Just a theory on why it would benefit the gov/FED. (Would make sense on why the Russians/CCP & the rest of the bad boys are not so welcoming for it.) Once it absorbs enough of these $ that were printed out of the clear sky, then, the gov could ban it. (Say a market cap of ~$7T , a decade down the line) At the meantime, they're not fools, most likely know for sure, or have a good idea on where from comes the major buyers, to own this ,,store of value" Without buying, it could follow as this : a major sell off, yet of another 80%~ & afterwards a taxation on it, or a perma price tag. (Like $10k per coin) The thing is - if* it is a threat to gov thus why do they look through fingers on it, while they could smash it with a finger, what's the catch for them in all of this ? (A threat as long as it is - ,,anonymous", thus maybe it's not anonymous at all ?) That's what im curious about, since dots doesn't connect/doesn't make sense. Thoughts welcome.
The problem so far is that it is a hoarded asset. It is not circulating enough to find its true value
+1 And lest it be forgotten... it is not only removing USD from circulation (hoarding), but other currencies as well.
If you recall the pizza story you can see why no one wants to part with their bitcoin It will be interesting if anyone will buy a Telsa with Bitcoin
Maybe you can buy a Tesla and avoid paying tax on the capital gain!!! You are after all just exchanging one asset for another without money involved. If you have a huge gain in BTC the last thing u want to do is convert into cash in order to make a purchase. And if this is in fact possible, I imagine the IRS will want to move on cracking down on BTC quick.
No. More precisely, not always. In a simplistic, easy to find term... demand-pull inflation. Hoarding removes "money" thereby, less "money" chasing same/fewer amount of goods. Ill let the readers look up the several causes of demand-pull and check off the boxes of todays environment for themselves. One other recent "cause" to be added the demand-pull cause list could be negative interest rates, which also produces hoarding. Im sure some will call me out on the less money portion of my post. But when you factor in the "hoards", well... Pizza anyone?
So what happens if you directly buy a Tesla with BTC, then turnaround and sell your Tesla car? Did you escape the BTC capital gains taxes?
Thought about it too, who would benefit as second from the top as well from it ,- EU ? For it to work both for US & EU market cap should reach at least ~$/€12T. If by any chance for it to rise in value would take much more of vol/buyers then to decrease in it, would be a perfect tool on gov's belt. (Would have to be rigged as hell, but nothing new & a lesser evil for a ,,greater good") Tho we simple mortals have no clue where/who the major buyers are. Could be that they're targering the big fishes of the underground/mexican cartels, lure a lot of their capital into it (with advices from bought out advisors(without scum knowing that those advisors works for gov, e.g like agent snow in WW2)), then letting em know that they can crush it at any time & this way onofficially having Mexico/whatever at their grasp. Lesser evil for a greater good.