Unlike electronic fiat currency systems, bitcoins are:
- Potentially anonymous[/li]
- Freeze-proof
- Faster to transfer
- Cheaper to transfer
Bitcoin is semi anonymous or pseudonymous. All transactions are transparent on blockchain but might not be linked to people that make the transaction.
But people can use bitcoin anonymously or can also prefer to maintain privacy.
Bitcoin requires certain properties to be enforced for it to be a good form of money, for example:
- Nobody ever created money out of nothing (except for miners, and only according to a well-defined schedule).
- Nobody ever spent coins without knowing their private key.
- Nobody spent the same coin twice
- Nobody violated any of the other tricky rules that are needed to make the system work (difficulty, proof of work, DoS protection, ...).
How about replace-by-fee (RBF), this is double spend. For example, I transfer bitcoin to someone with RBF enabled, if the transaction is not yet confirmed, I can double spend the coin by either cancel the broadcasted transaction back into an address on my wallet or by sending it into another new address. But this only applies to transactions in which RBF is enabled.
The reason it is recommended to accept transaction that has been confirmed to avoid scam.
My assumption: Doing tax evaders with bitcoin is possible because bitcoin can be spent pseudonymously or with a high degree of anonymity. But in many cases the government may detect tax evaders and investigate possible evasion because the lifestyle does not match the financial statements they receive. I've also created a
thread on this, so maybe you can also find some opinions on how rules and evaders are hard to do.
Even if tax evasion is possible using bitcoin, it is because it is possible while using fiat.
I have no smerit left, I would have merited your post.