Localbitcoin now in Eltham

Localbitcoin now in Eltham

Want to know more about Bitcoin?

The best way to learn about Bitcoin is to use it.  Bitcoin however is not an investment per se, (although it could be) it is a way to transfer work value from one place to another.

It’s an interesting concept to some.  Those who understand the current fiat currency system understand the real value of work.  I think most people do.

The issue with bitcoin is that it does not have the active liquidity that people need to have in order to use it.

So that needs to change.

The best way to start this therefore is to look at ways to give Bitcoin the liquidity it deserves.  One such service which is helping deliver this is Localbitcoin.com.

Localbitcoin.com is an exchange matching service for people who either:

A: Have cash and want to convert it to Bitcoin (for transfer or whatever reason) or
B: Have Bitcoin and want to convert it to cash.

There are also online payment options as well.  Bank transfer for Bitcoin / Bitcoin for bank transfer.

Sounds simple enough, but the regulations surrounding money transfer etc are a little tedious to say the least and the ATO is certain to want their cut along the way.  No way I say.

If you limit transfers to less than $1000, then there’s no GST implications, as the location of the bitcoin wallet is overseas when the BTC are transferred to you.  It’s an import when you buy BTC, or if you want to sell your BTC and get cash, well that’s easy to do too…

So I’ve joined this little experiment to see how we go.  You can now Buy Bitcoins with cash in Eltham – just ask me and I’ll help you get organised.  If you would like some help setting up a wallet etc then no problems. (My rate is 0.5BTC/h) but I’m happy to look to provide more information.  Bitcoin is coming of age and it is worth getting on board.

Set yourself up with a wallet such as a Coinbase wallet (which has a mobile client and many more features!!!) or a computer based wallet such as Electrum. If you can set up a mobile wallet that is most useful for cash transactions… You can even set up a proper full wallet and download all the Bitcoin blocks as well… if you really want to!

Then, once you have a Bitcoin wallet you can put some Bitcoins into it.

Woohoo – now what!?!?

Well – Bitcoin’s greatest current use is for funds transfer.  Quick, easy and comparatively cheap, especially for smaller amounts of money. This could be used for an online purchase where you don’t have a credit card or don’t want to pay $25 for an international bank transfer plus the 5% clip they take when they provide the exchange rate… Yes it’s a service but you also have to wait 24-48 hours to get the funds to their destination. Meanwhile, “they” are making interest on the funds transferred around or taking all the <1 cents portions and stockpiling them… Remember Superman 3?

On the other side of the world, a friend in need, a child or really anyone can have those funds available within around 10 minutes (on average).  They can then use their wallet at a local Bitcoin ATM or use localbitcoin.com again and find a local exchange agent.

Many online merchants are now also starting to accept bitcoin, and you don’t need a credit check in order to use it – you just use it.

It’s all going to change though – services like Coinbase also now are trialling a directly linked POS card which allows you to transfer your bitcoin directly into a fiat currency equivalent, then use that as you would any other tap and go card.  This is real liquidity.  Indeed, in the end, these guys may be the death of the localbitcoin exchange system, however until then, it is worth considering getting involved with local bitcoin exchangers.

Do you want to know more? Just ask!

Andrew.

 

Australia ignores Bitcoin at its peril

Australia ignores Bitcoin at its peril

No Bitcoins here please, we’re AustralianNo Bitcoins please, we're Australian

If you’ve been following the ups and downs of Bitcoin and you’re in Australia then you probably know that Australia is lagging behind many of the world’s leading economies in recognising that Bitcoin is what it actually is – a currency.  Furthermore, it should be treated as such.

The Australian Tax Office last August released a paper on how to treat crypto currencies.  Essentially, when you buy bitcoin from and Australian party, it is a taxable supply, so you will be charged GST.  When you sell it, unless you are a business or individual registered for GST, then you will not have GST applied.

Ouch.

This has meant that for individuals, buying bitcoin in Australia from and Australian company incurs a 10% tax. Way to go Mr Taxman. We know that the country is drowning under the pressure of the end of the commodities boom and government spending largesse, however smacking the currency of the future with a 10% premium will just drive the business out of Australia.  And that’s what it is doing.

Australian company CoinJar is Australian no longer, having been forced to endure the crapulous regulations enforced by the ATO, CoinJar has moved.  Left the country.  Is Australian no more.

The company has now moved to the sunnier shores of mother England where the powers that be have recognised that digital currencies should not be subject to VAT transactional taxes. From there, they can grow, develop and be all that they can.

Meanwhile, back in the colonies, we’re bound to lose more companies in due course.  A sad state of affairs indeed.

There are many benefits to a digital currency, the biggest hurdle is acceptance and integration with the more traditional fiat money system. Yes, there are transactional hurdles as well within the technology, however again, transactional processing power problems can be solved creatively through technology.  The fear that government’s have of cryptocurrencies is probably well founded in that it is something over which they have no control. Then again, that, in and of itself is all the more reason to support Bitcoin isn’t it?

Whilst the Australian government is looking at digital currencies and Australian UK companies like CoinJar have made submissions, until such time as the ATO takes it’s blinkers off and lifts its head to look at the future, Australia will continue to see businesses think twice about utilising digital currencies, or will, like our friends CoinJar, move overseas where there is a little bit more of a view that digital currencies are a part of our future.

One can only hope that the boffins in Canberra will indeed eventually work it out.

A.