4 ms·

Best cryptocurrencies anology you could make is if you think them as they were part of an a online trading card game. In any TGC you can buy cards with fiat cur

Best cryptocurrencies anology you could make is if you think them as they were part of an a online trading card game. In any TGC you can buy cards with fiat currencies and can sell yours cards for more cards or fiat currencies, the exchange value is speculative based on how many people wants that card and increases his value while more people is playing the game. For me bitcoin is a beautiful experiment on how things would work if you let a capitalist's control the market without a government limiting their activities.

yeahsure 9y ago
But governments are limiting activities through legislation and taxes. Say the crypto of your choice dips by 15 percent, but if you want to cash out you'll have to pay capital gains tax + the exchange fees. You then may decide to just leave the money in the market in hopes that it reverses the trend. Thus the market is not really working freely in my opinion.
- SadWebDeveloper 9y ago
  Governments can only limit exchanges, maybe fine or prosecute miners but they can't control the exchange market in other countries, they can't ban transactions between two peers, they can't takeover your funds and more importantly they can't issue more currency to paid their loans. Sounds like a libertarian paradise but these also comes with double edge since it leaves his citizens without consumer protections, makes value speculative to trading volume therefore subject to foreign control and limits the government enforcing power. The market is free, exchanges aren't.
  - yeahsure 9y ago
    I'm talking about taxes distorting the market. A taxed market is not a libertarian paradise.
    - SadWebDeveloper 9y ago
      you are talking about taxes after exchanging cryptocurrency for a fiat currency, cryptocurrencies doesn't have taxes (well transactions cost kinda work like a community tax but in the real world there are also transactions costs and taxes), exchanging from crytpocurrency to fiat has. What stops you from exchanging your crytpocurrency to a fiat currency that doesn't impose taxes?
      - yeahsure 9y ago
        Good point and I agree. That said I still don't think this would count like a true libertarian experiment because -like you point out- it is in the real world where you still have to abide by the rules of government/society. But yeah, this is probably the closest we have gotten to a libertarian test-drive through technology.

yeahsure 9y ago

But governments are limiting activities through legislation and taxes. Say the crypto of your choice dips by 15 percent, but if you want to cash out you'll have to pay capital gains tax + the exchange fees. You then may decide to just leave the money in the market in hopes that it reverses the trend. Thus the market is not really working freely in my opinion.

SadWebDeveloper 9y ago
Governments can only limit exchanges, maybe fine or prosecute miners but they can't control the exchange market in other countries, they can't ban transactions between two peers, they can't takeover your funds and more importantly they can't issue more currency to paid their loans. Sounds like a libertarian paradise but these also comes with double edge since it leaves his citizens without consumer protections, makes value speculative to trading volume therefore subject to foreign control and limits the government enforcing power. The market is free, exchanges aren't.
- yeahsure 9y ago
  I'm talking about taxes distorting the market. A taxed market is not a libertarian paradise.
  - SadWebDeveloper 9y ago
    you are talking about taxes after exchanging cryptocurrency for a fiat currency, cryptocurrencies doesn't have taxes (well transactions cost kinda work like a community tax but in the real world there are also transactions costs and taxes), exchanging from crytpocurrency to fiat has. What stops you from exchanging your crytpocurrency to a fiat currency that doesn't impose taxes?
    - yeahsure 9y ago
      Good point and I agree. That said I still don't think this would count like a true libertarian experiment because -like you point out- it is in the real world where you still have to abide by the rules of government/society. But yeah, this is probably the closest we have gotten to a libertarian test-drive through technology.