The following is an excerpt from the ATO Australian Taxation Office. "Generally, there will be no income tax or GST implications for individuals if they are not in business or carrying on an enterprise and they pay for goods or services in bitcoin.
Where an individual uses bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded as a personal use asset – provided the cost of the bitcoin is $10,000 or less. I am assuming that other countries will have something similar in place.
Individuals who use bitcoin as an investment may be subject to capital gains tax rules when they dispose of it, as they would for shares of similar assets". So it seems that if we are careful and not in business, we will be virtually tax free. I have not found any mention regarding the transfer of cryptocurrency, digital currency into our bank account as fiat money. I guess when the time comes a trip to an accountant with knowledge of digital currencies. Sounds good though, Regards
A LAWFUL explanation is this. Disclaimer - this is not a legal explanation but a lawful one. Legal is a realm that bitcoin doesn't participate in - but it is a lawful currency. Further - I USED to hold a Canadian Securities license but discovered how criminal they are and voluntarily gave it up. I do not condone theft. Central banking is theft by the very definition of it.
Legal Currency - are the ones controlled by central banks and have a law behind them that it be accepted by all. i.e. the US Federal reserve Note. It has a legal tender law attached to it. That law states we MUST accept it in the USA as tender and payment of all debt. With Bitcoin we have a choice as to whether we accept it or not. It is lawful as it is a just weight and measure.
What the law won't tell us is that if you cannot PAY the taxes with the currency, it is not a legal currency. Again - it is lawful because we can still buy and sell with it, but it is not subject to the statutory laws a central banking currency is. Bitcoin is the Burger King to McDonalds. Which is why the central banks want nothing to do with it... They are in direct competition with each other. Also why a license is required to be an exchange agent and move money from one to the other/vice versa. It is illegal to trade with the enemy and athe very definition of a license (Blacks Law Dictionary) is permission to perform an illegal act, torte or trespass.
If we buy bitcoin from a licensed exchanger for one price say the $450 (or thereabouts) it is right now... Hold it and then when it goes up to $500 and we cash it in.. In the USA, there is a capital gains tax owing on the $50 in Fiat notes you gained. Works the same in the opposite direction - If there is a capital gain - there also must be a capital loss allowance. Cannot have it both ways.
Gold is a great example because Bitcoin emulates gold for the most part. A US minted Golden Eagle has a face value of $50. A US golden Eagle IS legal tender in the US - meaning you CAN pay your taxes with it. There is a HUGE caveat to that however. The IRS will only accept the gold coin for FACE VALUE and not Fiat Currency value. You can pay your taxes with one, but only $50 (Face value) will be credited to your account, Not the 1,088 Federal Reserve notes (kitco.com) it takes to buy the coin. That is a $1038 Capital loss. Funny that it takes 1,088 Federal reserve Notes to buy 50 US dollars. Remember the note is nothing more than an IOU from the FED. Same with any other central banking note.
A governing body cannot govern something it has no jurisdiction over. They want us to believe they have jurisdiction but the law states quite clearly that they don't. A central bank has it's own currency and are not interested in bitcoin whatsoever. Like McDonalds - they would like to see ALL competition eradicated and are doing their best to make that happen. i.e. the Australian gal that just had her bank account closed because she sold $10,000 USD worth of bitcoin.
Bitcoins is not a speculative investment although it can be used as such. Same as gold. It is a hedge against inflation. If you "invest" $20 in something speculative and you double your investment to $40, then go to buy something and find out it costs twice as much as it did when you made the investment, did you gain anything? No. Who cares that the Dow Jones is 16K+ when the cost of living is twice what it was when the DOW was a 10K. In that scenario your purchasing power has been eroded by 40%. Speculative investing when there is an inflation factor is a waste of time for the most part. Inflation is the act of adding to the money supply thus making the money in circulation worth less - NOT prices rising. Prices rise because the currency is worth less.
Gold has held it's purchasing power since the dawn of time. Same with silver. They just did a comparison of the price of gas to silver from the early 1900's to today. Funny that an ounce of silver today buys you the same amount of gas as it did back then. I think there was a penny's woth of discrepancy. The federal reserve currency did not hold the same value. An ounce of gold would buy you a suit of clothes in Julius Ceasar's time. A higher end suit of clothes. Think Harry Rosen or Gucci. An ounce of gold today will buy the same thing. The $20 note kept under the mattress from 1930 (gold was $20 an ounce back then) might buy you a couple cups of coffee today. See where the difference is?
Our society NEEDS bitcoin and other "crypto's" in today's marketplace because Joe Sixpack and Sally Housewife are getting beaten to a pulp in today's "economy." Worst thing about that is the Central Banking system is working perfectly as it was designed - Keep the people fooled and they will slowly lose everything and become serfs again. Think about the story of boiling a frog.
Ok, this is long enough - and gives us all some more to think about. Diginomics is the ONLY entity that I have seen (Been delving and researching crypto's almost since their inception) that tells the truth about the way things are. Even our competition whom I will NOT mention here as we do not need them, they are crooks - doesn't tell the truth in their "university". I have been in contact with diginomics. they have their facts straight and will open MANY eyes with the courses being offered. I suggest we all take it all in then begin to use the information in our daily lives. Then share the solution through CompuMatrix. From what I have seen out there - the only one that has set it up right for working with bitcoin instead of relying on a fiat (meaning worth NOTHING) currency. If you are a merchant - start bay saying YES we accept bitcoins and CryptoCeeds for payment. We do. A weeks sailing in the Western Caribbean is 2 bitcoins (cryptoceeds to be determined) - all inclusive right now and the price will be adjusted according to the fiat value. (We still have to buy provisions and pay fees with fiat) but a vacationer can pay us directly into our bitcoin wallets rather than go through a payment processor.
I support digital 100% and will do everything ion my power to have it accepted as normal, but there is a paradigm shift that needs to happen and there will be cognitive dissonance. There is always a void in understanding when we are faced with such a different way of thinking.
Go Compumatrix - Keep up the great works to bring this to fruition. Let's set the world on fire. (In a good way:-) )
Last Edit: Jan 12, 2016 17:14:49 GMT by stoneage: spelling and grammar errors.
Here's something else that shows all of us how screwed up the world is becoming with fiat currencies and the banking system.. From Simon Black - Someone I know that advises about how to hedge against the coming financial meltdown. Ever heard of NEGATIVE interest rates??? Yup - all over Europe and a couple of jurisdictions in the US from what I understand. So bad that the.. Well, read on.. No spoilers. :-)
Excellent post Stoneage, I understand where u are coming from completely, that was one of the first things I learned 14 years ago, was the Fed reserve, and it's run it's course, time to move forward !!
I see you offer Caribbean cruises, for the price of bitcoin, cool, I could use some warm water and air right now. Where do you start from ?.........................Cheers !!
"The RAND Corporation, an influential global policy think tank with strong defense and homeland security ties, has released a report titled “National Security Implications of Virtual Currency .” The report, freely available online , examines the feasibility for non-state actors, including terrorist and insurgent groups, to increase their political and/or economic power by deploying a virtual currency (VC) for use in regular economic transactions..."
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