Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?
I have thought of creating a topic regarding this topic, but instead, i used the search bar to see if there are previous topics about taxing the Bitcoins. This was posted May 10, 2011, and nobody did care to reply this when I believe this is a high-quality topic.
Should the government impose a tax on transactions using the cryptocurrency? In what way they can.
rise! necrothread, arise!
but in seriousness, some interesting thoughts above.
the real benefit is that bitcoins can be hidden from sticky gov fingers
whether or not that gets you in hot water is another story
but then again, proving that you have the btc or private keys can be difficult
if innocent until proven guilty, then all is good
however, i don't think the western democracies work like that anymore. they're corrupt, greedy, and only out for power. so, i wouldn't expect due process or justice
