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I though the whol point of these currencies was anonymity? If you never cashed out gains into a currency tied to you how would anyone know anything beyond the
by galangalalgol 7y ago
I though the whol point of these currencies was anonymity? If you never cashed out gains into a currency tied to you how would anyone know anything beyond the purhase?
- jonwinstanley 7y agoSurely blockchain currencies are the opposite of anonymous? All your transactions are publicly visible if you know where to look?
- lawn 7y agoThere are some projects, most notably Monero, which obscures transaction info. But yes almost all cryptocurrencies are pseudo-anonymous, including Bitcoin.
- nullc 7y agoMany exchanges report user's activity to the IRS. Moreover, even if your tax authority wouldn't currently have a way to know-- the penalties for cheating can be very serious so it's in your best interest to comply with your obligations. This is essentially how all income/gains tax works in the west: Governments have very limited ability to catch people, but they scale the penalties so that the risk from audits and whistle-blowing are enough so that most voluntarily comply. After all, cash is quite anonymous especially for small amounts. If you're constrained to spend your money only in ways that could never be found in an audit or revealed by a spurned lover, did you ever really have that money in the first place?
- galangalalgol 7y agoThese people are dead broke with hundreds of thousands in back taxes. Jail might look like room and board at that point. Given the only use they made of the gains was to purchase something that no longer exists, the risk v reward in their specific instance seems well tilted towards crime.
- willio58 7y agoNot necessarily, some claim more anonymity than others.