Crypto Is In The Crosshairs – 276

First things first let's talk about some New rules that are going into place that Is driving a lot of fear behind the Crypto space especially with the large Mining firms large mining farms in General and while this might not impact You directly initially you need to take Into account that that this doesn't you Know this this flows down you know they They always start with the larger Amounts and they go down and they tick Down and they tick down and now you know We're at the point of needing to report A $600 transaction on PayPal and it just Gets ridiculous and cumbersome and Frankly just um you know anti-American In my humble opinion but I'd like to Hear your thoughts and opinions on it as Well let's go ahead and hop into it Though this is reported by RS Technica Crypto IRS reporting crypto payments Above $110,000 would be reported to IRS Under treasury plan fear of crypto being Used for tax evasion drives Biden's Admins reporting plan now tax evasion of Course is going going to be one of the Big targets that they place on the this Movement to regulate cryptocurrency Further and further and try to really Smash that into the ground it really in My opinion it hurts Innovation the more Stringent you get on these types of Policies and I think in general ends up Hurting you know new entrepreneurs Etc

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And it forces people out of the business That you know may have good ideas that Being said of course let's continue to Read on because You know we've been seeing this for a While so I'm not going to harp on it too Much we've talked about it a ton as far As what the attack vectors will be Including you know tax evasion criminal Use Etc completely avoiding of course Once they get rid of Bitcoin if they can They would then of course attack cash I Think cash will be attacked pretty soon As well talked about that with Daniel Keller on the last podcast with him that Was a great one if you guys want to get Into all of those types of convers Ations the Biden Administration wants Businesses to report cryptocurrency Transactions with values of at least $10,000 to the International Revenue Service cryptocurrency already possesses A significant detection Problem by Facilitating illegal activity of course I told you guys that was going to get Brought up broadly including tax evasion End quote the US Treasury Department Said in its proposal for implementing The tax compliance initiatives in President Biden's American families plan The larger Biden plan still needs Approval from Congress the treasury Document said that the crypto reporting Is one part of the quote pres of quote

The president's tax compliance Initiatives that seek to close the tax Gap the difference between taxes owed to The government and actually paid the Proposal calls for a 4.5 billion Investment in it to implement a new Information reporting regime that would Help close that gap which was nearly 600 Billion in 2019 of course the important Part here I think to really kind of push Into place is the the tracking because What this is is this is this is an in This is basically proposing an invasion Of privacy in my humble opinion they This is going to be a new program that Is going to utilize information Technology to track and Report better so That they can keep track of everybody And once that gets applied there that Gets applied out much broader than just You know cryptocurrency or just PayPal Or whatever it may be us law already Requires that trades and businesses Report cash payments of more than $110,000 to the federal government the IRS website notes this information Assists law enforcement in its Anti-money laundering efforts and Provides authorities with an audit Trail To investigate possible tax evasion drug Dealing terrorist financing and other Criminal activities the IRS says these Are the tropes right every single time We hear about cryptocurrency it's bad

Because of The and you just get a bunch of word Vomit the treasury Department said it Would apply the same threshold to crypto Transactions under the proposed new Reporting system which is clear like I Said this isn't just cryptocurrency that This necessarily applies to this is just Included in it within the context of the New Financial account reporting regime Cryptocurrencies and crypto asset Exchange accounts and payment service Accounts that accept cryptocurrencies Could be covered or would be covered Further as with cash transactions Businesses that receive crypto assets With a fair market value of more than $10,000 would also be reported on Although cryptocurrency is a small share Of current business transactions such Comprehensive reporting is necessary to Minimize the incentives and opportunity To shift income out of the new Information reporting regime virtual Currencies have grown to $2 trillion in Market capitalization and the threat of Illegal activity including tax evasion Is why the president's proposal includes Additional resources for the IRS to Address the growth of crypto assets the Treasury Department said in a footnote The treasury Department CED a 2013 Michigan law review report that said Quote to the extent that

Cryptocurrencies continue to gain Momentum we could reasonably expect tax Evaders who traditionally executed their Tax evasion techniques through the use Of offshore bank accounts in tax Haven Jurisdictions to H opt out of Traditional tax Havens in favor of Cryptocurrencies end quote the treasury Department said its tax enforcement plan Would more than double the IRS Workforce Over a decade and of course we're Talking about hiring even more IRS Operatives which will then increase the Amount of money that they need to have Which will increase the money printing That we do which will then devalue the Dollar and increase the the value of Your cryptocurrency that they will then Try to tax again putting more liquidity Into the US dollar market and then of Course driving the price of the US Dollar or the value of the US dollar Even further down that's my opinion I'd Like to hear your thoughts on it as far As that's concerned the IRS investment Plan would also replace the treasury's 1960s era computer architecture with new Machine learning capable systems that Will be better able to detect suspect Tax returns end quote Rutters wrote Adding that according to the treasury The IRS is the only Federal agency with Computers that run on Antiquated common Business oriented language system or

Cobalt now this is something that's Getting implemented across the board in Lots of different areas in fact I saw World economic Forum releasing one that Is going to utilize machine learning to Read brain waves and determine if you Should take a brain break from work and When you should work and when you Shouldn't work and how much you should Work and what your product acity should Be and it will report that to your Employer it's getting simply ridiculous At this point but also this is going to Be the new world we are going to live in And it's just coming very very very very Fast and there is the fact that Cryptocurrency does make by and large a Lot of this tracking to be a lot easier For governments in the end and that is Something to take into account when We're discussing different projects and Their viability and and how well they Basically adhere to the principles of Cryptocurrency and the fundamentals the Benefit at the end of the day is even Though it will be in my humble opinion Easier to track cryptocurrency than cash You will have that visibility on it from The regular man's citizens perspective Which can put a little bit more power Into that into the hands of the public Which I think is going to be a net Positive at the end of the day because Then you can see what the government's

Doing with it as well as like any of Your Peers the the fear of course is is that That turns into more and more invasion Of privacy and you get some weird Dystopian future and I think a lot of That will lean towards once again Central Bank digital currencies and that Will be the push that we begin to see as Time goes on a complete removal of the Cash System a push off of Cryptocurrencies that are decentralized And not controlled by centralized Entities and into something that is Controlled by governments it is also Getting a little ridiculous to the point To where as the world gets more and more Connected it seems like we need less and Less government more local government Less Federal Government at least in my Humble opinion and this kind of thing is Just pushing in the opposite direction Of where I think advancements should go And should be pushed towards right let's Move on though we'll go into SEC chair Once crypto exchange regulation there Are also calls for new regulations on Cryptocurrency exchanges to prevent Investors from getting ripped off of Course this is the fear play that gets Played across the board every single Time we start talking about regulation Within cryptocurrency exchanges we begin To talk about getting ripped off or

Getting scammed and this is going to be Protection for you once again take Personal responsibility with great power Comes great responsibility Cryptocurrency is great financial power In the hands of somebody that is willing To take on that responsibility and don't Give that responsibility over to someone Just willy-nilly because you aren't Eliminating any problems all you're Doing is moving the problem off to Somebody else and that actually can put You in a more compromised position it's Like investing in your retirement over And over and over again in Social Security right and then you get to the Age to where your time it's your time to Finally cash out your social security And they're like yeah you're going to Get you know not even enough for rent Now at this point so you know if we look At the past and we pay attention to how They manage those things how do you Think it'll be be managed when it moves Forward take that responsibility that's What I really advocate here for and Cryptocurrency is a way that you can Take responsibility for that at least in My humble opinion they are going to you Know obviously use this over and over Again nothing's really changed it is Going to be this fomo the not fomo Excuse me this fear right fud I guess if We want to use that term but putting

That that fear into people of well yeah Of course I need regulation because if I Buy some Bitcoin and something happens To it I want to be able to get it back Um but if you were you know taking Responsibility for holding your own Cryptocurrency holding your own Bitcoin Holding your own keys and keeping that Then in that case you wouldn't be so you Know you wouldn't have this problem and Once again this is just going to be a Way for people to invade your privacy See what you're purchasing do all that Sort of stuff along the lines of like You know the way the current debit and Credit card systems Work anyways Securities and Exchange Commission chairman Gary gendler said Yesterday that he quote or quote he Would like to see more regulation around Cryptocurrency exchanges including those That solely trade Bitcoin and do not Currently have to register with his Agencies Rutter reported Rutter's Reported now this is a little comical Because we had meetings between Sam Bankman freed and Gary gendler and FTX And discussing regulation and so on and So if you expect Gary gendler to Actually have any sort of positive Insight on or or accurate Insight on This he got fooled by one of the Greatest crypto scammers of all time and So why would you want to trust him with

Him with regulating the rest of the Exchanges right I mean I don't know why You would it seems a little ridiculous To me why don't we pick somebody that Would actually know what they're doing In this space quote this is quite Volatile a quite quite volatile one Might say highly volatile asset class And the investing public would benefit From more investor protection on the Crypto exchanges gendler said at the Financial industry regulatory Authorities annual conference earlier This month gendler told a house Committee that right now these exchanges Do not have a regular framework at the SEC or at our sister agency the Commodity features trading commission Right now there's not a market regulator Around these crypto exchanges and thus There's a there's really no protection Around fraud or Manipulation there is a point from the Perspective of manipulation obviously With trade ogre recently we saw this With Caspa and once again though that Problem with Caspa would have been Resolved if you had your own wallet and You held your own keys and immediately Exported that Caspa and ensur that there Was a withdrawal system of that Caspa Before purchasing it on that platform And so I don't have a lot of sympathy For people that are going on not making

Sure that there's a withdrawal option Not going through testing procedures to Make sure that they can actually Withdraw their cryptocurrency from an Exchange and not putting good practices Into their invest M it seems a little Ridiculous to me that you would put so Much money into an investment and not Even test the platform beforeand So if we kind of get into this it's like I I'm like okay well obviously there is This problem here but there is already a Solution to it which is don't be a Dumbass so I don't know I I don't know What do you think I get a little Frustrated with that with this every Single time but it is what it is I had No I had no Caspa on tradeo ogre I sold Caspa on trade ogre I deposited I Withdrew in the early days withdrew Caspa and I would always go through the Process of sending a little Caspa making Sure I could withdraw making sure I knew What the withdrawal limits were making Sure I understood what the fees were Going to be and then go through that Process and then you're good you're in You're out you're great just move it Into a wallet you control and you're Gold it it's not rocket science really At the end of the day to not be an idiot That that's really what it is a CNBC Article yesterday said that increased Regulation that increased regulation

Will likely upset some cryptocurrency Investors who have seen the value of Bitcoin slide about 25% over the past Month and talk of capitulation creep Into online forums however CNBC quoted Policy analyst Ed Mills as saying that Regulation would add further legitimacy To the asset class and could provide a Regulatory moat around existing Cryptocurrency exchanges I like that Termin analogy because if you guys Remember there is the kind of Trojan Horse analogy for Bitcoin and Traditional financial institutions where They really want to invest into it so That they can basically you know control It but at the end of the day what ends Up happening is it turns into a trojan Horse it drives up the price for the Regular people it adds transparency to What their Investments are and in the End still ends up being a net Positive with without them really Knowing right and that is kind of the Big the big hope I guess surrounding Institutional participation within Cryptocurrency in general now this was Written you know a little bit uh further Back I think because it I think this was Written back in on uh May of 21 but this Has actually this this $10,000 treasury plan is going into Effect so there is a lot of Bitcoin Miners that are going to be dealing with

You know basically a a reporting problem Because if you're a large farmer and you Are you know getting a a you know $10,000 worth of mining Revenue in a day And then you have to report that every Single day it's going to become you know Quite cumbersome to these individuals This might be better for Decentralization though at the end of The day because it would discourage it But you just move to different countries And that is really what ends up Happening it it you there's always ways Around this and the problem is is that I Think what you end up doing is you end Up forcing Bitcoin miners offshore and The problem I see with that is that I Think the cryptocurrency will be a huge Indicator into a country's economic Wealth later on down the line and if you Have large cryptocurrency miners uh and You control those right within your your National borders I think that nation in General is going to be in an advantage And I think that we've already seen you Know Russia really building up on that And you end up in this weird kind of Cold War uh with cryptocurrency and hash Power between nations and I think we're Seeing that kind of come into fruition We're seeing leniency get pushed back You know in in China as far as Bitcoin Mining is is concerned and we're seeing You know other competitors like I said

In Russia really ramping up their their Bitcoin mining as well even to the point To where they are kind of inadvertently Investing in minors in other areas like Kazakhstan and so on so I think to Discourage it in a capitalist you know Society or an environment right where The basically you're kind of leaning You're leaning on private entities to Bolster the economic value of the Country you need to be able to allow These people to move and and function Within those spaces especially as it Pertains to new technology and I think That it will just basically push large Mining firms to move into other more Cryptocurrency friendly areas and Regions and then I think at the end of The day the US loses out on not not only The the Capital the new capital from From these companies but they lose out On obviously the tax revenue from from Bitcoin miners as well which at the end Of the day is what they're trying to get In the first place so if you get too Stringent you end up having the opposite Effect of what your intention is which Is includ including your tax like or Increasing your tax revenue and you end Up decreasing it because you force Everybody out with high regulations and Cumbersome reporting plans so I don't Know it seems a little ridiculous let me Know what you guys think at the end of

The day I think right now you do have a Lot of large mining firms that will have To report daily in this particular case So now you guys mind during the bare Market you made it through well at least Maybe a half of you I know a lot of you over here didn't actually Do it but the ones that did I have a new Shirt for you guys and it says I mined With the Bears for the bear Market okay So if you mind with the Bears and you Want to rep that you did mine during the Bar Market go ahead and head on over to Shop.of and the listing will be Down below I'll put it in live chat Right now I have a sweatshirt there's a Sticker if you'd rather have a sticker T-shirt premium shirt all that cool cool Stuff um really like the new shirt I Ordered a few for myself and I just had That design finished this week Eventually it'll be under on the YouTube Channel but that takes a little bit of Time so just give it some time uh Proceeds of course go to support Supporting me in the channel so there You go and I thought uh we put some work Into it and I thought you guys might Enjoy It thanks for watching this clip from The crypto mining show you can check out The full episode here and don't forget To subscribe down here as well you can Also check out my crypto mining ecourse

At son where you can get a free Month of supporter status with a Purchase at sonof tech. also Don't forget to check out my merch Underneath the video or at shop.of I'll see you next Tuesday

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