Cryptos - one of the tools to control inflation ?

[NoahA]

So what happens if you directly buy a Tesla with BTC, then turnaround and sell your Tesla car? Did you escape the BTC capital gains taxes?

Excellent question, and I'm not even sure if what I suggest can work, but I figure it might. I think this was the whole idea behind stablecoins like tether, no? Trade out of BTC of ETH if you wanted to capture gains, but didn't want to incur a tax, so you trade into another coin that is stable. Then when price gets low enough, you buy back.

Saying all this, I have no idea how the government can sit by and watch Tesla cars be purchased with something other than USD. Isn't there a mandate that no cash other than USD will be the official currency?

 

[Nobert]

Excellent question, and I'm not even sure if what I suggest can work, but I figure it might. I think this was the whole idea behind stablecoins like tether, no? Trade out of BTC of ETH if you wanted to capture gains, but didn't want to incur a tax, so you trade into another coin that is stable. Then when price gets low enough, you buy back.

Saying all this, I have no idea how the government can sit by and watch Tesla cars be purchased with something other than USD. Isn't there a mandate that no cash other than USD will be the official currency?

No way.
If it's too good to be true then probably it's not. Too much of a no-brainer edge that any Joe could use.
Might work for a while tho.

If TSLA uses BTC like futures when calculating future profit margin. Would be something.

Until gov kicks out the door.

But on the other hand, gov itself gave permission on BTC futures, again,.

Ogh.

 

[DiceAreCast]

What are you guys rambling about? Why would any fiat go out of circulation? Total nonsense. Cryptos is like exchanging stones between users. It does not affect the dollar or any currency whatsoever. If I buy a bitcoin then someone else sells me the bitcoin, it changes the dollar in circulation by exactly zero. Guys, this is absolute basic econ theory.

 

[Nobert]

What are you guys rambling about?

Just looking for answers/insights/something to think about when looking through the window.

 

[virtusa]

Maybe you can buy a Tesla and avoid paying tax on the capital gain!!! You are after all just exchanging one asset for another without money involved.
And if this is in fact possible, I imagine the IRS will want to move on cracking down on BTC quick.

Funny posting. You will not believe me but I know somebody who did this.

Some rich Dutch entrepreneur bought a few years ago some BTC, just for fun. In 2017 when BTC skyrocketed, he decided to buy a new car and a boat from his profits.
A few months later the local tax authorities wrote him a letter. They asked him from which money he bought the car an the boat. Both were registered as they should be and tax people check apparently these new registrations. He got caught and had to pay a big fine for avoiding capital gain taxes. This fine can go up till 300%.
On top of that, at that moment his remaining BTC's crashed hard. I always wondered how it ended financially; maybe the remaining BTC were not enough to pay the fine and avoided taxes...
Remember big brother is watching you...

 

[MrMuppet]

The problem so far is that it is a hoarded asset.
It is not circulating enough to find its true value

That's BS. If it was trading at fair value, it would automatically gain float.

Imagine it traded at 1 million bucks tomorrow, there would be a lot of HODLers willing to cash out to improve their standard of living now e.g. to buy a house instead of waiting for another 20 years.

So as it trades towards fair value more and more BTC will circulate.

 

[narafa]

That's BS. If it was trading at fair value, it would automatically gain float.

Imagine it traded at 1 million bucks tomorrow, there would be a lot of HODLers willing to cash out to improve their standard of living now e.g. to buy a house instead of waiting for another 20 years.

So as it trades towards fair value more and more BTC will circulate.

Well, it really depends. If BTC goes to $1m, I bet you there will hardly be any house selling for $1m at that time, you will probably find cheap rural condos selling for $1m at that time, just like you find them selling for $40-$60k now.

However, for your example, i.e. BTC goes to $1m tomorrow or within like a month or so, then I agree with you, supply will come for sure.

 

[narafa]

Saying all this, I have no idea how the government can sit by and watch Tesla cars be purchased with something other than USD. Isn't there a mandate that no cash other than USD will be the official currency?

Well, yes and no. USD is the official currency, no other currency is allowed to be used, but since the US government do not classify Bitcoin as a currency, so they can't rule out people or companies who want to trade goods and services with it.

I mean any company is free to price their goods & services against other assets (As long as they are not pricing them using another currency other than the USD). So essentially, if TSLA wants, they can price & sell their cars in tomatoes, they are fine, since tomatoes are not a currency.

The US government is actually double forked. If they want to kill Bitcoin adoption, they must declare it as a currency and ban everyone from dealing with it or exchanging goods & services using it. If they continue defining it as a property, then legally they can't ban people from using it and it continues growing among corporations as well as individuals.

It's a dilemma which they put themselves in.

 

[DiceAreCast]

Not entirely true. Tesla can tomorrow price all their vehicles in the US in Japanese yen and would not violate any laws. Not that it would make sense, just saying.

Well, yes and no. USD is the official currency, no other currency is allowed to be used, but since the US government do not classify Bitcoin as a currency, so they can't rule out people or companies who want to trade goods and services with it.

I mean any company is free to price their goods & services against other assets (As long as they are not pricing them using another currency other than the USD). So essentially, if TSLA wants, they can price & sell their cars in tomatoes, they are fine, since tomatoes are not a currency.

The US government is actually double forked. If they want to kill Bitcoin adoption, they must declare it as a currency and ban everyone from dealing with it or exchanging goods & services using it. If they continue defining it as a property, then legally they can't ban people from using it and it continues growing among corporations as well as individuals.

It's a dilemma which they put themselves in.

 

[narafa]

Not entirely true. Tesla can tomorrow price all their vehicles in the US in Japanese yen and would not violate any laws. Not that it would make sense, just saying.

See I am not an lawyer, but I don't believe this is possible. Tesla can only do this in 2 cases, if they are selling the car to an overseas customer, so in this case, they have the choice to accept a different currency other than the USD or if they explicitly has a permission from regulators to domestically sell their cars in a different currency, something which I believe is very difficult to obtain.

Again, this needs a lawyer to say if it's possible or not.