As per a court of California order, one of the internet’s most popular digital currency exchange sites, Coinbase respectively,will be forced to reveal the identities of thousands of its users to the IRS (the Internal Revenue Service), 14,355 to be more precise. The IRS tried initially to gain access to Coinbase’s entire data base (all of its users), but the court decided that only users who sold/bought/received/sent more than $20k worth of crypto are to be targeted.
IRS’ argument was that only 800/900 taxpayers out of the almost 15,000 who were dealing in large quantities of crypto have electronically filed returns. Coinbase Co-Founder and CEO Brian Armstrong argued back in January that, let me quote:
“Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of their privacy, and is not the best way for us to accomplish our mutual objective,”
From a libertarian point of view, digital currency is purchased with after tax dollars, that have become quite worthless due to QE, ZIRP, NIRP etc (read FED’s policies). Why should they be taxed again on an item that has no value? This may or may not be constitutional, like the income tax, but I knew it was only a matter of time before the government figured out a way to get their slice of the pie.
Several US states have already passed laws either outlawing the trading of crypto-currencies, or requiring you to obtain a permit and bond to operate as a “money transmitter” or some such nonsense. Neither the government nor the private “Federal” Reserve will allow an independent competitor to their fiat system of dollars-backed-by-nothing. Remember that wars have started for this same reason. Also, civil asset forfeiture laws already let cops grab anything they want if they ‘suspect’ it may have been obtained illegally.
The big question is this though: is Bitcoin/whatever crypto-currency a precursor to the brave new cashless society promoted by globalists? I’m unsure just yet , but I can certainly see how they could work it to get the masses to accept a cashless society over a period of time.
You work, you pay taxes, you use whatever money you have left to buy Bitcoin or whatever, what happens from there is none of the governments god-damned business in my book.
Slightly fascinating, only understandable when one keeps in mind that the territorial violence monoply (= the State) does not like competition, also no competition when it comes to its tools.
That aside: Bitcoin or the like is not currency as long as it is not excepted throughout the whole value chain of a physical product. And it is not currency as long as you can’t pay taxes with it, which in the end is at the bottom – or top, depending how you see it – of the value chain. And third it is not currency because it is money AND speculative (virtual) commodity at the same time. As long as fluctuations like those over the last week continue, it is like a tape measure which changes its scale each time you take it out.
Now, if that Crypto-Ruble really materializes in Russia … as a nation state backed currency that would be a game changer. Of course it would open a whole new can of worms, but it would be very very interesting. Bitcoin is not backed by anything other than what people are willing to pay for it giving it value, so it is a fiat currency.
Bitcoin in nothing more than a digital gambling coin used to increase wealth. People that buy these things hope to strike it rich and cash out, Not very many people are using bitcoin to buy and sell products. The US dollar which you are purchasing Bitcoin with and which is also the world’s reserve currency (for now anyway), actually still DOES have some value (though not much, it’s technically a debt note).
The founders admit that Bitcoin is actually backed by and dependent upon the US dollar. This is about as basic as economics get. Every currency of every type of monetary policy, must be backed by a resource that has value. Digital money is no different.
Starting to get it yet??