Could bitcoin become the next Swiss bank account?

Discussion in 'Cryptocurrencies' started by johnarb, Mar 8, 2018.

  1. johnarb


  2. JSOP


    Bitcoin is not as anonymous as it set out to be though so your transactions can still be tracked. There have been stories of people who have been doing illegal business in bitcoin that got arrested.

    Monero, on the other hand is more anonymous than bitcoin; that could be thought of as a surrogate to swiss banks.
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  3. JSOP


    Even the Swiss Bank is not that anonymous anymore. Under two international reporting agreements, the FACTA enacted by the US where all non-US foreign financial institutions are required to disclose assets and liabilities of US nationals to the IRS for tax purposes, and the CRA where 96 countries around the world has signed as co-operate with each other to disclose the financial information of a country's citizen's held in financial institutions foreign to that person's nationality for tax purposes. So no more tax havens.
    johnarb likes this.
  4. schweiz


    The anonimity of a Swiss bank account was cancelled under heavy international pressure. The same will happen sooner or later with crypto's too. The anonimity is now used for pump and dump. If the anonimity of a Swiss bank account is not accepted anywhere, why would the anonimity of crypto's be accepted?
    murray t turtle likes this.
  5. Handle123


    And even if this was a tax haven, the risk is so high, you can end up with huge losses and be begging IRS for reducing gains on other investments. And if you been hiding profits many years and of a sudden you experience a huge hit financially of 70% overnite or few days where losses exceed original deposit, you not going to be able to claim it. Unless of course you OK will admitting you have broken the law and not paid on taxes when it increased, several years in club med federal prison-NOT- will have much time to develop systems that generate legal profits. If the tax situation is so bad for you, renounce your citizenship and go elsewhere, but when you wanting to rush to Time Square for ringing in the New Year, USA government might say "let's arrest the guy and figure it all out after a few years". I think if people spent more time figuring how to keep more money in the markets and less on how to cheat they be better off.

    You want a tax haven, buy much real estate cause until you sell it you are breaking even till much later past couple decades of churning monthly profits if you had bought with 15% down, and of course, instead of selling it, trade with other investors for different properties and I believe there is no capital taxes paid on trades.
  6. schweiz


    Not true, in your Swiss bank acccount you always know how much money you have, in crypto's your money can jump up or down 50% or even more in notime. So you never know how rich or poor you will be tomorrow.
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  7. NeoTrader


    I would say it's even better than what the swiss accounts used to be, not necessarily Monero(although I agree they seem the best candidate to me too at the present time), that's the beauty of a free market, new and better things can appear...

    But the reason these will be better is because of decentralization, which is what the swiss banks didn't have. Banks are a point where governments can focus on, by imposing fees, fines, regulations and even threatening the owners and employees with jail. This is what ultimately ended the swiss accounts as people knew it. That is not the case with cryptos, because there is nobody to threat.
    And as technology advances (quantum computers, for example), the need for huge mining facilities becomes smaller and smaller and the difficulty of enforcing any stupid law they pass just grows.
    It'll be like uber... They will do anything they can to try to block it, but with no power to enforce it, they will have to give in.
    The creativity of private people combined with technology(created by the same people, in a "snowball effect") makes it impossible in the long run for stupid and slow government bureaucracy to keep up in the long run. Uber is just one example of that(even though it is not decentralized, it is very hard to distinguish who is simply getting a lift or paying for a Uber driver. In Brazil they attempted all sorts of controls to kill it, even police to go after Uber drivers, but it didn't work).:)

    The same thing goes for the guy in the video below. He is on his way to solve another one of these problems. Governments can target his company, but not all 3D printers in the world. They will try to impose regulations and laws on 3D printing, but with no way to enforce them, it's a lost fight from the beginning.:D

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  8. Pekelo


    Was just about to post this. Bitcoin? No. Monero? Could be...
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  9. johnarb


    I think we all agree on Monero. For the uninitiated:

    Monero community-fund their development using its cryptocurrency and has 2 full-time PhD Mathematicians, Surae and Sarang Noether (refer to the section FFS, Forum Funding System and the MRL, Monero Research Lab, for the quality of their research and work)

    Two of the three contracts for independent audits on Bulletproofs implementation in Monero have already been funded after 3 days of posting to the community and I expect the third one to be funded as well. This is a big deal.
  10. Sig


    There's a couple of holes in that line of thinking. First, the easy one. If quantum computers make it trivial to mine cryptocurrency then we get flooded by an infinite amount of it and it becomes worthless. The entire point of the increasing difficulty to mine coin was to prevent this. So "solving" the mining problem with faster computers is self-defeating.

    Second, governments can do exactly the same thing with cryptocoin as they did with Swiss banks. They can easily eliminate the ability to easily switch between other currency and crypto by shutting down all the "exchanges" or limiting the ability of people in their country to access exchanges in other countries. Ever tried to fund or take money out of an online poker company as a U.S. domiciled U.S. citizen? "Oh, but I can use my cryptocurrency directly to buy a cup of coffee in Vienna" you say? Sure you can, because the coffee shop can turn that into Euro's to buy coffee and pay their rent and their employees. At the point they can't do that easily and inexpensively, they stop accepting cryptocurrency. Sure, you'll have a few wild-eyed enthusiasts drop off the grid and transact entirely in cryptocoin with other enthusiasts, but that does not a tipping point make. All a government has to do is make it difficult to use cryptocurrency and it's never going to take over the world. And it's trivial for any government to make it difficult to use.
    #10     Mar 8, 2018
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