[Cryptography] Bitcoins are not currency - Australian Taxation Office

[Paul Madore]

California did it first, and the current IRS policy is to treat it as an
asset. Despite not regulating it, which is hilarious, because if we were a
gang or something, we could just manipulate the market so it always
appeared that we had taken a loss, which, if I remember, can be tax
deductible.

California doing it first:
http://cointelegraph.com/news/111706/california_inching_closer_towards_legalizing_bitcoin
IRS white paper: http://www.irs.gov/pub/irs-drop/n-14-21.pdf
More interesting, though:
http://www.taxpayeradvocate.irs.gov/userfiles/file/2013FullReport/DIGITAL-CURRENCY-The-IRS-Should-Issue-Guidance-to-Assist-Users-of-Digital-Currency.pdf

I believe the really scary thing about cryptocoins, for governments, is
that local currency laws are already defunct, and this is on a level far
greater than Swiss privacy laws ever thought of being. Basically, there has
to be a higher authority than any one of our governments, and the UN would
severely fuck this up.

Hmm, what body is there, that is more powerful than governments?

Oh, right. Us. The people.

And that, I believe, is the root of the problem they're having with
regulation. No one wants to be the first to set some arbitrary laws that
make no sense, only to miss a huge economic upswing next door because they
are not as draconian or whatever other reason.

It's a shame to me that the governments do not see this and the approaching
moments of history as opportunities to prove their worth -- prove to us why
we should be letting them handle our money, let alone everything else,
because it always seems to come back to our money.

Are they worried about having to put their money where their mouth is, that
is, actually answer to their subjects?

The deal they have now allows them to answer to a slim number of masters.
Once the cryptocurrency takeover is more obvious to people -- more even
than it is now -- and the inevitability of it all becomes more apparent,
then I think there is enough creativity and gumption left in the human race
to actually take control of the train we're all going off the cliff
together in. Everyday people want a brighter tomorrow or they don't get out
of bed in the morning. It's that simple. Wealthy and powerful people need
things to be the same as they are today tomorrow so that they can still be
wealthy and powerful, without needing to do much else besides get out of
bed in the morning. It's important to understand the real ramifications
here. With the empowerment of technology, there will never again be a need
for a world power. Cryptographic research, a field I deeply respect, will
become more valuable and important than ever before, which might explain
why I've begun to try and see what I can know about it, so that I at least
won't get had when I go to purchase service or education regarding it.

Sorry for the tangent. Bottom line for me is that it's laughable the way
the governments are handling this. They don't want to study the possibility
of competing currencies, but they know they can't guarantee a monopoly much
longer, so their response is to play politics about it. If we can take back
our system of value without firing a single shot, just regular idiots like
me, I mean, then, *seriously*, what can we not accomplish?

I think a bit of cryptography would help the folks on the ground in
Ferguson. The cops need to stop being able to know where they all are at
all times, and then things will get tactically unstable for them, and then
they will ignite the unrest we need to ensure an unforgettable revolution.
Oops. Did I type that out loud? (Hint: I'm a known dissident of the
crimethinc.com variety.)

PHM
Go here for more about me, and spend a few seconds looking at something
else if you hate advertisements. <http://cur.lv/cdsgb>


On Wed, Aug 20, 2014 at 7:08 PM, Dave Horsfall <dave at horsfall.org> wrote:

> This could get interesting.  The Australian Taxation Office (hallowed be
> their name) has ruled that Bitcoins are not currency, but assets, and that
> GST is payable.
>
>
> http://www.smh.com.au/technology/technology-news/australian-tax-office-decides-bitcoins-are-assets-not-currency-20140820-1063gq.html
>
> -- Dave
> _______________________________________________
> The cryptography mailing list
> cryptography at metzdowd.com
> http://www.metzdowd.com/mailman/listinfo/cryptography
>
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