I was wondering about something.
I think no-one has any doubts that governments at some point will try to strong-arm cryptocurrencies (cc) with regulations and bans. If we talk about the issue with lack of taxation on cc's, are privacy coins not likely to be targeted the hardest of all? I hold a variety of privacy coins, (monero, xspec, DO, Zero etc.) myself. But which value will they represent, if the only place I can use them is for shady business? (Let's face it, im no criminal
)
I love my privacy, but there is no doubt that the long term plan for me is to convert my investments to fiat when I reach my pre-defined investment goal.
Thoughts?
I think no-one has any doubts that governments at some point will try to strong-arm cryptocurrencies (cc) with regulations and bans. If we talk about the issue with lack of taxation on cc's, are privacy coins not likely to be targeted the hardest of all? I hold a variety of privacy coins, (monero, xspec, DO, Zero etc.) myself. But which value will they represent, if the only place I can use them is for shady business? (Let's face it, im no criminal
)I love my privacy, but there is no doubt that the long term plan for me is to convert my investments to fiat when I reach my pre-defined investment goal.
Thoughts?
Well privacy goes beyond crime. If you spend money than thats data for someone to consume and draw patterns as to how you behave financially, they could then exploit this knowledge to their own benefit and not to the best interest of yourself, the spender. If governments do wage war on privacy coins than that will only lead to privacy coins innovating and weed the bad ones from the real winners, if a government decides to do this its in the best interest of privacy coins. Some of the biggest technological advancements are made during war, why? Because you have to in order to win that war.
I think a lot of people think the same like you, but I also think that a lot of people who say this now won't in a few years when they have actually met those goals. Crypto is slowly becoming more normal and accepted. Why trade in your deflating assets for inflatory fiat, you're going to spend that fiat, so you might aswell keep your money in crypto's like BTC, Dash, Ethereum, Monero and others to spend your money with and come out financially healthier than you would cashing it out for worthless pieces of paper.
Say you cash out 100$ and decide to spend that on new shoes, the shoes cost 80$ you are left with 20$ that inflates rougly 1,6% per year. After 10 years your 20$ will be worth:
17$
Now lets say you do the same with BTC but unlike fiat BTC deflates 2,6% per year, that same 20$ in BTC would be worth: $25,80 - fiat inflation = $22,00
(I hope I got the math right, someone correct me if I'm wrong, else there's no point in this)
Thats with a small amount of money, over the course of 10 years. Now imagine you have 100x or 1000x that money or maybe even 10.000x ($20,000-20,000,000$) thats a significant portion of wealth you're just throwing away. You're all still conditioned by your paper currencies, myself aswell.
My point is though, if you can remain bullish on these assets long term, there's no real logic in cashing out, you're way better of using your crypto as payment method.
Also I wouldn't mind a little financial privacy, currently a bank knows everything you do and could freeze your account on a mere hunch or suspicion. Do you really want to give such power away? Bitcoin can be chain analysed and since there's no actuall proof of what's purchased, we could see governments making false claims? Bully people who are innocent? It wouldn't be the first time something like that happens. You can't trust anybody, so privacy is very important but ofcourse we're constantly fed the same phrase:
''If you got nothing to hide, you got nothing to fear'' which is such a bullshit argument.
