I’m an honest, hard working taxpayer, what use would I have for Bitcoins?
The answer to this question is my reason for being a Bitcoin holder myself. To best answer it, let’s back the clock up 4 years to the end of 2008 and beginning of 2009. Let’s say you’ve had a reasonably progressive and successful career, purchased a new home – in fact let’s say that you’ve pretty much put everything you had into buying a beautiful new home (with a straightforward 30 yr fixed mortgage, and without any of the economy crashing ‘creative’ financing). Now imagine the ensuing recession catches up with you and your line of work, where suddenly the cash flow has gone dry and your wondering how your going to pay the bills – especially owing to the fact that you have a family to support, too.
And suddenly your good standing with the banks and outstanding credit score are a thing of the past. Your scraping by each day, wondering how your going to keep the lights and the heat turned on as well as keep from being homeless altogether.
Let me pause right here because I know exactly what you are going to do.
The very best that you can. And in the end, it will be good enough.
Your also going to have an amazing clarity of where your priorities are. Your going to make sure your family has a home with heat, electricity, and food. Maybe internet or cable TV but probably not both. And, if you have a mortgage, your going to decide just how important it’s going to be to hang on to your home. Are you better off in the long run by fighting to stay in your home, and is it a fight that you have the patience, resources, and stubborn persistence to keep pursuing for the long haul? Along the way your also going to decide what’s less important. Do you pay several hundred dollars just to have your taxes filed on time, then a couple hundred (or more) each month just to keep the IRS off your back? Or is that same money going to be paid on the mortgage so you and your family can have a place to stay for an extra month?
Also, like a lot of people, you have established credit at the same place you do all of your personal banking, with a regular checking account and a debit card, too. So you get a few hundred bucks in, do you make a payment on your bank debts, or do you pay the power company, who’s left you a shutoff notice for the following Friday? Well, to you and I these answers are pretty obvious but when it comes to the IRS and the banks? They just don’t care, no matter how much they, or anyone else did to contribute to your financial problems.
So what I’m leading up to is how your priorities may stack up. Generally they are going to be:
2. A place to call home.
9. The home you bought.
11. All other debts.
Your experience may vary, in fact you may find the liquor priority vary’s wildly day by day, and week by week.
Now ask the tax man, landlord / mortgage holder, gas company, electric company, car loan company, internet provider, cable provider, trash / water service, lenders, borrowers, uncles, cousins, milkmen, and even liquor men who your top priority is?
When really the answer is fuck Them.
But that’s not so easy. The tax man can empty your bank account and take any wages you and your spouse are earning. Your bank can take all the money you have deposited with them, the mortgage holder can take your home. Even the other creditors can take you to court, where it’s likely that they too will be granted access to your bank deposits and household earnings.
What I’m leading up to is this: Your earnings are yours and yours alone. Even as your accountable to your family and responsible for any other commitments / obligations you have, your also responsible for your share of the taxes in the community and country where you live. Your priorities are also yours alone as you will be the one to bear the consequences of your actions. The proverbial judge and jury from one issue will not have the least concern that the judge and jury on another matter got to you first. They’ll all still take what they can get from you, even if the second judge and jury holds the bigger share of your consequences.
And what all of this illustrates is the greatest value of Bitcoins.
Your earnings, your assets. Your priorities.
So in the future, with an ever increasing use and acceptance of crypto-currency like Bitcoin, the stress, anxiety, and frustration of drastically upside down household budget becomes more manageable as you spend more of your time focusing on a core solution, such as a new line of work, and less time dealing with the adverse effects of unemployment, like a series of over draft fees triggered by your banks eight dollar monthly fee.
Sure you could deal mostly with cash and for many people throughout the world, cash is a way of life. But cash has it’s own transaction fees in terms of the time and effort it takes to get it to your priority obligations – like the electric company, and once again your using your time to deal with the symptoms of unemployment instead of curing the problem itself, again by finding a job.
In a new mixed currency economy, you offer your goods or services to anyone in the world and accept payments in the currency that’s most trusted and convenient for you and your customer. Any persons trying to create an honest living in an underground economy has a new bridge to the greater global economy, and renewed hopes of really living in the global economy.
So how does any government survive with it’s economy and currency intact in a world with a co-existing unregulated currency? The same way any business survives in a global economy, by creating value for it’s consumers, and in the fragile world we live in, governments can still offer tremendous value to their consumers.