Transparent blockchain transactions and government taxation
Everyone who has ever used Bitcoin and has interacted with the block explorer will know that they can follow a Bitcoin transaction all the way back to the initial block which distributed the Bitcoin to the wallet address in question. This is a great feature for record keeping, however this raises a concern to those who prefer financial privacy. Financial privacy is a huge concern for people and institutions alike. After all, on a Proof of Work blockchain such as Bitcoin, computer hardware verifies transactions and the wallet address associated with said mining hardware is rewarded. Since the computer is being rewarded, why should a person have to pay a tax on this reward? Many of us believe mining rewards produced for verifying blocks on a consensus algorithm, whether it be Proof of Work (PoW) or Proof of Stake (PoS) should not require a tax to be paid by anyone. The tax has already been paid in transaction fees.
Securing the network is only half the battle
In regard to taxation by a governing authority, many view taxation as theft. Government taxation is merely inevitable and that's a known fact. In that regard, many are aware that once cryptocurrency mining awards are sold for a fiat currency on an exchange and withdrawn to a bank account, that money is now subject to taxation. Taxes on income can vary, but on average income tax is 25%, which is just too much.
One way to avoid this unruly taxation is by never trading cryptocurrencies for fiat. That seems simple enough, however mining cryptocurrency isn't free of cost. There are costs involved in mining, to include the hardware used for block verification, electricity, internet service, and depending on the size of the operation, employees can be another cost. If a miner were to pay 25% of the fiat value from the mining reward every month, almost all of the reward would have to be sold for fiat in order to afford all costs involved. This is bad for decentralization, meaning, a large sum of the rewards would go to the exchanges, creating a monopoly of few entities controlling a majority of the Bitcoin. This is a real issue which we are currently facing.
Truly financial freedom, in which was meant to be
One may ask how we can keep government surveillance out of our financial transactions and this is why I am writing this article. We all know and love Bitcoin, but who can say the same about paying taxes to a governing authority. I have paid my unfair share in taxes, as many if not most of you have who are reading this. I cannot speak for everyone, but I consider myself to be at poverty levels compared to the global "elitists" which benefit from taxation of our earned wages. No one likes to struggle and live an unprosperous life where we have to give at least 25% of our earnings back to the government- interest free all year round, while the banks of the word keep minting new fiat currency out of thin air and loaning it out to the government at interest which WE THE PEOPLE are left to repay year after year with our blood sweat and tears. This is a very unjust way to cause the people to go deeper and deeper into debt, while the corporations of the world gain more power and control over our well being. This problem is what Bitcoin was set out to resolve in the whitepaper written by "Satoshi", which was to eliminate double spending or creating money out of thin air.
Transparency vs Privacy
While transparent blockchains are secure, they still allow anyone to view the transaction history on a block explorer. This may be fine in some cases, but we also know there are circumstances which we would rather our transaction history to remain private. There are many private blockchains, such as Monero (XMR), ZCash (ZEC), DASH and many others. While Monero is an awesome blockchain, it lacks a transparency option. DASH also doesn't have a transparent feature, and was also airdropped to Bitcoin holders at the time of launch. Who needs transparency, you may ask. I don't know who, but I'm sure there are some who do. As for ZCASH, which offers both transparent and private transactions, was still airdropped to Bitcoin holders, which leaves it centralized to those who were holding Bitcoin in their wallet prior to the first block. All three of the aforementioned projects are forks of Bitcoin code and also a chain fork at the same time. There are many other privacy projects that fall under the same.
We still have a fair decentralized option for privacy
Now that you've made it this far, I am very pleased and excited to tell you about BitcoinZ! Here we have a truly unique blockchain. Like it predecessor ZCASH, BitcoinZ is a code fork of Bitcoin code and also uses zkSNARKs for optional privacy. But that is where the similarities come to an end. From those points on, BitcoinZ is different and I am going to tell you why. Firstly, unlike ZCASH, BitcoinZ has a genesis block. If you are unfamiliar with the term, I will explain. A genesis block is the first block mined on a blockchain. Unlike the other privacy coins mentioned earlier in this article, BitcoinZ was not airdropped to holders of Bitcoin. On September 9, 2017 BitcoinZ developers launched BitcoinZ, a community gift to the world. Instead of a pre-mined amount of coins, BitcoinZ started at 0. From there 12,500 BTCZ per block have been minted since, creating a far start for everyone. Another key feature of BitcoinZ is, there will be 1000x max supply of Bitcoin, 21,000,000,000 in total. Everyone in the world can own at least three BTCZ, allowing transactions to be processed at the absolute lowest cost, next to free. The reason the transactions aren't totally free is because BitcoinZ is a PoW algorithm, so the miners have to be paid for their work. This brings me to my next point.
ASIC Resistance
In order to stay true to the BitcoinZ whitepaper, BitcoinZ forked from the EQUIHASH algorithm on block 160,000 on June 15-16, 2018 to a new algorithm pioneered by the BitcoinZ team named ZHASH, which was used by several other EQUIHASH coins in order to remain ASIC-resistant. This enables BitcoinZ to remain truly decentralized in a sense that everyone with a computer has the opportunity to mine some BitcoinZ. For those without a computer or internet access, we have CharityZ and TextZ. There are so many community projects anyone can get involved in within the BitcoinZ ecosystem. There are many things in the works which push the project towards decentralization in every aspect. I personally am seeking development of a wrapped BTCZ token for decentralized swapping within ETHEREUM Decentralized Finance. Also our lead developer, has some more things in the works with Komodo chain. Together, with everyone taking part, we will achieve true decentralization. We also have peer-to-peer methods of transaction back into fiat ;).
Together WE will achieve financial freedom
For more info on the current status of the project, please visit https://getBTCZ.com or take part in the community forum at https://forum.btcz.rocks. Also for wallet download links visit https://BTCZ.rocks and once you get a wallet, come over to BitPayLink and use my referral: https://bitpaylink.com/NuCash00Mining so I get an entry in the BitcoinZ lottery. There are many other things in the works which have not been mentioned in this article. Feel free to join us in the Discord channel and follow us on social media, which is listed on the official https://btcz.rocks beneath the Social tab.
Thank you for reading.
