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Bitcoin, Tax, and Blockchain’s Unsustainable Mining



From the way society has been organizing itself, the efficiency and humanitarianism of voluntary relationships becomes increasingly clear. Still, we live under a system of coercive relationships, where money is taken from us, through taxes, to finance things we didn’t previously agree on. Hence the conclusion that taxation is theft.

In addition to the fact that there is no real justification for the existence of a coercive entity, the economic incentives for the tax are null. There is no reason for “there is a social return”. Even though he is a liberal, Milton Friedman admits this in his book “Free to Choose”, where he says that there are many ways to spend your money, and when you spend money that is not yours for someone else, you have no incentive. to save money and not worry about the quality of the resource obtained.

Therefore, it seems clear that the nature of Bitcoin is totally incompatible with taxes and the state, yet there are many political actors who try to mix the two. The transaction declaration, for example, is a way for the state to co-opt the movement of Bitcoins. Another way is to pay taxes in Bitcoin. The counter point, which is very clear, is the “hard finger effect”, where transactions can reveal not only the movement of the payer, but of possible transfers he received. However, the existence of a hard wallet, theoretically, could solve this.

Therefore, the practicality of payment with Bitcoin would not have a direct cost. The reverse is not true with the PIX. Although it is practical and useful, the counterpart of PIX is that it takes away the privacy of individuals, capturing and recording information from them. However, something that is contradictory in this state-individual relationship is that the latter has his information coapted by the former, while the former keeps most of his actions confidential.

This contradiction, the result of the disparity of the state-individual relationship, makes us realize the existing persecution of Bitcoin: more precisely, Bitcoin mining. Note that Bitcoin mining consumes energy, just like any other resource that presupposes energy, such as, for example, the banking sector, which is still far ahead of Bitcoin in energy consumption. However, the traditional financial market sector, as it is closely linked to state operations, end up using this relationship to try to stop, or delay, the evolutionary process of Bitcoin.

This and other information was provided in the Decentralized Deabte which took place on 09/18/2022, where the candidate for State Deputy Paulo Kogos and the CEO of SmartPay, Rocelo Lopes, were present.

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