Bitcoin Cash - Transition to a New Economy

15 178
Avatar for Pantera
2 years ago

Cryptocurrencies are far beyond mere speculation and daily price fluctuations.

It is a modern economy in the making. Some call it the future of finance, and most already understand this is the future of money.

Yes, we’re overjoyed when the prices rise and watch our wallets worth more (in fiat values). Although, we may also have to consider the fact that fiat one day will no longer exist, or maybe it won’t be directing our lives as it has been for centuries.

I remember tales about conditions many decades ago and how my grandparents were holding gold pounds to protect their wealth. It was common for those that have lived WW2 and the economic decline that followed.

They had suffered from hyperinflation during war times and they all knew that fiat money can’t be trusted. Inflation one day was going to make it worthless.

When they were younger, they suffered from poverty and some even from hunger. The English gold pounds they bought were a store of value, but were not divisible and not quite accepted for groceries. Each one was worth a hundred times more of their daily needs. And they had to save them inside mattresses, or bury them during the night at places nobody would ever find.

Holding physical gold in any form was always a danger. Securing gold is a burden and when one needs to sell it, then it gets even worse. Imagine having wealth, but not being able to cash it when there is a need. This is barely a store of value.

Basically, they were holding a store of value but also could not feed, dress, or shelter themselves with gold. They would have to visit a gold exchange, sell the gold, get fiat and quickly spend it all in a day, since the next one, the prices would be double. And all that at the danger of someone lurking and finding out which families were holding gold just to pass this information to thieves for a payment.

My grandparents held gold as a store of value but had nothing as means of exchange.

Times are changing but wars, financial disasters, and people in need are still around us. And money depreciates fast during these situations. Banks shut down and hyperinflation appears. High taxation and unemployment are choking the productive part of the economy even in Western societies.

A modern and universal money system could change this and alleviate the suffering for millions. An introduction into a new economy where the effects of a catastrophe will at least be less for the survivors.

Modern decentralized money, out of government's reach is critical. High speed of transactions and low fees are imperative.

Bitcoin Cash today, brings the most modern network with all these features available and is ready for mass adoption.

The New Economy

I had a conversation with a relative yesterday that knows I am a crypto fan.

It is a cousin of mine that understands the concept of having complete control of our funds. Although, she still thinks of crypto as a speculative financial instrument and has had a negative view until recently.

Initially, she thought I was in crypto just for the money, well, this fact used to be true. I had no idea what Bitcoin was and I've been in crypto trading since mid-2017, but only started researching further, sometime in 2018.

Even when BTC fees had reached $50 on average by the end of 2017, I still kept believing this was just temporary. I mean, I felt like it wasn't possible for a network that was considered so revolutionary to have such a serious flaw.

After a lengthy discussion with my cousin, the final part was about crypto-taxation that government wants to impose in my country.

"The government will tax crypto... what can you do about that?" she asked.

I had no idea "my" government was thinking something like that. It was something I was expecting and thinking about how it could be applied as per the example of the US crypto-tax laws.

The government decided there is money there and now it wants to tax the crypto trades on regulated centralized exchanges. Any trade made (buy, sell, etc..) will mean a certain percentage is going to be just taken out as tax.

This is typical government extortion. But anyway, I replied,

"If this is so, then I won't get taxed!"

The tax is usually for each trade made, in centralized exchanges with mandatory KYC. I'm not trading anymore.

I don't plan to sell crypto and withdraw to a bank either. Well, for this part, I can't be sure, but I hope I won't need to.

"I hold the keys to my funds, not the bank, not anyone else", I added.

I'm not going to evade taxation, I will just not withdraw to the bank again.

I proceeded with the final remark:

"The plan is to move into the crypto economy, not the other way around".

My cousin then finally understood my point.

It all became clear then. Short-term fluctuations and speculation do not touch people that are in this for long enough and for the long run.

She was talking to a totally different person from a few years ago, not just someone driven by short-term profit and watching the price charts all day.

Some did make huge money from crypto, but I'm not one of them since I took different risks and failed to understand the full potential from the beginning.

I am now one of those that believe cryptocurrencies will reach such levels of adoption that will eventually surpass the need for fiat interactions.

The money flows into crypto may have been today mostly speculative, but tomorrow, just 10% of those invested will begin using their crypto funds.

First, they Laugh at you, Then they Ban, And Then they Tax - In Conclusion

As always, the State will try to grab part of our wealth.

I’m not saying there is always a way out. In some countries, the declaration of cryptocurrency investments is mandatory.

I don’t see this as an investment anymore, but mostly as a transition into a modern payments system.

It would be a gross mistake to tax the cryptocurrency holdings, since then the State will have to tax all personal savings as well. I’m not sure if this ever happened previously anywhere (I could be wrong, though).

They would also love to tax cryptocurrency profits when returned to the bank. However, the money route is usually the other way around. This is the plan anyway.

For the time being, I am an investor in crypto as I don’t have methods available to purchase with my cryptocurrency wallets.

I would love to use Bitcoin Cash when buying that “fredoccino” this morning, but I felt shy asking about this. Maybe next time I will. Had 2 euros in my wallet, so I didn’t discuss it at all. There are no merchants around me that accept BCH yet but there will be in the near future.

Bitcoin Cash today has almost zero fees and instant transactions. When compared to other cryptocurrencies, this advantage makes it a top means of exchange and a store of value. It is money one can secure and never lose and the limited supply and low inflation supports the value.

The transition to a crypto-economy with fast, inexpensive, and decentralized cryptocurrencies accepted by retailers is not far.

Custodial wallets and centralized cryptocurrencies (like USDT, USDC, etc.) will not work, though. Centralization is no progress, but just the same banking system with its centralized failures all along.

I write about Crypto in this post with references to Bitcoin Cash, but I find many cryptocurrencies having solid foundations to proceed and work together for the world. The purpose is to find what can serve the public and not how to extract most fees from those using the networks. Sadly, the point of creating a product that serves the needs of the many eludes the top two cryptocurrencies.

Lead Image Source: Unsplash (modified)

Follow me on: ● ReadCash ● NoiseCash  ● Medium ● Hive ● Steemit   ●Vocal ● Minds ● Twitter ● LinkedIn ● email

Don't forget to Subscribe and Like if you enjoyed this article!

20
$ 24.56
$ 23.26 from @TheRandomRewarder
$ 0.30 from @Omar
$ 0.27 from @Telesfor
+ 10
Sponsors of Pantera
empty
Avatar for Pantera
2 years ago

Comments

In all countries the government wants to have control of everything, at first they did not believe that the world of crypto would be successful, then they wanted to ban them and now tax

$ 0.00
2 years ago

Hello dear please tip me

$ 0.00
2 years ago

That's the spirt, do not give in to the powers that want to centralise, control and tax our crypto. Don't trade your crypto for cash, but use it in the real world, spread the word, grow awareness, promote mass adoption and financial sovereignty. BCH is a great coin to use for this example due to its low fees and speedy transactions. Keep the faith, be strong and bring on the financial revolution!

$ 0.00
2 years ago

What are those things about having Saved Gold and sometimes not having to eat. Gold, from what I have been told, has always brought problems for its value, but more to those who have less. For fear of it being stolen.

This world of cryptocurrencies is here to stay and the government does not want to be without its share, it is not enough for them what they already have from the people.

It seems strange to me, that the articles I have read of yours are about cryptography and especially about BCH, defending tooth and nail, and then you say you don't have to invest? Why's that?.

I still do not invest because it does not suit me as well or at least a few percentages of what will go to you.

By the way, I read your articles to the end, they are always very educational. Thanks.

$ 0.00
2 years ago

and then you say you don't have to invest? Why's that?.

I have invested and I hold more than 7BCH currently. Where exactly did you read that part? I just won't sell anything, this is what I explain. I will keep rising this number and use my BCH as money whenever this is possible. Last time I used BCH was two weeks ago to buy something I needed online. This was a subscription to Splinterlands, which I wanted to test. I didn't like it, tbh, so I probably wasted $10 in BCH there.

$ 0.00
2 years ago

We are adopting new world of digital currency where we won't hold money at the bank anymore just wallets. Where we could cash out easily.

$ 0.01
2 years ago

Wallets we control and no government can freeze or seize!

$ 0.00
2 years ago

Yeah correct

$ 0.00
2 years ago

Laugh>Ban> Tax. This one's indeed true. It is a sad reality that we can't trust the government because most people here are just in it for the money, too.

$ 0.05
2 years ago

Yes, and to tell you the truth I've been through most of these stages. Especially in the bear market it was all haters laughing and telling us how Crypto came and gone in 2017 and will never return. Of course I can't try to persuade everyone.

$ 0.00
2 years ago

Bitcoin cash has been pumping, I guess.

$ 0.00
2 years ago

I've always considered Bitcoin Cash to be the number one cryptocurrency in the world. I like to read any kind of news about bitcoin cash. So even today I read with attention.

$ 0.00
2 years ago

Hi, my friend,

Lately, I've been absent from read.cash, but it's always nice to come back, read one of your articles, and this one is no exception.

Very well explained about the transition to the new economy. It will certainly come sooner than many expect. For now, we have to live with what the market offers us.

As I wish to see the day when I use BCH without the need for exchanges linked to fiat money. I will have to fill myself with a lot of patience.

$ 0.10
2 years ago

Thanks my friend. Glad to see you back and hope to read from you a new article soon! Meanwhile I enjoy your noise.cash posts.

$ 0.00
2 years ago

And we are nice and early into this brand new world 🌎

$ 0.10
2 years ago