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Comment by monkmartinez | Hacker News Reader

Can you pay your taxes with bitcoin or ethereum?

You can only pay your taxes with the currency the taxing authority takes the tax in. But this does not prevent me from paying for my taxes with my labor; I just have to convert my labor into that currency first. The fact that you can't pay taxes in bitcoin or ethereum is not particularly distinguished from the fact that you can't pay for your taxes in goats, paintings, or the cleaning of clothes, nor is it particularly distinguished from the fact you can't pay United States taxes in Euros.

> But this does not prevent me from paying for my taxes with my labor; I just have to convert my labor into that currency first.

So BTC/ETH are going to become currencies like the dollar or euro and not a painting or a goat which they are equivalent to now? Is that your position?

You are either being mendacious, or not tall enough for this ride. I assume the first.

Anything ("real" or digital or anything at all) can be assigned a value by anybody. This value is also self assigned - if you don't think a laptop is worth 700USD like the maker says it is, you might not want to buy it.

A US dollar bill is at the end of the day just a piece of paper - that is assigned a value (that constantly changes) by the market.

The real question is if the currency has any value to a substantial amount of people. Obviously currency is useless if only two people in the world can use it. However as BTC is now over 2000USD/coin and you can use many payment processors (including stripe), I'd be inclined to say that it does indeed have value - and a use; your assignment of value to BTC may be lower.

> A US dollar bill is at the end of the day just a piece of paper - that is assigned a value (that constantly changes) by the market.

Ultimately, the U.S. dollar is backed by the U.S. Military. What is bitcoin backed with?

Ultimately, the U.S. dollar is backed by the U.S. Military

What does this even mean?

That if the US economy crashes and dollars become worthless, the military will plunder a few countries for resources to restore it?

I think he means that the USD is valid currency for all debts, public and private, and this law is enforced by the US gov't.

However stealing anything is illegal (in most countries).

A weakness to BTC could be that it's hard to enforce that...

- The US economy crashing isn't necessary for the military to be used to plunder other countries for resources. The rich and powerful interests in most american countries will coalesce around US interests or face direct or indirect coups until they do, creating a neocolonial system where the dollar is enriched through the resources of other nations.

- It means that more countries will keep USD as a major if not primary reserve currency.

- it also means that we can ensure that oil trade is denominated in USD, which also directly keeps the value of the dollar high.

- it means that we can create a special relationship with Saudi Arabia which allows some degree of control over global oil markets

- it means that we can e.g. devistate countries ideal for Iranian exports in order to prevent the development of competitive markets

What do you by saying USD is backed by the Military? I'm sure what you mean by that? I guess if another country owes the US money the military could "go and collect"? What about in country?

If you mean legally - I believe stealing anything in the US is illegal, this would include BTC. The effectiveness of the government to enforce punishment for stealing BTC could be a valid weakness.

I would say people.

Math

Transaction fees are the equivalent of taxes in Bitcoin, and until the final coin is mined in 2140, everyone pays a tax in the form of inflation.

I know this isn't what you meant -- you're almost certainly asking a rhetorical question intended to point out a limitation of cryptocurrencies in general -- but participants do pay taxes to keep the Bitcoin infrastructure running.

Can you pay your taxes with Euros in the United States?

Can you pay your taxes in USD in EU?

I cannot pay my taxes with dollars or yen either. I have to use Euros.

No, but you can use bitcoin or ethereum to avoid paying taxes.

You can avoid paying taxes in any currency, including USD; it's still illegal regardless.

Tax fraud can be done in dollars and euros too, it's maybe just a bit harder. Still fraud.

No. Can you pay your taxes with stock or houses?

Are stocks and houses aspiring to someday replace fiat currency?

Are Bitcoin and Ethereum?

If you listen to the technoliberterians on the respective subreddits, BTC and ETH will destroy all fiat and central banking. The realists realize that is highly unlikely.

Thank you, this is exactly what my rhetorical question was aiming for. If BTC/ETH are investments, fine... that is a world away from currency.

I have no doubt they will eventually be used as a class of currency. Thinking they will replace/destroy fiat currencies that have been around for hundreds of years is a bit of a stretch though.

At this point, I think we need to define a "currency". I googled it, and wikipedia (what else?) told me that:

"Currency in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins."

Also in Investopedia:

"Currency is a generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade."

CCs are circulating as a medium of exchange; emissions and transactions are [dis]proven by automated government (consensus of participants, iirc). What's the difference? In that uncommon "government", consisting of real demos this time?

Destroying and replacing are very much orthogonal to each other.

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