Well, Bitcoins, Litcoins and crypto currencies are different from fiat currencies which are printable. Bitcoins are digitally formulated and it is mined through a mathematical formula designed by Satoshi Nakamoto. These digitally optimized paperless/nonprintable coins can be used for financial transactions.
Valuable bitcoins are easy to mine through optimized digital mining tools which are basically based on encrypted codes, ciphers and mathematical figures.
Do these crypto currencies help people to evade taxes? Is a bitcoin suitable to stop money laundering? All these questions must be held for broad and deep analysis.
Bitcoins Reduces Risks of Money Laundering
In a word, bitcoins which have been invented by Satoshi Nakamoto are easy to obtain without depending on third party. These digital coins are decentralized and therefore anyone is at liberty to mint these digital crypto currencies whenever they need. However, one should be trained how to manufacture digital coins through the powerful minting software.
People who use these digital currencies should have the specific software to install in the computer to activate the online minting machine. As per the new rule, maximum 21 million bitcoins can be generated on a single go.
It is legal to mint bitcoins to do the transactions. Blockchain is the complete account ledger which updates the total digital coin transactions through the online minting software. Cypherpunts don’t have to be worried about the privacy when they use or exchange these digital coins. They can change their passwords and encrypted codes to prevent hacking.
These digital currencies are self-operated by uses. Without their permission, none can open or activate the bitcoin minting software. It is not usually possible in the case of using fiat currencies. Black marketers and wicked persons produce fake
So, money laundering is becoming a severe concern to large and small countries. Bitcoins are not printable. These typical coins have to be generated using some hidden encrypted codes which are formulated mathematically. Therefore, other persons are not able to manufacture new bitcoins whenever they feel it urgent. They have to steal or hack the codes and passwords used by the bitcoin account holder. So it reduces the risk of money laundering.
Do Bitcoins Reduce Tax Evasion?
Many urchins and black marketers or thugs try to earn more through tax evasion. They have little faith and honesty. These taxes are actually invested or spent for developmental works. If taxes are evaded, people will be sufferers due to the lack of collected proceeds to build up buildings, roads, bridges and sky kissing establishments for overall development. So, tax evasion must be stopped.
Bitcoins have been introduced to the market. Many consultants and experts opine that these crypto currencies must enable government to prevent fraudulence, piracy and tax evasion. It will be easy to collect tax evasion data decoding the bitcoin software. FBI will track culprits easily.
These digital currencies support specific coded language or programming script. So, if it is necessary to cross check the bitcoin accounts or blockchain to detect the crime, FBI and other investigators can jail break the system to review the blockchains.Bitcoins are used everywhere irrespective of geographical ladmark.
For instance, a freelance writer can accept bitcoins from an overseas client who resides in Europe. He doesn’t need to exchange or transform currencies. Bitcoins are not transformable or changeable into other currencies. So it is an advantage for you to use bitcoins in any country. Fiat currencies need to be transformed depending on the denomination value in different countries. Is it risky to you to use bit coins? To be frank, IRS has no mono power to regulate the crypto currencies.
It is a decentralized digital currency. Recently few fraudulent cases have been registered by FBI against few hackers who decoded one’s bitcoin accounts to mint digital coins illegally. In this case, FBI must be more careful with upgraded tools to stop computer hacking or piracy. Cyber law must be made tougher to bottle neck the risks of online tampering to steal bitcoins. These crypto currencies simplify the online monetary transactions due to fewer obligations.
You can send bitcoins to a different address without submitting documents to IRS. It is your personal blockchain which can be used for personal use. Zerocoin protocol keeps the confidentiality intact. Your name will not be disclosed when you send or receive bitcoins.
Due to being pseudonymous, bitcoins are always transacted or exchanged through the addresses of bitcoin users. That means, your name will not be displayed in block chain.
You must use your specific addresses to have bitcoins for transferring.