The anonymous payment of BTC can evade detection, which is the disadvantage of BTC and is also one of the characteristics of BTC.
Topic: Questionable wealth because of Crypto - page 7. (Read 1023 times)
If you became rich directly from your investments in BTC then that is an easy thing to prove, and you should not have any problems with any government. On your capital gain you should pay taxes as well. The same way you would if you became rich from real estate or playing the stock market.
I believe that everything can be proven, and what that has with anything, people know are they doing something legal or illegal and if they get caught there will be some consequences.
To add a little humor into this gray topic, do you know what you never ask a woman? How old is she! And what you think what you never ask a man? How he earned first million! How older I am, more I believe in this saying, it is like that. Earn that money somehow and if you continue to earn more its ok, you will cover your tracks, and because you are so rich nobody will ask you nothing, but if you don't continue to earn and make more profit government will bust you, one way or another, legal or illegal you need to pay some kind of task and protection from governments.
If you are rich because of bitcoin, you have usually proof of it. You either purchased bitcoin or received it for offering services or trading products. You have a wallet with the transactions to prove how you accumulated them.
Despite of this, if your government sentence people to prison without proof of criminal offenses committed, it might be worth leaving your country and go to where bitcoin wealth is fairly treated. In some countries you even do not have to pay taxes on it. Think about it.
Despite of this, if your government sentence people to prison without proof of criminal offenses committed, it might be worth leaving your country and go to where bitcoin wealth is fairly treated. In some countries you even do not have to pay taxes on it. Think about it.
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
Just explain them that you have got the money from bitcoin. Who knows they will be happy to know that and might just ask you how you do it and may get involved themselves. After all they are also people who needs money. Lolz. At least in my country this will surely happen if I go and file a tax worth millions. They might just ask for some bribe I guess and will sort out the matter immediately. Who knows that might just happen out of greed of the money!
Well, if you are from well developed country then I dont think there will be any kind of problem once you file the taxes and go with the procedure. You are not stealing money at all! No need to explain!
yes this can be questionable by the government because they are checking how did you get such huge amount of money? because there are many mediums like drugs and illegal trades that can also be subjective as per regulations being a suspect to this kind of market is another thing to be considered when transacting big amounts you must have some supportive docs or business to prove that this money came from trading or investing and the like and not from money laundering and other criminal ways.
If you became rich directly from your investments in BTC then that is an easy thing to prove, and you should not have any problems with any government. On your capital gain you should pay taxes as well. The same way you would if you became rich from real estate or playing the stock market.
Some of the countries like mine and many establisment in my home country doesn't know what bitcoin and cryptocurrency is. There's a time when I try to encash my bitcoin into fiat and make my way into the money exchanger the guard ask me why I got so much money to withdraw with bitcoin because their staff dont know what bitcoin is and asking me over and over what bitcoin is and if its illegal or not. I think Knowledge and understanding or even promoting bitcoin itself can make a way with living with crypto without asking too much about the wealth of people who are using it.
There should be records when you sell your BTC in exchanges especially when you need to go through identity verification. This can easily prove that the Bitcoin belongs to you. I suggest that you should keep all records of buying and selling of Bitcoin. In this case, you can present to your government when required.
Simply, this wealth can always be considered doubtful because until you bring this wealth out so it will be digitized lying on your wallet.
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
You wouldn't have to explain anything to them. It's not you, who must prove your innocence, but them, prosecutors, who have to furnish with proofs. 
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
What country? What government? In the USA it may draw attention if you suddenly are paying $10k a month in taxes. But you can only be charged with drug dealing after an investigation, arrest, and a trial proving your involvement in drug dealing. The government can't just say "Hmmm. you seem too rich, we're going to jail you just in case".
P.S. They believe me. Just file your taxes.
Unless you are engaged in illlicit activities, you have nothing to fear from the taxman. Some people get rich overnight by winning in poker games or betting on college basketball games.
When you withdraw your earnings from bitcoin in what method are you using? Isn't it like somewhat a verified wallet in order for you to make transactions to cash out, so there's no need for you to worry since there is a history that can proved that all your wealth came from crypto investments and you do pay your taxes.
It differs on perspective on how you will use your wealth if you are really suspicious on where your money came from even if you explain to them where you get them you will probably land in jail. But if you use it to invest and make a bussiness where you can just get out a minimum crypto money i guess you will have no problem to it.
Bitcoin trading and investment is just like stocks trading, forex trading, etc. Some people become rich through them. So I see nothing wrong in becoming rich through bitcoin if you used it legally and pay your taxes.
I agree with you. However, actually I do not care about the legitimate bitcoin after that. We have seen a lot about how the US government is imposing tax laws on the stock market. If the legitimacy of bitcoin is accepted, we may lose the gaps and failures because of it.
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
It all depends on what country you live in and how you use your money. You'd better get advice from a lawyer in your country that will ease the problems. 
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
Of course, any government will question you if you acquire any wealth specially in huge amount. If you cannot present any details on how you acquire they will assume they came from illegal activities
You just need to present them your activities on crypto-currency to validate your acquired wealth. And paying taxes is a must for everyone, either you acquire some assets, illegally or legally.
Bitcoin trading and investment is just like stocks trading, forex trading, etc. Some people become rich through them. So I see nothing wrong in becoming rich through bitcoin if you used it legally and pay your taxes.
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
The first paragraph of the sentence is almost correct, however, the rest is an exaggerated scene from a movie or drama though it is possible to happen if you owe something bad or an arrears to a person with a great influence on the authority or a government official then you are in a pretty bad position its possible that they can do the said scenario if your going to reveal your wealth but in the normal case, they are not allowed to do that as it is against to the laws of the Government, sending us to jails without any proof or any legal process to defend and explain yourself? you can't escape the questioning if your going to sell all your coins constantly, even the crypto exchange will ask about it most if they are centralized, be honest and pay your taxes, don't need to worry if your not doing anything wrong. 
Our Government here will always question people who become rich instantly, sometimes they will relate all the wealth to drugs and smuggling so they can send us to jail for a questionable wealth and not paying taxes. they will do background checking, even if they dont find any illegal activities we did they still think that we do illegal. What if I become rich because of BTC do you think they will believe if I say that its bitcoin that making me rich? How will I explained to them?
Yeah I, myself also question people that got rich because of bitcoin like what they are doing their entire time ? but after studying the nature of bitcoin the system and functions i figured it out and so did i, No question for those who got rich, they deserve it because of time and patience they gave for this. Government should also study bitcoin and other cryptocurrency because what they sees on bitcoin is a nonsense theory. Jump to: