RE: The Peoples Actions Will Determine Whether or Not Cryptocurrencies Are Successful
Good points, Neal. The only way Central Authority can reach into your crypto wealth is if/when you convert it to fiat currency. That was my meaning in previous threads we have had that the true power of crypto, in the political sense, is to never bring it's value back to fiat. That conversion is the weak link. Central Authority will match wallets to individuals from info given to exchanges, which in turn will be forced to pass it on to Central Authority. Feeding cash into crypto ATMs and sending them to annonymous wallets will keep one off the radar of Central Authority.
In my country of origin we are permitted $750,000 capital gains over the length of a lifetime and $350,000 capital gains from property sales. So even if one does cash in they have a lot of space before theft can take place. My guess it is the same in most western nations.
Ah, thanks for the info! Yes, I agree wholeheartedly about leaving money in crypto - which does bring other challenges, but ones that I think the people can and will figure out if necessary. Maybe a new standard currency based in crypto - or is the SAT the standard? And perhaps some of the brilliant devs will figure out technical defenses against central authority imposition. Hopefully decentralized internet and exchanges will help with that as well
Yes, decentralized blockchain exchanges, which are already starting to appear, will make things much more difficult for central authority to keep a lid on things for those who want or need to exchange into fiat.
Had an update from a friend who consulted an accountant, locally, and the amount of capital gain declared will have 50% of that amount tax free. It worked in his case to drop him down to a lower tax bracket for the remaining 50% which was taxed at 30% instead of the 50% in the other tax bracket.
Just for clarification a bit....