Tax Havens have for long been the domain of the filthy rich, looking to avoid paying vast amounts of taxes on holdings or investments. However, the situation has been changing in the recent past on the establishment of international standards that has seen countries collaborate with each other to end the practice.
The emergence of Bitcoin has essentially brought about a unique way of storing wealth far from the reach of authorities. The cryptocurrency is now expected to open the playing field for ordinary citizens who under normal circumstance would not be allowed entry, into offshore banking systems.
In the recent past, it has become clear that banks don?t necessarily provide the required amount of secrecy that clients require, when it comes to storing wealth. Increased regulatory scrutiny has left such institutions with no choice but to comply with orders some of which involve handing crucial information about people?s dealings.
Bitcoin as A Tax Haven
The lack of integrity of domestic banking institutions has brought about the need for an alternative solution of which Bitcoin appears to be fitting nicely. The fact that blockchain technology powers Bitcoin means it will always provide the highest level of privacy and secrecy when it comes to wealth storage.
?When one tax evasion method becomes difficult, it is simply supplanted by another alternative. As data collection improves and more leaks like the Panama Papers continue, there will be no alternative but to turn to encryption and decentralized networks like Bitcoin for true privacy,? @dantwany boldly asserted.
Crackdowns in the mainstream financial industry is pushing people into Bitcoin as a way of avoiding paying too much taxes. The trend is expected to gain momentum as people get a clear understanding of what the cryptocurrency is all about and its capabilities.
With the European Union countries expected to start exchanging customer?s financial information as a matter of course, more people are expected to use Bitcoin as a way of avoiding regulators. According to Bitcoin Maximalist, bitcoin remains well positioned to get a slice of the $20 trillion tax avoidance market.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
Extra field for notice of amendment, use of pictures and or quotes. Delete if not applicable.