Quote:
Originally Posted by trekkor
A government will lose control over a population that doesn't use their currency.
The IRS collects taxes based on our earnings in dollars.
What happens when you don't earn money in dollars?
KT
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In theory you pay tax on it. I believe if you live abroad you're allowed the first $80k of foreign-earned income exempt but maybe that's been changed now under the confiscatory tax policies of the current regime, dunno.
I've read about bitcoins quite a bit on Wikipedia and on other sites and thought one of its best and most appealing aspects is that they're very hard to trace and probably hard to enforce taxes on (because of difficulty tracing and exchange rate volatility). I haven't bought any though for a number of reasons listed here already and the fact that despite reading about them they still strike me as very confusing and hard to understand how it all really works.
My understanding is that the total number if bitcoins that will be issued is fixed, which will help their value a lot (supply restriction). Only if this is actually done though - if they print more, I guess everyone - holders and speculators alike - would be screwed but probably less so than if they held ever-devaluing dollars... Dunno.