St. Louis Federal Reserve Bank cautioned the similarities between Bitcoin and nominal currencies.
Earlier this year, the US Internal Revenue Service (IRS) noted that income from crypto money should be taxed just like any other income, and underlining that there is not much difference in the taxation of nominal currencies with Bitcoin.
About the topic The Louis Federal Reserve Bank took it a step further and used clearer expressions. In a blog post on the bank’s official website, Bitcoin noted three key similarities between traditional and reputable currencies. Here they are:
1-) No Real Value
At the beginning of the blog, neither Bitcoin nor hot money was mentioned as a real value. The authorities, seeking answers from their own point of view on the characterization of Bitcoin and where it should be put as a currency, used the following expressions:
“Crypto money continues to exist as data. Again, a piece of paper we know about money in your wallet. Neither has a value in the real sense. “
Obviously some authorities were surprised by the fact that the cash did not have a real value.The authorities, arguing that crypto money is a worthy solution, especially in the last few years, with a solution to the data security issue.
2-) Limits of Supply
One of the most basic things that can protect the value of any money is that the supply is not infinite. So it’s called creating a kind of famine . Let’s say you have $ 10 and the amount of dollars circulating around the world is $ 100. So, in this case you will have 10 percent of the dollar circulating all over the world in your hands alone. But if trillions of dollars are in circulation, this time the business will take on another form, as you can imagine.
While the blog article continues with the FED’s right to make changes on this subject, the following information is interesting: The amount of dollars circulating around the world as of March 21 is $ 1.63 trillion. The 1.59 trillion dollars of this was taken out by the FED itself. In other words, it is not possible to say that there is a famine in the middle.
But on the other hand, things will be different if you look at Bitcoin. There is no connection with any bank and the number is limited to 21 million . There’s no chance of going beyond this. So, the project mentioned above is a project that is able to pass through a complete illusion.
3-) No Intermediate Location
The last thing the St. Louis Federal Reserve Bank says is that there is no intermediary in two types of money. The bank explains:
“The hot money does not need any third person to send. Unlike a credit card or application, your account can not be a third party involved. “
In fact, theoretically, no one has any objections to this, but the facts are a bit different. For example, when was the last time in the world where a $ 100 million money transfer was carried out without intermediaries? Of course, there is no problem in transferring money in small quantities to people we buy while shopping at a bazaar or in a jacket, and these do not really need a tool. But today’s economy world has become much more complex than that. When we say all of this, we do not even say money transfer from state to state or country to country . In all of these, the vehicle is essential. So, this information, which is true in theory, loses its meaning when the current life comes.
If we were to look at Bitcoin about the same issue, we can clearly see what it is. The Bitcoin whitepaper contains the following statements:
“This money, which promises money transfer to the person entirely; transfers money directly from one to the other without needing any financial institution.