Bitcoin should be encouraged as a means of exchange, or not.

C

cremeegg

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Please indulge me in starting a new bitcoin thread, but all the other threads seem to be concerned primarily with, the value and the prospects for bitcoin.

I dont think this aspect has been covered. Is the success of bitcoin desirable.

In my opinion the widespread success of bitcoin, (as distinct from blockchain technology and crypto urgency in general) is highly undesirable from a social point of view.

Bitcoin belongs to private individuals, this makes it extremely unsuitable from a social policy point of view. If I want to pay for my groceries I have to pay a bitcoin holder for currency to make my payment. I can't see how that is a good thing.

At least the state which controls fiat currencies makes some effort to build roads, staff hospitals etc. with its cut of my grocery bill (VAT). The bitcoin holders will make no such effort.

Bitcoin should be banned.
 
I would be interested in hearing what our resident socialist(s:rolleyes:) has to say about that!!
 
Sorry, I don't follow your argument.

If I want to buy groceries in Tesco, it won't matter if Tesco takes payment in euro or Bitcoin. Will it?

If I want to operate in the black market and avoid VAT and Income Tax, I will want to be paid in cash which really is anonymous.

In fact, if I want to operate in the black market, I will accept payment in cash and pay for my groceries in cash. If I accept bank transfers or Bitcoin, they are ultimately traceable.
 
We have very intrusive anti money laundering rules.

If Bitcoin manages to circumvent these and if it doesn't have much other purpose, then a ban would be worth considering.

But if Bitcoin becomes widely used for legitimate cross-border purposes and is cheaper than the banks forex, then it should be encouraged.

But it should be traceable.

Brendan
 
Brendan Burgess said:
Sorry, I don't follow your argument.
Click to expand...

Thats a pity I will try again.

Brendan Burgess said:
If I want to buy groceries in Tesco, it won't matter if Tesco takes payment in euro or Bitcoin. Will it?

If I want to operate in the black market and avoid VAT and Income Tax, I will want to be paid in cash which really is anonymous.

In fact, if I want to operate in the black market, I will accept payment in cash and pay for my groceries in cash. If I accept bank transfers or Bitcoin, they are ultimately traceable.
Click to expand...

I wasn't thinking about the blackmarket aspect at all. As you say cash is very suitable for the blackmarket.

I was thinking that the supply of bitcoin is curtailed. Where can you get bitcoin, only from the people who currently own the supply. If bitcoin became established as a means of payment the people who hold bitcoin would have a stranglehold on all economic activity.
 
OK, I don't think that is remotely a worry.

The supply of Bitcoin might be limited. But there are many other cryptocurrencies.

Brendan
 
Brendan Burgess said:
OK, I don't think that is remotely a worry.

The supply of Bitcoin might be limited. But there are many other cryptocurrencies.

Brendan
Click to expand...

Obviously we are a long way from bitcoin predominating as a means of exchange. Then again we were a long way from $20,000 a bit a year ago.

My point is that if bitcoin does come become the preeminent means of exchange the owners will gain huge power.

After all that is what they are hoping for. As you know the thing has no other value.
 
We don't even have to politically argue here.
Governments can still collect taxes from the bitcoin transactions.
It is easier to tax evade with a cash only take-away than with a bitcoin accepting take-away.
In fact, you are surely going to get caught with the latest option.
Wont take much analysis to see that earnings are probably higher that those declared and trigger an audit. You never know who is monitoring your addresses.
 
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