I'm mad as hell. And I have the IRS to thank for it. Either they are utterly incompetent or they are the worst kind of creeps and thugs. I'm inclined to think the latter, but I suppose we can give them the benefit of the doubt on the former.
So, since they've decided that bitcoin is property, not a legitimate currency, every time one uses it as a consumer, every cup of coffee, restaurant meal, book, piece of computer hardware, you buy with it, you have to pay capital gains tax. In other words, bitcoin has been elevated to the prestigious position of gold: scary competitor to whom we will give no quarter.
That's about the shape of things. If you needed any further evidence that the U.S government, and national governments, in general, hold free markets in contempt, there you go. Really though if you're surprised by these developments, you haven't been paying attention.
What does this mean for bitcoin? Things start getting interesting. Many have been talking about lobbying for a change of policy. That seems strangely myopic in its blindness over the necessity of national governments to not allow competitors with their currency.
For me, the writing has always been on the wall for some time (and I've been perplexed by those who can't or won't read it). Bitcoin can only thrive as a competitor to fiat currencies. It can only provide such competition, however, outside the good graces of the nation states.
Is the trite mass media condemnation of bitcoin as currency of criminals destined to be come true? Depends what you mean by criminals.
If by "criminals" you're referring to peaceful people voluntarily exchanging goods and services among themselves, while causing no trespass upon the life or liberty of anyone else...if that's what you mean by "criminals." Yes, I guess so.
Do remember though, that the real criminals, the ones who use violence and extortion to get their way - the narcotics cartels, the human traffickers, the professional murderers - have long used the U.S. dollar as their coin of the realm. Whose money is the real bank roll of gangsters?
Have no illusions. This ridiculous ruling is about criminalizing people who want to choose their own currency. After all, what can be scarier than that for the fraudsters and bureaucrats who run our government-banking complex?
So, since they've decided that bitcoin is property, not a legitimate currency, every time one uses it as a consumer, every cup of coffee, restaurant meal, book, piece of computer hardware, you buy with it, you have to pay capital gains tax. In other words, bitcoin has been elevated to the prestigious position of gold: scary competitor to whom we will give no quarter.
That's about the shape of things. If you needed any further evidence that the U.S government, and national governments, in general, hold free markets in contempt, there you go. Really though if you're surprised by these developments, you haven't been paying attention.
What does this mean for bitcoin? Things start getting interesting. Many have been talking about lobbying for a change of policy. That seems strangely myopic in its blindness over the necessity of national governments to not allow competitors with their currency.
For me, the writing has always been on the wall for some time (and I've been perplexed by those who can't or won't read it). Bitcoin can only thrive as a competitor to fiat currencies. It can only provide such competition, however, outside the good graces of the nation states.
Is the trite mass media condemnation of bitcoin as currency of criminals destined to be come true? Depends what you mean by criminals.
If by "criminals" you're referring to peaceful people voluntarily exchanging goods and services among themselves, while causing no trespass upon the life or liberty of anyone else...if that's what you mean by "criminals." Yes, I guess so.
Do remember though, that the real criminals, the ones who use violence and extortion to get their way - the narcotics cartels, the human traffickers, the professional murderers - have long used the U.S. dollar as their coin of the realm. Whose money is the real bank roll of gangsters?
Have no illusions. This ridiculous ruling is about criminalizing people who want to choose their own currency. After all, what can be scarier than that for the fraudsters and bureaucrats who run our government-banking complex?
About the Author:
Wallace Eddington is a leading commentator on financial and monetary events and a regular contributor to the Bitcoin Profit Calculator site, where he's written about the Mt. Gox fiasco and other hot bitcoin issues. See also his hard hitting piece on inflation at the Fiat Currency Review.
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