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Awesome observation. Another interesting tidbit. Imagine that bitcoin became the de-facto currency. Not only would the government be unable to tax, it would al
by jxcole 15y ago
Awesome observation.
Another interesting tidbit. Imagine that bitcoin became the de-facto currency. Not only would the government be unable to tax, it would also be unable to control the financial systems it uses to affect markets. For example, the government can print a small amount of money for itself without causing hyper-inflation. This "inflation tax" would also be noncollectable. Further, the federal funds rate would be useless.
- weavejester 15y agoThe government will always be able to tax its citizens. Even if all money were transferred anonymously, the government could tax you based on the value of the land you own.
- T_S_ 15y agoYou touch on one of the important reasons why fiat money maintains its value. You can always use it to pay your taxes.