Bitcoin is not a currency

An article on Credit Writedowns

Strictly written and read, reasonable points.  Nevertheless, reality has a way of overrunning literal government diktats that are out of touch.
Once enough people split restaurant bills and remit to their families via bitcoin, two things will happen:
– Individuals will feel entitled to ignore a stupid confiscative tax requirement that takes 5, 6 or 21.5% of the food off their children’s table in Mexico,
– The IRSs of the world will not be able to keep up with the deluge of microtransactions to enforce sales taxes.
In the end, whatever name (currency, money, asset, commodity, payment mechanism) you attach to bitcoin, if people do not accept that a government take a cut of a few percent on a money transfer, worse than what a bank now charges, it will not happen.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s