Cryptocurrencies can kill banks

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Cryptocurrencies can kill banks

If cryptocurrencies like Bitcoin truly take off, they can kill the traditional banking system and change the current tax system – where the state relies mainly on transaction tax.
 
If I want to barter/trade, my veggies for my mate repairing my car, the gov and the banks can go fly a kite.
Crypto's will eventually synergise with physical goods, providing a transaction layer, for said goods.
The banks etc, are going to go spare, but tough cookies for them.
There is already huge groundswell in the USA, where product suppliers and self sustained communities are telling the FDA, EPA, and local councils to back off, as they have no jurisdiction on these private verticals.
 
If the taxman wants to see how much you got paid they will not ask you, they will demand that your employer answer.
 
“If the minister of finance wants to tax me on my salary which I received in my cryptocurrency wallet, I am going to tell him I forgot my password,” said Roodt.
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No. The ledger of cryptocurrencies is not encrypted - in fact it is the opposite -- every transaction ever is in the open because it is a distributed ledger. Transfers are in the open - so you need to somehow keep secret what your account number is... which is impossible if you want to actually spend the money in the country you live. They only need to pass a law that all companies need to see ID if somebody pays with cryptocurrency and then all your transactions of all time is traceable. Of course there is some way to obfuscate with multiple wallets but even that is way more easy to trace with advanced analytics than cash with no electronic tracing...
 
Segwit then ln. Then banks are effectively dead as a transaction layer.
 
LOL ... fast .. not even close ... try a transaction in Bitcoin and see how long it takes to validate .... and thats with what percentage of the total global transactions a bank can process ??

The problem with cryptos is also their greatest asset, the decentralized nature of the network, provides a highly tolerant network, but for people to take cryptos seriously, they want to control it .. which means centralization (see ETH POS) .. which leads us back down the path we already know .. which is that a small minority control a large majority of the currency ..

Seen that before havent we .... sounds just like banking doesnt it .... dont be fooled .. banks are moving behind the scenes to maintain control .. you can bet all the money in the world on it ...
 
Likely it will be legislated anyway if this comes to pass, making it difficult (though not impossible) to use them. Like bartering, you can do it, but it's a lot more difficult. I do see a future where countries will have cryptocurrencies of their own, and employers will be forced to pay your salary in that currency, making it taxable and traceable back to you. In this case it's not much different from regular currency though.
 
My concern is that the only reason crypto currencies hold the value they do is because it is exchangeable for regular currency which is linked to something of physical value, such as gold. Literally the only reason a Bitcoin trades for R35,000 is because someone out there is willing to fork out that amount of Randelas for it.
 
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LCBXX said:
My concern is that the only reason crypto currencies hold the value they do is because it is exchangeable for regular currency which is linked to something of physical value, such as gold. Literally the only reason a Bitcoin trades for R35,000 is because someone out there is willing to fork out that amount of Randelas for it.
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Im no expert .. but if I recall most currencies are no longer backed by anything ...
 
jetlee said:
Im no expert .. but if I recall most currencies are no longer backed by anything ...
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Neither am I - it just makes sense that you kind of need to tie your currency value back to something tangible that "holds" the equivalent value.
 
LCBXX said:
Neither am I - it just makes sense that you kind of need to tie your currency value back to something tangible that "holds" the equivalent value.
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Lol. It amazes me how many people still think this.
 
Johand said:
No. The ledger of cryptocurrencies is not encrypted - in fact it is the opposite -- every transaction ever is in the open because it is a distributed ledger. Transfers are in the open - so you need to somehow keep secret what your account number is... which is impossible if you want to actually spend the money in the country you live. They only need to pass a law that all companies need to see ID if somebody pays with cryptocurrency and then all your transactions of all time is traceable. Of course there is some way to obfuscate with multiple wallets but even that is way more easy to trace with advanced analytics than cash with no electronic tracing...
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Wot?! :wtf:

Do you know that people like myself only use a bitcoin address once? That means with your "law" if I were to buy a TV at TakeAlot, I give them my address and they ask me for ID. They won't find any transactions for that address.They can't use my ID to look up transactions since personal ID numbers do not get associated with transactions in the blockchain.

Think about that for a second, then you will realise why governments and banks are shaking in their boots!
 
YingYang said:
Wot?! :wtf:

Do you know that people like myself only use a bitcoin address once? That means with your "law" if I were to buy a TV at TakeAlot, I give them my address and they ask me for ID. They won't find any transactions for that address.They can't use my ID to look up transactions since personal ID numbers do not get associated with transactions in the blockchain.

Think about that for a second, then you will realise why governments and banks are shaking in their boots!
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And then you still get Monero and Dash to make it even more private.
 
CryptoCurrencies, Help banks to increase Revenue . but not with existing system

Newsfeed said:
Cryptocurrencies can kill banks

If cryptocurrencies like Bitcoin truly take off, they can kill the traditional banking system and change the current tax system – where the state relies mainly on transaction tax.
Click to expand...

Hope ! ! Cryptocurrencies will change normal banking system to Digital Banking System , current tax system falls in corruption pool , so transaction tax alone is enough to built a well healthy nation .
 
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