Posts Tagged ‘bitcoin’

The Hoarding Myth

April 29, 2012 Leave a comment

Many times we hear the modern academic economist lament about the detriments of sound currency concepts. This often occurs when discussing the topic of bitcoin with the uninitiated. Their disdain usually stems from two commonly held misconceptions regarding sound currencies and their effects.

The first misconception is that people will hoard an appreciating currency, and the second is that sound currencies have no elasticity. Normally the method attempted to eradicate these misconceptions is to explain the fallacy of both points of view individually by using evidence in the argument from effect, often with futility. However this is not as easy as exposing the the truth sitting in plain sight, as I learned while contemplating my failure to be convincing in a debate with an economist.

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Are bitcoins taxless?

July 21, 2011 2 comments

A recent posting on the turbo tax blog seems to give tax advice regarding bitcoins while trying to educate its readers on the the basic concepts of the digital currency.

Calling bitcoins “the taxless currency” and stating that “Bitcoins are produced without the involvement of governments or banks, thus avoiding taxes.”  turbo tax seems quite sure of themselves despite the fact many so-called bitcoin experts and the community at large cannot reach consensus on the taxable status of bitcoins or bitcoin transactions.

While the growing awareness for the fledgling currency is always a welcome sign, a conspicuous disregard for the basic facts at the turbotax blog should call into question their statements regarding the tax status of bitcoin. Read more…

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