Topic: Why Bitcoin is doomed to fail, and there's nothing you can do about it. - page 8. (Read 39330 times)

You're right, but only up to a point where fiat currency becomes worthless that nobody cares about it any more. This takes a few years usually when one country is involved. How long it'll take when the whole world is printing like crazy, who knows, but it'll be epic, especially since now the reserve currency (USD) is suffering from this disease. Hopefully by then cryptos have become an established alternative to save in. There'll be few sellers then who will be accepting fiat for their cabbage or potatoes, and each day they'll want more of that fiat. Not all of them will accept cryptos either, by the way.

History shows that debt problem is almost always solved through printing of fiat on a massive scale or, sometimes, with defaulting on debt obligations, both solutions are fatal for fiat. That's when you won't buy any cabbage for fiat. It'll be a slow and gradual process to that point though, enough time to re-group and re-adjust saving and spending habits.

There is a great novel - The Black Obelisk, that gives a picture of what can be expected when hyperinflation hits. Fascinating read, doesn't matter it's an account of an almost a century ago past events, it shows how money dies, day by day, when potatoes or cigarettes are a better currency than fiat paper.

Bitcoin it will never be treated at the same level as fiat money. Therefore there will be always necessary to exchange BTC for any fiat currency. That is what Bitpay does, it help merchants to receive fiat money after an on-the-fly exchange for BTC.

You are failing to understand that BTC never will be legally recognized as fiat currency because the BTC supply cannot be controlled by any central bank.

By the way, BTC is a medium of exchange used primarily to buy and sell fiat currency. This has nothing to do with barter. Everyone in need of BTC needs to pay for that with fiat currency. Even if someone accepts cabbages and potatoes to sell BTC, at some point that BTC will be exchanged by fiat currency.

If you think that tax is not applied when trades are done with BTC, you are completely misinformed. The only situation where tax is not applied is when someone trades BTC for another alternative medium of exchange, such as LTC. Because there is no laws governing the trades of "virtual currencies", that could be considered a barter. However once the trades involves any another good tax will be applied if that results in profit.

Ask your self: if BTC is so good for tax evasion, why are not Google using it? It is well know that companies like Google do whatever they can to evade tax. So why are not Google accepting BTC?

It is for now.  But what happens when there is no need to exchange Bitcoin for money to buy things.  Bitpay has over 10000 merchants that accept Bitcoin directly, this number is growing daily.
http://bitcoinmagazine.com/7023/bitpay-surpasses-10000-merchants/
Imagine when you can buy things from the local store with Bitcoin.  Until Bitcoin is recognized legally as a currency, all trades done with Bitcoin are to be considered bartered trades, no tax applies.

You bought potatoes and cabbages with Bitcoin?  You are not even on the same subject!
He was talking about swapping potatoes for cabbages.  You are talking about buying food with money.
Let me spell it out for you slow people.  "The Government does not tax bartered items"
If you paid with money, this subject does not include you.

Aspergers Syndrome much?

So what? I wasn't weighing in on the argument one way or another, just disagreeing with the statement of

I just bought some at the store and had to pay a tax on both

Yep, but BTC is still traded for money, not potatoes or cabbages. So tax will be eventually applied, soon or later.

Agreed.  It is an interesting point that you make, bartering in 'produce' would be difficult for the government to tax.  What are they going to do?
Cut the thing in half?

There is no selling price "5. Tax deducted from selling price".  This law only applies to trades done with money.
The key to the law is here "and pays, or becomes liable to pay, the tax imposed under this section".  For a person to become liable to 'pay', there needs to be money involved.  No money, no liability.

http://lmgtfy.com/?q=potato+tax
http://lmgtfy.com/?q=cabbage+tax

If I want to mine bitcoin and make transaction in bitcoin to whoever is willing to accept them, no government whatsoever as any power on me or the other person involved.

It's like wanting to tax someone for trading a potatoe for a cabbage.

Ah, thank you. But won't transaction fees have to increase then?

Bitcoin is old & its a dinosaur compared to other Crypto-currency.

Thats why it will fail. In a nutshelll.

Exactly.

You say on page 11 of a thread titled, "Why Bitcoin is doomed to fail". Who's john?

I was not aware "every" popular post is about Bitcoin failing?  Perhaps you are confusing fantasy with reality again John.

When there's no new coins, transaction fee still rewards the miners. When the profit decreases, the number of miners will decrease and so does the difficulty (sadly the two weeks adjust cycle seems a little bit too long). There suppose to be a equilibrium.

I have a question that is relevant to the topic.

Mining costs money.
Mining is necessary to secure transactions.
Mining earns you coins for now but eventually it will not earn you anything (once all the coins are mined in... was it 50 years?).

Why would anyone mine once all the coins have been mined? And would the system not collapse if everyone stops mining?

@OP
There is no absolute definition for success or failure just like there is no such thing as intrinsic value (vaue is relative to context).
Bitcoin does not have to succeed or fail in your eyes to provide benefits: its mere existence is a benefit to everyone, even those who won't use it, because it increases competition.

Don't use metaphors in online debate.
There are literal flat earthers out there.
People will think you mean it literally.

The pencil reference was a metaphor. Just a way of saying that many of the world's poorest have little or no access to education. They could still benefit from an accessible, low-cost alternative payment system... as long as it doesn't require an expensive device to use.