Our tax reporting and collection system is built, among others, on the
assumptions that (ⅰ) parties to a taxable transaction know each other (or can
reasonably obtain information about one another and send information to each
other), and (ⅱ) that there are some uniquely situated taxpayers (such as
banks) that regularly collect financial information about other taxpayers in
a centralized manner. The operation of Bitcoin defeats both assumptions.
Parties to Bitcoin transactions do not necessarily know each other, and the
operation of Bitcoin is decentralized. Thus, important assumptions that stand
in the basis of our traditional collection mechanisms collapse.
Bitcoin is going through some significant growing pains at the present. A
major hub in the economy that grew around the currency,
has shut down amid rumors that it had lost hundreds of thousands of bitcoins
that had been stored with or exchanged through its service.
It seems that making the algorithms around the currency itself impregnable was
only the first part of the challenge. The next step will be developing tools of
exchange and commerce that are up to the challenge of dealing with the new
currency in a reliable and trustworthy manner while being accessible to the
The issue of the
Monmouthshire Merlin did a backgrounder on the
About seven years ago a turnpike-road was made between Pembroke and
Carmarthen, with the view of securing a great thoroughfare by it between
Ireland and London. The Liverpool and metropolitan railway has, however,
frustrated the object by leaving but 32 miles of road from Carmarthen to
Hobb’s Point, or Milford, as a passage for the mail, which seldom carries
more than three passengers a day. Very little thoroughfare exists along it,
as a carrier goes but once a week between Carmarthen and Pembroke, by which
there is not money sufficient raised to pay the interest for the capital
expended, much less to keep the road in repair. The trustees have the power,
by Act of Parliament, to put up toll-bars on lanes and by-roads, and also to
throw the expense of the main road on the parishes; and that power they have
exercised, which appears to have excited the peasantry to the late and
continued acts of violence. The tollage upon the road amounts to
6d. upon each market
cart for 12 miles, besides which the people have to keep the roads in repair.
Rebecca has already destroyed the
St. Clear, Trefechan,
Prendergare, and Pime toll-gates. She also boasts of having an auxiliary
force of 500 men, true and faithful, at Haverford-west. By order of the Home
Secretary, the marines from Pembroke dockyard have been recalled, and the
duty of pursuing the malcontents has devolved upon the Castlemarten yeomanry,
who in so nobly distinguished themselves
under Earl Cawdor against the French troops at Fishguard.
Find Out More!
For more information on the topic or topics below (organized as “topic →
sub-subtopic”), click on any of the ♦ symbols to see other pages on this site that cover the topic. Or browse the site’s topic index at the “Outline” page.