HMRC is reported to be reviewing the tax status of the Bitcoin. So it should. But not, I suggest, to consider how it should be treated by existing tax legislation. No, it should make it illegal.
Now, I’ve previously said I’m in favour of alternate currencies. But, faced with a real alternate currency I now perceive it to be a threat to The State. This is because The State is not in charge of this alternate currency and cannot monitor it in the way it currently does with Sterling.
All Sterling coins and notes contain tiny transmitters that allow HMRC to monitor their locations. In this way they know who has what money at any given time. So all cash is completely traceable.
But, as far as I can see one of the major (not sole, but major) design features of the Bitcoin is that it occurs online through transactions that are permanently recorded.
I have not read enough to know much more than that so HMRC must make Bitcoin illegal with immediate effect without consulting Parliament.
As with all things that it does not understand, Civil Society demands that it is quashed immediately. So let’s not hear any nonsense about democratic processes or “rule of law”. That is sophistry.
This ‘currency’ appears to be designed to facilitate what some call freedom. But The State has the right, nay, the duty, to confiscate freedom wherever it may find it and then redistribute it as i sees fit.
If it doesn’t, it will probably signify the beginning of the apocalypse.