The Bitcoin Scaling Debate

in #bitcoin7 years ago

I am no expert in this field, but have been listening intently for this past year all the rumblings of transaction fees, time it takes to settle transactions, and so forth.

Apparently the groups that influence Bitcoin the most, are working diligently to resolve these problems thru changes in protocol, or Forks as they call them.

My question is why?

It seems to me that best use for Bitcoin at this stage of the game is store of value. Bitcoin, apparently is better at this than fiat currency, or the meager returns on interest bearing instruments.

Bitcoin was designed originally to work as a currency. But it would seem that it is not working so well that way.

My problem with using it as a currency is the tax consequences.

Why in the world would anybody want to buy anything with something that is deemed by your government to be a commodity, and be subject to capital gain taxes. Wonderfull > Buy something with it - Pay Sales Tax - and then Pay Capital gain on top of that.
Seems remarkably stupid to me.

So if I am not using it as currency, and instead using it to store value, what do I care about transaction fees, or time it takes to confirm a transaction.

Must be only the Day traders that want this, which is something else I don't believe in anyway.

My take is store it like Gold, to be cashed in when needed many years down the road when needed.
Pay the taxes at substantially lower rate on long term holding than short term.

Until our governments change the Capital Gain rules on Bitcoin, and other Alt Coins, I do not see that need for all of this scaling business.

Tell me if I'm wrong. I would really like to figure this out.

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