Why Bitcoin CAN&#x27;T Be Digital Cash (Yet)

zoidsoft (62) 6 years ago (edited)

I made this comment about 3 days ago and it's fully applicable here:

I think that many have underestimated the damage that the SEC did in declaring cryptocurrencies to be "stocks" (as in property). This was basically authority telling the crypto industry that the USD is the only viable currency. This move brought in crippling consequences for each purchase or sale of crypto which now includes capital gains tax.

Then there are those of us who are still slaves and can't make the move to be truly free signing up for services such as taxbit which gives authority more information from which to extend KYC into the crypto ecosystem and strengthen the power of chainanalysis. These tentacles will reach into the deepest crevices of the network and could cause everyone to "fall in line".

This is why I think it's up to the third world (those excluded from the banking system) to take this up (despite Vitalik's comments to the contrary which are currently true). We are very much on track to become completely locked down in the west, probably for at least a generation. This is at least until the average person understands the reason centralized IT is insecure.

Authority does not care if it makes victims of all of us by creating large honeypots of data (see Best Western and Equifax data breaches). The solution is to distribute data back to the source so that hackers have to hack 500 million machines for each individual record, rather than just once for 500 million records.

Instead they want you to sign up for Norton / Lifelock while they are granted the right to spew your private info all over the darknet with impunity. Your best bet now is to keep your credit score low (declare bankruptcy) so that your info can't be used by identity thieves to apply for credit in your name. I suspect that getting a credit freeze will not be enough to protect you, since that info will sometimes be enough to unlock your freeze, which creditors are all too happy to do because they want anybody as a customer (even if it isn't you).

DEX's seem to be our only hope now to avoid book of revelations consequences.

I think an economic breaking point is coming in the next decade which will force changes in national fiat and legacy banking systems. Hopefully crypto will be ready to take over.

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3 votes

sames (65) 6 years ago

Exchanges like Bisq are one of the few hopes to bridge fiat and crypto together///

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mikenevitt (62) 6 years ago

Surly you only pay CGT ON profits . cheers mike

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2 votes

hedge-x (57) 6 years ago

Just holding for the sake of holding creates negative adoption rates, since prices basically track adoption. If no one is using there can be no longterm store of value. Investors would stop hoarding it all together without functional utility as cash. Gold has industrial use cases, which made it both a good currency & SOV. Also, Gold has utility in industry (around $300-$400 per oz.) + trades at monetary premium to its industrial utility. W/o payments Bitcoin has no value, since that is its industrial utility (fundamental non-speculative value).

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2 votes

world-travel-pro (76) 6 years ago

Uhhhh....I'll just agree with @hedge-x. He knows his sh^t!

Was stopping by your blog brother to see if you posted anything about this latest move in cryptos.

Very best to you and Luis!

From Bali Indonesia! -Dan "World Travel Pro!"

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zainenn (69) 6 years ago

Good stuff as always man, however I haven't seen a video from you since you stopped posting on dtube. When will you inform the dtube audience again?

obest (59) 6 years ago

For me mass adoption of crypto currency is especially bitcoin is going to be one major problems facing digital cash like bitcoin. And also public awareness and sensitization is also needed for the global world to accept bitcoin as a digital cash

stackin (78) 6 years ago

That’s a good thing, we can get bitcoin before it happens 😉

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newageinv (70) 6 years ago

As more countries and large organizations start creating there own cryptocurrencies, regulators will need to revisit this as even stablecoins may have these implications.

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markkujantunen (74) 6 years ago (edited)

It's obvious that nobody would do that manually. It could be done with software tools. But you're absolutely right in that the tax laws make it absolutely useless as a currency. And yes, so long as handy software tools do not exist for tracking tax liabilities, it can be downright dangerous go about generating a large number of transactions.

I also agree on the importance of physical cash. Financial privacy is a human right and I use cash every day just so to keep the ATMs around from disappearing.

tts (-8)(1) 6 years ago

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