If you buy KYC, you can get taxed, if you send to another person(random address) they can't tax that, they don't know who that person is, it can even get back to another address of you and they don't know it's also you.
Discussion
So--it leaves your wallet...
Government says: "I see your BTC has left your wallet--that's a taxable event--pay up!"
You say--"But I moved it to another wallet I own"
Government: "Great - we'll watch that wallet now and tax you if those coins move inappropriately--oh, and you owe us 1% for the Elizabeth Warren taxk"
I don't really see an alternative here--coins leave your wallet you get taxed, or you have to divulge that you own the downstream wallet...
Depends on your gov. Laws. Why would you pay taxes if you give bitcoin/cash to someone as a gift? Even if I buy something I don't pay extra taxes for buying, the seller is the one who pays taxes. But you can give bitcoin to someone off-chain with stuff like open dime. Either way, where we are at, we are not in a comply situation, we have to go against this. Bitcoin is money and not taxable. Build a bitcoin circular economy and do not comply. We cannot comply.
Oh I totally agree with you there--we cannot comply. I just fear that our voices are not significant (and even if they were the government will do what it needs to do to stay in power).
I do not see (at least the US) government allowing BTC to move freely as a currency without taxation...and as I ruminate on this, I don't see a way around it....
Fiat system and Bitcoin are not compatible. We either allow fiat system to win, and bitcoin will just be a part of it, KYC, taxable, controlled. Or we push back for a bitcoin system to come on top over time. Here in my country if you sell your bitcoin in sell than a year time you are taxed 30% o gains. Do you think they can enforce that? Do you think i declare anything? They can't enforce it and they know it. No one cares about that law.
Perhaps...yet think about J6...
Have there been any demonstrations regarding elections since?
Essentially they made an example of the people at J6, and now everyone is afraid to speak up (lest they be labelled 'terrorists' and locked up without trial...forever).
Now the precedent has been set - label someone a 'terrorist'. Once you've done that they're convicted without a trial--all rights are removed.
Most are complacent now--we're comfortable, and happy to give up our privacy for convenience and "safety".
Whether BTC is compatible with Fiat or not, I foresee it being absorbed...it'll be taxed and controlled. Maybe in some places in the world (El Salvador?) it won't be--but how many of us will be prepared to move there (really...) and even then, it's really only one election and one corrupt leader before things could change.
1984? We're already there....