Quote:
Originally Posted by BobC
Jeff,
I think you beat me to it. Didn't see your last post before putting up mine. I'm of a similar position that crypto-currencies may be undermining regular, national currencies in countries around the world. And that actions towards them, as already put in place by China, may become the norm for the rest of the world at some point. We shall see.
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Bob, I think we differ on whether cryptos represent a threat to national currencies. I don't see that at all. Certainly, both the US Dollar and the various cryptos are both fiat money. But, money takes on two roles: a store of value and a vehicle for speculative investments. The dollar can do both, but I don't see cryptocurrencies ever taking on the first role. The dollar has been and currently remains the world's reserve currency. If it gets supplanted, I would see the renminbi taking on the role, not Bitcoin or any of its imitators.
It was my understanding that the regulations related to crytpos were more related to the ease at which they can be used for money laundering and tax avoidance. However, you are the tax expert so I would defer to your opinion on that matter.