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.
Read The Full ArticleAlthough that may truly happen, I think that governments would not let people just circumvent them and the law like that. Therefore, if you see that since there are some features of using cryptocurrencies that could be used to avoid the imposition of taxes, I am sure that government entities would find a way to use that to their advantage and capitalize on it, because after all, the cryptocurrency is a big market that could really bring in a lot of revenue. Also, taxes are the lifeblood of any government, so I don't think that they will just let any system decrease that, because in the end, it's the people who will suffer.