Russia takes a Distinct Stance on Bitcoin Sales
The Russian government has made a statement to the effect that Bitcoin is a currency, and as such, any transactions should be reported and taxed. Seeing Bitcoin sales taxed means it has achieved maturity and is taken seriously by governments, and hence, tax collectors.
True, Russia is still an authoritarian regime where if they could tax the air, they probably would. But you can say similar things about the USA and other Western Countries where tax after tax is being piled on the citizens. Of interest is that it doesn't seem to name Bitcoin specifically, but rather covers digital currencies in general. A smart move for a government, tax the whole ecosphere instead of going specifically after one piece of it. Here is an excerpt from the Russian government's statement:
"Consequently, the transactions of purchase and sale of cryptocurrency (virtual currency) between residents and non-residents, with the utilization of currency valuables and (or) currency of the Russian Federation, are, in fact, currency transactions."
We've already seen confiscations of Bitcoin in the US, alongside multiple hacks and their associated theft of the contents in people's wallets. Taxation will legalize a less extreme form of confiscation, one that may seem palatable in general, but at the same time defeats one of the purposes of a cryptocurrency, which resides in its anonymity.
I think Bitcoin needs a thorough upgrade from a security perspective, and new cryptocurrencies, such as Steem, need to take Bitcoin history into account and avoid some of the weaknesses that have been exposed. Regardless of your position on taxation, and I know mine is very Libertarian and I want less of it, it is a milestone from the Bitcoin perspective in that it is now officially considered a foreign currency by at least one major government! It has come of age...
The complete article can be found here: Russian Bitcoin Transaction Tax
Let's see who is on the wrong side of history in 10 years when cryptos power everything from websites (like this one) to databases, mobile apps, currencies, and so much more.
Yes, but not all cryptos are created equal. There will be some separation of wheat from chaff before all's said and done. Also, there are many people who make a ton of money on volatility, that is, on price movement as opposed to buying and holding something. These folks won't care who's on the wrong or right side of history. They'll make money either way. It's the difference between trading shares of a company, where you need to own it before making money off of it (yes, I know about shorting, just using this as an example) as opposed to trading a derivative, like stock options, where you don't own the actual stock, but instead trade based on what you think its price will be at some point in the future.
With the US government being able to enforce their will through it's control of the SWIFT banking system, it's probably smart on Russia's part to promote any sort of an internationalized currency as a countermeasure to erode that leverage.
My suspicion is that in the near future Russia and China will come together to create a gold-backed currency. Not a merging of the two countries, mind you, simply a partnership between the two of them, and any other countries willing to pony up the gold, to create a currency which is backed by actual gold reserves as opposed to today's fiat currencies. Then they can require that oil, for example, be paid only in that gold-backed currency. When they do that, it will collapse the dollar and all the other quantitive easing-loving bits of paper out there.
That is pretty much what would happen. I think your scenario would be pretty plausible, with the caveat that China collapsing the dollar would really screw up their export economy. So even if it's a good idea for them long term, they'd have to think about the long term implications.
I would like to see that future because currently Russia has no own currency, RUB is more like a derivative from Brent/USD pair. But I don't think something will be done in collaboration with China, China is in an economic war with the rest of the world and their play with Russia and mostly Putin and his gang is all about easy acquisition of resources while president is searching for a "friends" to play with after total clusterfuck of his relationships in West.
Keep your friends close and your enemies closer. Many times marriages of convenience work better, and last longer, than those that began with love.
Interesting how we see the validity of something reflected in the fact that the state attacks it. It's a sort of encouraging/discouraging dynamic. Good thoughts @andyfx.
Great article. Keep up the good work.... @kbargold
Thanks @andyfx - I'm learning all kinds of new things from you.