4 ms·

Being in a third-world country and part of the crypto community feels so liberating. You can feel the difference between you and a non-crypto person.

tome 5y ago
How would you describe that difference?
- notimrelakatos 5y ago
  Not paying taxes to a corrupt managerial elite is one of them
  - csomar 5y ago
    Most of these countries finances are based on direct unavoidable taxes as they are already struggle to collect taxes the western way due to low compliance.
    - celticninja 5y ago
      What's the western way? Don't you mean the US way? In western Europe most places tax at source, which means your wages are taxed before they are sent to your bank. This sort of direct taxation ensures more compliance. I think rather the issue is that many places will deal in cash, where it is easier to avoid tax.
      - warkdarrior 5y ago
        US v. western Europe is distinction without a difference. Tax evasion is typically spread throughout the whole money lifecycle, from wage payments (where cash is used), to black-market purchases, to business deals (also in cash), to black-market imports and exports, etc.
      - csomar 5y ago
        Not if you are employing your workers illegally and paying them with cash. Of course, each country is different and has different levels of control. Some which lack any control will just tax unavoidable items (like cars for example) to compensate. These are harder to smuggle and easier to catch.
      - nybble41 5y ago
        > In western Europe most places tax at source, which means your wages are taxed before they are sent to your bank. The US does this too; it's known as "withholding". There are also "estimated taxes" paid quarterly if you have significant income outside of regular employment and thus not subject to withholding. You still have to settle up at the end of the tax year, but by that point the vast majority of the tax (and perhaps a bit more) has already been paid.
aorth 5y ago
How is it different? How many goods and services can you pay for with cryptocurrency where you live? What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins? Who will help you?
- disruptalot 5y ago
  You don't need to buy goods and services directly but it is a good way to store and invest your wealth. Most capital controls are mute once you've exited into crypto. On what basis do they hit you? Anyone that ever has any link to crypto? That's everyone. Crypto has a level of security and plausible deniability, that makes such things unrealistic. That's why you don't hear about it happening often. To many people under these regimes, there is much more security afforded to them by crypto than by their governments and currencies.
  - agumonkey 5y ago
    Understandably its a lot nicer to know your money doesn't evaporate.
  - nroets 5y ago
    Just to add that many South Africans are importing and reselling crypto through a legal loophole. [1] Only "exporting" crypto is illegal. There are highly liquid international markets for our currency vs other fiats. The government has relaxed capital controls substantially over the last 20 years. Right now the focus of government is taxing crypto. Capital controls are taking a back seat, because enough Dollars are coming into the country to pay for imports. External debt is minimal. [1]: https://www.ovex.io/blog/crypto-arbitrage-101/ https://www.ovex.io/blog/crypto-arbitrage-101/
  - singularity2001 5y ago
    >>> it is a good way to store and invest your wealth until it goes to literally zero, which IMHO seems more likely every month
    - 5y ago

tome 5y ago

How would you describe that difference?

notimrelakatos 5y ago
Not paying taxes to a corrupt managerial elite is one of them
- csomar 5y ago
  Most of these countries finances are based on direct unavoidable taxes as they are already struggle to collect taxes the western way due to low compliance.
  - celticninja 5y ago
    What's the western way? Don't you mean the US way? In western Europe most places tax at source, which means your wages are taxed before they are sent to your bank. This sort of direct taxation ensures more compliance. I think rather the issue is that many places will deal in cash, where it is easier to avoid tax.
    - warkdarrior 5y ago
      US v. western Europe is distinction without a difference. Tax evasion is typically spread throughout the whole money lifecycle, from wage payments (where cash is used), to black-market purchases, to business deals (also in cash), to black-market imports and exports, etc.
    - csomar 5y ago
      Not if you are employing your workers illegally and paying them with cash. Of course, each country is different and has different levels of control. Some which lack any control will just tax unavoidable items (like cars for example) to compensate. These are harder to smuggle and easier to catch.
    - nybble41 5y ago
      > In western Europe most places tax at source, which means your wages are taxed before they are sent to your bank. The US does this too; it's known as "withholding". There are also "estimated taxes" paid quarterly if you have significant income outside of regular employment and thus not subject to withholding. You still have to settle up at the end of the tax year, but by that point the vast majority of the tax (and perhaps a bit more) has already been paid.

aorth 5y ago

How is it different? How many goods and services can you pay for with cryptocurrency where you live? What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins? Who will help you?

disruptalot 5y ago
You don't need to buy goods and services directly but it is a good way to store and invest your wealth. Most capital controls are mute once you've exited into crypto. On what basis do they hit you? Anyone that ever has any link to crypto? That's everyone. Crypto has a level of security and plausible deniability, that makes such things unrealistic. That's why you don't hear about it happening often. To many people under these regimes, there is much more security afforded to them by crypto than by their governments and currencies.
- agumonkey 5y ago
  Understandably its a lot nicer to know your money doesn't evaporate.
- nroets 5y ago
  Just to add that many South Africans are importing and reselling crypto through a legal loophole. [1] Only "exporting" crypto is illegal. There are highly liquid international markets for our currency vs other fiats. The government has relaxed capital controls substantially over the last 20 years. Right now the focus of government is taxing crypto. Capital controls are taking a back seat, because enough Dollars are coming into the country to pay for imports. External debt is minimal. [1]: https://www.ovex.io/blog/crypto-arbitrage-101/ https://www.ovex.io/blog/crypto-arbitrage-101/
- singularity2001 5y ago
  >>> it is a good way to store and invest your wealth until it goes to literally zero, which IMHO seems more likely every month
  - 5y ago