There are two things guaranteed in life…death and taxes. With crypto becoming more mainstream, the government getting involved was inevitable. When talking transactions dealing with crypto, the IRS was not far behind.
Bitcoin was created as a digital currency. It was also created without a third party in mind (Banks). After the crash in 2008, myself as many probably wondered if this would happen again. Is my money secure? Bitcoin among other digital currencies couldn’t have come at a better time. Giving the anonymous nature of digital currency, the first question is why should I pay taxes? Doesn’t the government take enough?
I am not going to give suggestions on how to not pay your taxes, but I do not believe digital currency was suppose to fall in the same criteria as the dollar. Like the US dollar and most fiat currencies, Bitcoin isn’t backed by physical assets in a vault. Instead its value is held as a mode of payment. Can I pay you in gum? Of course not! Crypto is much deeper than bartering. The technology behind the movement is revolutionary. The digital economy is alive and well and it’s moving fast. There is just one problem…the taxman/taxwoman wants in!
Intercoin communities can maintain and run their own community currency and keep more if not all of their currency flowing within their community. With the traditional financial system this doesn’t happen leading to high taxes and privacy concerns.