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I talked about this before, and most people instantly wrote this off. The typical response was 'If X bans the cryptocurrency, we will just trade in another cou
by korzun 9y ago
I talked about this before, and most people instantly wrote this off.
The typical response was 'If X bans the cryptocurrency, we will just trade in another country. That's the whole point!'.
Can somebody explain what will happen if U.S starts to feel the pressure from Bitcoin and kills it at the point of exchange? Sure, you will still have your Bitcoins, but they will drop in value and become useless.
Furthermore, what will happen to the market if 1%'s attempt to convert a couple of billions to USD at the same time? Who will honor that transaction? The banks will not touch it.
This will end up just like the banking crisis sans a bailout. People can't get the 'money' out because the exchange rate is not going to be honored, and the value of their money will drop over night.
- Synaesthesia 9y agoYep, I’m fact I’m surprised the US government hasn’t acted yet, but I suppose they don’t yet view it as sognifixant enough to merit a response yet.
- pc2g4d 9y agoBut the IRS has already declared Bitcoin a taxable as either income or as a capital asset. See https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax-Tips-for-Bitcoin-and-Virtual-Currency/INF29402.html https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax... This legitimizes Bitcoin and allows the US government to benefit from its ongoing use, just as with other assets.
- redog 9y ago> Can somebody explain what will happen if U.S starts to feel the pressure from Bitcoin and kills it at the point of exchange? Can you explain how they would? To me this sounds like saying the US would ban World of Warcraft cash.
- vasilipupkin 9y agothe issue is at some point you need to be able to convert btc to dollars. and if that avenue is completely closed, value of btc will drop.
- redog 9y agoBut that's not the long term plan. The way the community is pushing is out with fiat. If that's the case then the government is going to still want taxes....The way I see it they're either going to lose revenue due to the new market or facilitate cryptos to be converted for payments of taxes and all things electronic....If Bitcoin is THE success it claims to want to be.
- vasilipupkin 9y agothat plan doesn't seem realistic or possible. US dollar is not going away. BTC will have to co-exist with it and be easily convertible into it.