I've always held the belief that the government will start to hunt down Bitcoin holders sooner or later. For this reason, I refuse to use exchanges or make any cryptocurrency transactions using my real name. I'll be sure to keep my laptop and cellphone clear of any Bitcoin or Steem related stuff in case they want to give me a digital cavity search.
Not really surprised that govts will come knocking soon, trying to get their greedy hands on our crypto-pie.
This doesnt bother me too much at the moment however, as I've got at least a 5 year hodling instinct on all my coins.
Im hoping in 5 years, payment by crypto (be that Bitcoin or alts) for all sorts of things will be much more popular, and there will be less and less need to convert to fiat. Fiat is, after all, a poor proposition when compared to cryptos.
I'm also confident it will be easy enough to conceal crypto hodlings from govts in time. Just look at the great work that anon coins , especially Monero, are doing in obfuscating your information and creating true digital cash.
Encrypted paper wallets - make your own simple encryption and save the key in your phone/laptop/cloud with a random name and location. When they check your paper wallet and it doesn't work, you tell them it's not a wallet code.
OR
There are tiny cold wallets as well, I'm sure you can get creative with them when traveling.
The bill really shows how far behind these people are in figuring out what is going on. They obviously don't understand how private keys can be stored anywhere. Or how wallet seeds work.
Is the TSA the ones who will be torturing travellers to make sure they aren't hiding an undeclared brain wallet? Or are the full body scanners already capable to detect thought crime?
We ain't just gonna sit and watch this stupid laws exist, even if they do will have to come up with tons of solutions. Engraving inside the cover of our watches, chains, forming a fund transfer network whereby we can schedule our transfers. With that we can come in with less than the targeted amount and get our money when we are settled.
Using escrow services to transfer to ourselves.
Custom pocket Wallet (writing paper Wallets and then insert it into the pocket Wallet before sewing.
Custom key chains.
The thing is if criminals are exploiting you then you will have to come up with a counter attack.
Cryptocurrencies are like a fence to the Central Bank so they will want to disturb it by any means likewise the banks are exploiting us so we've standup
A Swiss bank account in your pocket! Great term. Too bad the US Inc is so onerous that it's hard for Americans to even get a Swiss account these days.
"...we as a society decided that we're going to compromise a little bit of our freedom for a little bit of security..."
Anyone here recall being invited to the "we" party in this statement? I suspect it was a "they" party and "we" weren't actually invited.
Yet another reason to flee the land of the free. Thanks for the insights, Randy!
Things will get interesting these next few years in the crypto realm @hilarski. Also, thank you for your all your postings on bitcoin, as well as other cryptos. I appreciate you and your wife. I did finally do my introduction after contemplating content for so long. Sometimes a person can get stuck thinking too hard. =)
This is a bill, not a law yet. Most never make it to the books. We will see what happens. Communicating to your Representative or Senator would be a good idea if anyone opposes or supports the bill.
To the choir or to those who do not know. YOU can stop this intrusion!!
This is all about STATUS. Are YOU a Citizen or are you a man or woman? One is a Illusion (CITIZEN) the other the REALITY.
It is none of their business as to what you have. They have no lawful right to any of that information.
LEGAL is not the same as lawful. WE are living under a system of complete FRAUD.
We must come to this truth, a citizen, is a owned entity. STOP being a citizen. People must change their status to be able to live without the tyranny of the STATE, each of us must reclaim our birthright. TAKE BACK YOUR LIFE!!!
They have lied and kept US in the dark for centuries.
Taxation is theft is a common belief amongst crypto-anarchists. Our wallets may be public but steem is a great way to do p2p transaccions and as far as I know neither the IRS Or any tax agency can confiscate our funds. Also travelling with crypto can easily be solved by having a third party send your funds after landing is one thought that comes to mind.
Any of the big movers of cash just use the banks.
It is fricken easy if you can afford a lawyer or two.
You move your cash to Cuba. Then you hire yourself or someone you want to give money to, to do something. (Do project X @ $1000/hour)
Or, give yourself a loan.
So, the law is meant to harass and terrorize little people.
And it will lead to confiscation of anything they say is inappropriate.
Things like: you have 1 bitcoin. Valued at $3,000 when you board the plane. And when you get there they say its worth $10,100 so, you just broke the law, confiscate everything and send you back.
Great idea, even longer waiting in line for processing waiting while border security checks all your devices, cards etc and demands keys and passwords. Way to go USA....Does anyone still really want to go there?
This is another regulation that is framed as being purposed to "protect citizens", but has many other implications and can/will be used as a tool for government to leverage their way into more and more of our personal lives.
You are spot-on with your analysis as the global governments are currently working diligently behind the scenes to make cryptocurrencies with the same rules, regulations, and tax implications as fiat currencies. They will want to take a piece of the pie as they can't have money outside of what they can control in the hands of the "bad guys".
Obama -"Everyone who has an encrypted device could be a pedophile terrorist with a Swiss bank account."
US Senate- " We must get our hands on all that Swiss pedo terroist money at once!"
This also means that we will have plenty of earnings on Steemit. I recommend you talk to a tax professional about how to handle the profits you earn on Steemit. Since the Steem blockchain is public and your holdings are available for the world to see it would be wise to declare them. This only applies to my fellow Americans.
How are you doing this Randy?
Declaring Steem/SP as income based on the dollar value at the time it was transferred into your account?
Or declaring Steem converted to USD as income at the time of conversion?
I have absolutely no idea how I would go about figuring out the former, but I have been thinking a lot about this lately. I don't mind paying taxes and I definitely wish to do what is right, but I suspect HR Block isn't going to be of much help ;)
We should do lunch or coffee next time you are in the city. If interested hit me up on steemit.chat
My guess is that the tax professional would take the value based on the last day of the tax year but I may be wrong. So many issues come up especially once we powerdown or take our SBD off platform. For sure let's get together soon.
Let's see: cash at the bank is essentially "prepaid" and banking app on smartphone is a device that allows retrieval and transfer of funds at any time. This can get ridiculous real fast!
@hilarski do you anticipate by December IRS or governing bodies will have a protocol or system in place? Looks like legislation is starting to pile up already.
The banks will do everything in their power tho make sure they get a piece of the pie...The money always ends up by the bank. Crypto-currency I think is the way forward it more like barter system except with ideas!!
Now a full force information war is on the rise by the looks of it... Thanks a bunch for all this information. I really hope the people involved will strengthen their knowledge of their rights, technology and, more importantly, stick together. Proper prior preparations will help in the prevention of aggravating circumstances...
Actually the world of Cryptocurrencies will make trouble for all governments and banks. Especially for government that collect taxes so every one can hide his own money within an online currencies that is untraceable.
We are entering to a new century that every one has it's own right on his own money.
Because of the existence of steemit this amounts to an endorsement of censorship if passed. Laws like this could result in a more invisible steemit like app becoming more popular. Except in freer countries. Sad!
This might sound weird, but I actually make little songs out of my 12 word passphrases in order to remember them. Its very effective. For example, my KeepKey Passphrase is sung to the Old Mcdonald had a farm tune, and is therefor called Old Mcdonald had a KeepKey, Trezor, Paper wallet, Exodus, etc. Point being, delete your wallets and just recover your wallets with your songs once you are done traveling. They do not come out of your head. Also this is a HUGE IF it gets to that point of invasion of privacy. A solution will be made immediately. Those old dinosaur lawmakers cannot possibly keep up with the pace that the technology is being developed. Its like trying to stop a sandstorm with chicken wire. They will eventually see the futility and stop wasting the money to try and stop it. Just my opinion.
Im guessing if you carry a device that has a wallet.dat file on it though, they are gonna ask you to demonstrate it doesnt include $10K or more in it? Refuse that and I expect you will be refused entry.
So my suggestion is as you cross through customs have a minor amount there, then transfer in whatever you need later.
Pity Steemit doesn't have any privacy options, but I guess things would be pretty easy to trace in any case, considering that the votes have to be public. Living the perpetual traveler/prior taxpayer lifestyle may be an option for some, and hopefully many take advantage of it.
Well I knew this had to happen, think we all knew it but avoided the pink elephant in the room.
I'm actually in this with my brother in law so let's see how that works out.
I'm doing the research and he is throwing some money at it. We both see a future in this, we missed many boats ,so hopefully we can profit together in this!!!
Great post and thanks
Thanks Hilarski, I agree with your assessments. But there are some strategies to pursue.. 1) switch citizenship, 2) dual citizenship, 3) own e-currencies through a business entity. Always a solution for those willing to take the extra steps..
Excellent piece of information @hilarski. Just finished a book called "Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money," by Nathaniel Popper. Your article is a perfect follow-up to the book and I highly recommend giving it a read if you are new to the Blockchain, Bitcoin, Cryptocurrency, or Steemit.
The central banks wont give up without a massive fight, they have everything to lose. I have been saying for years now, Crypto's are a marvelous invention, but never underestimate a cornered rat banker. Cheers, Great post.
The government will always find a way of leeching honest people ...
Spot-on.
https://steemit.com/steemit/@someguy123/anonsteem-prices-adjusted-get-a-steem-account-without-a-phone
Does this link have any relevance to the comments? If not it is spam.
Good read
Draconian...And thanks for the Flashcoin @hilarski I forgot to thank you :)
None of this matters because someone can just store their private keys on the cloud.
Your masters have spoken. NOW OBEY, SLAVES!!!
I've always held the belief that the government will start to hunt down Bitcoin holders sooner or later. For this reason, I refuse to use exchanges or make any cryptocurrency transactions using my real name. I'll be sure to keep my laptop and cellphone clear of any Bitcoin or Steem related stuff in case they want to give me a digital cavity search.
Great post my cryptobrother! Thanks for sharing!
Not really surprised that govts will come knocking soon, trying to get their greedy hands on our crypto-pie.
This doesnt bother me too much at the moment however, as I've got at least a 5 year hodling instinct on all my coins.
Im hoping in 5 years, payment by crypto (be that Bitcoin or alts) for all sorts of things will be much more popular, and there will be less and less need to convert to fiat. Fiat is, after all, a poor proposition when compared to cryptos.
I'm also confident it will be easy enough to conceal crypto hodlings from govts in time. Just look at the great work that anon coins , especially Monero, are doing in obfuscating your information and creating true digital cash.
These guys...
Taxation is theft. Of course, preaching to the choir here.
How would any of this be enforced without first complying and basically becoming more of a slave/bitch to the state?
Ways will be found to flow like water around the obstacles.
Trusted third party, escrow/landing wallets?
People getting significantly better with brain wallets?
(Lol yikes for some. Deflation anyone 😝?)
Better stealth on devices and keys 🔑? 😏
What else???
Will be cool to see how things develop...
We got this!
Solid post @hilarski !!!
We all needs to be situationally aware with these proposed measures.
Encrypted paper wallets - make your own simple encryption and save the key in your phone/laptop/cloud with a random name and location. When they check your paper wallet and it doesn't work, you tell them it's not a wallet code.
OR
There are tiny cold wallets as well, I'm sure you can get creative with them when traveling.
The bill really shows how far behind these people are in figuring out what is going on. They obviously don't understand how private keys can be stored anywhere. Or how wallet seeds work.
Is the TSA the ones who will be torturing travellers to make sure they aren't hiding an undeclared brain wallet? Or are the full body scanners already capable to detect thought crime?
We ain't just gonna sit and watch this stupid laws exist, even if they do will have to come up with tons of solutions. Engraving inside the cover of our watches, chains, forming a fund transfer network whereby we can schedule our transfers. With that we can come in with less than the targeted amount and get our money when we are settled.
Using escrow services to transfer to ourselves.
Custom pocket Wallet (writing paper Wallets and then insert it into the pocket Wallet before sewing.
Custom key chains.
The thing is if criminals are exploiting you then you will have to come up with a counter attack.
Cryptocurrencies are like a fence to the Central Bank so they will want to disturb it by any means likewise the banks are exploiting us so we've standup
A Swiss bank account in your pocket! Great term. Too bad the US Inc is so onerous that it's hard for Americans to even get a Swiss account these days.
"...we as a society decided that we're going to compromise a little bit of our freedom for a little bit of security..."
Anyone here recall being invited to the "we" party in this statement? I suspect it was a "they" party and "we" weren't actually invited.
Yet another reason to flee the land of the free. Thanks for the insights, Randy!
Things will get interesting these next few years in the crypto realm @hilarski. Also, thank you for your all your postings on bitcoin, as well as other cryptos. I appreciate you and your wife. I did finally do my introduction after contemplating content for so long. Sometimes a person can get stuck thinking too hard. =)
This is a bill, not a law yet. Most never make it to the books. We will see what happens. Communicating to your Representative or Senator would be a good idea if anyone opposes or supports the bill.
Yes, as was stated in the article but this one could be added to the books with barely a nod.
I hope not!
To the choir or to those who do not know. YOU can stop this intrusion!!
This is all about STATUS. Are YOU a Citizen or are you a man or woman? One is a Illusion (CITIZEN) the other the REALITY.
It is none of their business as to what you have. They have no lawful right to any of that information.
LEGAL is not the same as lawful. WE are living under a system of complete FRAUD.
We must come to this truth, a citizen, is a owned entity. STOP being a citizen. People must change their status to be able to live without the tyranny of the STATE, each of us must reclaim our birthright. TAKE BACK YOUR LIFE!!!
They have lied and kept US in the dark for centuries.
funny i just posted this earlier today.
https://steemit.com/life/@oneness/never-forget-we-are-all-consider-property-owned-chattle-a-entity-a-vessel-lost-at-sea-we-are-all-one
https://steemit.com/life/@oneness/stop-using-the-name-number-ss-sin-si-and-birth-certificate-free-yourself-now-we-are-all-one
We are the FORCE for CHANGE
lovelightpeace
Taxation is theft is a common belief amongst crypto-anarchists. Our wallets may be public but steem is a great way to do p2p transaccions and as far as I know neither the IRS Or any tax agency can confiscate our funds. Also travelling with crypto can easily be solved by having a third party send your funds after landing is one thought that comes to mind.
This is a stupid law. From its inception.
Any of the big movers of cash just use the banks.
It is fricken easy if you can afford a lawyer or two.
You move your cash to Cuba. Then you hire yourself or someone you want to give money to, to do something. (Do project X @ $1000/hour)
Or, give yourself a loan.
So, the law is meant to harass and terrorize little people.
And it will lead to confiscation of anything they say is inappropriate.
Things like: you have 1 bitcoin. Valued at $3,000 when you board the plane. And when you get there they say its worth $10,100 so, you just broke the law, confiscate everything and send you back.
Great idea, even longer waiting in line for processing waiting while border security checks all your devices, cards etc and demands keys and passwords. Way to go USA....Does anyone still really want to go there?
This is another regulation that is framed as being purposed to "protect citizens", but has many other implications and can/will be used as a tool for government to leverage their way into more and more of our personal lives.
that's a concerning prospect - a bit invasive too - Good post - well written. Now following
He might do transfer on the spot to another person account or family account. then he's not in trouble, right?
That's correct
and if the carrier wasn't expecting to be carrying 10k because that's how crazy the crypto luck went? ;)
You are spot-on with your analysis as the global governments are currently working diligently behind the scenes to make cryptocurrencies with the same rules, regulations, and tax implications as fiat currencies. They will want to take a piece of the pie as they can't have money outside of what they can control in the hands of the "bad guys".
Obama -"Everyone who has an encrypted device could be a pedophile terrorist with a Swiss bank account."
US Senate- " We must get our hands on all that Swiss pedo terroist money at once!"
Gonna impact me since I live part time in Tokyo, part time in Cali. Will let everyone know if I have any problems.
For sure, you are a good example!
I hope not! Maybe I'll just keep 9,999 in the states and let my wife keep the rest in Japan.
How are you doing this Randy?
Declaring Steem/SP as income based on the dollar value at the time it was transferred into your account?
Or declaring Steem converted to USD as income at the time of conversion?
I have absolutely no idea how I would go about figuring out the former, but I have been thinking a lot about this lately. I don't mind paying taxes and I definitely wish to do what is right, but I suspect HR Block isn't going to be of much help ;)
We should do lunch or coffee next time you are in the city. If interested hit me up on steemit.chat
My guess is that the tax professional would take the value based on the last day of the tax year but I may be wrong. So many issues come up especially once we powerdown or take our SBD off platform. For sure let's get together soon.
Thanks for the update! Always good to be aware when predators calling themselves “government” are plotting future attacks.
Oh boy!
Whatever it takes, we gotta follow authorities.
But I'm searching for caves now, in case of emergency lol!
Let's see: cash at the bank is essentially "prepaid" and banking app on smartphone is a device that allows retrieval and transfer of funds at any time. This can get ridiculous real fast!
#TrueStory!!
@hilarski do you anticipate by December IRS or governing bodies will have a protocol or system in place? Looks like legislation is starting to pile up already.
I don't think it will happen that quickly but they are working on it.
The banks will do everything in their power tho make sure they get a piece of the pie...The money always ends up by the bank. Crypto-currency I think is the way forward it more like barter system except with ideas!!
Now a full force information war is on the rise by the looks of it... Thanks a bunch for all this information. I really hope the people involved will strengthen their knowledge of their rights, technology and, more importantly, stick together. Proper prior preparations will help in the prevention of aggravating circumstances...
All for one and one for all! Namaste :)
Actually the world of Cryptocurrencies will make trouble for all governments and banks. Especially for government that collect taxes so every one can hide his own money within an online currencies that is untraceable.
We are entering to a new century that every one has it's own right on his own money.
Well said! I am surprised no one wants to up-vote your comment.... They are all going crazy about ICOs...
Because of the existence of steemit this amounts to an endorsement of censorship if passed. Laws like this could result in a more invisible steemit like app becoming more popular. Except in freer countries. Sad!
This might sound weird, but I actually make little songs out of my 12 word passphrases in order to remember them. Its very effective. For example, my KeepKey Passphrase is sung to the Old Mcdonald had a farm tune, and is therefor called Old Mcdonald had a KeepKey, Trezor, Paper wallet, Exodus, etc. Point being, delete your wallets and just recover your wallets with your songs once you are done traveling. They do not come out of your head. Also this is a HUGE IF it gets to that point of invasion of privacy. A solution will be made immediately. Those old dinosaur lawmakers cannot possibly keep up with the pace that the technology is being developed. Its like trying to stop a sandstorm with chicken wire. They will eventually see the futility and stop wasting the money to try and stop it. Just my opinion.
OK so if travelling to the US, leave main crypto wallet at home.
When in US dial into your home VPN, then send coins to your mobile crypto wallet after you cross the border.
Sounds legal to me, no?
I think that and brain wallets are what people will do. People will always be one step ahead but we knew this was coming.
Im guessing if you carry a device that has a wallet.dat file on it though, they are gonna ask you to demonstrate it doesnt include $10K or more in it? Refuse that and I expect you will be refused entry.
So my suggestion is as you cross through customs have a minor amount there, then transfer in whatever you need later.
Pity Steemit doesn't have any privacy options, but I guess things would be pretty easy to trace in any case, considering that the votes have to be public. Living the perpetual traveler/prior taxpayer lifestyle may be an option for some, and hopefully many take advantage of it.
We were discussing this issue the other day. I wish they would implement something.
Well I knew this had to happen, think we all knew it but avoided the pink elephant in the room.
I'm actually in this with my brother in law so let's see how that works out.
I'm doing the research and he is throwing some money at it. We both see a future in this, we missed many boats ,so hopefully we can profit together in this!!!
Great post and thanks
Thanks Hilarski, I agree with your assessments. But there are some strategies to pursue.. 1) switch citizenship, 2) dual citizenship, 3) own e-currencies through a business entity. Always a solution for those willing to take the extra steps..
This will probably fly under the radar. It's also the first I've heard of it. Thanks for sharing Randy.
No problem Joan, it will be something we have to watch.
Thank You @hilarski for the news, we can't do anything about that but always better to know that what they are plotting and planing for our future.
Excellent piece of information @hilarski. Just finished a book called "Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money," by Nathaniel Popper. Your article is a perfect follow-up to the book and I highly recommend giving it a read if you are new to the Blockchain, Bitcoin, Cryptocurrency, or Steemit.
Check this out @quantumanomaly!
Very nice
a good work. I like yours
Interesting post
I guess the central bank are fighting back against crypto currencies, using their government stooges.
@silverbug
We have seen what they can do to our precious metals. Now let's see what they will try with Cryptos.
The central banks wont give up without a massive fight, they have everything to lose. I have been saying for years now, Crypto's are a marvelous invention, but never underestimate a cornered rat banker. Cheers, Great post.
Great post...
nice...
The government can't get in? GOOD!
There's dark days coming to the US. =\
That's why a lot of use Americans are prepper.