I think governments will force crypto exchanges to deduct tax from qualifying transactions and send it to them.
What about any transaction, not only happening on exchange? How about a hard limit on BTC wallet initially? How to resolve a situation when someone had bought it for cheap and have massive number of it? It is unfair to deprive owner or those in need?
Socially and technically it is a nightmare, but we already have something like it, only we know how to deal with it.
Devil known or devil unknown, which is better?
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Thatâs private money, nobody on the planet can stop me investing whatever amount I choose in something legal. The same applies to everyone else. From my perspective there is no situation to solve.
Whoever took the risk or had the physical cash to purchase such a large amount of BTC had the foresight to invest in it.
Or take money away from you?
If they will be truly not caring about it, or unable, then its not currency.
But nothing is truly yours, even your body. Its all borrowed and you are just allowed to use it by the rest of similar beings, and by nature of it, for multiple cycles of cell division. When it ends, âyourâ bitcoin will not be âyoursâ. What with it? Will you be even able to find use for it before inevitable? Some people only hold it.
It is valuable so it will be mentioned in a will to a relative or other beneficiary, and they will do the same.
And they will know where to find it and how to access it? Who will allow them? The keys will be governed by who?
If they are outside your head, they are already leaked. Not to cause paranoid behavior, but you know whats happening when someone else can have access to all that bitcoin.
And then only 0.01% of the wallet could be treated as something that can be left for relatives. The law could be so. Because there is no thing that cant be taxed.
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There is something called multisig wallets. This means you can store your Bitcoin in an address that needs N out of M signatures. For example you could do a 2 out of 3 multisig, where you need 2 signatures out of 3 existing keys.
This way you can implement quite elaborate backup concepts for all occasions, without giving any individual person or bank you entrust one of the keys access.
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Does a currency exchange such as Coinbase have access to the crypto stored on behalf of a customer? So would they be able to freeze assets in the event of a criminal investigation or would they be able to forward assets to a beneficiary of a will?
Yes, they have total control of the funds their customers have on the exchange and they will have to comply and freeze this funds if they receive a request for law enforcement.
One of the other big exchanges, Kraken actually urged their customers to move their coins out of the exchange when the whole blockade thing was ongoing in Canada, because they would have to comply and canât protect their customers.
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And to where then? Everyone needs their wallet linked to an exchange. The coins that are confiscated are moved from the exchange to wallet X or Y so it will never be safe, lol. If you scroll up youâll see the trace on the millions that were stolen by the rapper. 
So why try and make it sound they helped, those transactions will be registered on the ledger, lol.
Iâm sorry, but I have a hard time deciphering what you actually try to say. Either I completely misunderstand you or you still donât understand how any of this works.
Taking coins of an exchange means you send them to a wallet you control where only you have the keys, which means you have complete control. They canât freeze it anymore, all they can do is block it at the exchanges they can control, and there are increasingly more options to spend them directly without going trough an exchange.
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Ok.
But the transaction is in the ledger. From wallet X to wallet Y.
And even if you would do anything else, itâs registered, ever transaction is, right?
imo, NFTs are simply horrible and Iâm surprised olâ Hilmar sees them as part of gaming/EvEâs future. PA too? Yikes.
WellâŚthere were a bunch of people who made money on the tulip craze before it crashed spectacularly, so good luck Hilmar et al I suppose. One thing you can say about Hilmar is heâs not afraid to check out new technologies. âŚMaybe a bit too unafraidâŚ
It will be interesting to see what if any role cryptocurrency plays in the situation in East Europe.
Any of you pro-cryptocurrency folks familiar with Central Bank Digital Currencies? I think for better or worse they will (possibly sooner than later) end up choking out crypto.
Fair points,
I think Hilmar is very much interested in Block Chain, and NFT, from a strict technology point, but is pretty much a pass on them in how they currently have been monetized. I would guess his biggest interest is to make ISK in Eve with it drastically less FIAT with the current sinks and faucets paradigm, making every ISK unique, and trackable, would give a lot more breathing space against RMT of it and also be a potential tool against botting with all ISK from an identified Botter being erasable to a degree, at the least able to be seized or isolated.
Already know a lot of arms traffickers that have gone in on the conflict have been churning via crypto. A lot of Turkish and Indian outfits trying to move stockpiles. I think the Interpol desk for small arms control have already been trying to get information together so regional law enforcement efforts can understand the troubles coming their way.
I think central bank crypto will be DOA. A touch speculation here, but I think what will happen is futureâs contract backed cryptos of some sort will start to emerge from decentralized exchange price discovery. Having a basket of real-world commodity, with a much better understood risk profile, will please a lot of parties, from commercial banks to nation states, to industry. About the only people who will be upset with it are tax collectors as it will be Swiss cheese tax code wise but tolerated for the velocity to economy it brings.
Not sure if you understand what a wallet does. The transaction goes to one or more addresses. A wallet can generate an unlimited amount of new addresses and there is nothing to connect them to each other. Best practice is to use a new address with every transaction.
So if I move the coins from the exchange you can probably assume that the address I send it too is mine. But you can do nothing to prevent me spending the coins now, as that address is under my control alone.
There are crypto currencies which have a lot higher privacy than Bitcoin, like Monero for example, which uses zero-knowledge proves to validate transactions without reveling the sender or recipient. But that increased privacy comes with other trade-offs obviously.
On the blockchain yes. But you can move it to Lightning and there individual transactions are not registered on a ledger. Even the receiver doesnât know who the sender was, just that an invoice was payed. Lightning has other caveats though, for example itâs only viable for small everyday payments at the moment. You are not going to buy a house or a car with Lightning.
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hope everyone involved has been keeping good records. The IRS doesnât have much of a sense of humor.
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Itâs likely taxes will be applied to qualified transactions like when one sells the BTC to the exchange they are registered with.
Goods and services will already have taxes applied if one is using BTC to buy from a retailer, In the USA and UK taxes will be deducted by the exchange and forwarded to HMRC/IRS when some one sells BTC to the exchange for physical cash.
Now Tesla, quare and MicroStrategy wonât play the market anymore (The biggest corporate holder of bitcoin is not Square or Tesla â Quartz). It will become just another share or pennystockâŚ
Oh, and : Capital Gains Tax - GOV.UK
So if you gain over ÂŁ1,025 per month in Bitcoin mining, donât forget to report it. The sales of videocards are also included in that âbusinessâ⌠might deduct the cost of buying new cards to reduce taxes. But donât make losses year after yearâŚ
Gambling gains are tax free in the UK and reporting losses for deduction is optional, that is why you see forex spread betting tax free there and lotteries/lottery bonds tax free, also trading physical soverign gold coinage (not paper gold and not silver) is tax free in the UK, for residents, and not just on gambling domestically, it can also be from bets/gambles internationally. In the UK, the gambling houses pay the tax, not the gambler, unless it is your professional income. Thatâs why professional gamblers pay tax, itâs their profession.
If you want tax free crypto trading in the UK, do spread betting on it and not as a profession.
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