pull down to refresh
0 sats \ 4 replies \ @OT 10 Dec \ parent \ on: The Fallacy of Store of Value vs. Medium of Exchange bitcoin
You can always knock down a mansion and build an apartment, or knock down an apartment and make a bigger one.
I think there's an analogy somewhere.
Bitcoin being the digital 'land' and its use and store of value... being the real-estate on which other businesses are built.
For example micro-payments to pay for Books and Articles, remittance payments in the form of Lightning (even liquid if necessary) and on-chain as a kind of 'final settlement' layer for larger capital movement.
A business pays for something big? Send it on-chain.
A contractor needs to pay a vendor for supplies or services? Send it on-chain, it will be settled in an hour and works 24/7/365 globally.
But the volatility needs to decrease (and it will in time) for the 'larger' payments.
And the capital gains taxes need to go away even for the small ones.
How can businesses be built on top of Bitcoin, when every transaction even small ones are a 'taxable event' for Capital Gains Tax? Buy a book or Article to read on Lightning... and that's a taxable/CGT event. A cup of coffee? CGT
Tip someone on social media 1000 sats for their cool video...?
CGT. The exchange rate you bought the sats... then sent them on Soc Media you have to keep track of this?
No-one can or will it's impossible.
No business can survive this and grow in my opinion, as the moment they get big enough to have real customers it becomes important to track all these tax things which is virtually impossible. We need CGT reforms around Bitcoin for MoE to develop too imo
reply
No-one can or will it's impossible
Until fiat is killed and/or the state updates the regulation of bitcoin I agree. At least the way you outline it.
It is possible to use bitcoin via something like Strike and avoid a lot of the issues but this is why fiat on one end and bitcoin on another. Businesses do receive bitcoin today and account for it and pay taxes on it. Its difficult but this is a business opportunity to make it less difficult. There are companies that help with this.
But the bigger point is that businesses that do this are vanguard businesses. Not your average business. Your average business is never gonna do this in the current situation. I believe the situation will change. As more people have bitcoin the systems that rely on the respect of the masses (the state) will adapt or die.
It really is up to the plebs. The masses to not tolerate the status quo.
reply
100% agree. I believe that eventually... there will be enough public will, enough public desire to change things like CGT for Bitcoin that it will get changed.
If people want it badly enough, and they demand it from their representatives they will get it LOL. Enough of a constituency.
reply
I kept harping on this during this last election. You have two sides talking past each other. One is all pumped the Orange Man is "on our team". And the other is telling them they are wrong. The important note is bitcoiners are too powerful/influential to ignore. Not that Orange man is the savior or the wolf in sheep's clothing.
When you have influence you don't have to go begging for attention. The scum comes looking for your approval. This is the way. Bitcoin doesn't need politics. Politicians need bitcoiners.
reply