Why IRS can bust you on centralized exchanges and not on Bitshares!
When you put your funds on some centralized exchange for instance: Coinbase, Kraken, Poloniex .... you done quite a lot of stupid things:
- You have to submit personal information to get an account and expose your personal data to hackers, government agencies.... Pretty anyone who can get that data, legally or illegally. IRS recently request from Coinbase exchange to hang over data of their costumers for taxation purposes.
- You transfer your funds to the exchange to trade there. Funds aren't any more in your wallet and if exchange is hacked, bye bye funds.
- You is abused by fees which eat up a significant amount of your profits.
- When you start trade, it can be delays and you don't get the price you intended to get.
- Long deposit and redraw times due to blockchain congestions and money transfers.
If you use decentralized exchange (DEX) for instance Bitshares, many of this drawbacks are gone
- You don't have to submit any personal information to open account on Bitshares blockchain.
- You transfer funds once on the blockchain where are safe in your account. No one had ever hacked any blockchain and chances to do so is almost zero.
- Fees are very small. Fee for one transaction is 0.01213 BTS = $0.0018 in dollars in the time of writing no matter how big transaction is.
- Trades are executed in 3 to 5 seconds. No delay no jams.
- You can convert your coins in bitUSD, bitCYN or bitEUR tokens which are pegged to most used world fiat currencies. You can convert coins even to bitGOLD or bitSILVER tokens and you track price of gold or silver.
- You transfer funds from and to blockchain only when you want to spend your profits.
But The best thing for me on Bitshares is that you technicaly enter country free of taxes. IRS and all other tax colectors, forget to bust me on Bitshares.
This is awesome!
Try and check out: https://bitshares.org/
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What do you think about Bitshares? Comment and present your views! Great ideas emerge from good quality discussion! I'll be immensely grateful for your contribution.
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The DEX should not be looked as a means of tax evasion. Tax codes have not caught up to crypto yet and it is very unlikely that any authority trying to tax crypto to crypto trading would be successful in court, despite the mumbo jumbo about barter (there are no goods or services exchanged in a crypto to crypto trade, as crypto is neither good nor service as of yet). However, if and when any crypto touches fiat we should all be more than happy to pay the tax man!
Yes exactly that is appropriate. As long as your funds stay on Bitshares blockchain we can assume that they are actually under Bitshares jurisdiction, as its are in foreign country. To put more simply Bitshares and any other decentralized exchange should be treated as free cyber state.
Anybody can freely join this cyber state by opening account on its blockchain.
In my opinion this is fair regulation.
Anyone who is not mining the coins need to enter crypto world through fiat exchanges. So, IRS will always be on lookout. But the best way is to move your coins out of fiat exchange as soon as you buy them. From IRS perspective, that is a tax event. They can not track where you transferred and how you used it. If it is sitting in some exchange that does not touch USD, IRS can not do anything about it. It can be Bitshares or it can be Exodus.
Definitely a good thing. This is why I have always stayed away from the biggest exchanges like BitFinex. While the FBI in America wants data on people moving larges amounts of crypto, I'm sure they will share information gained with other countries for non-americans.
Absolutely! DEX gives as free chose to manage our wealth. We should not aloud anybody to change the amount of our wealth.
This is our freedom.