
One world, one currency - could the bitcoin solve all our problems? - tocomment
http://www.mindfulmoney.co.uk/7016/investing-strategy/one-world-one-currency--could-the-bitcoin-solve-all-our-problems.html
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tzs
Huge problem: as soon as Bitcoin gets any mainstream success, numerous other
Bitcoin-like systems will spring up, thus negating the premise of _one_
currency.

In the arena of competing Bitcoin-like systems, those built by governments
will win, because governments decide what is acceptable for paying taxes.

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Joakal
How does the government decide what to tax if the government currency is not
used for transactions, and paid full salary with btc but at least minimum wage
in cash?

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tzs
They would treat it as a trade of goods, and tax it the way those are handled.
For instance, suppose I trade a cow for your tractor. It would be taxed by
treating it as two transactions: I sell my cow to you for cash, and then you
sell your tractor to me for cash.

There are exceptions when what we are trading are "like kind" goods. For
example, if we were both farmers growing the same kind of crop, and we swapped
some land to make the shape of both of our farms more convenient that would be
a like kind exchange and would not be taxed.

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Hyena
Because one currency for one continent has been working out so well for
Europe....

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nateberkopec
Isn't it more appropriate to think of bitcoin as an investment or money market
security? I mean, bitcoin has some of the features required of a monetary
unit, but its rapid fluctuations in value really make it a speculative
investment.

Unless bitcoin becomes mainstream and gets enough volume to smooth out these
dips and valleys, who would ever use bitcoin as a money replacement?

