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Another good question is at what point will the US government and other countries declare bitcoin illegal? If bitcoin becomes widely used it will threaten the p

by dangero 13y ago

Another good question is at what point will the US government and other countries declare bitcoin illegal? If bitcoin becomes widely used it will threaten the power of major governments. I cannot see a scenario where the US or any other major country allows that to happen.

a3voices 13y ago
It is highly unlikely that the U.S. government will declare Bitcoin illegal, due to this breaking news story: "U.S. Agencies to say Bitcoins Offer Legitimate Benefits" http://www.bloomberg.com/news/2013-11-18/u-s-agencies-to-say-bitcoins-offer-legitimate-benefits.html http://www.bloomberg.com/news/2013-11-18/u-s-agencies-to-say...
- dangero 13y ago
  I'm talking more long term. Right now bitcoin is not a threat or a legitimate replacement for dollars. If and when bitcoins become a normal every day option for purchases, that story could really change. For example, one of the major problems with bitcoin for a government is that they cannot as easily trace taxes on bitcoin trading. If I could do all my local purchasing with bitcoin, I assume the benefit would be that I would not pay sales tax. That's a huge issue for governments if bitcoins ever become ubiquitous.
legutierr 13y ago
Governments wouldn't have to declare bitcoin explicitly illegal. Instead, governments would simply make them impossible to exchange for official currency by denying bitcoin providers access to the banking system (by closing bank accounts, defining bitcoin as "high risk for money laundering"). Under such a scenario, governments could also prohibit banks themselves from transacting in bitcoins. In such an event, if governments were then to enforce the requirement that any income earned in bitcoin be paid as taxes in official currency, holders of bitcoin would find themselves liquidating non-bitcoin assets in order to pay their tax bill.

by dangero 13y ago

a3voices 13y ago

It is highly unlikely that the U.S. government will declare Bitcoin illegal, due to this breaking news story: "U.S. Agencies to say Bitcoins Offer Legitimate Benefits" http://www.bloomberg.com/news/2013-11-18/u-s-agencies-to-say-bitcoins-offer-legitimate-benefits.html http://www.bloomberg.com/news/2013-11-18/u-s-agencies-to-say...

dangero 13y ago
I'm talking more long term. Right now bitcoin is not a threat or a legitimate replacement for dollars. If and when bitcoins become a normal every day option for purchases, that story could really change. For example, one of the major problems with bitcoin for a government is that they cannot as easily trace taxes on bitcoin trading. If I could do all my local purchasing with bitcoin, I assume the benefit would be that I would not pay sales tax. That's a huge issue for governments if bitcoins ever become ubiquitous.

legutierr 13y ago

Governments wouldn't have to declare bitcoin explicitly illegal. Instead, governments would simply make them impossible to exchange for official currency by denying bitcoin providers access to the banking system (by closing bank accounts, defining bitcoin as "high risk for money laundering"). Under such a scenario, governments could also prohibit banks themselves from transacting in bitcoins. In such an event, if governments were then to enforce the requirement that any income earned in bitcoin be paid as taxes in official currency, holders of bitcoin would find themselves liquidating non-bitcoin assets in order to pay their tax bill.