On Monday, Congress held its first congressional hearing on virtual currencies focusing on bitcoin. As Congress discussed bitcoin, the price of one bitcoin soared to more than $750 apiece. Overlooked was the concern focused on anonymity and lack of regulation. Personally, it is hard to imagine a world where they will allow bitcoin to survive when they are doing everything in their power to hunt down money. Canada is already looking at taxing it and the concerns expressed by Congress clearly place this within the legal definition of what they call money laundering. What once was real washing of illegal money for legal use like the mob buying old 1930s roadside motels and pretending they were fully booked every night to get illegal cash into the system, is now applied to even storing gold or cash in a safe deposit box. Having an account outside the USA is money laundering hiding untaxed money from the government. So bitcoin can fit into that category and what federal judge would rule against the government? NONE! The downside of such schemes the government interprets as money laundering is they can wipe you out besides 25 year jail terms. There was the old tax-straddle of the '70s where you sold December gold in a rising market and bought Feb gold. You could then move money from one year to the next to avoid taxes. When the IRS figured out the play, that gave birth to mark-to-market accounting and then they retroactively applied penalties, taxes, and interest. Brokers got sued over that and these trades, which were in the courts for years. The IRS can claim you made a profit now just like stocks on a bitcoin. They can demand retroactive taxes and penalties. When you dance with the Devil, keep in mind he can say anything and do anything. If 25% of the population used bitcoin, you can imagine the loss in taxes and the chase would be off like a good old fashion English fox hunt. There is no alternative to the dollar. They can change the rules at anytime and hiding money to them is now money laundering so they can take that position and confiscate the whole thing. We have to reform the system. These people will never go quietly into the night. Do not get all excited that bitcoin will replace the dollar. Sorry, they are exploring the idea and allowing it to get press for one single reason they intend to go to an electronic "virtual" currency so they get 100% of all taxes. In 1934, they printed $10,000 notes when a Cadillac was $600. Today, $100 is the biggest bill. The next phase is no bills. The euro tried to displace the dollar issuing 500 denomination notes. In Britain, they have made them illegal it is all about taxes. The virtual dollar is coming. I would say after 2015.75 when the Fed has zero power and they will go electronic. So for now, bitcoin serves a purpose to get people use to the idea of a cashless society. If they cannot tax it...they WILL NOT use it!
I think Armstrong is intelligent..too intelligent.. I think he needs to up his meds before writing about something that is being embraced by the younger generation and he knows nothing about! He is also getting old and old people only have the past to reflect on and see no future as they have none!
Well, no one is saying they won't be paying taxes on their bitcoin transactions, just like in dollars or euros. He just missed the point.
ha haa! ! I think my my point is more that I think he is incredibly intelligent but usually old school Intellects usually stick hard and steady with their old theories and vast collective of information..thus find it difficult to change their field of thought and can't let go of the old paradigm..Bit like scientists that spend their whole lives to create theories via investigation and confuse information with truth..theories are rigid..truth is non linear and ever changing..Remember your teacher at school who would have failed you if you said Pluto is not a planet back in the 70s..well..guess what!! It's just down to the limitations of the human mind! nothing wrong with being old! ..old people have knowledge..but the young have youth thus ambition which hopefully will take us out of this crusty old paradigm of slavery and debt..One can only hope!
If they cannot tax it...they WILL NOT use it! I understand this, but that doesn't mean others won't use it, which is kind of the point. We are at an interesting stage of human history: * Money is power. Whoever controls money has the power. * Crypto-currencies represent a threat to the current power holders. * Struggle. * Most likely scenario is that those that currently have the power will find a way NOT to eliminate, but to co-opt this new challenger.
