Crypto & Third worlds, when laws can not be enforced 💀💀

[selfmade 7]

Governments depends on tax, without tax a government would be poor and with been pure they have no power I have seen so many unfair contracts made by the government of my country concerning minerals oil etc. This is because the country lacks capital to dig those minerals on their own and yet they need money so they are forced to make those contracts.

 

Here is my concern when crypto goes extreme in a country like this it would be the worse case scenario, it is a good thing in many third world countries crypto has not known and used by many

 

South Africa is not a third world country but see how they panic with so many people been using crypto and thus they government does not get much tax from such user. e

With crypto governments can many laws about, yes I agree, but they are laws they can not enforce.

 

Would the third world countries survive?

Edited February 4, 2021 by selfmade

[yonkii 3205]

Taxation is important for a country in total and not just for the government and the elected parliament members. We elect these people to manage the finances of the nations and they usually forget they are the servants of the people and act on their own. Taxation is very important to keep the country running. A country needs infrastructure, health care, education system, defense budget and has high cost of running. 

In some countries taxation is extreme and this doesn't allow development of the economy, while it may have inequalities having the poor deal with most of the tax budget. Some countries have weak politicians that can't deal with these problems, while many could also be corrupt and being in politics for their personal gain.

With cryptocurrencies there are a few that try to avoid paying taxes but it is proven already that in regulated environments cryptocurrency works well without problems. 

[Whited35 15285]

On 2/4/2021 at 6:38 PM, selfmade said:

Would the third world countries survive?

In which sense are you asking this question? Did you mean to say like, if crypto adoption rate keeps going up in the third world countries, such countries will survive? If yes, please be noticed, taxation is possible even by using cryptocurrencies and the blockchain technology if it is correctly utilized. Government of third world countries should also focus to increase the manpower with the blockchain expertise and if everything is correctly done, third world countries can also get the benefits off crypto. 

[selfmade 7]

6 hours ago, Whited35 said:

In which sense are you asking this question? Did you mean to say like, if crypto adoption rate keeps going up in the third world countries, such countries will survive? If yes, please be noticed, taxation is possible even by using cryptocurrencies and the blockchain technology if it is correctly utilized. Government of third world countries should also focus to increase the manpower with the blockchain expertise and if everything is correctly done, third world countries can also get the benefits off crypto. 

Taxation is not completely possible even countries like the USA Korea and china are struggling still even though they have blockchain experts and all, not imagine this for the third world countries!!!

[Dormilon 2183]

On 2/4/2021 at 8:53 AM, selfmade said:

Would the third world countries survive?

@selfmade How could a country exist without taxes on its inhabitants? Even when taxes are not well distributed by the majority, they are important, otherwise everyone would have to do their own things to live, that is, we imagine that each person looks for a way to make part of a highway to go from a city to another, someone must manage the money for that, governments are there to represent their inhabitants and distribute the money collected from taxes and income for the benefit of all, cryptocurrencies as such, in their essence of decentralization and anonymity will always be a alternative to local economies, but to be within the status of acceptance by governments they must be transparent and that is very difficult to do, so we will always see the duality between them and the fiat currency of each country.

[jackycrypto485 1055]

Third world countries are the countries that most need cryptocurrencies to get rid of their major economic problems such as inflation and the loss of the national currency in its value as well as other economic problems, they will not only benefit from taxes but also from the movement of money that will be obtained thanks to bringing more dollars into the country.

[Whited35 15285]

On 2/10/2021 at 12:49 AM, selfmade said:

Taxation is not completely possible even countries like the USA Korea and china are struggling still even though they have blockchain experts and all, not imagine this for the third world countries!!!

Hey I am talking about the future. See what I have said regarding the technical adjustments in third world countries for the taxation. Tax can be applied while exchanging crypto into fiat currency, while purchasing the goods by using crypto, while gaining the capital in crypto, why it is not possible? Just systematic utilization of crypto can help government to boost up the economic state. 

Edited February 12, 2021 by Whited35

[Ameralsamt 2558]

Dear I do not see that there is a problem with the use of Bitcoin and other cryptocurrencies in third world countries, they do not place restrictions on a currency and do not tax it, and this is wonderful in it and it is good for everyone and everyone works hard in those countries. 

[kyoukage01 3181]

On 2/4/2021 at 8:53 PM, selfmade said:

Here is my concern when crypto goes extreme in a country like this it would be the worse case scenario, it is a good thing in many third world countries crypto has not known and used by many

 

South Africa is not a third world country but see how they panic with so many people been using crypto and thus they government does not get much tax from such user. e

With crypto governments can many laws about, yes I agree, but they are laws they can not enforce.

Actually, I think you may have a sound argument in this case. Governments do need those tax payments, or else everything else will come to a standstill. Private sectors need governments for infrastructures, law enforcement, etc. after all, and where will the government get the money to pay for those?

 

But I have reservations about that argument. @yonkii already mentioned one of them, so I'll just quote:

On 2/9/2021 at 7:41 PM, yonkii said:

In some countries taxation is extreme and this doesn't allow development of the economy, while it may have inequalities having the poor deal with most of the tax budget. Some countries have weak politicians that can't deal with these problems, while many could also be corrupt and being in politics for their personal gain.

Since political comments are forbidden 🤐 in this forum, I'll keep this brief: Before people fix the system, fix themselves first.

 

As for where cryptocurrency falls into all this, as mentioned by @Whited35 :

On 2/9/2021 at 8:08 PM, Whited35 said:

If yes, please be noticed, taxation is possible even by using cryptocurrencies and the blockchain technology if it is correctly utilized.

Some countries like the EU have already taken steps to tax their citizens who use crypto, and even if the citizens do so begrudgingly, they still comply nonetheless. So there you have it, crypto CAN be taxed, and crypto users are willing to compromise. Your response where:

On 2/10/2021 at 3:04 AM, selfmade said:

Taxation is not completely possible even countries like the USA Korea and china are struggling still even though they have blockchain experts and all, not imagine this for the third world countries!!!

I think is invalid, because IMO one of the reasons progress of cryptocurrencies in those countries are slow is because there are still many dissidents in high places who steadfastly oppose crypto. Trump alone exemplifies that. Have those dissidents removed from power, and you'll see how crypto might have progressed more rapidly than you might have thought.

 

Time is also important here. Bitcoin alone is, what? Twelve years old? What more about the other coins? More time is needed for them to be fully developed for common everyday use.

 

At least the third world countries get to learn the mistakes the first world countries did with cryptocurrency policies and adjust accordingly.

 

... ... ...

 

Take the case with Venezuela. Everyone knows how screwed up their economy is right now, right? They've lost faith in their local currency and are now moving up to crypto, heck, you can even regularly buy pizza with crypto over there now!!! Now if only the (alleged) corruption over there stops, then people and businesses might be even willing to contribute to their country by paying taxes in crypto.

 

So crypto can work with the third world countries' economies, but ONLY if done right.

 

Edited February 11, 2021 by kyoukage01

[RoyalHouse01 9]

Even if there are some of the people who are doing the cryptocurrency and there are a lot more people who earn through the other methods that means there will be no issue with the government because all would not using it.

[maarcoferrer 1096]

Governments more than all socialist are what they want to benefit from everything but without giving anything to citizens, so it is important that we know what to do when investing and to take advantage of cryptocurrencies, many of them just want to profit in their favor and do not give information or knowledge. Although in countries like Venezuela there are places where Cryptocurrencies are accepted as a means of payment.

[selfmade 7]

9 hours ago, RoyalHouse01 said:

Even if there are some of the people who are doing the cryptocurrency and there are a lot more people who earn through the other methods that means there will be no issue with the government because all would not using it.

But it is like a revolution of money, there could be more people using fiat than cryptocurrencies now but the number of cryptocurrencies users would grow and the number of people who uses paper money would decrease, that is when my point is going to apply.

[Obliv0n 333]

Third world countries are in fact where cryptocurrencies are having more strength, because they represent a free way for the independent development of some individuals, by the way taxes or laws are generally not placed on cryptocurrencies if not in operations that are made with them.

[Wanderdark 2178]

I don't worry about taxation of the cryptocurrencies, in fact that is a necessary process towards the regulation and overall stability of the market. I can't understand why some countries try to ban the cryptocurrencies. These are usually underdeveloped countries and it is ironic that the most developed countries adopt cryptocurrencies whereas the least developed ones try to ban it. 

[Whited35 15285]

On 2/11/2021 at 9:31 AM, kyoukage01 said:

Time is also important here. Bitcoin alone is, what? Twelve years old? What more about the other coins? More time is needed for them to be fully developed for common everyday use.

I think we are still struggling to make the things clear for so many guys regarding the adoption of cryptocurrency and the backed blockchain technology. Bitcoin can remain as the unified digital currency  and other altcoins might fulfil the demands to be majorly adopted payment systems with the improved scalability, efficiency, and enhanced security. As Bitcoin still follows PoW, it has notorious demerit of scalability and PoS can be the future.

Those who are talking like, "Taxation is not possible on crypto", I think they are just focused on the PoW based traditional assets, probably they have not studied about genuine 4th and 5th generation blockchain networks like Polkadot and Free TON respectively which have made the things possible to share additional data on the blockchain not only crypto that means tax-related info can be exchanged even on the blockchain network for the effective taxation(Better than traditional taxation method).

In order to shut down misconception, I might better create another topic tomorrow. Quite busy now. I'd like to summon @rekter if he has missed to check this thread 😁

[Jack764 1841]

Governments must rely on the wealth in which they are located, not on taxes, but there are many poor countries that do not have these wealth, so the field of cryptocurrencies should be used in a beneficial manner.

[David84 1191]

I do not agree with the government control over the crypto world, forcing taxes on crypto is a crime, it is a highly dangerous trade and when you loose , no one is going to compensate you for your loss so why would they share their profits with you? it is not fare at all , and it is better to leave crypto alone, it is a decentralized field and it should stay so. 

[kyoukage01 3181]

On 2/12/2021 at 10:16 PM, Whited35 said:

Those who are talking like, "Taxation is not possible on crypto", I think they are just focused on the PoW based traditional assets, probably they have not studied about genuine 4th and 5th generation blockchain networks like Polkadot and Free TON respectively which have made the things possible to share additional data on the blockchain not only crypto that means tax-related info can be exchanged even on the blockchain network for the effective taxation(Better than traditional taxation method).

There is also the option of a country trying to create its own digital currency, then levy taxes on it. I think China is on the lead with this one, although I haven't read the latest news on its development as of the moment. But if a country can't create its own (most likely a third world country), it can also adopt pre-existing ones, provided that coin has competent support for that aforementioned country.

 

[Whited35 15285]

3 hours ago, kyoukage01 said:

There is also the option of a country trying to create its own digital currency, then levy taxes on it. I think China is on the lead with this one, although I haven't read the latest news on its development as of the moment. But if a country can't create its own (most likely a third world country), it can also adopt pre-existing ones, provided that coin has competent support for that aforementioned country.

Digital Yuan ? Let such countries to get accessed Polkadot like blockchain networks which have made the thing possible to utilize blockchain even from the government's end😉 Those people who are still arguing against the crypto taxation in third world countries, are they seriously spending time to think, k people from such countries are staying in silence without using crypto despite such countries ban or stay neutral to crypto ? 

P.S. Tough time here so still have not created that anticipated topic about blockchain to support taxation yet, let me reminding over the time 😁!

[Dang3r 103]

In fact, governments can enforce the laws imposed on cryptocurrencies, because most of the regulations are imposed on exchanges that take place in the national territory, for example a government could require Binance to provide the data of the transactions carried out in a certain period of time in order to know who or not to charge taxes, in any case third world countries or developing countries always have an advantage and it is the deficient legal status that they handle which in most cases allows all kinds of transactions

[Asim808 223]

My Country Is Also Facing These Type Of Problem And BTC Rate Is Extremely High About 50000$ .BTC Is Going On Top Day By Day. Just By Government Lacks Of Currencies. 

@selfmade

@Sara Khan

[maarcoferrer 1096]

The truth is that there are many third world countries that do adapt to cryptocurrencies such as Venezuela, only that there are many things behind the truth that prevent that in all these countries this becomes a reality as a form of payment without any other consequences, people who know and well more than all governments, take advantage of this are very benefited.

[MrSpasybo 1049]

On 2/9/2021 at 2:41 PM, yonkii said:

Taxation is important for a country in total and not just for the government and the elected parliament members. We elect these people to manage the finances of the nations and they usually forget they are the servants of the people and act on their own. Taxation is very important to keep the country running. A country needs infrastructure, health care, education system, defense budget and has high cost of running. 

In some countries taxation is extreme and this doesn't allow development of the economy, while it may have inequalities having the poor deal with most of the tax budget. Some countries have weak politicians that can't deal with these problems, while many could also be corrupt and being in politics for their personal gain.

With cryptocurrencies there are a few that try to avoid paying taxes but it is proven already that in regulated environments cryptocurrency works well without problems. 

As you say, crypto is a tool to escape government manipulation, not to evade tax obligations to the country. What we need is regular checks so that our tax money is used effectively instead of being used by corrupt officials.
I agree with the crypto profit tax, however in some countries the tax is very high, 15-20%, and I don't think it's fair to the crypto communities.

[selfmade 7]

On 2/19/2021 at 1:06 PM, Nula said:

We elect these people to manage the finances of the nations and they usually forget they are the servants of the people and act on their own. Taxation is very important to keep the country running. A country needs infrastructure, health care, education system, defense budget and has high cost of running. 

But it is not the government which is a problem here, it is the citizens who fails to fulfill their duties to pay for taxes and they use cryptocurrencies to achieve this, bad for the governments because there is a very little chance of catching such people.

[Merry Cherry 670]

If we will try to work in a good way Third world will also get attracts and they can also get benefit from this. We should also force our government so they can also get benefit but i think they are just afraid of losing  or they are not ready to face the circumstances.