It didn’t take long for the US government to move in with aggressive tax procedures for policing earnings on crypto currency. As a result, a burgeoning industry has popped up in crypto-accounting and tax law, leaving crypto traders with volumes regulation piling up on tax requirements, liability, deductions and procedures. Clearly, this is an attempt by government to slow down the growth of crypto entrepreneurs until Wall Street moguls can corner the market and thus work in collusion with Big Government manipulate crypto as they have fiat money.
One solution to this attempted hostile takeover by government and Wall Street is to allow for tax-free regime. The benefits are obvious, but for Big Government and Big Banking it’s not so much about benefits for the general public as it is about control of markets and profiteering from financial transaction fees and taxes.
Former US Congressman Ron Paul outlines a common sense strategy whereby cryptocurrencies could co-exist with gold in a reserve basket. But will it work?
Market Watch reports…
Noted Federal Reserve critic and crypto proponent Ron Paul has, not for the first time, criticized the central bank, saying government-created currency could lead to what he calls a “Fed-created recession.”
The libertarian-leaning economist, who served as a U.S. representative for more than a decade said in a blog post titled “Trump Is Right, the Fed Is Crazy” that the only way to avoid a pending crisis is to abolish the “monetary madness,” which includes the taxing of bitcoin BTCUSD, +0.04% and other cryptocurrencies.
“The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes”
–Ron Paul, former Texas U.S. Representative
Paul, who ran for president in 1998 and whose son Rand is a senator, has long-argued precious metals such as gold and silver are a better reserve currency, saying the manipulation of fiat money through tools such as quantitative easing has the Federal Reserve System doomed for failure and a “major catastrophe” will lead to a Fed-created recession — and the end of fiat currency.
(The Fed is now pursuing a policy of quantitative tightening that has taken its balance sheet down to $4.17 trillion from a $4.5 trillion peak.)
Now, with cryptocurrencies becoming more mainstream, Paul has added them to the store of value basket.
Despite some crypto evangelists, such as Tyler and Cameron Winklevoss, who believe bitcoin will replace gold, Paul has said in the past that the two are not mutually exclusive.
“It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice. Different currencies may be used for certain transactions for efficiency reasons,” Paul wrote in a June 22 post.
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