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Why Bitcoin is the Best way to Keep your Money from the Mongering Eyes of Government Taxmen

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bitcoin tax taxation

In many countries the government taxes everything, from commodity purchase to money transfers from one bank account to the next. This has prompted the emergence of the tax free market which is currently valued at $20 trillion. This market strives in handling huge financial transfers for individuals and institutions who wants to keep their hard earned resources from the jealous eyes of government taxmen.


Bitcoin and Taxation


The initial scripting of the bitcoin algorithm allows the cryptocurrency to be passed around without leaving traces that could be used to trace the name behind the bitcoin address involved in the transaction. Although this is only applicable only and only if the address has never been attached to a physical name of an owner before.


At the meantime bitcoin still bears a good level of anonymity although some experts believe that it is not as anonymous as other cryptocurrencies such as Z-Cash. This means financial transactions made in bitcoin can go totally tax free even when trajected across very many borders. However, in some countries like the united states, it’s a required of the Security and Exchange Commission (SEC) that every bitcoin exchanges collects and verifies customer biodata during the process of registration.

 

This does not mean it is impossible to transfer$1m from California to Beijing totally tax-free thanks to the presence of other bitcoin infrastructures apart from exchanges. Platforms like localbitcoin.com provide an escrow mechanism where bitcoin business can occur as usual only with a lower charge in terms of fees.


Imagine the $20 Trillion-dollar tax Evasion markets


The constant quest of people to have a financial freedom has led to the creation of one of the world’s most liquid markets ever. The Tax Evasion market is estimated to be worth more than $20 trillion dollars and growing. This signifies that a lot of money is moved underground beyond the reach of the governments.


With a tool that bitcoin designed and carefully coded to evade taxes in the strictest situation at the lowest possible cost of transactions, this market is slated to grow even to another level. The major question looming still remains, why then is bitcoin not being widely used? Let’s put is like this, you transfer $100 million from California to buy a city property. If the money is not cashed immediately it remain subjected to price movements which is rather undesirable for bitcoin.


Bitcoin price movements means $1 worth of bitcoin could become $1.2 in just a matter of a few hours. Consider a transaction involving $100m, in a few hours it could become $120m or worst $80m is price moves in the negative sense. This is the main reason why bitcoin is not yet the currency of choice for moving lump sum amount of money around the world easily.


What would be the Government Response?


Should bitcoin average price stabilize, price movement would be insignificant meaning large amount of funds can be transferred via bitcoin without any fears of the deposits losing its value before being cashed out by the recipient. At this point much of these $20 trillion would preferably pass via bitcoins and hopefully the cryptographic algorithm protecting bitcoin will remain untampered with.


The question remains, what actions would the authority take to tame down bitcoin abilities and bring the government back in control. Cryptocurrency exchanges would become a risky venture to operate since most government opposing bitcoin will make them illegal. This means P2P platforms will be used to handle most of the transactions.


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1 Comment

  1. Withdraw Bitcoin To Bank Account

    June 6, 2018 at 7:21 pm

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#Exchange

Vietnam launching a regulated cryptocurrency exchange

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Vietnam is all set to launch a regulated crypto exchange as two companies have just signed an MOU for the development and licensing for a crypto exchange.

Vietnam is all set to launch a regulated crypto exchange as two companies have just signed an MOU for the development and obtaining licensing for a cryptocurrency exchange.

Partnership for the cryptocurrency exchange:

According to an article published by PRNewswire, Linh Thanh Group, which is the biggest distributor in the country is partnering with Kronn Ventures AG, a blockchain company located in Switzerland for the development of the cryptocurrency exchange.

Recently, Kronn Ventures AG created an association with the financial committees around Asia which included countries like Bangladesh, Sri Lanka, Cambodia as well as Vietnam. The motive of the association is to use blockchain technology to create a worldwide wiring system that suits the environment of the Asian continent.

According to the report, Linh Thanh Group has officially stated that partnering with the Kronn Ventures AG will help both the companies in creating a cryptocurrency exchange that is world class. Kronn Ventures is quite famous for their work in the field of blockchain in Switzerland.

 

Regulation in Vietnam:

The government of Vietnam had earlier seized the domain name of the biggest BTC exchange in the country as the company was accused of allowing e-commerce services without seeking regulations from the authorities.

Also at the end of last year, Vietnam’s ministry of justice had proposed various methods which could help in regulating cryptocurrencies in Vietnam. The regulatory authorities had also explored the pros and cons of cryptocurrency regulations in the country.

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#Exchange

Mt Gox: Has the time come when Mt.Gox Creditors will be paid?

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As reported by the Mt Gox trustee, They still have 141,000 BTC and 142,000 BCH and the trustee seems to be taking charge to return the funds to the victims.

The small cryptocurrency community back then was in shock when the biggest bitcoin exchange Mt Gox (at that time) was hacked and around 850,000 BTC were stolen which were worth around $450 million back then and around $3.4 billion according to today’s price. Years have passed since the incident, however, only a few the victims have received their share and most of them are still waiting for their lost funds.

 

Mt Gox to credit victims?

As reported by Nobuaki Kobayashi, the Mt Gox trustee, Mt Gox still has more than 141,000 Bitcoin and 142,000 Bitcoin Cash and the trustee seems to be taking charge to return the following funds to the victims. The victims were super excited to hear this and Twitter seems to be full of tweets claiming that the exchange has finally made its decision of returning the lost funds to the victims.


However, it is worth noting that Mt Gox might have more than $631 million worth of Bitcoin and Bitcoin Cash, the number of funds to be compensated are likely much more than this amount. The other documents on the website claim that the victims shall be sent a notification regarding the approval or disapproval of their claims based upon their type of filing (online or email).

 

Nobuaki Kobayashi said that after a few days, the Rehabilitation Trustee of Mt Gox will be announcing the results of the claims filed by the victims. The result will showcase whether or not their claims have been accepted.

 

Missed the deadline?

If you are one of the victims and you’ve somehow missed submitting your claim, you can still download the claim form from the Mt Gox website. However, if these claims made after the deadline shall be accepted for refunds will be decided by the court.

 

Is there any timeline for the claims?

According to Nobuaki Kobayashi. he will contact the victims soon. So there is no specific timeline as to when the funds will return to the victims. However, it is still great news for the people who have been waiting for over 5 years and they are surely happy about the fact that they will soon be compensated.

 

Cryptocurrency investors are now wondering how will this affect the bitcoin price? What do you think? Tell us in the comments section below.

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#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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