Be leery of those that say ignore the legality of Bitcoin as the Government can't stop it

[Temper]

I think the rhetoric around the legality of Bitcoin and other crypto needs to change. If you don't want to follow within the boxes by law, right or wrong, that isn't what I am trying to debate, then don't. But saying Government can't stop Bitcoin is not good for its adoption or image - many do seek compliance even with the craziest of dictates.

Now, I think the IRS uses the "capital gains" laws specifically to prevent competing currencies. It was successful with gold and silver since using metal to transact becomes a daunting process to comply with their rules. The paperwork and recording requirements alone disincentivize its use.

But I think, because Bitcoin already requires a computer and software, Bitcoin and other crypto could overcome this hurdle.

When people say "Government can't stop crypto" be careful - this was how Irwin Schiff went to jail. All his reasoning didn't matter in the least. It is not by magic that they come after the leaders of disruptive concepts - this is by nature.

Now contrast this with the fact Coinbase, arguably the largest US based exchange, doesn't even facilitate doing taxes if you wanted to; and the fact that the IRS has taken notice and is currently coming after Coinbase - and I think we have created a recipe for disaster.

No I am not for taxes and I think the IRS is damaging - but it won't be people telling you to ignore tax codes that will be penalized. That suffering will fall upon you.

[nandibear]

I think the rhetoric around the legality of Bitcoin and other crypto needs to change. If you don't want to follow within the boxes by law, right or wrong, that isn't what I am trying to debate, then don't. But saying Government can't stop Bitcoin is not good for its adoption or image - many do seek compliance even with the craziest of dictates.

Now, I think the IRS uses the "capital gains" laws specifically to prevent competing currencies. It was successful with gold and silver since using metal to transact becomes a daunting process to comply with their rules. The paperwork and recording requirements alone disincentivize its use.

But I think, because Bitcoin already requires a computer and software, Bitcoin and other crypto could overcome this hurdle.

When people say "Government can't stop crypto" be careful - this was how Irwin Schiff went to jail. All his reasoning didn't matter in the least. It is not by magic that they come after the leaders of disruptive concepts - this is by nature.

Now contrast this with the fact Coinbase, arguably the largest US based exchange, doesn't even facilitate doing taxes if you wanted to; and the fact that the IRS has taken notice and is currently coming after Coinbase - and I think we have created a recipe for disaster.

No I am not for taxes and I think the IRS is damaging - but it won't be people telling you to ignore tax codes that will be penalized. That suffering will fall upon you.

You may, possibly, have a valid a point when it comes to Coinbase.

However, what if one never converts Bitcoin to fiat?

I've bought all kinds of products (including food, lots of it) and paid for all sorts of services in Bitcoin without ever converting to fiat.

[GreyWyvern]

When people say "Government can't stop crypto" be careful - this was how Irwin Schiff went to jail.

When one person flouts the tax laws, they get crushed.

When one hundred million people flout the tax laws, they soon cease to be laws.

[Temper]

I think the rhetoric around the legality of Bitcoin and other crypto needs to change. If you don't want to follow within the boxes by law, right or wrong, that isn't what I am trying to debate, then don't. But saying Government can't stop Bitcoin is not good for its adoption or image - many do seek compliance even with the craziest of dictates.

[....]

You may, possibly, have a valid a point when it comes to Coinbase.

However, what if one never converts Bitcoin to fiat?

I've bought all kinds of products (including food, lots of it) and paid for all sorts of services in Bitcoin without ever converting to fiat.

In regards to bitcoin transactions for goods and services - very little. You must pay capital gains on the holding of the coin.