Tax Attacks Won’t Kill Bitcoin: Regulators Must Learn to Accept the New Technology

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This is an opinion editorial from Conor Chepenik, organizer of the Mass Adoption Bitcoin Meetup.

Congressman Brad Sherman’s recent tweet attacking bitcoiners as “tax evaders” is a prime example of how bitcoin has become a mainstream phenomenon. It is ironic that politicians like Sherman, who has sworn to uphold the Constitution and the presumption of innocence, are so quick to label bitcoin supporters as criminals without any evidence. Such comments undermine the fundamental principles of justice and fairness that underpin our legal system.

The fact that politicians like Sherman are attacking bitcoin serves as a sign to those on the fence that there may be something to this “freedom money” that is constantly being attacked by those on the fence. which are corrupt and compromise legacy systems. In a way, those attacking bitcoin may also be unwittingly working for its success and adoption.

And clearly, politicians are hoping that bitcoiners will bear some sort of tax burden that they don’t impose on anyone else.

Imagine a politician tries to tax people for using computational power to do math or for using English to express their views. They will be scoffed at and ridiculed because, while being a paranoid policy, both of these disciplines are essential to a functioning society.

Instead of imposing arbitrary taxes, the government should focus on creating a regulatory environment that supports innovation and economic growth. Unfortunately, in defiance of that seemingly clear mandate, the Biden administration has proposed a 30% tax on bitcoin mining, which is not only unfair but also hypocritical of the values ​​that make the United States of America great.

If a market participant has paid for their energy, they should be free to use it as they wish. So, why is bitcoin mining being targeted when other industries, such as pornography, video games or gambling, also use energy to allow people to vent their vices online? I am not inclined to tax other industries. I firmly believe that if a market participant has paid for their energy they can do whatever they want with it. My intention is to point out that this proposal appears to be a clear example of government overreach and interference in the private sector.

response to change

And it’s not just bitcoin mining that is being targeted. This is the entire bitcoin network. When new and innovative ideas challenge the status quo, both humans and technology may exhibit resistance or embrace change. Technology mimics many things about human biology, including how we respond to change. Established industries or institutions may resist new technologies to protect their own interests, just as our immune systems react to foreign pathogens to protect our bodies. However, just as humans can adapt to changing environments, so too can technology evolve and adapt to better meet our needs. People can either fight against bitcoin or embrace it, but either way, this technology is rapidly changing the world.

It is important to remember that new technology, including bitcoin, is not inherently bad, but rather a tool that can be used for both good and bad purposes. Instead of fighting against progress, we should embrace the opportunities that new technology provides and work together to shape a better future. Sherman’s tweet may not get him any votes, but it shows his lack of understanding and respect for the rights of his constituents.

The comparison between technology networks and human biology may seem unorthodox, but it provides valuable insight into the evolution and development of new technologies such as bitcoin. Kevin Kelly’s book “what technology wantshighlights its importance. There are three quotes that really stood out to me:

“Technologies do not exist in isolation, but rather in networks that amplify their power and reach.”

“Innovation is a team sport, and the best innovations are produced by networks of people working together.”

“The more interconnected our technologies are, the more emergent characteristics they exhibit, and the more difficult it is to predict or control.”

Technology is always evolving based on human needs. It starts with a small idea and then becomes bigger than anyone can imagine. This development is not always linear, as new technologies often emerge from existing technologies. These networks grow rapidly as new technologies enable things we never thought possible. FaceTime would have seemed magical to someone 100 years ago in the same way that a medical device that can regenerate organs for people would seem magical in modern times. I think someday this kind of technology will come and with it many more innovations that I would never have imagined until I saw them.

But, like humans, technology too has its own rules and regulations. To make the most of the potential of technology, we have to follow these rules. imagine if someone had a conference call about it tcp/ip A “conference for gang members.” It would sound ridiculous. Especially from a politician who is promoting innovation in his district.

Attacking people because they choose to use a protocol is insane. However, if your job was devoted to maintaining legacy technology and adopting new technology could make you irrelevant, I imagine you would not respond favorably to new technology.

embracing the evolution of technology

Ultimately, we are all part of a network of technology, whether we like it or not. We should embrace the growth of technology, and understand its potential to improve the world. We are at the beginning of everything these new protocols will be built upon, so it is up to us to harness their power and make the most of their potential.

I can’t say I know for a fact that bitcoin is going to top $1 million, but I think it’s very possible and the more network effects add up in both meatspace and cyberspace, the more likely it becomes. She goes.

“When zero reached Europe some 300 years later in the High Middle Ages, it encountered strong ideological resistance. Faced with opposition from users of the well-established Roman numeral system, zero struggled to gain ground in Europe. Did.

-Robert Breedlove,”number zero and bitcoin,

Now, the idea of ​​not using zero in math is a non-starter. It seems that the fate of bitcoin will be similar to zero and the idea of ​​not using bitcoin and everything built on top of it would be absurd. For example, look at Nostra. There is no way the protocol would have thrived if it did not bring so much value to the network for both bitcoiners and bitcoiners.

I believe there will be a similar effect for more innovation around the world, whether regulators understand bitcoin or not.

This is a guest post by Conor Chepenik. The opinions expressed are solely his own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.