What is Cryptocurrency, but a Return to Human Dignity in Economics? (Thoughts on crypto, humanity, and the inevitable upcoming clash between coin and state)

in #bitcoin7 years ago (edited)

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Reading up this morning on tax filing procedures for crypto here in the land of the rising sun.

While I will be feeding the wolves something to keep them away from my family and I, I have other plans in place (all in accordance with applicable law, of course) to feed myself, as well.

Of course, anytime you have an individual or other entity (in this case, the "state") putting its fingers into a pie it didn't bake (they always do) the situation is an unethical and immoral one according to basic natural law property rights. That is to say, if I take my neighbor Joe's apple pie from his window sill, it is immoral because Joe's body is his own, and thus the labor he mixed with the previously unowned raw materials/ingredients using said body renders the new product (the pie) his own. Even if Joe hadn't ground his own flour, etc, and had purchased the ingredients for the pie from the store, the situation remains the same. Joe would have worked for the money with which he made the purchase using the actions of his body. He would have exchanged his money for the storekeeper's ingredients in a fair and voluntary trade. Thus, it can only logically follow that for me to take Joe's pie is to violate his self-ownership and in essence to claim I own him as a slave, at least in part.

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Paid for by tax dollars. This is the height of civilized society?

A return to dignity: my view of the meaning of crypto.

Bitcoin was created in response to the economically absurd, inconvenient, violent, dehumanizing and downright evil actions of various nation states in regard to money and currency. When I say "evil," I mean it. Perhaps I should define that. When I say "evil" I mean " a perversion of natural order and natural law." Which is to say, a blatant, calculated, unapologetic and brutal denial of the immutable biological and metaphysical reality of individual self-ownership.

Bitcoin and other cryptocurrencies have been created as a means by which humanity might return to sound economics, and by way of this, to a recognition of intrinsic human dignity. There is nothing honorable about being stolen from. Sound economics recognizes that each human being is a self-owner, and thus has full natural rights to the free and uninhibited exercise of his or her property, insofar as said exercise does not impinge on these very same rights of others.

What we see emerging now with nation states attempting to clamp down and tax (often at unbelievably exorbitant rates) the crypto holdings of investors, speculators, and simple users around the world, is the inevitable attempts of violence-based political entities (all modern, mainstream-recognized countries are) to keep power from leaving their hands and re-entering the hands of individual actors in a non-coercive free market. I think giving an example of how de-humanizing the current paradigm is to the individual might be advantageous here.

Think of the last time you received a paycheck from your employer. If you took the time to read all the deductions called "taxes," how did you feel as you read over them? Did you feel good knowing that the money you worked for had been taken without your consent, and that you had absolutely zero choice in the matter, and on top of that, that you had no choice in how the money would be spent, either?

Some people say they are happy and proud to pay taxes. Interestingly, none of them are hurrying to offer more, but are intensely interested in maximizing deductions. All humans with a working moral compass realize that to take money--FOR WHATEVER PURPOSE--from another individual without voluntary consent is theft. If I hold a gun to your head to extort funding for St. Jude's Children's Hospital my act is immoral all the same. If you think the metaphor of a gun is too strong, just try not paying taxes and resisting, when the state comes to collect them and/or you.

Now think of the first time you made a crypto transaction, paid in Bitcoin, or received some crypto from a friend. Think of your first sizable Steem payout. The transaction was immediate, wasn't it, with no middle man or third party entity attempting to arbitrarily take some of what you had worked or traded for. It felt good, didn't it? You put in the work. You got the full compensation. It is a simple balanced equation. This is sound economics, and this is an exchange that honors basic human dignity. Questions such as "Who will build the roads?" or "What about welfare recipients?" are irrelevant here. That is a matter for the free market to solve. What we DO KNOW FOR CERTAIN is that THEFT is always IMMORAL.


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Actually, one of the main things the state is afraid of is generosity. That is, the real profusely generative nature of non-coercive, free market wealth. Just take a look and analyze the myriad charities, initiatives, support groups, and crypto-financial-aid endeavors happening everyday here on Steemit. Should we leave the economically unsound and mass-inflated, limitlessly-printed garbage currencies of the fiat (lit. "by decree") paradigm, and allow mathematics and human free will to subjectively value goods and services, the kid-drone-bombing, 6-trillion-dollar-losing, no-effort-inputting-but-still-taking-the-fruits-of-your-labor-and-efforts state will be shit out of luck, for lack of a better phrase.

So yeah. It's coming. The clash. Feed the wolves what you must, but don't forget why all of this started, either, or where it must ultimately go: if the state takes total control of the cryptosphere through violence, regulation, and fear mongering, crypto becomes as worthless, inconvenient, and violent as fiat. If crypto remains a monetary instrument of the dignified individual, the state can never fully embrace it. Wise as serpents, gentle as doves. Make your money, and make the world a better place. Just don't fool yourself into thinking there is no risk here, or that the line is not already drawn in the sand.

Which side are you on?

~KafkA

!


Graham Smith is a Voluntaryist activist, creator, and peaceful parent residing in Niigata City, Japan. Graham runs the "Voluntary Japan" online initiative with a presence here on Steem, as well as Facebook and Twitter. (Hit me up so I can stop talking about myself in the third person!)

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God bless you

The thieving no good governments can kiss my hairy arse!!!!
It seems the UK government has nothing in place yet to my knowledge regarding the taxation of crypto profits but I'm sure it's in the pipeline.
It's no surprise to me to see the Japanese take the lead in crypto taxation considering they are a puppet government of the US and effectively broke.
As far as I'm concerned this is a line in the sand, I won't give them a penny.....
EVER!

I love the slant of this article. What I think most of the naysayers are forgetting, is that the "value" in "store of value" of crypto-currencies lies in the decentralization, or reclamation of economic freedoms.

You know how I feel about kafkanarchy84!! This is sick, just about as sick as California now being a sanctuary state and the fact that CA is now taking away the only tax deduction we had, our home interest .. nothing surprises me but I can just hope that 2017 filings create so much havic for the IRS that they just give up :) SICK!!!!! SICK!!!!!

It is perverted in the most fundamental sense to assume the efforts by others are owed to you because you are the reason that happened for them. Isn't it funny that when you are a US citizen, your government never fails to collect your collection payment owed to them. @sunshine247 you are correct, the current systems are rigged to not allow free thinking beyond what I just mentioned. If we continue the path we are on, this will remain "just the way it is." We will not. Something has got to give.

This all freaks me out.
"Compliance" is key I suppose but to what end?
As you said taxation is theft
Tax evasion is also "theft"
I'm not happy about any of this.
I don't think crypto earnings should be taxed

Interesting thoughts @chelsea88. I think all tools created by people should be used to the benefit of the people as they wish. I am far from an anarchist, rather a US citizen that is not happy with the status quo, and as a citizen here I should be among the happiest due to our dollar bill being the dictionary picture of "modern international status quo." The wheel was not invented to work differently for each class, that turned out to a solid capital-tech invention that helped all who were able to learn the technology. I am all for a free market transparency capitalist based economic philosophy, but the current system is so far from that a silly concept like cryptocurrency has filled that vacuum. Great article @kafkanarchy84!

I hear you. I'm Also here in the "greatest" country on earth & freedom couldn't be father than free, am I right?

Very true. Nothing is ever free, and anything of value is always backed by something else of value.

Well not everything....

Ha ha maybe not on the surface. But it is backed by the full faith and credit of its armed forces might, and other forcible means the interest can employ to make things happen on their behalf. Also the full faith and credit of the American people's current and future economic pursuits, real estate held by the government (or protectorates). Ha, but yes I think you are at least half right.

Right now the dollar is still backed by oil, but not for long.

Oil? Whose oil?!!

In reply to the question about who's oil. Any country that is still selling Oil for dollars, those sales are supporting and backing up the dollar. I know you don't believe that Oil is no longer sold for dollars, do you?

Of course the state is afraid of generosity, since it does not play the middleman and get its cut of the generous act in a p2p generous transaction.


When absurdity rises, creative solutions become imminent. It is no surprise that blockchain technology emerged, it is the invention of the age and will hopefully take us to an era where people are responsible for themselves and get out of the grip of the father figure "a state" that manages your life for you in a non-consensual exchange of a nice juicy cut.

The money is not able to be laundered by central government, at the expense of the public, with fees north of 30% in a lot of cases (30%+ wastage/fraud rate in medicare for example)

Damn man, gonna have to get you and Mizue in the same room some time soon so we can work this shit out. If I'm to sell fruit and veg for Steem (or any other crypto), there's no way I'm paying taxes on it.

We’ve always got to pay, Nick. That’s how the state takes care of us! 💩

I reckon there should be an age limit on the state taking care of you, just like there is on your parents taking care of you. When you grow up, and leave home, and start earning money, and settle down, the state should give you the option to opt out and fend for yourself on your own. And as for those sorry bums who want to be taken care of, they should be made to forfeit their right to tell anyone else how to live.

Anyway, my nationality is British and I haven't lived there in a decade. I spent ten years in France without being French, and now I live in Japan, so I reckon I no longer have a state and no one is obliged to take care of me and I'm not obliged to take care of them. Why isn't there a stateless passport that grants diplomatic immunity?! I bet people would pay good money for one of those!

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A few weeks ago, here in Croatia the government introduced taxes for Bitcoin. Scumbags, they are trying everything they can to take some money from us. Hopefully, them and banks don't ruin cryptoworld. I think one of them is going to wipe out the other, but I'm not sure which side will win.

Indeed. It is a crazy time to be alive. Godspeed, @croata!

Great job of articulating the fears and concerns that I'm sure many of us here share with you.

This is my first financial year of being actively involved in Crypto and I'm hoping that any gains can be taxed to a bare minimum if possible. I can't help but wonder to myself though, how can centralised control of decentralised assets even work?
I don't deny the fact that it could all get really damn nasty, but it seems like the perfect opportunity for the state to show it's true colours to those who still believe that it exists for some arbitrary "the greater good".

I'd love to hear how others are planning for this and working to protect themselves in the long run.

Hey, @howardblott. Great thoughts here man!

how can centralised control of decentralised assets even work?
I don't deny the fact that it could all get really damn nasty, but it seems like the perfect opportunity for the state to show it's true colours to those who still believe that it exists for some arbitrary "the greater good".

Really well stated and I agree. We certainly are living in interesting times.

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