I read that the first Atomic Swap took place between Bitcoin and Ethereum. Now I must admit my knowledge of the bits and bytes aspect of this stuff is a bit fuzzy so maybe someone else can add to this in the comments.
That said, before yesterday (or the day before), Atomic Swaps were done between coins developed on the bitcoin blockchain. These tokens are on the same platform and based upon the same coding. The move from the bitcoin to ethereum blockchain is like jumping planets. We just moved into a totally different world.
Reports came out about a month ago that stated the Feds had software that tracked transactions as they went around the bitcoin network. This was done as a way to be able to go after those who were going to use bitcoin for illegal purposes and to avoid taxes. The privacy and anonymity many thought Bitcoin provided isn't there. It is an open ledger that is easily tracked.
Which brings me to the Swap yesterday. The Feds can jump around the bitcoin blockchain with great accuracy. However, the second someone goes from bitcoin to ethereum, they just left Earth and stepped on Mars. Trying to track them using their GPS isnt going to work.
So here is how it could work. I invest in a coin on the bitcoin network. Over time, I realize a huge gain for which I owe taxes. Instead of selling my bitcoin which would put that gain into effect, I simply swap it over for Etherium. Hence, the trail stops on my bitcoin but the Feds have no idea where I went next. Imagine if I am able to do this with 5 or 10 different blockchains.
What do you think? Is the development of the Atomic Swap making tax evasion the new norm in the crypto world?
Photos from google images
As people start to figure this out, I wonder if this will lead to the decline of privacy coins?
It could although some private coins, like the ones @ned envisions built upon the Steem platform, could also be marketing pieces.
We will have to see how things pan out. I foresee LTC as a $500 coin.
@taskmaster4450, I thought to exchange on a decentralised exchange would do this - is that what you mean by atomic swap? Just curious. Also, if you put in print a knowledge about a potential method of evading taxes and then use that method, it could denote planning. I am not American, so I am simply stating something I have thought myself. If you take this to the nth degree, logically, I am thinking ahead - it goes like this, before I make any real money in cryptocurrency, I would like to reactivate my Allied Irish Bank Account, fly to the Cayman Islands from Europe on my brand new British Passport, set up an Allied Irish Bank account there, then back to Europe on my British Passport, then home on my home passport, LOL. THEN I might like to start trading in a manner that I think could make me undetectable, not because I don't pay taxes - I do, but my Government thinks I should work till I'm 70. I'm done with that plan. It's not about me, it's about ensuring their own pensions, am I right?
I do not know if an exchange is needed for an atomic swap. I will have to research that. My understanding was to try and get away from exchanges but I could be wrong.
Yes the elite want us all working until at least 70....until greed took over. Now, with the advancements made in automation, we are going to see jobs eliminated over the next 10 years. Quite simply, corporations exist to make a profit and payroll is usually the largest expense. Technology is a great way to reduce that number.
Yes, and bring in the UBI. If everyone had a basic income, it could be funded by cutting a swathe of public service jobs. People could get into the sharing economy. One thing encouraging about crytpo is, I've been going through a few posts on cryptos I like in the Steemit archives (by looking at the home pages of people I follow and looking at their videos and posts from six months ago) and I see how much the cryptocurrencies have increased in price even in six months. It's quite astounding. It makes sense of the holding strategy, versus chasing the trade. I think Bitcoin is a bit con - but the three Bitcoins (the sum total of my holding, LOL) I sold at $4980 two months ago would be worth closer to $6000 now. That's not to be sneezed at. However, I have doubts about Bitcoin and like to sleep at night, so I have no regrets about selling. I follow you, and enjoy reading your posts :)
I am a long term believer in Bitcoin as a store of wealth. BTC has the name and the recognition which means a lot. When Wall Street money starts piling in, brokers and investors arent going to take the time to determine the differences of bitcoin cash or gold. They will simply buy bitcoin (BTC).
I am a believer in UBI because I fully feel that technological unemployment is ramping up in a big way. I study technology so, perhaps, I have a view different from many. That said, the speed and depth this will go to is amazing. Things that were forecast 10 years out just a couple years ago are slated to appear in a year or two. People like to espouse their ideologies and hold onto them right until they are suffering themselves. In the US, the voter who put Trump over the top, the rural displaced factory worker type, voted for Obama in 2008 and Romney in 2012. The reason, they vote for whomever is saying he will get the jobs back. They switch because, in reality, the jobs arent coming back.
Those who make rules, make money and what is not clear. The point is that the rich get richer even more.
I like it.
Interesting thought! "Hopping" between different blockchains could make tax evasion really really easy.
But what would be important to know in order to answer your questions is whether there is something like a marker on both the Bitcoin and the Ethereum blockchain which indicates that there has been an atomic swap. Does someone of the other readers know something on this point?
By the way IMF-economist Kenneth Rogoff seconds your reflection https://www.coindesk.com/ex-imf-economist-kenneth-rogoff-joins-bitcoin-will-collapse-chorus/