Re: Did China just legalize Bitcoin, clarify regulation, for its free market use?
Sry but extremly brief reply and you did not address my points. Bitcoin cant be a media of exchange as you have to pay taxes on every transaction. If you dont pay taxes you go to jail. I dont know how it is in your country, but thats how it works normally. Now you can say that people will risk going to jail, but I dont see that coming any time soon.
There are governments that interfere more and less. I happen to live where they steal more than 50% of your income if you add income tax, vat and property tax. You seem to be a person who lives obeying the rules enforced by the "authorities" and don't want any changes. They tell you to pay taxes - you pay, then the taxes grow and you still pay, then they make you borrow in the banks so you can be their debt slave but you won't protest because that's how the system works, right?
Do you really think a system that enforces taxes anywhere it can is just? I am not against all taxes, people should give something to the community, but income tax is among the most unjust, it punishes people for being smart and creative so the ones that have bigger gains have to contribute more - this is ridiculous. Governments write in their constitutions that all men are equal, and yet they are not equally taxed, where's the logic in that. But this is going off topic.
No I dont believe that taxes are just. But the reality is that most people do and pay obidiently. Thats why government has power in the first place. Again cryptocurrencies wont bring down government.
But they can allow you to get some goods and services anonymously. Let's say you write a program or create a website for someone and get paid in BTC, he has a broken pipe and pays a plumber to fix it with these btc, the plumber buys a used phone from his friend again with btc. Wouldn't that work? I'm not talking about big businesses employing thousands of people. I'm talking about John selling Judy his silver coin collection. Why the hell not use BTC for that?
Now you must already realize that for 1) large businesses 2) medium sized businesses 3) small businesses bitcoin is out of the question.
For the transactions you speak of we have two problems.
1) You have to show how you make a living (plumber). If you have stuff that cant be afforded with the income you show, governments will pursue you and put you in jail.
2) If you decide to buy virtual goods then these goods cant come from any small, medium sized or large business. Most virtual services are free anyways.
3) If wealth can only be spend on virtual goods than that wealth is useless if its significant (again if you have 2 million and can only spend it on virtual goods from tiny companies then these 2 million are useless). Rather pay taxes and be able to buy real stuff.
4) Most people wont risk going to jail if they only safe small amounts.