When Michael Faraday was asked by the British Chancellor of the Exchequer what good would come out of his research in electromagnetism he replied, “One day sir, you may tax it.” Looking at my recent electricity bill, I can attest that Michael Faraday was right.

A similar asked of Michael Faraday can be asked of Bitcoin, the peer-to-peer virtual currency. Bitcoin and similar virtual currencies, even thought they are decentralized, will not only innovate payment services but tax collection.

$1 Billion in Taxes

It’s been reported that Facebook founder owes the IRS a cool $1 billion. Which goes to show you that if Dr. Evil wanted the everyone to pay him $1 billion dollars he should have gotten a job with the government and simply tax the people.

So what can Dr. Evil, I mean the government, do with $1 billion nowadays? The Afghan war is costing the American tax payers $300 million a day, so Mark Zuckerberg can foot the fill for a little over three days himself.

To deploy a single soldier in Afghanistan, it is reported as costing somewhere between $850,000 to $1,200,000 a year. Mark Zuckerberg’s tax bill can support about 1,000 soldiers in the field for a whole year.