IRS and FED Targeting Crypto! This is BAD
Lately about cryptocurrency being turned into legal tender. We saw it in el salvador, of course, uh bitcoin becoming legal tender um. There are other countries now. Nigeria now has the e naira yeah. The ethiopia moving towards it so theres a lot of different companies or countries right now, moving towards bitcoin, uh or cryptocurrency as legal tender, but the united states government um seems hell bent on really not doing that right, not doing that and trying to hurt crypto investors. Um, specifically the irs, and if you look more closely at whats inside of the infrastructure bill, crypto investors are up in arms this morning, uh myself included natalie included uh whats, actually hidden inside this infrastructure bill about about cryptocurrency. Exactly so. What it would require is that people who receive more than ten thousand dollars in cash and cash equivalents in business, like transaction file, these reports with the irs, including details about who paid them, such as names and social security numbers that is not possible by very definition Of a blockchain, a blockchain is anonymous and unregulated. When you get a piece of that blockchain you dont know where it came from. It is not possible, so critics are now worried if this would force participants in crypto and nft trades uh to have to disclose information that they just dont have. Does this mean that the government will say well, you knowingly didnt disclose that. So now you get a penalty uh. What does that mean? It signals that either they want to punish something that they dont understand, which right it doesnt seem likely to me.
I think they understand it or they want to just flat out discourage it. They dont want their precious us dollar threatened right, yeah exactly you know so again. This we saw this in china, china right so lets. Think about this. The u.s dollar is the reserve currency of the world right, it is. The u.s dollar is the standard by uh. By uh, which all other governments um operate well, china is trying to trade alone thats the big part of it exactly well and and china is trying to take over for the u.s dollar. China has been saying well. Why are we relying on the us dollars our own fed our own um bellwether? Yes, why dont we as have the uh china yuan, as our as the s standard, so china has already done this right, theyve already banned cryptocurrency, so that there is no theyve created their own digital dollar. Theyve created their own chinese, digital dollar and theyve, said its been a great success. They deposited um. I think it was like 14 billion dollars in transactions, something like that. We reported in the newsletter just last week. It was theyre saying its a big success. It is not a bitcoin, it is not its own cryptocurrency, it is a. What are we calling them stable coin because its backed by it is an equivalent of an actual physical dollar or yuan um, and so that is what the european central bank now is saying that they think in short order.
The euro will move to some kind of digital currency. That does not mean the euro will go away. It means there will now also be a digital version. The united states has not wanted to do this, and i think one reason is one yes, they dont want to have. They dont want disruption of their power of the central bank, but also it would force them to admit that only four percent of the money in the economy right now on exists in paper form, which means that 96 percent or more is already digital right, and so Its just not existing on a blockchain, its just existing on this old infrastructure, whereby we send money by wiring high fee wiring in other sort of expensive transactions right. So you think about the banks would really be harmed with their inability to charge us for transactions. If everything were on a blockchain uh wall street would be harmed like there are a lot of people who make a lot of money would be harmed by a digital currency and think about just the little things like the banks do. So when you they take your money, they take it immediately. But when you get a refund on a credit card, it takes three to five days. They gain interest on that money. While it sits there those three to five days thats why they do that they could instantly, so they dont want money, moving instantly to people correct or just on this old infrastructure.
You know you think about the infrastructure bill right and the fact that were so worried about. Like rickety bridges, i mean that is the back end of our money transaction in the united states and a blockchain would make that cheap and easy for regular people who want to say support grandma who lives in florida by putting some money in their bank, or i Mean thats, why we have these disruption, disrupter apps, like venmo or um zell, but they have transaction limits because they cant handle those transactions without high fees being incurred. That will not happen. Thats. Why? El salvador has been one of the first to adopt bitcoin, rather because they know so many el salvadorians live outside of their borders and need to exchange money with family back home and so its like. Oh, this would actually help people send money to each other. People support extended family; no, we cant have it right and how many people are unbanked, so thats, the beauty of decentralized finance is that how many millions of people around the world that dont have a bank account and think about the predatory practices in the united states? Where hey were going to put a dollar store in here and across the street, is going to be a uh, its going to be a payday lending. You know place so you can come in with your paycheck and get a loan like a few days before you get your paycheck well take 30 percent right right, so we because you dont, have a bank account yeah so well, well, take care of it for you And you just pay us 20, 30 percent for us to cash.
This check for you um. You know the article points out as this fast company piece says about why this irs uh provision would be so damning that miners stakers lenders, decentralized application and marketplace users. Traders, businesses and individuals are all at risk of being subject to this reporting requirement by the irs. Even though, in most situations, the person or entity in receipt is not in the position to report that required information, this is an attorney who, from the university of virginia and a law, professor, so again, decentralized, finance or defy operations where automated smart contracts provide financial services. Could also be affected by this provision, its amazing that how dopic so right now people are saying – like look youve got to get on this, this provision, this 6050 – you know i provision in the infrastructure bill seems like a disaster um, so coinbase is really upset about It um and he says its a criminy felony statute that could freeze a lot of healthy, crypto behavior like defy so then you cant report where you bought something off of a blockchain and you get a felony right like you. So now youre a criminal because you just dont have it, because you dont have that information. So imagine like buying an nft right. I mean first heres an idea, like you know: theres a theres, a theres, a domain website, theres a domain registrar thats. Now allowing you to buy um, you know, buy urls like website urls um as nfts.
Instead of having to renew a domain every year like on godaddy, oh, you would just buy it as an nft and you would own it in perpetuity brilliant right. Yes! Well! Imagine that company now is going to have to figure out how to report all of that, all of that to the irs or you, as a user of that of that blockchain are going to have to report this, i mean it just makes yeah all these billionaire Companies have these offshore accounts that can hide money and and do all this stuff, and they never see you know nothing ever happens to them. This is again just to go after this small investor thats making they dont want people to have a savings account in this country, right yeah, so they theyre just going to go after these investors, theyre going to go after so 10 000, like thats people who receive More than 10 000 thats a lot of people, yes, because a lot of people are using their investment funds right. So investors are moving this money. Yes, but its still, as i know, its a lot of money, but its still smaller transactions – and i mean its its on the lower end of what people transact, and so it would be aimed specifically at not the big banks right, those who are not in power. Well, theyre saying hey were going after money launderers thats, the you know thats. What were trying to do is stop the money laundering.
Yeah right were going after money. Laundered were going after the were going after the uh, the billionaires with the taxing thats. You know knowing the 600 transactions, we only want the bad, the big bad guys right, but by the way, money laundering, as if people havent been money laundering for decades with actual money with actual money in the bahamas and other places like well its just a new Thing theyre just trying to equate crypto to criminality like they. They just want you to think lower of crypto and not think that its something good so youre now youre going to have a bunch of people that read that article and be like no cryptos bad, its its going against the us dollar. People are just laundering money and well thats. The thing i mean you know, and the bottom line is its a threat to the u.s dollar, the u.s dollar, as this hegemony right, this, the financial reserve currency of the world, its a threat to that and what is what imagine, if the you know, the united States dollar, government, 28 trillion dollars in debt, and you have americans saying were sick of this. Like you, this is a phony currency, its printed out of a thin air mm. Hmm, it means nothing by the way. Stealing it from us. You keep stealing yeah. You keep stealing it from us. You keep printing more of it and giving it to wall street yeah the cost.
When i take this dollar and go and buy bread now, it only gets me half as far as it used to imagine. If americans suddenly say no, you know what im going to start using bitcoin yeah, which, as a store of value weve, seen 400 increases year over year. Right its like. We keep loaning our money to people with the drug problem, yes yeah and by the way were enabling were enabling their spending. You were about to say, bitcoin hit a new all time high. How did you know that? Because i could read your mind? Yes, i was gon na say that i married you for your mind: um it uh yeah. It hit a new all time high today, 68 000 and ethereum also hit a new all time high today. So again, if you have a choice of where to put your money right now, do you want it in this corrupt government dollar, backed by these crooks on wall street and the federal reserve and the treasury? Or would you rather have your money in a decentralized blockchain where every transaction is accounted for or would you rather have it under a mattress, um thats, a good question combination combination id rather have it id rather have it on the blockchain. Let us know your thoughts on this in the comments below all right. I want to have some under the mattress just in case, because you never know when you might believe in the dead of night thats.
True, you should have, i think, theres. You know that we should have some precious metals, gold and silver and things like that, but you know: did you see that ethereum uh? No, no is it bitcoin? No ethereum is now nipping at the heels of silver like its that close to replacing or am. I am i getting that wrong. Is it bitcoin? I read it this morning, um that bitcoin is now is closing in on gold by the way uh, but bitcoin is as close to moving into like that asset class. Now, where its about to eclipse silver as an asset class, wow thats, interesting yeah, you know what shocks me is that companies, like you, know american express or somebody like that, isnt stepping up and and creating some kind of system around crypto to you know their ass Is handed to them yeah, this is where square. This is why im so bullish on square. You know jack dorseys company, because well you have all these legacy institutional banks that have sat there and thought it was a fad. Now, all that this morning the numbers on institutions buying up bitcoin is staggering. They are swallowing it up theyre trying to buy as much as they can because they realized uh. This was a huge mistake. They missed the boat on this um, and so now you know you have like you: have all these big banks jumping on board to make sure that they own this as an asset class but jack, dorsey and square, and some of these startups have had smarter moves With creating you know, like square owns cash, app yeah, you know, and so like being able to have these transactions take place on their platform.
Theyre screwing, you know visa and mastercard, and these other companies are just getting screwed right now, yeah, i did not realize they own cash app. I love that app. That is like one of the cleanest apps ive ever used yeah. I love it yeah. They just reported their q3 earnings square did last week and uh, and they had two percent of their revenue now coming from billions of dollars in transactions coming from cash.