boglerdude wrote: ↑
Sun Jan 06, 2019 12:12 am
What problem do I have that crypto is solving. Tax avoidance? technov, you should be supporting it then =)
I cant know your situation and how Bitcoin might benefit you, but here are some examples of what people are using Bitcoin for. I am not claiming Bitcoin is a perfect solution for each of these uses cases, but that this is what people can and are using it for.
. This includes individuals whose payments are typically censored, like wikileaks or online drug markets. This also includes groups or individuals who getting "deplatformed" (block by paypal or other fundraising platforms) because they have views that those platforms (or their governments) do not like.
Store of value
. This includes people in countries whose currencies are inflating at a rate that makes Bitcoin's current volatility seem appealing. It also includes people in countries with lacking or no banking services available to them.
. This includes short term traders trying to trade on trends. But this also includes people that hold long term who believe Bitcoin can become money and in order to do so will appreciate drastically in value.
. This includes people remitting money from overseas to their family. Also people paying for goods and services overseas can save money by using Bitcoin to transact. There are also countries where it is hard or impossible to exchange with online which would be serviced by Bitcoin.
. While Bitcoin is not completely anonymous, it can be transacted in a "more private" way. This includes individuals who value their financial privacy.
. It is possible to transact in bitcoin using fractions of pennies. Especially using tools ontop of bitcoin (lightning network). This is applicable for pay-per-use services like an online newspaper paywall, paying realtime per minute used on a cell plan, etc. Even new use cases are opened up here like machine to machine micro transaction payments.
. This is for individuals who do not wish to pay the government the recommended taxes: income tax or otherwise.
. This includes people that want to have value stored in something that cannot easily be stolen. Individuals crossing borders, feeling countries, etc. Asset forfeiture is applicable here. It also includes anyone fearful that their government might become a bit more invasive.
Anti inflation hedge
. This includes individuals wanting to hold money that isnt inflating. As this use case becomes more appealing (bitcoin's volatility decreasing), Bitcoin will be a threat to central banks and the governments that attain part of their non-taxation funding from inflating the money supply. By eliminating the ability for governments to print money to benefit themselves, governments will have to shrink or get their funding from increasing taxes, which is harder than inflating.
. Fees on Bitcoin transactions can be very low. So there is some advantage for people transacting in Bitcoin, even in the same country, where fees might be high. This might be the case when making medium/large purchase online and avoiding the ~3% credit card fee for example.
. I give my son bitcoin that cannot be spent before the year 2050 for example. My 3 business partners and I can fund a bitcoin address such that 2 our of the 3 of us has to approve the transaction in order for it to go through. Google "smart contracts" for other examples of this.