State of Ohio to Start Taking BTC for Taxes: Will this help the price?

[victory8]

We have seen how the bitcoin has fallen in great way, however I have just read an interesting news and maybe tomorrow November 26th, the BTC will go up again. 

Thanks to Ohio and the State, they agreed to receive tax payments through crypto currencies, Could this be an opportunity for the BTC to rise again? 

The state of Ohio has partnered with the cryptomoney payment company BitPay to receive tax payments, which will be converted from bitcoins to dollars. 

You can read more here: https://techcrunch.com/2018/11/25/ohio-becomes-the-first-state-to-accept-bitcoin-for-tax-payments/

[Snike]

Well, every citizien pays taxes (most of them) and the amount of transactions and payments made with bitcoin could definitely help it. Depends on what the state does with it. If they'll just collect all the money and make it centralized, that would defeat the purpose of btc.

[Kate]

I dont even know how this will be useful for price ? And also its risky for the government to accept BTC. Probably this wont go through. They are just doing this so they know if they are getting more the income than stated its risky dont go for it would be my suggestion.

[wry]

3 minutes ago, Kate said:

I dont even know how this will be useful for price ? And also its risky for the government to accept BTC. Probably this wont go through. They are just doing this so they know if they are getting more the income than stated its risky dont go for it would be my suggestion.

It has already gone through. 

It is interesting because one of the reasons national currencies have value is that you can use them to pay your taxes with.  That is the rationale for the foundation of their value in any intrinsic sense.  Now Ohio, whose Treasurer likes Bitcoin, will allow you to use Bitcoin.  Of course, it's a bit misleading, all Ohio did was make an arrangement with Bitpay to process any payments they receive by Bitcoin.

[Kate]

3 minutes ago, wry said:

It has already gone through. 

It is interesting because one of the reasons national currencies have value is that you can use them to pay your taxes with.  That is the rationale for the foundation of their value in any intrinsic sense.  Now Ohio, whose Treasurer likes Bitcoin, will allow you to use Bitcoin.  Of course, it's a bit misleading, all Ohio did was make an arrangement with Bitpay to process any payments they receive by Bitcoin.

Oh great then well there goes my trust.

But don't you think that when they accept the payment in terms of Bitcoin and the price goes down ? Lets take an example a man named X has to pay 200$ in Tax and he decided to pay it in terms of Bitcoin so they accepted it and suddenly Bitcoin drops and then the 200$ worth of Bitcoin he had paid is now 150$. Won't this be a a finance loosing plan for the government ?

[Capaldeus]

26 minutes ago, Kate said:

Oh great then well there goes my trust.

But don't you think that when they accept the payment in terms of Bitcoin and the price goes down ? Lets take an example a man named X has to pay 200$ in Tax and he decided to pay it in terms of Bitcoin so they accepted it and suddenly Bitcoin drops and then the 200$ worth of Bitcoin he had paid is now 150$. Won't this be a a finance loosing plan for the government ?

Well, i think they will convert the btc to dollars as quickly as possible to prevent this from happenning. If they do that, they shouldn't lose money. Also if they have someone who understand the flow of currencies, they can be advised as to when to sell the btc and make profit for the government. (I guess)

[wry]

7 hours ago, Kate said:

Oh great then well there goes my trust.

But don't you think that when they accept the payment in terms of Bitcoin and the price goes down ? Lets take an example a man named X has to pay 200$ in Tax and he decided to pay it in terms of Bitcoin so they accepted it and suddenly Bitcoin drops and then the 200$ worth of Bitcoin he had paid is now 150$. Won't this be a a finance loosing plan for the government ?

This is exactly the service that Bitpay provides to merchants.  Bitpay accepts the Bitcoin and gives the merchant, in this case the government of Ohio the USD directly.  Now Bitpay may turn around and sell it or trade it, it would not surprise me, and if that happened then yes, price may go down, but this is still better for the ecosystem than the guy just selling it and then paying the USD to Ohio because it enhances the visibility and viability of Bitcoin.

Bitpay is becoming a key support factor for Bitcoin.  I have some mixed feelings for that but right now I wish I could invest in them!