Tuesday, November 27, 2018

Simple reason no BTC forks will work as money

As long Bitcoin and cousins are considered commodities for tax purposes in US, there will be no significant adoption by anyone, let alone industry, as a spendable currency. Having every transaction be a taxable event adds cognitive load, never mind the actual bookkeeping requirements.

I don’t understand how this is not understood. Maybe I’m missing something, but unless this regulation is changed bitcoin will remain at best a vehicle for speculation.

No amount of on or off chain scaling.

Add to the fact that POW transactions are inherently costly, and as far as I can see bitcoin is dead in the water

Ironically, one thing CSW has been chattering on about where I think he is right is that bitcoin will not see mainstream adoption by companies unless/until brought into full regulatory compliance with existing financial services. He rightly argues that ICOs are mostly illegal security offerings and will be shot down.

He hangs his (rhetorical) hat on fact the SEC had granted some recognition that bitcoin is different, not a security, is a currency of some kind.

What he neglects in all his tough talk is that the CFCT and IRS are regulating bitcoin as a commodity.

Bitcoin SV is just as dead as a currency because of this. Clearly he’s a con man, it just an interesting observation based on his talking points.

The fact that this problem is never addressed when it comes to discussion of bitcoin adoption blows my mind. It indicates to me his speculation has dominated interest (duh) and how the true believers, the bitcoin visionaries of different stripes have either not thought this through, or don’t address it because they want protect the price.

I fully admit that I might be mistaken here. If anyone has any observations or rebuttals I welcome them

Thanks for reading!


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