Blockchain can create a tax less economy

in Project HOPE3 months ago

Blockchain is already creating a revolution. There was recently some news about how blockchain technology is used to create an ID in South Korea. I guess they are the ones who use this technology to a greater extent. In other news I also read that they are going to implement a toll collection system backed by blockchain technology. If they also find a way to monetize it with tokens created using that blockchain, it would be a great move.

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I was thinking about a similar concept for the government tax collection as well. If the government finds a way to get some alternative source of income, it should even be possible to create a tax less economy. One good use case would be to decentralize some of the public data. I would like to talk a little more in detail about what I'm trying to convey. Especially when it is said with a proper example, it would make a lot more sense.

Move all public libraries to blockchain

There are currently government-held public libraries where there are several thousand books and many new books are also being added to the collection now and then. If this complete database is moved to the blockchain with a proper rewarding mechanism for the witnesses who host the blockchain, it is not only that the government can save a lot of money in the infrastructure cost but it can also generate a revenue from that which can be used for further maintenance of the public libraries.

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Decentralizing these public government data with a proper ruleset in a blockchain would make it more convenient for the public and there will also be investors on the reward tokens generated by these blockchains which will attract more revenue for the government. This will be one of the biggest moves towards digitalization of government assets and generating revenue from that.

Taxless economy

Dreaming about this can be really very simple compared to the actual implementation. But dreams can always be very big. If the government comes up with many blockchain projects, there is a high possibility that it can move more towards Decentralized Finance (Defi) which is the most spoken term these days and a very hot keyword in the crypto economy. Blockchain projects will not only help in reducing the complexity but it will also help in creating an additional revenue for the government with the help of data and transactions that already happen in a centralized medium.

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There are much data with the government that are already public. If those data are moved from a public state to a decentralized state it can be an additional source of income as the whole world is already moving towards cryptocurrencies. If the government can create enough blockchain projects and start generating revenue from there, it can be used to remove the taxes we pay to the government. But for some of the cryptocurrency tokens, fees can be a big burden that needs more working.


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Yes indeedy!
I've been putting off writing about this topic. Found you through our @project.hope blog. Re-blogged to come back to at some point.

Check out my comment on this topic and share your opinion with me @machnbirdsparo

https://hive.blog/hive-175254/@crypto.piotr/qfbjbz

Oh that's great. Thanks for stopping by. Cheers! 🙂

Solid read @bala41288
Resteemed already. Upvote on the way :)

Thank you. 🙂

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That's nice. 🙂

Well done again @bala41288👍🙂

Hi @bala41288
This is a big dream, but I don't know if it is so feasible for most governments. Rulers would have to go through a process of formation that includes knowing what the Blockchain and cryptomonies are and the benefits they can bring to a country... But, it could take some years for that to happen, but it is a good dream, and even a good proposal.

Yes agreed. It is definitely a big step. Making them understand about blockchain and cryptocurrencies can be a big challenge. 🙂

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Thanks Guys. 🙂

It seems that the tendency is that everything that is storable is incorporated into the blockchain technology, what makes me think is that then that will make the near future, and we who are already adopting it through hive will be well positioned, don't you think so?

Yes that's true. Hive is undervalued. We create so much of hype for ETH becoming a PoS platform after 2.0 but Hive is already PoS and even DPoS and it is so much undervalued. So when everything goes into Blockchain Hive will also have great potential.

Dear @bala41288

I was thinking about a similar concept for the government tax collection as well. If the government finds a way to get some alternative source of income, it should even be possible to create a tax less economy.

I'm afraid I need to disagree.

First of all, most countries will not accept crypto as a way to pay taxes. Simply because it would mean, that crypto is considered "currency". And that would give crypto enormous rights, which neither central banks or commercial banks would like.

I don't think it will change - not as long as central banks have so much control over financial systems. Crypto is mostly used as a store value and I only see it moving forward as such.

On top of that - you may not fully understand idea behind taxes. In theory no country require collecting taxes. Money (in theory) could be simply printed and pumped into economy, without any limitations.
In the past taxes didn't exist in current form. But then many countries failed because whenever currency has been losing its value - people would trade this currency to any other one. Creating even more selling pressure and crashing such a currency.

To avoid it - goverments needed to create some internal demand for their own currency. To avoid situation, where all people are selling currency whenever they get paid. That was the case in the past and number of economies crashed and burned because of that. Venezuela is currently also great example of it. Whoever gets their salary in Boliviar - is selling those boliviars and moving resources into anything they consider "safe".

Taxes are creating such a demand. On top of that morgages and loans are creating such an internal demand as well.

Let's say I would earn in Indian rupee and I would expect value of this currency to drop. I will trade my earnings to USD/EURO/gold/crypto - but I will keep some rupees to cover my dialy expenses and also I will hold enough to cover my morgage and pay taxes. If not for taxes - I would end up dumping even more rupees.

Am I makins sense? I hope I do.

Yours, Piotr

Hi Peter,

I don't disagree with your analysis. It may not be perfect but no expert has a complete handle on these matters.

What I will say is that currency began creeping into pure trading markets long ago. It's simply easier for the baker to make bread all day long and the rancher to heard cattle over the same time. When both go to market, they have what they need for a Phili Cheesesteak (the sandwich of choice in the city where the Declaration of Independence was signed and the Liberty Bell rests- also where much of National Treasure was filmed <sub>- just some amusement/been up a while).

Now, if Bitcoin can prove to be the most secure place to store data like intellectual property rights and proof of ownership...

  • And a fast cryptocurrency can revolutionize instant international payments while leveraging Bitcoin and leaving bank issued credit cards in the dust...
  • And smart contracts can facilitate the legal, ownership transfer, and regulatory measures needed for things like real estate, ...
  • Just one more thing would be needed for crypto to be useful as taxes...
  • Governments would need to tokenize themselves.

Government can feel secure by going blockchain because they are [supposed to be] representative of their citizens. And what government would not rather want silver itself over a Silver Certificate. Alas, people in power feel comfortable when keeping people down rather than lifting them up. Even those power brokers who are philosophically Christian are slow to deny themselves.

Certainly, blockchain going beyond a store of value depends on crypto being useful, like needing Ether to run smart contracts on Ethereum, or needing CHI for XAYA (Namecoin) operations, or buying EOS for CPU on EOSIO.

Cheers.. and hoping that the crypto industry becomes more than what the world sees of Bitcoin as a store of value. As for now, ETH, the best option to BTC, is way too inefficient.

Godspeed. Hope to connect more often.

Marco

Thanks marco