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But if I earn only bitcoins. The government wants their stake. I guess I would be forced to exchange some of my bitcoins for US Dollar and then give them that
by maeon3 13y ago
But if I earn only bitcoins. The government wants their stake. I guess I would be forced to exchange some of my bitcoins for US Dollar and then give them that? I suppose that's actually good! As the government inflates the Dollars I don't feel much inflation because I only held dollars in the time it took me to move the money from A to B.
It would be fine that the government shoots all US dollar holders in the foot by inflating their currency, the value of bitcoin relative to dollars would always increase, because the US Dollars would asymptotically approach zero value over time, as it has been. The bitcoin I worked hard to earn would retain their value. And the burglars would use their old fashioned tools to pilfer trillions from all Dollar holders, and will be forced to yet again shout: "darn" when they figure out they are only stealing from their left pocket to put into their right pocket. A waste of time.
- codeflo 13y agoWhy do you think that getting paid in bitcoins is any different than getting paid in gold coins, or diamonds, or Pokémon cards? You can safely assume that every government in the world has considered and closed that particular tax loophole aeons ago.
- count 13y agoIf you earn in anything, you have to pay USD tax on it at the 'fair market value' of the earning, in USD. It's not like this is some kind of corner case.
- wmf 13y ago... the value of bitcoin relative to dollars would always increase... Also known as taxable capital gains.
- maeon3 13y agoIt's as if the money we earn is written on paper with disappearing ink. You better consume it quickly, or else it will have no value soon. This planet is in desperate need of a currency that can't be inflated by a select group of people not loyal to the interests of American Citizens. If a bitcoin ATM shows up nearby me, I would probably pay money just to help fund the cause.
- herge 13y agoIf the bitcoins are given in exchange for work, he is taxed as if it was income, and at income tax rates, much like if he was given a stock grant in a public company. Also, these taxes are calculated when he is paid, not when he sells the bitcoins, so if they lose value, he is still on the hook for the full income tax (which is in USD in the US). However, if he sells bitcoins in the future, he will be forced to pay capital gains taxes on the difference in price between when he received the bitcoins (and paid income tax then) and when he sells. If he sells at a loss, he can use his losses to offset his income tax.
- podperson 13y agoThe value of US currency stems from its being accepted by the US government. The value of bitcoins stems from their being accepted in exchange for other currencies.