Hola everyone, new girl here just learning about bitcoin as an alternative currency. I have a couple questions but will keep browsing first. For now, I have a scenario and wanted to get feedback, both pro and con, just to get a better understanding of how pervasive bitcoin may ultimately become (or not!).
From what I (think I) understand is that the point of bitcoin and other cryptocurrencies is a form of digital anarchy against our current bank & government regulated currencies in whatever country, so that the more people who take up, buy into, invest, bitcoin and/or other alt currencies, the less control and intrusion the government has over the people.
Anarchism and free market aside, it raised this scenario in light of the recent IRS ruling of virtual currencies as property that is subject to gains taxation...
Hi. I just want to expand on something. The thing about bitcoin(and other crypto currencies) is that it cannot be controlled by any central authority(banks and governments) or organisations(big multinational businesses, criminal/shady groups) or individuals (multi-billionaires). What all of these have in common is that they have tonnes of money as well as special interests in keeping their wealth so they see bitcoin as a threat to their wealth therefore Governments are likely to want to ban bitcoin(people can also be pulling the strings behind the scenes for Governments to align with their interests).
Taxation is not going to work, how do you tax someone's transaction that doesn't have a name behind it, the only fee you will be paying is into the bitcoin network for miners to discover in a block which is tiny compared to paypal or bank transfers. Of course a government needs to get its money from somewhere to pay off its debt and it's everyones responsibility to keep a country up on its feet by paying taxes otherwise shit will go down. Another train of though is deal with the problem now because later the consequences will be a lot greater so someone investing in bitcoin is not going to be effected by a dollar crash or a recession and high inflation.
The next thing after trying to tax it and failing is a ban to try and restrict it and decrease its value so it doesn't get adopted by too many people. In doing so it just proves how much of a threat it is to current wealth holders, everyone knows the statistic of the top 1% owning 40% of the world's monetary wealth. It is absolutely ridiculous when you actually think about it and the wealth keeps on concentrating in that top 10% every year. This is a war on people who see bitcoin/crypto currency as a way forward.
If not bitcoin then another crypto currency will be the future, right now it is in its infancy as a new technology and in this world people are skeptical/don't want to let go of what they are used to. It doesn't help that you see a lot of negativity about it in the news, but in the end its just stalling what is inevitable. It is something that is the currency of the rebellion against the current system that is built on debt and fails to look after everyone, you would think that with the technology we have developed as a human race would stop world hunger/poverty for good if not for the materialism, consumerism, greed and competition that is encouraged in our society under this monetary system.
I'm just tickling your brain, there are people who know a lot more than me but nobody has the ability to predict the future and as far as bitcoin is concerned its value is dependant on its users unlike the dollar value, which is controlled by the government and backed by men in guns. Any logical person would support a user dependant currency rather than man with gun to your head, shouting at you like a little insecure child, telling you what the currency is. But hey the majority of people don't know enough to make a choice or aren't in a position to do so, they are stuck beneath man with gun.
I'm going to reasonably assume that the IRS would consider it foul and unlawful (anything that benefits society is illegal, we get it) but as a factual transaction how would this be handled, do you think?
Would it be a "thing" for people to make the value transaction in bitcoin, anonymously, and undercut the tax burden by writing it off as a donation?
That sounds good, its nothing new, in fact its easier to avoid the tax burden than donating a suitcase full of cash in exchange for a house which is also possible.
