Regarding a show on bitcoin, please include how to set it up as untrackable by the government. Tell us how to set it up to hide our money going into or through a wallet or whatever the method. Then is there a way to convert back and not be traceable? Thank you.
BitCoin is not untraceable. Every transaction ever conducted via BitCoin is part of the blockchain and available to anyone. It can always be traced.
The reason it's favored by those looking to be undetected:
• Laws regarding financial transactions, particularly over across national lines are targeted primarily at banks. Bitcoin has no central authority to comply with (or even be relevant to) many of the existing laws with regard to seizing funds, blocking payments between individuals, or surrendering records. It'll be a good while before the law catches up with the technology.
• It's still largely uncharted waters for law enforcement, tax investigators etc. This is rapidly changing, they're learning fast, but there is still ignorance of the system in sufficient amounts to be exploited. Until everyone's up to speed on it, you're working in a government blindspot.
• Brokers (selling BitCoin for cash) are largely overseas, in countries that have high privacy protections and keep very few records. Kinda like having a swiss bank account, people can make all the inquiries they want, but will be told to F* off if they want customer info. This all depends on which exchange you buy bitcoins from (mining them is no longer viable for most people). Do not assume you have any privacy, or that claims of privacy by one company are factual. A lot of companies offer assurances of privacy, but fold like a cheap card table if authorities in their country apply any pressure. Look for a long track record, no significant record keeping, and in a country where the laws favor privacy. Even then, most people would advise against using a single company for the purchase of bitcoins.
BitCoin is better suited presently to disguise the source of income, but not the best method of hiding or protecting money you already have. You'd be far better off investing in tangible assets. Buy a case of wine (good wine), and it's value will increase at a rate higher than any interest rates you're likely to get. As a consumable item, if you "forgot" to declare a sale, for all anyone else knows, you just drank that bottle. Hide wealth in physical assets with unconventional or difficult to quantify values. A shelf in your basement could be worth $2,000 or $2,000,000, and nobody knows how much exactly except you, and anything sitting on that shelf is income neutral until sold. If you were to sell the wine for a profit, that's where you might consider BitCoin (although cash is probably still easier in this case).
I prefer lawfully passive tax evasion, lol. I'll grow a few apple trees in my yard. Looking at my root cellar inventory, I used 15 lbs of fresh apples, 9 cans of apple sauce, 24 gallons of cider (fermented), and 2 quarts of apple jack in the last year.
At $1/lb and 8% sales tax, I saved $1.20 on taxes in fresh apples.
$3 a jar for apple sauce, that's $2.16
Hard Cider (42x 6-packs worth) at $9.99 each is $34.09 in sales tax and $12.60 in bottle deposits
Apple Jack is $18/qt, $2.88
So... by not buying these goods, I saved $52.93 this year in taxes unpaid. That's completely ignoring the cost of the actual food, which is hundreds of dollars in savings, and that cost is inflated by the taxes paid by producers, distributors, retailers and all support industries... and that's just for apples, lol. Once you start to factor in all the ways in which you pay taxes, and how easy it is to avoid many of them, BitCoin (for the average person or small business at least) is a very minor part of the equation.
My advice, if you're going to use bitcoin, accept it as a type of payment for products or services, but don't convert cash to bitcoin.
Poll
