Quote from: offshoregenius77 on September 05, 2011, 12:44:49 AM

It would seem that eventually the FEDS are going to try to take a stand against btc. If it keeps mushrooming, it will create quite a dent in the IRS tax intake. Lets just hope they dont try to stamp it out altogether. Its obviously got great long-term potential.

You are assuming that most people using Bitcoin are trying to avoid paying taxes. Sure, those exist, but they wouldn't be paying taxes anyway. Most businesses based on Bitcoin seem to be regular, tax-paying companies that simply hate the banking system.

Bitcoin's first purpose is skipping the banks, not skipping the tax office. In this context, the IRS will *LOVE* Bitcoin - if companies have more income/proffit, there's more to tax. If I were to pay 3% less to the banks, I would decrease my prices by 2% - have an edge on the competition while still making more money. IRS also gets more taxes. WIN-WIN-WIN (me, customers, tax office). Ta-daaaa