If capital gains tax can be enforced on Bitcoin, then how does it achieve its value proposition of removing state control from money?
Discussion
Great question! The answer is that taxes are only one way the state extracts value from people.
The other is seignorage and debasement of fiat currency.
Taxes & seignorage. The two ways governments extract value from its citizens.
₿itcoin removes debasement from state or anyone’s control.
Isn’t the answer here that people in good countries would still voluntarily pay the taxes they are in charge of paying, and taxes imposed on businesses would still get paid.
The idea of separating state and money isn’t that the state is in all cases defunded, just that the state can no longer direct monetary policy, and can no longer control citizen balances directly.
That only works if citizens are able to resist. Jurisdictional arbitrage is not a solution.
Pretty sure that works!
Not a solution in what context? If someone decides to get up and leave their unfriendly state well, they just found a solution in their context and voted to defund that state. If enough people decide to do that, well what power is the state left with? I think in some regard we are saying the same thing here. The power is with the people, and bitcoin enables choice.
Seems like you are leaning towards the total authoritarian dystopia outcome where the a state or group of states hunts down and crushes every state, and it’s people that doesn’t align. Such an effort on a global scale is quite risky to carry out in many ways.
Just in the context of securing Bitcoin
🎯👆
If you tell to the state that you have Bitcoins, so they still controlling you
Exactly
I think that question is out of context here. There are a number of values people reflect onto bitcoin, often to suit their own ideologies. Separating money from state is certainly on the ideal side of the value spectrum, and a worthy one to work towards. But bitcoin is already achieving the core value proposition of enabling people to transact with each other freely, without relying on a third party.
Anyways bitcoin could also be a states money if they choose to use it as such. Like as is the case in El Salvador currently. Bitcoin is for everyone who is open to using it, even nation states.