It's not clear what you're suggesting @DeepBlue . Would you rater
1. People not have capital gains?
2. People not use Dash as digital cash?
3. People use a very centralized payment processor like VISA.
The Dash/CrayPay solution does not rely on VISA or MasterCard.
My point is that using Dash as a form of payment for general (no specialized goods) in the USA, where cryptocurrency is dealt with as property is a non starter, that is, if people spending DASH actually wish to stay within the IRS US Tax law. Under the current US law cryptocurrency is treated as property which means that every transaction, no matter how small, the user would have to calculate if they have to pay capital gains tax on it when they buy something. Bearing in mind the price of Dash is constantly fluctuating on an hour by hour basis and people would need to keep track of when they bought and sold the dash holdings for each hour of each day and calculate the capital gains on every single purchase. If they make a few hundreds purchase on a year that would be a huge amount of work.
It is for this reason it does not make sense to use Dash as form of payment for general goods and services in the USA under the current tax and legal system. Not unless the user is prepared to spend a considerable amount of time doing tax calculations and reporting. This makes the Craypay investment a poor quality investment and a non starter for this reason in my opinion for the reasons given. If Dash users wish to stay within the tax laws of the USA they have a
legal obligation to do these tax calculations on every purchase. No such problem of calculating capital gains tax is necessary however when paying with USD, unless that came from the sale of an asset - which under most circumstances is not the case.
This makes USD a better form of payment in the USD over DASH due to the Tax complications involved. Yes, that means using a centralized body to make payments - absolutely correct. But I think most people want to stay within the tax laws or face the very real possibility of heavy fines or possibly even imprisonment for tax evasion.
Capital gains calculations on purchases with Dash is not the case however in many other countries where they either do not charge tax on capital gains or the government themselves have mandated that use of cryptocurrency is classified as cash payments and not property.
What I'm advocating is don't make investments in a country such as the USA where Dash is to be used a cash, because it is not getting treated as Cash. It will be treated as property and cause an nightmare situation in calculating capital gains tax on every purchase, compounded with fluctuating Dash price on a day to day basis.
Dash investments should be made preferentially in countries were tax issues are not incurred.
I don't understand how Craypay can be classed as an intelligent investment due to these tax issues mentioned above. What it can provide is only PR.
The second reason that Craypay in the USA is a poor investment is because Dash holders in the USA are buying Dash primarily as an investment. They don't want to spend their Dash. Why don't they want to spend their Dash - because the USA uses the USD which is the world reserve currency and it works better than Dash for payments. There are no Tax issues and all merchants in the US accept USD. The USD is going down in value which makes it ideal for spending. Dash is going up in value which makes it nonsensical to spend it in the USA - why would people want to spend an appreciating asset? People want to spend depreciating assets, not appreciating ones e.g. the USD.
The places where DASH can be used as a currency are in countries where there is hyperinflation. I've already written several reports on this previously at the forum. Spending money in the USA on payments is nonsensical when were could be spending it where Dash can actually gain traction due to is usefulness e.g. Venezuela, Africa, Turkey etc. It seems the DIF think its a great idea. So, I would be most interested to see the numbers of transactions going through craypay for DASH in the USA. I suspect it would not be very high - if at all. And the members that will be spending their Dash will be people with a lot of Dash e.g. DCG and other libertarians. One solution might be to develop an app that automatically calculated the capital gains on every purchase - however even with this it does not make sense to sell an appreciating asset in the USA.
How could Dash users in the USA spend their Dash without Tax implications or calculating capitcal gains on every purchase?
Disclaimer: The following information is not intended as tax advice. Everyone should get their own tax advice from a specialist tax advisor in their own country. This is only my opinion with the information that I have.
Answer:
If DASH users wanted to spend their appreciating Dash investment what would be a more intelligent and tax efficient way would be to get a secured USD loan on their Dash holdings up to 20% to 30% of their asset holdings. Then they would have no tax to pay on the loan and they would not have to calculate capital gains tax on every purchase. This is the most tax efficient way to spend Dash in the USA. This strategy is exactly what wealthy people do. They buy appreciating assets then finance those assets with a loan of 20% of the assets with a 2 - 5% interest rate. If the underlying asset is increasing considerably more than the interest rate on the loan then they are relatively safe and they pay no tax on the loan and they do not have to do capital gains tax calculations on every purchase with their loan.
Conclusion
Therefore I do not see the logic of the Craypay investment in the USA. It is neither tax efficient nor logical in terms of spending an appreciating asset. The money could have been better spent in a country where Dash is needed as a currency and there are no capital gains tax issues when spending Dash.
If Dash investments were focused on converting just one country to using Dash we would have far greater success with the money. In my opinion the best country for this would be Venezuela because they have passed laws encouraging the use of cryptocurrency as a day to day payment method and the Bolivar is useless as a currency. USD is hard to come, and small denomination purchases are impossible with USD, which leaves leaves the path open to Dash being established there. Once Venezuela is converted to using Dash the other South American countries would be likely to follow because many of them also have problems with their currencies e.g. Argentina.
The DIF undertook the investment without notification to the MNO network and therefore we did not get an opportunity to comment on it.
I would like to see the numbers of monthly DASH translations on the Craypay investment.
