Have you ever wondered how taxes worked back before we had electronic currencies, back when everybody used cash? How could that possibly work? The answer is that taxes do not derive from people using USD, they are derived from people REPORTING their own tax liabilities. People can fill out tax forms for earnings in bitcoins just like the filled out tax forms for earnings in dollars.
Have you ever wondered how taxes worked back before we had people REPORTING their own tax "liabilities"?
The answer is that taxes
were derived from people using USD, they were derived from sales taxes
only. Direct taxation was CONSTITUTIONALLY FORBIDDEN. For IDEOLOGICAL REASONS. Lord give me strength.
Ah, but somebody has to tell the government what amount of sales there were, USD does not report that, the people had to do the reporting. You can report your sales in bitcoin just as easily as you can report your sales in USD (actually bitcoin is even better, since the record is open for everybody to see).