They will instant sell... canceling out the price increase. Non the less the gov accepting BTC would be an amazing green light to all those people that get all of their info from CNN.

There's still the float between the time the tax payer buys the coins, and the coins are sold.

Nay sayers have said forever that "you'll never be able to pay taxes in Bitcoin!"

Now that it's about to happen, it's suddenly unimportant.

Again..are you really that stupid that you think someone is going to BUY bitcoin just to them pay taxes with it What planet do you LIVE on? I mean, obviously one where that facial hair is still "in" and DOESN't make you look like a lifelong virgin...but what is the name of that planet?

lol you have no clue. At a certain point they won't have to buy them.

You will be LONNNNG dead and buried in an unkempt, never visited grave before that day comes...since it is never. Sorry...adopting bitcoin early is NOT going to be the way you finally fit in and stave off suicide. You will STILL be the same person that ate his lunch in the bathroom stall in high school.

lol So I take it you're not in favor of Bitcoin?

That's ok ignorant luddites like you will be the last to use it. And good.

Don't keel over rearranging your filing cabinets, Old Mr Clueless.

No. I am not. Because I have a brain.

Taxes on bitcoins are old news from a couple years ago, capitol gains tax.

There won't even BE a price increase. The only way there would be an increase in price is if someone said "I owe $500 in taxes. I have $500 in my bank account now...so what I will do is buy $500 worth of bitcoin and then give that to the IRS." Why would they? FAR easier to simply give them the $500 in the first place.

So this is all a price drop..just as happened all last year whenever some new major company supposedly (but not really) started "accepting bitcoin".

Of course, it'll cause the heads to explode from all those at Faux.

Yep just like overstock and newegg sent bitcoin to moon! LMFAO!

and you expected it to? ROFLCOPTER

Most bitcoiners did, used that as a strong argument to say how great btc was.

bitcoiners have as much ability to dictate the success and potential of bitcoin as fans of a football team have at dictating the outcome of a game. it will be the enterprising individuals, businesses and industries that will determine whether bitcoin succeeds or not. anyone that thought the sponsorship of a college bowl game would champion bitcoin's adoption to new heights deserves their disappointment.

it is highly unlikely bitcoin will ever be the preferred money substitute in cases like that. i do believe that at some arbitrary point in time, those exchanges will be be done with a digital currency, but not bitcoin explicitly. my expectation for bitcoin's future is not one of average joe buying a coffee at the starbucks on the corner, but everyone has the right to their own opinions of course. i agree with your perspective.

thank you for your honest and objective comment. there are far too many bitcoin cultists and haters that misunderstand bitcoin themselves, but are too eager to oppress their opinions on others with convoluted arguments.

i just ask that whatever your interest is in bitcoin, keep an open mind and remain objective questioning what both sides try to tell you.

Dude, do you have a life?

Yeah and it fricking ROCKS!!!!!!!!!!!!!

spending hours all day trolling a topic you hate.. sounds like it is really great. compensating for something with that enthusiasm?

Look who's talking....

i don't hate bitcoin, according to you i have a cult like devotion to it. so what's your point then?

Who cares? As long as I can get rid of paper shit USD I'm fine with that.

Give your paper usd to me! I'll give it a good loving home!

There is nothing in this world that a bitcoiner wants more than he wants the USD

True, even as btc it's still the perception of having lots of money and wealth and such. Very true sir.

Bitcoin is inherently costlier than other payments because first the consumer has to acquire the bitcoin (generally through an ACH transaction) and then the government has to sell the bitcoin and get dollars transferred to its accounts (another dollar transaction).

Two transfers of dollars plus two dollar-bitcoin exchanges have replaced a single ACH transfer from the taxpayer to the government. That cannot be cheaper.

More on this smoke and mirrors stuff at https://endmathabusenow.wor...

Governments can and some do charge taxpayers the additional costs incurred when they use credit cards.

lol another clueless one. The cost of acquiring bitcoins will be amortized over the life of its existence. In other words, businesses/governments using bitcoins to save money on international transfers will increasingly do business in bitcoin, therefore ultimately mitigating its cost to acquire in the first place.

Why would I, after receiving bitcoins, turn them back to dollars? I will use them to purchase goods and services because it is a currency.

If you visit Gyft and pick up a card, you can load it with bitcoin and use it in any store. https://www.gyft.com/bitcoin/

And ask if they accept bitcoin. Or, join the bitcoin surge and start helping stores in your area get set up with a bitcoin payment processing option so they can start taking bitcoin.

Bitcoin's still a young currency and tech sorts are scrambling to build the infrastructure. That's the stage we're in. Right now it's limited where you can spend it but it's not going to stay that way.

I think there are some anti bitcoiners who really think bitcoin's just about replacing dollars and scoff at it. The technology that fuels it is what ultimately provides bitcoin its value as a store of value and right now is the best time to jump into bitcoin/blockchain technology, learn it inside out and contribute to the bitcoin economy.

As for bitcoin and price/value, the fact Feds steal bitcoin, the IRS has "decided" (like we care) it's a commodity and not a currency, that Wall Street is embracing bitcoin, that he wealthiest techno sorts across the world are investing billions, all you need to know is bitcoin is here to stay, it's not going anywhere, there's far, far too much money pouring into it to build all these varied companies (some will survive, some won't), and in another year or three when it's more commonly traded, it will be worth an enormous amount more than today.

Invest in a single bitcoin and just leave it alone, watch the market, make imaginary or dry trades to see how it evolves and dips...learn...but don't make the mistake of thinking it's silly money that'll never do much. It's already doing much and this is only the beginning.

Bitcoin is here to stay.

Wait, what's that?

I'm sorry, I can't hear you over the sound of increasing the percentage of my wages paid in Bitcoin to pay tax differential with (assuming this comes to my state). Or the sound of my employer paying off some of their tax load from their Bitcoin revenue streams, so that less and less of their accounting has to convert either back or forth to local fiat whatsoever.

By the same token, State Governments are under no obligation to convert 100% of Bitcoin taxes collected into fiat either. It's a small enough potential revenue stream today that it would only take one contractor to accept BTC from them and nullify any conversion fees or ACH delays. But in the meantime, whether they get ACH from me or from Bitpay doesn't change anything on their side of the equation.

The cost to the state of just figuring out the risk management and logistics of all of this will be more than the total taxes collected from people paid in bitcoin. Your post suggests a total lack of understanding of the issues faced by the state governments in managing finances and collecting revenues.

Like it or not, in the United States the dollar is the accepted currency. The idea of a fixed monetary base (gold or bitcoin) has been rejected for decades for good reason.

Yeah, I'm sure there was a point in history when accepting electronic filing would have netted less revenue than the cost of building out that infrastructure, too. But that time has long passed.

One must assume that accounting for digital assets must eventually become embarrassingly cheap even for luddite bureaucracies *assuming* of course that it already has not. So much work.. so many *binary digits* to keep track of! Whatever shall we do?

And none of this is germane to your original "hur, dur, ACHx2" point that you appear to have shamelessly abandoned. So, why bother having any discussion with you at all when your presentation of facts appear to ebb and flow to suit your prejudices instead of vice-versa?

https://yourlogicalfallacyi...

FYI: The dollar is already mostly a digital currency. Most transactions are just messages to banks to update ledger entries matched by banks settling the transactions via changes in their balances at the Fed.

The money supply (about $11 Trillion) exists mostly as deposits in banks, except for $1.3T currency.. The monetary base is about 2/3 deposits of banks at the fed--electronic ledger entries and 1/3 currency (mostly Federal reserve notes, i.e. bills).

The features that distinguish bitcoin from other currencies---decentralization of the validation and ledger and fixed final supply--are not of interest to or a disadvantage for a vast majority of people.

And yes...for the foreseeable future any state that accepts bitcoin will be turning it into dollars.

Think about what you typed when you're applying for food stamps in a couple months after your employer goes bust.

Umm... we've done just fine for the last 15 years? Does pulling icky Bitcoin revenue from 2-3% of your customers and then valuing places where that can be respent (including a portion of my wages) instead of having to cash back out guarantee you're going to go out of business, or are we living in "say random nasty things" imaginationland?

If the latter, then I hope you remember what you typed come June when you've contracted Aids, or however this bullshitting game is supposed to work.

You haven't been getting paid in btc for 15 years! Nine years of sweet fiat payments though!

You don't say? But we started accepting BTC from customers 3 years ago (2012 represent!), and some of them pay us that way, and I accept much of that revenue as ~15% of my pay check, and I helped my landlords set up with Coinbase so that I don't have to mail them paper checks any more. My ISP accepts payment in BTC, I buy my steam games with BTC, I often dine out with Gyft or eGifter and I get Kroger gift cards from a seller on LBC, which covers both groceries and gas.

That's BTC changing hands up to 3 different times before having to sell back to fiat, but you'll have to point out for me where in that arrangement anybody is going to go out of business or lose their jobs for any reason.

Or not, since you're obviously just flinging poo to entertain yourself.

So how's that $40+ plus USD drop in value of btc treating you? Harsh week right? Only going to drop further today. $215 was critical floor support according the "exsperts"and it's been breached.

I know, right? It blunted my monthly stacking of BTC by about 15%, but somehow has not interfered with my 401k or stocks or any of that pesky "give a damn" or anything.

Our company's CFO reports that he had to tighten the short balance by another 2%. I knew you would be curious so I also asked him how long a strategy like that can even keep anything balanced, and he said if price drops below $100 that would dissolve the short and we'd have to convert BTC revenue from customers immediately to fiat (my paycheck would go back to full fiat and wholesale expenses would increase back to old levels due to delay between revenue and expense) until/unless we gained some wind to re-establish the short fund, which we would not plan to put any effort into until/unless price rose and stayed above $100 again to do the work for us.

Thank you for caring, and probably try not to listen to "experts" claiming to predict any market and just focus on balancing your investment systems instead. This asset is of course volatile, so you plan around that and just collect the differential profits nobody else is interested in. :3

Additional downside seems certain but we don’t know down to where. Horizontal support levels in proximity to our existing price targets have been annotated in the chart as horizontal grey lines. From top-to-bottom they are: $210, $193 and $166.

Your average taxpayer is not going to buy Bitcoins to pay their taxes. What this does is open up paying taxes to those who already own, earn and deal in bitcoins, which will DECREASE the costs of paying taxes for them, because the recipient pays no fees. The sender pays the fees, which are exponentially less than traditional banking and credit card fees.

Some people will want to obtain bitcoins to try out the new technology, as is their right, and they will be willing to pay extra for this experimentation. Others will keep some of the bitcoin, and as they rise in price it will be a form of investment for them. Others still will learn how to earn them at no cost for selling their products and services for bitcoin to experiment with the new technology. This is where you will see the largest portion of taxpayers electing to use bitcoin, because taxes are usually taken out of people's pay checks and mortgage payments for land and school taxes, so mostly those who run small businesses are left to pay their taxes manually and voluntarily. It will simply serve as a superior way to handle accounts payable and receivable.

The political subdivisions accepting tax payments are corporations. Some of the bitcoins they receive will be converted, while some of the bitcoins will be held as corporate assets, investments and holdings. Even with the converting of some of the coins, it's still less expensive than traditional banking and funds transfers. It's also more efficient and secure, with little-to-no loss from fraud or identity theft.

This will roll over to all payments to political subdivisions for all products and services, Tax payments, water bill, drivers licenses, zoning permits, municipal sewage, trash collection, etc.

It will be a less expensive, more efficient and exponentially more secure system with little-to-no loss from fraud and identity theft.

What jurisdictions in the world operate accept income (fees and expenses---not commodity sales which are invested in foreign assets or income and expenses of sovereign wealth funds) and pay domestic (not foreign workers at embassies) expenses in multiple currencies simultaneously---except perhaps during a transition?

What has been their experience managing this?

How many people do you really will fall into the category of people who are going to be receiving bitcoins to pay their taxes?
How many government workers and vendors are going to want to be paid in bitcoin?
ars.

Right now there are literally hundreds of thousands of businesses and individuals accepting bitcoins for their products and services. Just a few years ago there were only a handful. In a few years it will be millions. In a decade it could be billions. Governments have already decided on bitcoins being legitimate, and they let it be known that they want a slice of the pie. I see cryptocurrencies becoming legal tender in the future. After accepting it for taxes, that's the next logical step. Without outlawing it, they can't stop it. Even with the US government taxing it as money, property and as an investment, adoption and investment in infrastructure and development is only increasing.

You seem to be concentrating on conversion to/from traditional banking systems as a problem/expense. I am saying it can replace the traditional banking system and/or make it irrelevant. Bitcoin does not care about nor need traditional systems to survive and thrive. Therein lies the greatest danger/threat (or benefit). Our entire world relies on international banking and their bribery and corruption of our political system. Bitoins represents an end to all of that noise, greed, corruption, treason and criminality. You can not threaten, bribe, coerce, corrupt, manipulate, cheat, steal nor embezzle from a protocol nor algorithm.

I don't think inherently means what you think it does haha. It really makes you sound like a fool. Skimming your blog confirms the suspicion.

The problems you describe are in fact exactly the opposite of inherent to bitcoin. They are temporary issues that are here because bitcoin is young and most people don't have bitcoin yet.

Such an elementary mistake for someone like you, who dedicates such an unhealthy amount of time trying to discredit bitcoin for whatever reason.

If you look at the bitcoin growth rate and population of users, the exchanges between bitcoin and dollars are exactly what the states that accept bitcoin will be signing up for for the foreseeable future. So forget about any real cost savings.

And they are not temporary issues because few people have a need or interest in bitcoin, so there will always be a need to convert it to another currency.

The same reasons no major country uses the gold standard is the same reasons that bitcoin, with a fixed (actually decreasing) supply, can never be a suitable currency.

Temporary? In six years none of the brainwave core devs have fixed any of those flaws. Seems pretty lasting.