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Crypto Brings Tax Evasion to General Masses

By on July 22, 2019 0

The deregulation and the lenient financial laws, over the course of the last two centuries, have allowed rich to tread fine line between the legal tax avoidance and illegal tax evasion and for that purpose the idea of offshore banking in 19th century Europe, the wealthy families and merchants had first conjured up for that to seek a place to store the funds away from tax-hungry governments, in aftermath of Napoleonic wars.

The concept of blockchain was first emerged in 2008, which is now offering the ordinary people also the same possibilities. By using the cryptocurrency, anyone who is a little technical savvy, he can open what is effectively equivalent of an offshore bank account, the albeit offshore in cyberspace.

First block ever mined, was the bitcoin blockchain, on the genesis block, with an ominous message was inscribed: “The Times 03/Jan/2009 Chancellor on the brink of the second bailout for the banks.” The words predicted development of an asset, which would provide an alternative, to the centralized banks. But afterwards, the bitcoin became the de facto darknet currency, and at least until the traders realized that because in every transaction on open blockchain, is also tied to a public address, which means that cryptocurrency is actually far less suitable for unlawful transactions, in spite of the briefcases full of anonymous paper currency, also favored by gangsters.

With the enhanced privacy features, a cluster of competing coins came to market in 2014, that includes Verge and Monero; and Zcash launched in 2016. These blockchain based currencies were effectively invisible, but also decentralized, but leaving no trace of any transactions. There are too many of their supporters, because these anonymous currencies, were seen as a remedy to kind of surveillance capitalism developing in the China.

“Nonprofits accept donations in Zcash a lot,” says Zooko Wilcox-O’Hearn, an American computer security specialist and Zcash’s creator and CEO. “One reason for that is that donors often prefer privacy when donating. Another is that if a business wanted to use a blockchain or cryptocurrency, either way, for business transactions, they would require privacy. It wouldn’t be acceptable legally or in business considerations to broadcast their transactions to the world.”

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