Jul. 18, 2018
Dear respectful sir/madam,
How are you?
I am very humble and happy to write to you
Why I think bitcoin/cryptocurrency/Blockchain tech is good for the world ?
It is because I hope you will agree that it will bring more tax money to the government in multiple ways which is good for government.
How? You may ask sir/madam.
Please allow me to compare today to pre internet days. People used to write letter and affix stamp and drop in postal box - say in USA. For it to get to India, it may take 10 to 15 days and someone reading and replying another 15 days. So, it takes 30 days for exchanging one piece of information - may be it was about a foreign student bringing money from India to USA. Now how much time it takes for him? Does he write letter or just e-mails or sends a SMS?
I am sure you will concur that the velocity of money increased as well as velocity of information exchange.
Same will happen with bitcoin.
I was told that when electricity was invented, hesitation was there to replace the oil and wick lamps but the scientist communicated stating that "Electricity will bring more tax dollars" - that opened up the ears of the government and then it was history.
So, I am sure you will agree that crypto and its growth will bring more tax dollars to government.
For simplicity let us see 3 ways as how it can increase tax dollars to government
1) Because bitcoin/cryptocurrency/Blockchain improves efficiency - which means more businesses will start and flourish. Even small businesses can run with more success potential with low overhead because of its efficiency. And that reflecting increasing tax dollars because of that.
2) On the investing side, currently only accredited investors (people with 1 million or more) are able to invest in Initial Public Offering. Cryptocurrencies and ICOs reduce the barrier of entry to everyone and so investing world would give equal opportunity to everyone and again tax dollars increase to the because of that.
3) While the above para refers to all industries, let us look at specifically one industry - Financial institutes. Financial institutes will become agile and astute. Because of low barrier of entry, many small, nimble and agile companies will enter and create competition to slower bigger existing companies. So, that will prevent losses and tax write off done by slower companies - resulting equivalently more taxes for government.
Thank you in advance for unleashing the potential. If USA government does not act, rest of the world may act and USA as whole may fall behind in efficient operation.
To an extent this is already happening in communication industry. Asian countries are excelling for better in communication technology because of incumbent technologies and inertia, USA is falling behind.
Last but not least, when more tax dollars are earned through new industry, citizens will benefit because government with excess supply may reduce the tax for individuals like me and others.
Thank you very much,
(ps: In case you have any questions, kindly feel free to e-mail me).
Much appreciated,
Best Regards,
M Jay