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One world, one currency - could the bitcoin solve all our problems?
- nateberkopec 15y agoIsn't it more appropriate to think of bitcoin as an investment or money market security? I mean, bitcoin has some of the features required of a monetary unit, but its rapid fluctuations in value really make it a speculative investment. Unless bitcoin becomes mainstream and gets enough volume to smooth out these dips and valleys, who would ever use bitcoin as a money replacement?
- tzs 15y agoHuge problem: as soon as Bitcoin gets any mainstream success, numerous other Bitcoin-like systems will spring up, thus negating the premise of one currency. In the arena of competing Bitcoin-like systems, those built by governments will win, because governments decide what is acceptable for paying taxes.
- Joakal 15y agoHow does the government decide what to tax if the government currency is not used for transactions, and paid full salary with btc but at least minimum wage in cash?
- tzs 15y agoThey would treat it as a trade of goods, and tax it the way those are handled. For instance, suppose I trade a cow for your tractor. It would be taxed by treating it as two transactions: I sell my cow to you for cash, and then you sell your tractor to me for cash. There are exceptions when what we are trading are "like kind" goods. For example, if we were both farmers growing the same kind of crop, and we swapped some land to make the shape of both of our farms more convenient that would be a like kind exchange and would not be taxed.
- Hyena 15y agoBecause one currency for one continent has been working out so well for Europe....