In the wake of the COVID-19 pandemic, a number of critical economic norms have come into a review. From how the government has been inflating the economy, debt levels crises, to now, the amount of money hidden away in tax havens.
For many of the issues that have bared the world since the world prosperity bubble bust, Bitcoin can fix.
Big corp and wealthy individuals have for years moved their wealth offshore. his funds find their way into countries and territories that have lower taxes and or ensure they pay little to no taxes from where the money is coming from or the corporation or individual resides. These territories and countries are referred to as tax havens.
Bitcoin: Separation of Money and State
In some instances it must be said, the safe havens are places to hide illegal funds. Corrupt individuals esp politicians have for years hid their illegal funds in such accounts. For this, the haven not only has to be KYC flexible but also offers tax reliefs.
It is estimated that as much as $37T is hidden away in tax havens. Now with the pandemic, there has been a suggestion that governments could work together to bring these funds back home to aid during and after the pandemic.
While difficult to get all these territories together, the unique nature of the current crisis could enable this. The U.S govt has on several occasions, most recently under the Obama admin. They looked into introducing strict laws that would prevent money from moving out of the country and into tax havens. Mental note: If it’s not this one, its the next, and they will find a way to get to that wealth.
Bitcoin Fixes Money Crises and Protects Freedom
Bitcoin can once again fix this. And, although there will be several adjustments since a simple transaction would be transparent to the world on the blockchain. Other cryptocurrencies that are privacy-oriented, such as Monero, are suited. This is evidence once again that Bitcoin should not be the only crypto as maximalists have always pointed out.
If this wealth is under threat from authorities, the next radical step is to move it and protect it from the state. And what better asset than one that boasts of separation of money and state.
For the early adopters, this would be massive news. Buying demand would be unprecedented and we would see prices reach new all-time highs. Currently, the crypto market value is under $300M. Even if only $1T makes it in, this would mean a 3X increase. Bitcoin which currently holds the biggest share in the current market cap and still the godfather of the crypto market would be the highest gainer.
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