By Taxing Crypto, the Government Has Finally Accepted It - CoinDesk

Our observation and thoughts on this article: 

Here's the silver lining – and for me a huge "Aha" moment. If the U.S. government thinks it is going to raise $28 billion in taxes from the crypto industry in the next 10 years, it means crypto is here to stay. It means crypto is going to be a new cornerstone of the U.S. economy.

This is an "aha" moment indeed. Coming to think of it, if the government plans to collect a certain amount of tax in the next 10 years, they cannot be doing so, without accepting that the industry is here to stay for the long run. 

The government didn't abolish tobacco – it taxes it. The government taxes alcohol. The government taxes capital gains and income, and all kinds of other things. It does not tax illegal narcotics, it does not tax prostitution (except in Nevada). And once the government gets used to receiving tax revenue, it is almost unprecedented for that to stop.

Let us say it another way - once the government has tasted money through taxes, it is almost unprecedented that they would make the source of the tax money illegal. 

My first "Aha! Moment" that crypto was here to stay occurred back in 2013-2014, when the government seized copious quantities of bitcoin (BTC, -1.83%) from the illegal Silk Road criminal enterprise.  

And what did the government do with all those bitcoins? It auctioned them off to the American people. Wow!

As funny as it may sound, this again corroborates the earlier statement by the author. Governments do not auction off illegal drugs seized by it. It destroys them. 

The original article can be read here
 

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