[ExI] bitcoin again

[spike at rainier66.com]

-----Original Message-----
From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of BillK via extropy-chat
Sent: Friday, 25 November, 2022 9:09 AM
To: ExI chat list <extropy-chat at lists.extropy.org>
Cc: BillK <pharos at gmail.com>
Subject: Re: [ExI] bitcoin again

On Fri, 25 Nov 2022 at 15:14, spike jones via extropy-chat <extropy-chat at lists.extropy.org> wrote:
>
<snip>
>
> My geezer friends then pointed out that Bankman Fried did not pay taxes on his… numbers.  I immediately responded: I retract and reverse previous prediction.  They will roast his ass bigtime.
>
> spike
> _______________________________________________


>...I'm not sure what taxes you are referring to....

Nor am I, nor is the IRS.  But the general rule is if anyone gets really rich without the IRS taking a huge bite of the winnings, the IRS is perfectly convinced a crime has taken place.  Read on please.

>...Individuals may be liable for tax when trading crypto...
Just holding crypto doesn't incur a tax liability....
So I'm not sure where your suggestion about tax problems comes from.

BillK

_______________________________________________


OK do allow me to clarify BillK.  The USA differs from most countries on the planet by being (at least in name) capitalist.  This has consequences.  Everything is for sale under capitalism, including government.  We are being reminded of that fact nearly every day as we inch closer (over there you centimeter closer) to having all that information on a mysterious laptop computer released into the public domain and the internal tweets about proxy censorship being revealed by Mr. Musk.

In all that, you will understand everything if you recognize the obvious: one can do pretty much whatever one wants if one carefully finds a way to cut the government in on the deal.  If you supply the government with their generous slice of the pie, by whatever means, then no reasonable prosecutor will bother pressing charges.  

Cryptocurrency is one of those gray areas where Caesar demands his cut if you trade in Caesar's currency.  But if someone steals your cryptocurrency, Caesar is unlikely to bother trying to catch whoever did it.  Caesar gets the cut of the profits without taking on additional liability.  Such a deal!  For Caesar anyway.

I do not know how Bankman Fried could have paid taxes.  But the fact that he didn't means the IRS gets a crack at his ass (perhaps I need to rephrase that) using their rules of prosecution (which are much easier to use (plenty of arbitrary unaccountable prosecutorial power in the IRS)) at their discretion.  

Bankman Fried recognized the utility of buying loyalty in the retail politician market, and did so.  Buying loyalty from the IRS is far far more difficult, for they are not running for office.  He couldn't, so he didn't.  

My prediction: no reasonable prosecutor will bother with Bankman Fried in criminal court, but the IRS will find a way to end up with all his assets, then he will end up in jail anyway for violating their vague or non-existent rules.

Oh I am so cynical.  Save this prediction in a place where you can find it again.

spike