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The end of Bitcoin or take over by Big Money

NWO

NWO

Member
Mar 20, 2014
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0
the govt marginalizes bitcoin and other cryptocurrency casue they can control it.
 
Swiper

Swiper

VIP Member
Jan 8, 2011
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IRS Says Bitcoin Is Property, Not Currency


The IRS issued its hotly anticipated guidance on bitcoin today, explaining that it will tax the digital money as property, not currency. In a notice posted on IRS.gov, the agency wrote:
“For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.”
The decision brings to an end – for now – months of speculation on whether virtual currencies would be treated like a capital asset, such as a stock or commodity, subject to capital gains taxes (up to 24%) or as a fiat currency, such as dollars, euros and yen, for which gains are taxed like income (up to 43%).
So, what’s this all mean to you? If you’re one of the early adopter retailers who took a bitcoin payment in exchange for goods or services, you’ll have to report the fair market value of that bitcoin on the date the payment was received. If you’re a bitcoin trader who bought into the bitcoin goldrush during the early days of the digital currency, you’ll be subject to capital gains, as if the bitcoin were a stock or a bond. And, if you’re a bitcoin miner … your treasure chest now constitutes gross income.
IRS Says Bitcoin Is Property, Not Currency - Forbes
 
Swiper

Swiper

VIP Member
Jan 8, 2011
1,589
1,539
MONDAY, MARCH 31, 2014CNN: New IRS rules make using Bitcoins a fiasco

The government regulations that will make it difficult to operate with Bitcoins are starting to come. But the IRS ruing is only the beginning.


CNN on what the IRS just did:

The United States' new Bitcoin tax rules just made casual, everyday use a complicated bookkeeping headache.
The Internal Revenue Service's notice last week will force the average Bitcoin user to keep a strict record of every purchase made all year long -- then perform difficult calculations to account for the changing value of a bitcoin.
It's meant to extract taxes from any gains in Bitcoin's value, and the rule applies to everything bought with electronic money, from coffee to cars.
That's problematic for two reasons. The going rate for a bitcoin fluctuates wildly -- easily by more than $10 a day. And no one diligently records the price of a bitcoin at every purchase."That would obviously create an accounting nightmare for taxpayers and may cause taxpayers to avoid using virtual currency," said Jeffrey Hochberg, a tax attorney in New York.


Of course, you can just take your chances and hope you don't become a target of the government. Ask Ross Ulbricht and Charlie Shrem how that strategy turned out. Most of what Ulbricht is alleged to have done and probably everything Shrem is alleged to have done would not be illegal in a private property society, but we don't live in a private property society. We live in a society where government spends most of its time expanding regulations that it can use as tools to crack down on anyone it wants at anytime.EconomicPolicyJournal.com: CNN: New IRS rules make using Bitcoins a fiasco
 
P

prime

TID Board Of Directors
Dec 31, 2011
1,178
254
Flip side is that if they want the gains then the losses can be written off then.
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
6,133
1,556
MONDAY, MARCH 31, 2014CNN: New IRS rules make using Bitcoins a fiasco

The government regulations that will make it difficult to operate with Bitcoins are starting to come. But the IRS ruing is only the beginning.


CNN on what the IRS just did:

The United States' new Bitcoin tax rules just made casual, everyday use a complicated bookkeeping headache.
The Internal Revenue Service's notice last week will force the average Bitcoin user to keep a strict record of every purchase made all year long -- then perform difficult calculations to account for the changing value of a bitcoin.
It's meant to extract taxes from any gains in Bitcoin's value, and the rule applies to everything bought with electronic money, from coffee to cars.
That's problematic for two reasons. The going rate for a bitcoin fluctuates wildly -- easily by more than $10 a day. And no one diligently records the price of a bitcoin at every purchase."That would obviously create an accounting nightmare for taxpayers and may cause taxpayers to avoid using virtual currency," said Jeffrey Hochberg, a tax attorney in New York.


Of course, you can just take your chances and hope you don't become a target of the government. Ask Ross Ulbricht and Charlie Shrem how that strategy turned out. Most of what Ulbricht is alleged to have done and probably everything Shrem is alleged to have done would not be illegal in a private property society, but we don't live in a private property society. We live in a society where government spends most of its time expanding regulations that it can use as tools to crack down on anyone it wants at anytime.EconomicPolicyJournal.com: CNN: New IRS rules make using Bitcoins a fiasco

Gov't hates competition, stealing peoples money is their thing
 
Gstacker

Gstacker

MuscleHead
Aug 19, 2011
2,149
254
Flip side is that if they want the gains then the losses can be written off then.

That was my first thought also but I bet it doesn't work that way..

you take bitcoin on a date as trade, you record the value of the coin on that date... If that coin loses value 2 months later that is your loss...

at least that's that's how I'm understanding it from the above post...

I guess that might be different if you are actually trading bitcoins as an investment but you would actually use usd to buy bitcoins so if bitcoin lost value in a couple months you write off the loss of usd used to buy the coin..

anyways bitcoin makes much more sense to me for just anonymous transactions I wouldn't invest usd into it to buy... But then again for those that do it creates value so more power to you.
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,996
1,672
Yep....lots of upheaval lately. Markets have taken a big hit. But it more so due to some Chinese influence. I think that is the thing that gets lost sometimes. With bitcoin, you are dealing with a world wide commodity. I think that is it's strength but also adds to it's volatility.


It will sure be interesting to see the way this plays out. I have begun mining another 'alt' coin called Vertcoin. They are founded on keeping it ASIC proof and want a more widespread network rather then a the concentrated ones that ASIC end up creating.

It is very low value right now, but just a hunch I am playing. If it ever does move, the magnitude of it will make the investment payoff. It is profitable even now at low prices, but power is still eating up about 30% of my Gross.
 
P

prime

TID Board Of Directors
Dec 31, 2011
1,178
254
That was my first thought also but I bet it doesn't work that way..

you take bitcoin on a date as trade, you record the value of the coin on that date... If that coin loses value 2 months later that is your loss...

at least that's that's how I'm understanding it from the above post...

I guess that might be different if you are actually trading bitcoins as an investment but you would actually use usd to buy bitcoins so if bitcoin lost value in a couple months you write off the loss of usd used to buy the coin..

anyways bitcoin makes much more sense to me for just anonymous transactions I wouldn't invest usd into it to buy... But then again for those that do it creates value so more power to you.

Either way it will be hard to prove how much I paid if I got them from local bitcoin. I think this stance will change since most other Eu countries are treating it like a currency. The US has turned into a citizen hating dinosaur that can't keep up with the times.
 
JR Ewing

JR Ewing

MuscleHead
Nov 9, 2012
1,329
420
If the IRS is treating it as an asset, they SHOULD recognize both investment profits AND losses for tax purposes. Of course we've always known that they will ultimately do what they want, and it's become obvious recently that they are corrupt themselves.
 
Swiper

Swiper

VIP Member
Jan 8, 2011
1,589
1,539
bitcoin bubble may have burst. it looks like some people are selling their bitcoin to move over to dogecoin.

when dogecoin bubble bursts they’re going to sell and head over to another crypto?


is this the new cycle of crypto investing?
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,996
1,672
bitcoin bubble may have burst. it looks like some people are selling their bitcoin to move over to dogecoin.

when dogecoin bubble bursts they’re going to sell and head over to another crypto?


is this the new cycle of crypto investing?
Not hardly. Metrics not showing that at all.

Fairly normal dip when it comes to cryptocurrency. It is also totally normal for Bitcoin to lose market dominance. Look back to 2017 we are essentially plotting the same path.

Also look back to 2017 at the top 10 market cap and you will only recognize two or three of the coins.

It is very typical for Bitcoin to drop to the low 30s for market dominance in an altcoin frenzy after Bitcoin initially does its bull run.

It will be short-lived and most of the altcoins will get decimated because they are mostly pure speculation.

Doge is garbage and anyone who knows anything about crypto can't take it seriously. Can't say as to why Elon musk is pumping it but when less than 10 people control 40% of the circulating supply it can never be anything viable. I think the guy has a couple screws loose but it is just a distraction at this point.

Fantastic buying opportunity for Bitcoin
 
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