gAtO gOt –Questions -Virtual Currency Real or Not- Reward Point, or bonus dollars and other forms of digital virtual currencies are normal for credit cards, online game sites, social networks and other specialty merchants and websites it all about true and branding. This new revenue stream is something that merchants are becoming aware of without knowing or understanding the legal aspects of this new digital currency world.
How does digital currency work in governments or does it – is it tax free, can I take campaign contributions with Bitcoins?
There are federal laws about digital currencies (gift cards) that impose inactivity fees, refunds and unused currency to states or regulatory statue in different states, now apply this to the global online stage. Then throw in the 2009 Credit Card Accountability Responsibility and Disclosure Act and the state and federal gift certificate taxes and were do Bitcoins and others fit in. This could be a big financial mistake for budget starve cities, states and countries it’s a worldwide problems.
So how does a merchant handle Digital currency if they decide to accept it for legal goods and service. For example My Book is for sale on my website using Mt.Gox BTC-Bitcoins – So how do I report my Bitcoins Sales 1.8 BTC so how does the Tax man handle the BTC-Bitcoin transaction?? If they accept Bitcoins then they are legal tender as long as I show sales and pay my Tax they now become legal tender by the State, and federal governments??? Right or is Bitcoin just like a Cash sales??? – These are the questions that need answers today, not tomorrow. I would think that governments may be losing revenue if they don’t think about how to handle virtual currencies transactions and incorporate them into the grand scheme of things (also known as red tape).
As smartphones and mobile pad devices increases worldwide more and more global customers are jumping on board. In the Asian gaming world it’s unstoppable people cannot not stop the online addiction and at a such a cheap price people in far away places are getting connected and this new market is a gem for corporations worldwide and e-currencies of any kind will be the new norm. This Jump in mobil devices and games alone will give digital currencies a gigantic boost. These new inexpensive mobile devices are taking farmers in remote villages and bringing them to our modern society very quickly.
Mobile devices are going worldwide today reaching the remotes corners of civilization and connecting everyone. And they want to spend $$$$$- money- $$$$$
This new mobile computer platform is changing the social and financial aspect of the worldwide landscape. All digital currencies that users accept in and believe in will be accepted. Merchants cry —I don’t care how you pay me as long as you pay me. The privacy aspect of this new currency is another thing that makes this very attractive. When anyone (governments/hackers) can pull your bank records and see every transaction you made.
They know everything every transaction? do they ? -did you know that with Bitcoins all transactions are visible – so we all know someone paid 1.2 BTC and transferred it to wallet_X. You can create a new -alias-wallet for every transaction and this way nobody will ever see your real wallet number. We can hide the wallets, encrypt it, back it up in paper, we can have many wallets and change them so keeping your transactions private is free it comes with the Bitcoin protocol. This is why governments say that terrorist use Bitcoins and other digital currencies to do their evil business,-NAW- well a suitcase full of CASH does the same thing and without and exchange rate to transfer it to my fiat currency… so that fear tactic does not work.. next
Consumers and merchants demand and acceptance of new digital currency has begun and the “jeane is out of the bottle”. These new digital virtual currencies can have very positive aspects in terms of financial innovation and the provision of additional payment alternatives for consumers and that is real competition.
Japans Moba-coins are a fine example: “While popular gambling-style kompu gatcha titles — in which users pay for coins to win prizes — are being eradicated from Japan, DeNA notes that its Moba-coin virtual currency was nonetheless used in a record $689 million worth of transactions in the country”. this revenue stream is only from 40-50 million users imagine when we all hop on this bandwagon.
There are many examples of others developing virtual currencies for gaming: NHN Japan offers a global gaming virtual currency called Line Coins; KakaoTalk in Korea offer virtual currencies called Chocos; and Tencent’s Q-Bi in China is firmly entrenched as a virtual currency. All of these are driven by mobile internet gaming services and the real killer will be when the major payments processors get into the virtual payments space.
The legality of Bitcoins have been debated all year long around the world -France, UK, Brazil, United Sates, California, New Hamshire, New York City, Germany, Finland, Italy and even Franklin, TN, USA.
As the price of Bitcoins hovers around $13-14-USD from a low of $4.5-USD this summer. It has attracted the interest of Forex and other players. With the European Central Bank (they control the EURO) report on Bitcoins to be a real thing are getting serious. Then a month later Bitcoin-Central ( French company, Paymium ) becomes the first Bitcoin Bank to carry out functions of payment service provider like PayPal and Dwolla unit of currency. Remember Bitcoin was built to operate completely outside the influence of governments and financial institutions but now Bitcoin is a financial institution.
Whether Bitcoin takes off or not is not the question, some virtual currencies is going to explode thanks to merchants, consumers, in-app gaming via social media and things that have not been created so far. You may disagree, but the aggregation of large amounts of small payments is effectively building a virtual currency system. go to https://blockchain.info and watch the transactions live, check out the “Bitcoin Top100 Recent Transaction”, I seen 124k, 150k 100 times in 1 hour-/ of course trying to track the wallets down to and IP is kinda impossible but mistakes can happen. https://blockchain.info/largest-recent-transactions
As we are seeing in New Hampshire allowance to take Bitcoin for campaign contributions put’s Bitcoins directly in the U.S bulls-eye. After this latest presidential election cycle here in American we saw that money is the language of politics and Bitcoins will play a role in our next presidential race 4 years away. Oh did I mention that Bitcoin is only 4 years old on Jan 9. 2013 imagine what the virtual digital currency and Bitcoins will look like in 2016. So are Bitcoins sales like a cash type transactions for governments and are they legal. I think that it’s still in debate but governments running deficits should allow any currency that brings in taxes to the coffers. Are Bitcoins Legal – stay tuned -gAtO OuT
Bitcoinica Rise and Fall from grace:
Superior Court of California, County of San Francisco
Case Number: CGC-12-522983
Title: BRIAN CARTMELL et al VS. BITCOINICA LP, ALSO KNOWN AS BITCOINICA et al
Cause of Action: CONTRACT/WARRANTY
Generated: Dec-18-2012 6:32 pm PST