Home / Cryptocurrency / The acceptance of Bitcoin Ohio as tax could increase the legitimacy of cryptography?

The acceptance of Bitcoin Ohio as tax could increase the legitimacy of cryptography?


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Companies in the state of Ohio are now authorized to pay tax payments using Bitcoin (BTC).

State treasurer Josh Mandel, who initially proposed the integration of Bitcoin into the state to facilitate the growth of the local cryptocurrency industry, said he considered the dominant cryptocurrency to be a legitimate form of currency.

"I see [bitcoin] as a legitimate form of currency, "he said.

Increase the legitimacy of Crypto

Throughout its existence, since 2009, critics against Bitcoin have stated that cryptocurrency lacks intrinsic value, even if no asset, share, currency or commodity has intrinsic value.

Value is subjective and always depends on the market. The value of the US dollar may change according to the state of the global economy. Equities and commodities also regularly suffer relatively high volatility because the market decides the value of an asset or commodity over a given period of time, based on a wide range of variables and factors.

Bitcoin has a value supported by the largest computer network in the world, which, with social scalability, prevents manipulation, centralization, inflation, theft and counterfeiting.

As a consensus currency, BTC is able to offer decentralization, which no resource in the history of the world has been able to offer.

Emin Gün Sirer, professor at the prestigious Cornell University, he has declared that the adoption of Bitcoin by the state of Ohio and its plans to allow people to pay taxes using cryptocurrency in the near future has legitimized and provided more value to the resource.

Sirer said:

"Crypto has a value because you can pay taxes with it."

Jerry Brito, director of the research organization on non-monetary cryptocurrency Coin Center, also pointed out that the integration of BTC by a state government raises the public image of BTC as a form of money for criminals in a currency for everyday users.

"[Ohio’s initiative] it helps to send a message that bitcoin is a technology that can be used by anyone, from the bad but also from the government, "said Brito.

Change public perception

From a speculative technology to a widespread asset class, the public perception of cryptocurrencies has begun to change.

In 2017, when the cryptocurrency market reached its new all-time high and began to decline rapidly, many investors feared that the cryptocurrency industry as a whole was a passing fad.

However, as the months went by, the most positive developments in the digital asset market materialized with the entry of Fidelity, ICE, the New York Stock Exchange, Goldman Sachs, Morgan Stanley and multi-billion dollar conglomerates in Asia.

The adoption of Bitcoin by the Ohio state government could convince the public that, with appropriate measures and strong infrastructure, BTC can operate as a legitimate currency and an alternative to legal currencies such as the dollar USA.

In regions like Venezuela and Iran suffering from severe sanctions with isolation from global banking systems, cryptocurrencies appeal to the mainstream.

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