Misinformation left, right and center is not only the story of your life, it is the story Bitcoin’s life too. People misconstrue things as a profession. This means that they jumble up information and turn it into a crazy muddle of facts just to ‘create’ content. It is freaking wrong. Because, we bust our a**es down here to make things as clear cut and verified as possible. But, the worst part is, that people read all kinds of mediocre sh*t that messes up their heads. All the scandals around Bitcoin that you have heard, there are likely to be just click-bait things. The kind of sensationalist bias that you should stay away from. Steer away because ain’t nobody got time for lies.
Lie # 1 Cryptos Were Created To Turn Black Money Into White
That crypto funds can be used to change the color, also known as the legality status of currency. Yes, in India an outbreak of this came out last year. True information, false conclusion! The country in question is not among the top law makers or the law upholders alright. You can not blame deviance on the technology when it is to be blamed onto the loopholes within the economy that apply to all areas of dealing, including cryptos.
Lie # 2 Cryptos are Tax-Free
Depending on the amount of cryptos you own, you are taxed differently. Depending on how frequently you transact, how much you pay for what, whether you are saving or buying luxury items you are taxed. Yes, like fiat currency and other financial assets small loopholes exist that may allow tax evasion, but cryptocurrencies are a. taxed, b. as good as regular money.
Lie # 3 Cryptos are used to launder money
Imagine you have $700 million that you need to transfer to a country far far away, you will have to go through a reputable broker in order to buy and sell bitcoins. They ask for paperwork to make sure its clean money. Unless you can find someone with exactly $700 million worth of bitcoin in their bitcoin wallet it is a dead end and you will be caught and you will be questioned. So do you want to go through all of this? Despite, following these steps, the money can and should be questioned in the other country in question. If you are not getting in trouble here great, but, be vary!
Lie # 4 Billionaires use cryptos instead of off-shore accounts
Billionaires use charities. They create a charity in their own name, and then they transfer all the money into it. To spend that money out of the charity is a sad and long procedure. This may mean that the tax free charity is locked and the funds can not be used for another ten or fifteen years at least. They may be using crypto charties eventually but, this is the trend as of now.
Lie # 5 Best place for hiding money
Hiding in plain sight is a great tool sometimes, but no for money. If it can be seen it can be taken away. Buying cryptos is kind of like this. It is yours but it is in plain sight, the tax heads can see it, the hackers can see it, thieves and other bad people can see it too. Chances are one of these will find a way to tap it if it is rewarding enough and if the security is not too tight or creative. Also, if you are not using it per se. So, you can not hide money in cryptos. Thanks to the distributed ledger visible to all who can read. Perhaps, not until something is invented that can conceal your funds, but then where will the fun go really?