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Why private monies such as bitcoin threaten not just banks, but the tax base

Economist Dawie Roodt of The Efficient Group explains what’s ahead for banks – and it isn’t necessarily good.

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The world’s financial system needs to be threatened and banks are just enslaving mankind.

…I think its awesome that Crypto will spread like wild fire in Africa

The poor will finally have a tool to excel in a game dominated by corrupt politicians and bankers

Look how many people lost money in VBS locally. Look how many banks went bankrupt in the USA in 2009.

I agree …. however there needs controls on illicit trade of drugs, human trafficking and terror groups. All these trades mean noting to oneself; until someone close is affected or you are compassionate enough to ask these questions.

If crypto currencies are successful to become a means of exchange, unit of account and store of wealth, then, the demand for fiat currency will disappear. Fiat currency is money by decree. It has value because the nation has an army and a police force. Fiat currency is money because the government forces citizens to use it.

Why will this government allow crypto currencies to become a threat to its power to devalue fiat to fund social projects to buy votes?

Best idea ever if it was more mature and guaranteed not to crash one day.

Best way for people to have financial freedom.

Keep the politicians and greedy taxman away from your money.

Your money is available anywhere in the world wherever you chose to go.

Plus it has the same value anywhere in the world.

The last statement is not exactly true, exchanges around do not offer the same price that is why people make use of arbitrage.

9 10ths of ownership is possession.

Your money in the bank is owners by the bank, your money in the crypto wallet belongs to you.

Those that argue the crypto currencies are for crimes have not heard of how the dollar funds crime.

I believe that we need to have a standard transactional tax written into the block Chain that way tax collection. A sufficient level of transactional tax between 15% and 19% should suffice.

With additional tax on high value transactions example +1% R100,000, +2% for R500,000 etc.

Besides the automatic tax collection, the poor who have more transactions at the lower end will pay a base tax whilst wealth people who splash out would add extra taxes without being over burdened.

There are a number of things being missed by the crypto enthusiasts.

1) It is early days for crypto. Governments will bring legislation to regulate it.
2) The crypto exchanges will effectively become the banks that you are wanting to replace. They will be legislated to report on all transactions going through those exchanges in the same way that all banks and stock markets are legislated to do the same.
3) Revenue services will track those exchanges to monitor for your tax evasion.
4) If revenue services tax revenue is reduced because of crypto, they will simply tax you more heavily in other ways to make up the short fall.
5) Crypto is far, far less stable than fiat currency.

The only thing that surprises me about crypto is that the hype around it has perpetuated for such a long time.

Perhaps a more nuanced view is needed. Who knows what the future of money and payments is, but probably not a binary outcome?
I prefer to view crypto as an asset allocation decision with little correlation to other major asset classes. Position sizing needs to be considered because it can be very volatile.
There is obviously a lot more to crypto but to call it a scam and ignore it is simplistic and maybe short-sighted.

History of investing have a tulip bulb as symbol. Bitcoin, one day , will be be crowned as a rightful successor.

Indeed.

I have a little chuckle every time someone confuses cryptocurrency with blockchain.

Blockchain is great – which is incidentally why banks are adopting it.

Cryptocurrency, on the other hand, is a joke running on hype. The sheep follow the consensus and contrarian doesn’t work.

The regulation of everything you can think of only apply to the man in the street. The politicians and cronies come scot free. I think the public want to puke when they have to cough up salaries for regulators that find more ways to suck them dry. Can you recall on carte blanche when they caught the high up official of FSB with all the cash? It was swept under the carpet.

End of comments.

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