But you're also forgetting P2P crypto marketplaces like LocalCryptos[1], which (for Ethereum) allows you to have smart contract escrow and therefore the middle-man is only really required in the case of disputes. I personally have transacted > $100k with LocalEthereum, not once having an issue with a trade, and most settling in under 30min.
Taxes are owed in income or capital gains, whatever form that income or capital takes, but taxes can only paid in legal tender. Until the IRS et al hang out a wallet address for payments you will still need to touch the ordinary financial economy.
But yes, that was more talking about the future. That is the matter at hand, after all – Coinbase's future (or lack thereof).
"People who pay no income tax" absolutely can apply to people using cryptocurrencies.
[0] https://www.nerdwallet.com/article/taxes/capital-gains-tax-r...
Every time I have a discussion about crypto on HN I want to go buy lots of crypto because there are clearly still some smart people that really don't get it, to the point of seeming deliberately obtuse.
You can try to make it out to sound really widespread if you want, but the facts don't support you.
And the fact that people with lower incomes stand to benefit more from crypto than people of higher means who already have access to reliable banking systems is part of the point.[1]
[0] https://www.census.gov/library/publications/2020/demo/p60-27... [1] Bitcoin's genesis block, which cites the bailout of banks at the expense of sound money.
If I make less than $40k a year, I pay 0% capital gains? But what about income tax? You have to have some form of income, which will be taxable. I don't see how to keep that so low your effective taxation will be 0% while having enough money to live on? Am I missing something? Forgive my unfamiliarity with the tax regimes here.
I did totally forget to mention local exchange