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Senator Pat Toomey: China’s authoritarian crackdown on crypto, including Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China.
Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what is arguably the most exciting innovation in finance in decades. Economic liberty leads to faster growth, and ultimately, a higher standard of living for all.
Negative Response: Cryptocurrency is a disaster for the environment and is a significant contributor to climate change. Using valuable hardware and tons of electricity to generate an imagined currency is beyond belief in times when we should do all we can to save our planet.
Counter statement to negative response: You are absolutely right. We’d better cut down some trees and use a lot of water and energy to make them into paper, then print them with toxic ink and burn some fossil fuels to distribute the paper money to energy-consuming ATMs.
Concerns: And, it is a reminder there is an infrastructure bill with a new “digital assets” provision. Under 6050I of the tax code, there is new surveillance: required reporting on returns > $10,000 from digital assets starting in 2024. If not, there is a 5 year felony. (This is bad).
Clarification for concern: Why is this bad though? Serious question. Shouldn’t large asset returns always require reporting? I thought they do for everything else already? And don’t crypto returns already have to be reported anyways? What am I missing?
Realist: Fascinating to imagine all the bitcoin enthusiasts in this thread actually reporting gains and paying Federal taxes on them.
Fascinating to imagine all the people who think an open and public ledger somehow makes it easy to commit fraud and misrepresent your tax obligations.
So you believe most people that buy goods and services with their bitcoin are reporting capital gains on their tax returns?
I don’t believe most Americans actually buy goods and services with their Bitcoin in the first place because it doesn’t make sense to do so when you have to pay additional tax. But I believe those who do, do report gains because again, it’s very easy to to track movement.
Like the SEC is going to track all 330 million citizens, I’d assume that they mostly focus on people with big money or people who do suspicious things.
Believer: Big opportunity” is the understatement of the year. This is an opportunity of the decade if not more.
