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Because it exists outside of the banking framework, Bitcoins can be used anonymously. This makes the Bitcoin an ideal way for criminal organizations to move money without such exchanges being monitored by governments.Governments are divided in their reaction to bitcoins. On one hand, governments want to support innovative technologies on the Internet. On the other hand, having a currency that is unregulated makes it difficult to tax or control. Bitcoins are beyond restriction and confiscation. That makes governments nervous.One thing that will upset a government is finding a way around having to pay taxes. Barter is one example. The US IRS taxes barter, so that if one person provides a service in exchange for another service, that exchange is supposed to be taxed on the dollar value of the service. Fundamentally, a Bitcoin is a medium of exchange for barter. Of course the government wants to tax them, but spending a Bitcoin can be done anonymously and that’s the rub.“I’ll rent it. ”“That’s the problem”, said the Priest, “you couldn’t tell the difference between a blessing and last rites.”This one is compliments of J & BFarmer Steve, had been in a terrible automobile accident. He was hurt quite badly. He sued the trucking company that had struck his vehicle and injured him.The case was taken to trial, and Farmer Steve was on the stand to testify.The plaintiffs’ attorney asked Farmer Steve “if he had said that he was not injured?”Farmer Steve, replied,” I had to load my pet donkey in the back of the truck.”“I said did you not tell the highway patrolman that you were just fine?”“well as I said, I was--”The plaintiffs’ attorney said “I asked you if you said were not injured, please answer the question.”Farmer Steve said “well after I loaded my donkey Susan on the truck, I got in the truck started to drive to town.”The attorney said:” answer the question.”The judge said “I would like to hear what he is trying to say.”Farmer Steve continued. “Well I was driving along.
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