5 ms·

Just out of curiosity: Can someone dealing purely with cryptocurrencies (like bitcoins) avoid this situation?

Alupis 12y ago
Not really, you have to first funnel your funds into bitcoin, which may trigger a review. Heck, if you use a US-based cryptocurrency "bank" like coinbase or similar, they may even "review" your account. (guess it's cash under the mattress for now ;)
- raquo 12y ago
  Woohoo, I don't need to change my Russian habits!
- programmarchy 12y ago
  He did say using purely cryptocurrencies, so if one was paid in crypto from the get-go and didn't have to convert to or from fiat, then an individual could protect their money, so long as they could keep their private keys secure. #opsec
  - beagle3 12y ago
    ... until you want to eat, and then realize you have to convert to a fiat currency because the grocery store doesn't accept bitcoins. Bitcoins are pseudonymous, rather than anonymous - and worse, every single transaction ever is documented in the blockchain. The IRS, I'm sure, is quite happy about this complete documentation, and while they haven't gotten around to (ab)using it, I'm sure they will sooner or later.
    - programmarchy 12y ago
      You can buy food with Bitcoin [1], although options are currently limited. I think this will continue to improve in the future as the counter-economy grows. And I agree that Bitcoin's lack of anonymity is a big problem. However, there are techniques one can use to keep transaction histories private, like using stealth addresses and decentralized, trustless mixing services like dark wallet and coinjoin [1]. Other cryptocurrencies like Darkcoin [2] have built privacy features into their protocol. These solutions are not yet perfect, but again I think they will continue to improve. Further agree that abuses by the IRS as well as other state agencies will continue. But why make it easier for them? It's only going to get worse in the future if we do nothing. [1] https://bitdazzle.com/food https://bitdazzle.com/food [2] https://wiki.anoncoin.net/Anonymity_of_cryptocurrencies https://wiki.anoncoin.net/Anonymity_of_cryptocurrencies [3] https://www.darkcoin.io https://www.darkcoin.io
pdq 12y ago
Absolutely, if you buy your coins with cash (ie using localbitcoins). You're still at the mercy of the volatility of the currency though.
deleted 12y ago
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Spooky23 12y ago
Sure, until you need real coin of the realm to buy stuff in large quantity. How many people are able to convert Bitcoin off the radar into liquid commodities like gold? not many, and anyone you find that can is probably working for the police or tax authorities in your jurisdiction.

Not really, you have to first funnel your funds into bitcoin, which may trigger a review. Heck, if you use a US-based cryptocurrency "bank" like coinbase or similar, they may even "review" your account. (guess it's cash under the mattress for now ;)

raquo 12y ago
Woohoo, I don't need to change my Russian habits!
programmarchy 12y ago
He did say using purely cryptocurrencies, so if one was paid in crypto from the get-go and didn't have to convert to or from fiat, then an individual could protect their money, so long as they could keep their private keys secure. #opsec
- beagle3 12y ago
  ... until you want to eat, and then realize you have to convert to a fiat currency because the grocery store doesn't accept bitcoins. Bitcoins are pseudonymous, rather than anonymous - and worse, every single transaction ever is documented in the blockchain. The IRS, I'm sure, is quite happy about this complete documentation, and while they haven't gotten around to (ab)using it, I'm sure they will sooner or later.
  - programmarchy 12y ago
    You can buy food with Bitcoin [1], although options are currently limited. I think this will continue to improve in the future as the counter-economy grows. And I agree that Bitcoin's lack of anonymity is a big problem. However, there are techniques one can use to keep transaction histories private, like using stealth addresses and decentralized, trustless mixing services like dark wallet and coinjoin [1]. Other cryptocurrencies like Darkcoin [2] have built privacy features into their protocol. These solutions are not yet perfect, but again I think they will continue to improve. Further agree that abuses by the IRS as well as other state agencies will continue. But why make it easier for them? It's only going to get worse in the future if we do nothing. [1] https://bitdazzle.com/food https://bitdazzle.com/food [2] https://wiki.anoncoin.net/Anonymity_of_cryptocurrencies https://wiki.anoncoin.net/Anonymity_of_cryptocurrencies [3] https://www.darkcoin.io https://www.darkcoin.io

pdq 12y ago

Absolutely, if you buy your coins with cash (ie using localbitcoins). You're still at the mercy of the volatility of the currency though.

deleted 12y ago

[deleted]

Spooky23 12y ago

Sure, until you need real coin of the realm to buy stuff in large quantity. How many people are able to convert Bitcoin off the radar into liquid commodities like gold? not many, and anyone you find that can is probably working for the police or tax authorities in your jurisdiction.