Crypto, Life, Liberty & The Pursuit of Happiness

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Written by

ThomasWolf

Technical Researcher, Writer & Editor.

1 year ago

In community: Club1BCH(4ac4)

Topics: Knowledge, Internet, 2022, Club1BCH, Personal Experience, ...

Cryptocurrency is constitutional until they make it illegal; the Federal Reserve is already behaving in a debatably unconstitutional manner.

“In this world, nothing can be said to be certain, except death and taxes.” ― Benjamin Franklin

Financial freedom shouldn’t come with 25% capital gains tax in addition to paying for tax document handling (and the hassle of it), where you’ve neither been educated on proper techniques for tax filing without excessive personal study and you’re definitely not compensated for your time; money returned to you is returned because it was always yours.

I argue that impeding the crypto market defies the point of decentralized finance with multiple centralized points of failure from crypto to fiat and also violates a person's ability to pursue happiness (1 of 3 inalienable rights in the declaration of independence) through the form of financial freedom. Liberty is synonymous with freedom. For many of us, crypto is our way of Life.

It seems to me this is much like why the USA was founded to begin with, taxation without representation, a war we have already won once, at least, we thought. The federal reserve is will have to be consulted by all US Dollar pegged stablecoins as they roll out their own Central Bank Digital Currency (CBDC). Even on a CeFi scale, the system is rigged for failure; tying our fate to fiat values is a horrible idea for a shared fate.

This is bad news bears because stablecoins are already susceptible to the US Dollar’s inflationary losses with failed interest hikes, circulating supply control, and continued interest hikes without a vote are present threats. Add in that stablecoins which represent a major portion of the total cryptocurrency market volume & will now be run through a centralized government engine we'd easily consider a scam if it was a DeFi project (Federal Reserve).

This all comes at a time when the US government is threatening Proof of Work currencies such as Bitcoin (BTC), BitcoinCash (BCH), Litecoin/Dogecoin (LTC/DOGE), Monero (XMR), ZCash (ZEC) and et cetera currencies still operate on. The US Fed said, go green or else. This is largely to do with the growing energy crisis, in which the US just further tapped our strategic reserves while we use more fossil fuels to counter other losses.

Crypto tax processing sites suck. I tried out all of the top ones and they are hilariously bad, some even only process crypto and I expect the lower end of them are overpriced scams. Exchange information is often bad leading to blank or unexplained transactions, a matter often fixed if you do it manually only. Seems easier just to file capital gains and be on the safe side.

In the USA, they do not teach you how to do your taxes in school, not in high school or college, it’s just not a part of the curriculum, yet everyone is expected to grow up, get a job, and file/pay them anyway. W2s from working normal jobs are very easy to process but when you have tens of thousands of crypto transactions going in all directions mixed in with various W2s and 1099’s - things can quickly get a little ridiculous.

The good news is, the IRS owes me money, fiat I’ll get soon. The bad news is, I still have to report to them in a detailed format. It seems a pretty damn invasive procedure for pseudo-anonymous currencies that don’t believe in taxes, banks, brokers, or any traditional financial institution or entity, doesn’t it?

Technically speaking income from writing or Play2Earn platforms are to be filed as either self-employment taxes plus income taxes, or, one can just file capital gains which are even more. It all looks the same on the blockchain, but the IRS wants to know exactly what you are doing. I wish them luck on that, there is no way everyone out there takes managing their transactions that seriously, we just need better exchange .csv export and import capability, it should be seamless - end of story.

Let’s think about the consequences of letting this coming legislation pass, to which, we get no vote. All stablecoins will be completely centralized. The government will issue a competing CBDC which will be a failure so long as other stablecoins exist. Will they stop at a threat of making PoW illegal or eventually ban the use of stablecoins to prevent competition with a CBDC?

Decentralization is light-years away at this point as the government is fully regulating cryptocurrency of all kinds effectively through centralized finance mediums. The Coinbase staff even contains a former IRS employee. This all comes at a time when the US Dollar is under heavy threat due to global economic conditions and a 31 trillion dollar debt that won’t ever be paid.

We have to make a choice to comply, or to DeFi. I believe in financial freedom, all I feel from this anti-Laissez-faire economic house of cards is a regression from progress in achieving happiness through the form of honest, accountable, financially free decentralized currencies.

We should have money that we the people give value to and have trust in for its properties; this is to our advantage as free individuals. All forms of money are a social construct, and crypto performs better without government involvement, which doesn’t mean it should be criminal or treated as property by the tax man.

Satoshi Nakamoto laid the groundwork for how to have a completely accountable decentralized economy through blockchain technology and it has set forth a vast amount of modern projects as well as what I call Bitcoin 2.0 (BitcoinCash/BCH), hard-forked to scale with nearly non-existent transaction fees while trying to encompass the original Satoshi vision.

Ethereum brought the world smart contracts, if nothing else we owe their developers for that. Practical utility is right around the corner.

What will the consequences be if we continue to allow the opposite of what we want to happen? Rhetorical, I know, but it will at the very least set decentralized finance back a great deal. Many accept crypto as a niche market and are fine with paying taxes. Those people are not the ones who truly believe in decentralized finance, as it fills us with disgust even if we must file taxes.

If crypto made you a criminal, would you really stop, knowing full well it should be our right to choose what currencies we use?

I think they’d be creating the world’s largest black market overnight if they banned Bitcoin and other PoW currencies. We’re all already caught in a giant web of government propaganda related economic lies that we suffer for. I urge people to consider living a decentralized life as a consideration, as opposed to simply believing in a decentralized currency.

Why use their system if we have better ones?

As always, comments & suggestions are highly encouraged.

Stay smart & Stay safe.

-Thomas Wolf

Pronouns: He/Him/His

DISCLAIMER

I am not a certified financial, tax, or legal advisor, analyst, or planner. The above information should not be considered advice but as an opinion intended to share information and ideas for entertainment and independent research purposes. I am not responsible for any losses or damages incurred due to misinterpreting my personal opinions for professional advice.

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