Can you pay someone with Bitcoin by giving away your private key?

This is actually a very mind blowing and interesting question. The answer is yes, you can. But there are some thing involved that you need to know.

First,

The funds never move. And you don't have to pay transaction fee's.

Second,

In the records of Tax Authorities, you are still the owner.

Of course the second one is impossible to find out at the moment but if we have to regulate Cryptocurrencies then consider everything taxed such as buying, selling, sending, and receiving.

So, if you have to avoid those taxes you can actually handover someone your private key’s.

But the catch is that the previous user can still access the funds. Also, you would have to handover a private key with exactly the same amount you owe top that person. That way you can dispose off your account.

Legally speaking, if you do this, then it’s still a transfer of property, and so if the tax authorities catches you, you’ll still have some explaining to do. But then how do they catch you is still a mystery.

The downside to this is that the previous owner could potentially still have that private key stores somewhere else. So while the private key might be “given” to someone else, the original owner could still retain that key and as long as that is true, your bitcoin is at risk.

The problem with this is that the other party has no guarantee that you won't spend those coins. The only way for them to guarantee this is to immediately move out those funds - which has the same effect of appearing like you've paid someone as that transaction will be publicly visible on Blockchain.

But someone has a solution for this. I found out that Opendime – World's First Bitcoin Credit Stick Wallet is exactly working on this business model.

Let’s watch this interesting video.

Basically, Opendime is a small USB stick that allows you to spend Bitcoin like a dollar bill. Pass it along multiple times. Connect to any USB to check balance. Unseal anytime to spend online. Trust no one.

Isn't this interesting?

Let me know in the comment section.