Re: USD is backed by the fact that IRS only accepts it for taxes...
The US Dollar is legal tender, which means that you are legally required to accept it for the repayment of debt. Failure to accept it results in a breach of contract. This also adds some "intrinsic" value to the US dollar.
Note: This does mean you are legally required to accept it as payment for goods or services, including credit extended for goods or services.
Note: This does mean you are legally required to accept it as payment for goods or services, including credit extended for goods or services.
Check again. While yes, it must be taken settle any debts, a merchant is not obligated to take it for goods and services. And even the debt thing varies by jurisdiction.
employee's with employee contracts need to be paid in native FIAT .. so the dollar is backed by labour time.
It doesn't need to be fiat. Employees can be paid in foreign currency, or by other means. The only thing that the IRS cares about, is that you pay them taxes on the US-dollar-equivalent of the value of what you've earned. A foreign company can hire someone here for minimum wage and pay them in Yen or Euros if they wanted to. It's just too much of a headache. Also, I think minimum wage actually depresses the dollar value. A hamburger used to cost $1 worth of labor, now it's worth $3. The minimum wage employee has more money to spend, but now so does the manager who sold the burger, the farmer who sold the ingredients, the store clerk who sold the employee groceries, and so on. It ripples through the system, and although everyone now has more dollars, the actual value owned by each person remains the same.
I am not an American, but I guess if you always hold the Bitcoin and do not sell it, the unrealized gain need pay no income taxes. that's a very important way of delaying paying tax legally.
In America you have to pay capital gains on everything that's not in your tax-deferred retirement funds. Stocks and bitcoin, if they grow in value, must be partially sold off to cover taxes. You can avoid not paying taxes on bitcoin earnings if you don't tell anyone about them, but it's not legal
