Why should I pay with Bitcoin when Bitcoin can rise??? | Cryptocurrencies as a means of payment

By Krapottke | Crypto and society | 4 May 2022


 

Paying with crypto sounds tempting and cryptocurrencies would be get more utility. There are already some countries where this is possible and even Amazon has announced to accept Bitcoin  as a means of payment in the near future. 

Of course, this would represent a big step for cryptocurrencies and perhaps lead to others being allowed as a means of payment.

  • 1. Is it desirable to pay in Bitcoin?
  • 2. Why should I spend my bitcoins if their value can rise even further?
  • 3. What about taxes then?
  • 4. What if my state government does not support it or even prohibits it?
  • 5. Does this change the independence of crypto?

These questions form in my head when I think about this topic. 

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My opinion and reflections on the questions

 

To 1.: In principle, it is definitely desirable to have the opportunity to pay with Bitcoin. Because that would save you the consideration of having to sell the bitcoins in order to get the money. However, it must be noted that if it is possible, you do not destroy any investment in the buying frenzy without thinking.

And then we also go to the 2. question arises as to why Bitcoins spend when the price can rise. What costs 0.1 Bitcoin today can cost 0.05 Bitcoin tomorrow (example). Of course, this effect is also possible the other way around. The extreme possible fluctuations become fatal here, but this decision may also have a smoothing effect on this characteristic. Everyone has to ask themselves whether they see Bitcoin as an investment or then as a means of payment and will then pay more or less with it.

What happens to taxes if I no longer have to pay out the bitcoins but pay directly with them?

Unfortunately, this cannot be answered across the board, but is in the hands of the respective Ministry of Finance, whether it regards this as a payout or direct payment. If it is considered a payout, it will probably still be taxed as before. This situation would be a great pity and would show the state's rejection of the general idea.

What question 4 has already been answered, with the hope that it will affect the fewest and that the countries will also see it as an opportunity and will not be afraid of it.

And finally to question 5.: Cryptocurrencies will remain largely independent due to their decentralized structure as long as a state does not provide or control the majority of the network itself, there will be no problems in this area. All they can do is ban possession.

 

Result

It represents a great opportunity and will hopefully be a step forward. Unfortunately, it depends to a large extent on the actual implementation and the tax decisions on it. And in the end also from you and whether you understand Bitcoin or in the future other cryptocurrencies as investment or money.

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Krapottke
Krapottke

Just another young crypto enthusiast, but with a view to society


Crypto and society
Crypto and society

In this blog you can find out about Crypto in relation to the society . What do older people think about the topic? What is thought of NFTs? Which cryptocurrencies are accepted or more likely to be accepted than others? These questions and others are dealt with here.

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