Should Malcolm Turnbull embark citing Bitcoin spil well spil the cochlear implant when talking about Australian innovation?
Could Bitcoin, the digital currency agiley disrupting traditional financial systems, be an Aussie innovation? What is Bitcoin anyway? This Crikey Clarifier should help.
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Five thoughts on &ldquo, Is Bitcoin an Australian innovation? And can it be taxed? &rdquo,
Surely Crikey will support the A.T.O. efforts to protect Australian Citizens? Ooops! I almost left behind. That’s NOT part of Crikey’s interests, is it.
I couldn’t understand the article and came to comments, hoping to find someone who did.
Hi Norman, I’m not sure what you are getting at. The ATO is a tax-collecting agency, not a law-enforcement agency, and is certainly not involved with “protecting Australian citizens”. I’m also not sure why this is relevant on a Bitcoin article – Australians have nothing to fear from Bitcoin, it’s a flawlessly legal currency that anybody can use.
Hi Slede, what about the article did you find difficult to understand? The article did use a few chunks of vaktaal but basically all you need to know is this: Bitcoin is a form of money that exists entirely digitally. (Australian dollars exist partially digitally and partially physically). Bitcoin is independent of any government and is used ter almost every country, making it an excellent global currency. Bitcoin is also independent of all organisations – it is not managed by any company or any group of people, and instead it is operated through overeenstemming among the people who use the software. Bitcoin operates through a set of fairly ordinary rules that can only be switched if a majority of the Bitcoin community agree on the switch. Bitcoin also uses encryption to ensure that your funds can only be unlocked by your password, and only you have the password to your funds. Spil I mentioned before, there is no central authority and no “boss of Bitcoin”, so spil long spil you never give out your password your funds can never be frozen or stolen.
Because Bitcoin is digital, money can be transmitted very quickly, overheen very long distances, and very VERY cheaply.
The article’s headline asks “Can it be taxed?”, to which the response is a resounding “yes”. If I walk into a cafe and buy a coffee with Bitcoin, GST is charged. If I go to buy some Bitcoin using dollars, GST is charged. If I buy some Bitcoin and then sell it zometeen at a profit, I pay Capital Gains Tax. If my employer pays mij te Bitcoin, I pay Income Tax or Fringe Benefits Tax (depending on how the payment takes place).
I hope this enlightens you a little, Slede.
Perth Bitcoin, I don’5t fear anything from bitcoin, but protecting Australian Citizens from various threats is part of the ATO’s role, and this includes such things spil Terrorist money laundering and financing.
Te light of the Crikey Commissariat’s history, my comment wasgoed a very mild mocking of them, and no less relevant to the thread than much of what they run.
Good luck, by the way with helping Slede understand anything spil ingewikkeld [for him] spil bitcoin.
If the Crikey Censor runs true to form you will have to wait some time before they release this (for them) ‘provocative response.
PerthB/C – thanks for that brief version. It wasgoed spil I thought but desired to check that there wasgoed nothing too esoteric te the article.