RE: SOLVING THIS PROBLEM WOULD SOLVE ALTCOINS FOLLOWING BITCOIN!
Hey brandon - I think it's the same reason governments had such a hard time regulating synthetic cannabis. Every time they declared one, another would pop up to take it's place. With crypto, it's the reverse - they're popping up like mushrooms, but at this stage, it's almost impossible to tell which ones are deadly.
See, in order for your idea to work, the exchange would have to be prepared to purchase your coins for fiat then and there. By funneling it toward one coin, the exchange takes only 1 risk (that bitcoin might drop). If they offered it for every coin, they would take the same risk for every currency offered.
Further, there is probably massive concerns regarding money laundering, the legitimacy of alt-coins as a whole etc etc. The regulations are murky - policies differ. Legally speaking, it's a cluster-fuck. Everyone wants to get rich, but few are willing to risk the noose in order to get there.
great info, i just hope this crazy tax code against crypto doesnt last!
I don't think it will. With the whole point of crypto to be decentralized, I think that eventually, you won't even need to report to the IRS. You will be able to use your currency as you want without being bothered. Businesses will start paying employees with it as it becomes more stable. Many people don't realize we are still on the ground floor! The bugs need to still be worked out.
How do you see it playing out? Here in Australia, the public isn't being told anything. Thus far, I've had to change banks three times. And I have friends who are now completely de-banked... but not by choice - the large banks just won't accept them as customers.
Sorry to highjack the thread, but I am looking to transfer money to Australia from Europe. What is a good exchange to exit to fiat? And which banks have you had good and bad experiences with?
Why not just buy a few grand word and do an OTC? P2P transactions are pretty easy so long as to take measures to keep yourself safe and ensure that you're not about to get scammed.
I will check it out, although I prefer to be in control via an exchange even if it costs a little bit.
I have heard the horror stories. That is awful that your friend cannot join any bank. But that could be a blessing. Some banks even charge you just to hold a checking account. Has he looked into a investing firm? I know Etrade will send you a debit card if he wanted to hold his money there. Not a bank, but some place safe to hold his money.
I'll have to look into that. What about crypto debit cards - anyone have any opinions or feedback? It's something I really need to look into.
I am currently using a Shift debit card. They're really good, only 10 dollars for the card and then you can connect it to your Coinbase account to use any of their offered currencies to withdraw money from. I think the standard ATM fee is 2.50 which isn't that bad
Ah, cheers for the information. I'm in Australia though, so we have some limitations. For instance, I don't have access to the exchange and thus can't sell - only buy. But I will have to look into whether or not I'm actually able to withdraw funds.
Ah, I see the dilemma. I will do some research and see if there are any cards you could potentially use.
The Real kicker here is the monetary situations in crypto-currency, is akin to the United States in revolutionary war period up until the Constitution. And pre WWII economies in Eastern European Currencies without a world bank. Proliferation without backing,
Prior to the Constitution Congress giving domain of Currency to the Federal Government and taking it away from the States, every state had its own currency and there was widespread inflation and deflation and predatory practices. (sound familiar??) The term don't take any wooden nickles came out of that period from the exact situation of actually some states using wooden coins....
While crypto-currencies sound good as a fiat,,, they are anything but that... you are essentially looking at a situation were someone makes a grocery list over night and goes down to the store to buy a loaf of bread and now their bread which yesterday cost $2 today cost $12 or now is worth .20 hurting the grocer, who can't be constantly repricing every item in inventory....
Even worse you could have the situation Confederate Dollars or Laos Coin, where the government does not exist and the normal person does not have life savings anymore!
That's why the USA was on the gold standard till the 1970s and has a managed monetary fund....
Don't get me wrong I'm not saying crypto-currencies don't have there place but, there will always need to be a few real world fiats gold, silver, platinum and a few Currencies based the strength of the biggest economies USD, Japan, China, (and if it does lose any other members the Euro)