Summary:
After bitcoin goes to (essentially) zero (since it is global, even a few oddballs can prop up its value for years at some low level, like hobbyists do for all kinds of things), which it will, some will say that it was regulation that killed it, not, as I explain, because crypto is worthless because it is not part of a balance sheet and as such has no inherent value to extinguish debt. To be clear: That bitcoin can’t withstand being treated as any other ordinary good yet does not deserve special tax-free treatment is part of the theory though. You don’t get to declare “I’m a currency! I deserve special treatment!” and not pay taxes. Governments maintain the value of their currency through taxation (taxes drive currency). Money is a public good we all support for our mutual benefit. You
Topics:
Mike Norman considers the following as important: Bitcoin, cryptocurrencies
This could be interesting, too:
After bitcoin goes to (essentially) zero (since it is global, even a few oddballs can prop up its value for years at some low level, like hobbyists do for all kinds of things), which it will, some will say that it was regulation that killed it, not, as I explain, because crypto is worthless because it is not part of a balance sheet and as such has no inherent value to extinguish debt. To be clear: That bitcoin can’t withstand being treated as any other ordinary good yet does not deserve special tax-free treatment is part of the theory though. You don’t get to declare “I’m a currency! I deserve special treatment!” and not pay taxes. Governments maintain the value of their currency through taxation (taxes drive currency). Money is a public good we all support for our mutual benefit. You
Topics:
Mike Norman considers the following as important: Bitcoin, cryptocurrencies
This could be interesting, too:
Frances Coppola writes The SEC’s Bitcoin ETF Standoff
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Mike Norman writes My new podcast episode is out.
After bitcoin goes to (essentially) zero (since it is global, even a few oddballs can prop up its value for years at some low level, like hobbyists do for all kinds of things), which it will, some will say that it was regulation that killed it, not, as I explain, because crypto is worthless because it is not part of a balance sheet and as such has no inherent value to extinguish debt.
To be clear: That bitcoin can’t withstand being treated as any other ordinary good yet does not deserve special tax-free treatment is part of the theory though. You don’t get to declare “I’m a currency! I deserve special treatment!” and not pay taxes. Governments maintain the value of their currency through taxation (taxes drive currency). Money is a public good we all support for our mutual benefit.
You can’t just invent some new token (even if something new and shiny like blockchain & crypto) and declare it a special good that can be traded tax free. Yet taxing a self-declared “currency” guarantees its failure as it will not make sense for individuals to move into it if they are going to be taxed in real money for transactions in it.
Clint Ballinger
When Bitcoin goes to Zero, Don’t Blame Regulation
See also
The Fair Price of a Bitcoin is Zero
Eric Tymoigne | Associate Professor of Economics at Lewis and Clark College, Portland, Oregon; and Research Associate at the Levy Economics Institute of Bard College
Crossposted at Business Insider
Also
Futurism
The Real Price of Bitcoin? According to Morgan Stanley, It’s Zero
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The Real Price of Bitcoin? According to Morgan Stanley, It’s Zero
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Also
Do NOT Use Bitcoin Assuming It Is Anonymous
Also
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Noah Smith on Bitcoins: A Failure with a Golden Future
David Glasner | Economist at the Federal Trade Commission
Does cryptocurrency remind you Beanie Babies?