Hi all. Perhaps this has been discussed before (in which case I am sorry for repeating) but I was just thinking about how people can use bitcoins to hide their assets from prying eyes.
Usually when talking about hiding assets from government, people refer to rich individuals. I would propose that this use of bitcoin could be used by poorer people as well. I remember seeing an application for some government help program (might have been medicaid) where one is inelgible for the program if one has more than $3000 in assets. To me this seems like a very small amount, just a couple month's expenses. If I had that much money and no job, the government aid would look very helpful, but since I have a savings I am inelgible until later, when my position is even more precarious. So I could swap some money for bitcoin to hide the value, then report to the government that my assets are below the threshhold and get the aid.
I admit this is a bit dishonest.
Thoughts?
-Peter-
Usually when talking about hiding assets from government, people refer to rich individuals. I would propose that this use of bitcoin could be used by poorer people as well. I remember seeing an application for some government help program (might have been medicaid) where one is inelgible for the program if one has more than $3000 in assets. To me this seems like a very small amount, just a couple month's expenses. If I had that much money and no job, the government aid would look very helpful, but since I have a savings I am inelgible until later, when my position is even more precarious. So I could swap some money for bitcoin to hide the value, then report to the government that my assets are below the threshhold and get the aid.
I admit this is a bit dishonest.
Thoughts?
-Peter-
Thoughts:
1. Most recipients of government aid are well adapted to gaining entry to government programs regardless of their financial lot in life.
2. Most of us are "poor" or "needy" in some way whether we realize it or not.
3. Pay your share of taxes if you make use of things paid for by tax monies like: public education, public transit, roads, bridges, courtrooms, etc.
4. Do not hide income made from buying and selling coin. Report it in an innocuous manner.
5. For all intents and purposes, I do not see a blank space on any form anywhere that allows for reporting crypto$ as an asset. Nor do I see a place for reporting dwolla or other non-bank entities used for holding what we can all agree to is an asset.
Govern yourself accordingly.
