Bitcoin and IRS

6iron · May 20, 2017

I am so in the dark on this and this thread has helped big time.

G.I.Bro · May 20, 2017

Rex Feral said:
I was also banned from Coinbase. It's a matter of time before you are banned if you buy your coin through them and buy illicit substances. Coinbase traces their coins. You will have to tumble the coins. You certainly can't send directly from Coinbase. If you just send from CB to an external wallet like Exodus it is not enough to break the chain. I use Gemini now. Winklevoss twins. I use Exodus for wallets. The Winklevosses do not trace their coins though you lose the instant buy but it's only a few days. You'll be with them soon enough anyway if using Coinbase or you'll be paying more on LibertyX, BitQuick, BitInstant, etc. I have about 38k in Bitcoin. I've been buying since it was $12 many years ago but I didn't hold like a dumbass. I invest in BTC every check since beginning of December. I dropped 10k when it was $700 something in December which is now worth almost 30k, it went over 2k today. The rest has been the per check investments. You spend some buy some at different rates it's hard to say exactly but I've made somewhere around 23-26k in the past 6 months. BTC will the biggest transference of wealth in our lifetime. 1 coin could easily be 10k in a year, 500k-1 million in a decade. There will only be 21 million ever. Assuming they've abandoned the idea of this stupid split. Which is beyond the scope of a post. BTC is here to stay now. Do yourself a favor, invest. There are what like 16-17 miilion coins with only 4 million left to be mined. Then we're looking at 6 figure BTC. It may very well be worth more than my regular retirement and I just started on this as a real investment in December at at 46. No bullshit.

Rex.

Don't you think something will supersede btc? Eth is technologically superior and is based on same block chain. It processes/mines faster. It's just a slightly better bitcoin. The only reason eth isn't as big is btc was the leader and has more mass mainstream adoption. Do you think we'll continue to use bitcoin merely because of its namesake even though eth is really a better option strictly in terms of efficiency? I can't figure out how btc will hold on when there are better alternatives for the exact same purpose and easily adoptable / swappable for btc.

Do you only invest in btc and not eth? This is the "ground floor" for eth you were referring to with btc.

goal245 · May 20, 2017

Bigorexia said:
IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply

Argumentum ad ignoratiam

Yes the IRS wants to tax virtual currency but they need to find a way to execute and track the taxation.

Currently no one is going to issue you a 1099 capital gains form and report it to the IRS like Fidelity or any other investment firm would for stock.

"Current Bitcoin exchanges, such as Coinbase and Circle, do not report account information to the IRS and so you are left to calculate and report these figures yourself."

How many people are going to be honest and report every penny they made on bitcoin?

Bigorexia · May 20, 2017

goal245 said:
Yes the IRS wants to tax virtual currency but they need to find a way to execute and track the taxation.

Currently no one is going to issue you a 1099 capital gains form and report it to the IRS like Fidelity or any other investment firm would for stock.

"Current Bitcoin exchanges, such as Coinbase and Circle, do not report account information to the IRS and so you are left to calculate and report these figures yourself."

How many people are going to be honest and report every penny they made on bitcoin?

Unless the individual or entity is audited you are correct they have no way to make this determination

Argumentum ad ignoratiam

Rex Feral · May 20, 2017

G.I.Bro said:
Don't you think something will supersede btc? Eth is technologically superior and is based on same block chain. It processes/mines faster. It's just a slightly better bitcoin. The only reason eth isn't as big is btc was the leader and has more mass mainstream adoption. Do you think we'll continue to use bitcoin merely because of its namesake even though eth is really a better option strictly in terms of efficiency? I can't figure out how btc will hold on when there are better alternatives for the exact same purpose and easily adoptable / swappable for btc.

Do you only invest in btc and not eth? This is the "ground floor" for eth you were referring to with btc.

Well, that's what a lot of people said would happen last year when BTC was $300 something. It was actually one of the reasons that kept me out as a real investment. But it hasn't happened and if you held back based on that like I did you lost a shit ton of money. I do hold 10 ETH for all the reasons you stated. I only paid a couple of hundred I believe and I see it's worth almost $1300 today. So I'm definitely not trying to repeat the mistake I made when BTC was $12. Very few still understand BTC or have even heard of it. So when you start talking the advantages of ETH with built in "smart contracts" and the like then literally almost no one understands.

BTC is essentially the currency of Venezuela now. The Japanese passed their legislation and as of April 1 it is a legal payment same as money. Japanese BTC exchanges are offering 5% interest on 12 months for BTC. Which doesn't sound like that big a deal until you find out that as of a few months ago all Japanese banks offer 0.00% on "real" money. July 1 BTC will just be just like cash in Australia. ETH has largely been driven by people who want to be on the ground floor in case it blows up not actual use. It has none of these real world advantages and if no one understands its other advantages then it's not really an advantage. BTC is king. Too much invested now with the Japanese. The Chinese had developed these super computers based on the high speed trading algorithms pioneered on Wall Street. This is why we had such trouble breaking $1200. No matter how many people bought BTC and held it couldn't match the computers and they were making millions as it was so they had no interest in the increasing value of BTC. But then all the Chinese exchanges implemented these per transaction fees and put the nix on that high speed trading shit. This was really fucking shit up but no more. Then Bitcoin Jesus and all the fork talk. It seems they've abandoned this as well for the time being and there are not many obstacles for BTC to overcome now. ETH already forked in 2016. I don't think it'll ever be BTC but you will probably profit significantly from it over the next 10 years.

Rex.

TODouble2 · May 21, 2017

Do you think buying them on Coinbase and just holding them there is a good idea?

Sent from my iPhone using Tapatalk Pro

G.I.Bro · May 21, 2017

TODouble2 said:
Do you think buying them on Coinbase and just holding them there is a good idea?

Sent from my iPhone using Tapatalk Pro

GDAX might be better if you're serious. It's by coinbase. Can do stop orders and stuff (more advanced trading capabilities). There is also gemini for Eth.

dale338 · May 21, 2017

Truth be told, the "black market" is a huge factor within the US and world economies. The government wants control and they seek to monitor everything for revenue and tax purposes. Other reasons as well, but do they really want to shut it all down? Money changing hands is what drives our economy. No matter how, or for what. You go shutting it all down at once and we would not recover.

ronnieron · May 21, 2017

you fellas can have all the eth you want, more ripple for me. imo eth is garbage, yes its doubled in the last month, but if you look at the main players in the crypto market ecerything has doubled. ripple hae already passed eth just like a said in the other thread. i believe nem will pass eth as well in time.

G.I.Bro · May 22, 2017

If I lose thousands on an ETH bubble I'm blaming slice... I've been reading the industry coverage on eth and btc all weekend and am about to put a couple grand in.

But the arguments for ripple are really compelling too.

little slice · May 22, 2017

G.I.Bro said:
If I lose thousands on an ETH bubble I'm blaming slice... I've been reading the industry coverage on eth and btc all weekend and am about to put a couple grand in.

But the arguments for ripple are really compelling too.

u buy ETH, ill buy XRP (ripple)

just don't get spooked into selling

G.I.Bro · May 22, 2017

little slice said:
u buy ETH, ill buy XRP (ripple)

just don't get spooked into selling

Why ripple?

little slice · May 22, 2017

G.I.Bro said:
Why ripple?

why not?

in honesty, i'll probably go 50/50 ETH/XRP

G.I.Bro · May 22, 2017

ronnieron said:
you fellas can have all the eth you want, more ripple for me. imo eth is garbage, yes its doubled in the last month, but if you look at the main players in the crypto market ecerything has doubled. ripple hae already passed eth just like a said in the other thread. i believe nem will pass eth as well in time.

You can find several articles stating the exact opposite in favor of eth and its strong points. I'm not saying you're wrong I'm just pointing out this stuff is all over the place. This shit is bananas but it's hard to ignore these short term rate of returns.

A lot of sources say eth shows more longterm potential than ripple and even bitcoin.

LK3 · May 22, 2017

ill tell you guys....
i did not like bc until i found a way to cash in/cash out in person, in cash in that very fucking moment!

lol
fuck sending shit somewhere.

lol i wear a ski mask and gloves, do my deal and out the door!
no pics, no questions no image n prints!

fuck you uncle sam
big time fuck you!
stay out of my business
that be the idae here mother fuckers!!!!
bit coin=cash=no questions.
need help? lol
pm me!