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| Topic | Someone explain cryptocurrency to me. |
| Smarkil 12/29/17 4:19:19 PM #14: | Dynalo posted... Second question... what's to prevent a government banning of it? I hear a lot of people saying they want a "deregulated currency that the government has no direct control over". So what's to stop a government from just saying "All transactions within the country not using our currency is strictly forbidden", thus driving it into only black market exchanges (meaning it can never actually replace fiat currency). The government can't tell you what to accept as a currency for your business or person. They can, however, tax it. But it's a bit of a two-edged sword for them. If they tax it, then that means it's a recognized currency of the government and makes it more 'usable' by businesses. If they don't tax it, then it tends to stay a little more obscure, but is obviously an exchange of goods or services that they don't get a piece of. Think of it as a sort of barter system. I can walk into your medical practice and say, "I'll give you 10 salmon to give me a flu shot". The medical practice can accept that deal without a problem and the government can't say anything about it. They can, however, take 1 of those salmon as their tax. --- "We're not even close" - Romans building Rome at the end of Day 1 ... Copied to Clipboard! |
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