Re: Bitcoin Will Kill The Income Tax

As the age of cryptocurrency comes into full force, it will facilitate a subversively viable taxation avoidance strategy for many of the technically savvy users of peer-to-peer payment systems. In doing so, cryptocurrency use will act to erode the tax revenue base of national jurisdictions, and ultimately, reposition taxation as a voluntary, pay-for-performance function. In this post, I cover some of the benefits such a strategy will have for cryptocurrency investors, why our notion of taxation is ripe for disruption, and why cryptocurrency taxation is enabled by default.

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Bitcoin had created to decentralized and different from any currency of a country.
Yes, sending bitcoin is not restricted by state border and people can avoid taxes by doing it when every remittance require high fees but not for bitcoin. People could invest in bitcoin and avoid taxes, that's why IRS forced coinbase to hand over the identities of customers who made transactions through the company over three years in US. They want their taxes for sure, soon another state will follow this step, hopefully not in mine.

i think it will be more easy for the states to recognize bitcoin as legal currency, and then put tax on it, hopeful that people will happily pay their tax on bitcoin, because mostly people are loyal to their country and they want their states prosperous therefore if government will recognize bitcoin as legal currency then surely people will happily pay their tax on the income that come from bitcoin.

As quoted if bitcoin is legalised people will pay tax giving value to it. At the same if its legalised it will come under a central authority which is not good for the growth of bitcoin. For this reason people could pay taxes even before legalised based upon the transactions made or based upon the profiting.

Truly. On the off chance that we just utilized bitcoin as our exchange and not transform it to fiat then we don't have to pay impose. Still there are numerous potential outcomes for government to track and put charge for a bitcoin client. On the off chance that they discover bitcoin is being changed over into fiat and they will apply assess there. This will be a similar case for bitcoin platinum cards as well.

Since Bitcoin is a peer to peer transaction there is a possibilities that banking system will be dried up and the government will suffer a loss of revenue due to taxation. But for now there are lot of people who used fiat as legal tender in buying basic needs in our time I think it will not happen, but maybe this is the time that we might think any means that the government can also earn the right taxation revenue, because government also is a very vital in protecting citizen rights.