showing its genius again, but in a digital landscape.

Transaction fees are income for miners who find blocks and confirm transactions. They spend resources to mine Bitcoin blocks and confirm transactions and they spend money for such resources. So they must gain something that includes Block rewards and transation fees. Without income, miners will stop mining and the network will be dead.

Converting BTC to XMR is an option, but its also an extra step that veers off the straightforward path Bitcoin promises.

You have to use exchange for conversion and it is risky. With Bitcoin if you are careful, you can have good privacy and don't have to use Monero.

[Guide] Decent mixing methods

[KiaKia]

When will the bitcoiners realize bitcoin is just fiat with more steps on a transparent ledger with enforced tax aka network fee. When your nation legalizes it like canada you will pay network fee and tax on top, such wow.

When will you realize that you understand nothing about Bitcoin and instead, sit your ass down and learn first? you are a newbie and your point is so invalid, you can see tons of replies proving that you are completely wrong.

Forget everything that you think you know about Bitcoin, you know nothing.

Fiat is different from Bitcoin, and transaction fee is different from tax.

There is no Tax on holding your Bitcoin in your wallet, that's why it's advisable not to keep your Bitcoin on centralized platforms that could rip you off, either through higher transaction fees or using authority since you are not in control of your Bitcoin anymore.

Transaction fee is necessary, it's what adopters pay to miners to get your transaction in the blockchain, and it also keeps it safe.

Why the Bitcoin transaction fee is important

1. Process transactions.
2. For Miners to maintain the Network.
3. Keep the Network flowing.
4. Keeps the Network Safe.