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Topic: How are you guys paying for electricity and bills? (Read 719 times)

hero member
Activity: 2128
Merit: 520
with money off course

Perfect response. /s

But seriously, i pay mine with fiat from my regular job. Time has proven too many times that hodling is way better than auto converting a part of your crypto portfolio just to pay the bills. Only convert when selling price is high.
I do learn to practice this too bro, as I understand that in due time the value of the coins that I mine really fluctuates and by holding it and wait till
the price went much higher is way better than converting it right away to pay bills and to have little earnings, mining can be treated as good past time
and a habit that will generate decent earnings if we pay attention well, the longer we hold and believe with the project that we are mining the more
we will be able to earn bigger.
sr. member
Activity: 784
Merit: 282
with money off course

Perfect response. /s

But seriously, i pay mine with fiat from my regular job. Time has proven too many times that hodling is way better than auto converting a part of your crypto portfolio just to pay the bills. Only convert when selling price is high.
jr. member
Activity: 56
Merit: 8
You are doing it wrong then and could possibly end up paying taxes on something you took a loss on.  You are only taxed when you convert to fiat.  Just to illustrate my point, lets say last March I somehow solo mined a bitcoin block and received 12.5 bitcoins.  And this was when it was at $1250.  By your reasoning I take a capitol gains taxation for $15,625.  Now lets say I hold the bitcoin and decide to sell it all this month netting $137,500.  You think the IRS will let this slide since I paid tax on it last year?  No.    Its really no different than buying a stock.  You pay capital gains when you sell it, not when you receive it.

The only problem with your logic is that buy a share of stock is not the same as mining crypto. Let me explain.

If you were my employee and I paid you for your work in company stock it would be taxed at the price I gave it to you as income and when you sold it would be taxed again on the difference either as a either a capital gain or capital loss (assuming you held it for more than 12 months).

Now, if you buy crypto you only pay capital gains on the difference, again assuming you held it for 12 months.

Trust me.

Small miscommunication here.  NSUMMY is saying the same exact thing, but looking at it from an investor's standpoint rather than a miner's.
 WHOISMOSES, you are correct in that cryptocurrency is recognized as revenue, and as a result taxed, when it is earned.  So lets say that on a pool I mine $1,000 worth of bitcoin on the 1st and I also mine $1,000 worth of bitcoin on the 15th.  As of the 30th of that month, I've mined $2,000 worth of bitcoin.  If my electricity expense was $200 for the whole month, I will owe taxes on $1,800 (assuming that there are no other expenses I can deduct).  Now, lets say that I decide on the 30th to cash out that $2,000 in BTC.  But I run into a problem because the BTC price has dropped.  So now that same $2,000 of BTC is only worth $1,500 but I still decide to cash it out.  Then I get to list a capital loss of $500, meaning my taxable income has dropped by that much ($500 in addition to the $200 from expenses).  I would only pay taxes on $1,300.

Sources:
http://theminersunion.com/2017/09/11/what-you-need-to-know-about-bitcoin-mining-taxes/
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
https://www.irs.gov/newsroom/irs-virtual-currency-guidance

member
Activity: 247
Merit: 59
You are doing it wrong then and could possibly end up paying taxes on something you took a loss on.  You are only taxed when you convert to fiat.  Just to illustrate my point, lets say last March I somehow solo mined a bitcoin block and received 12.5 bitcoins.  And this was when it was at $1250.  By your reasoning I take a capitol gains taxation for $15,625.  Now lets say I hold the bitcoin and decide to sell it all this month netting $137,500.  You think the IRS will let this slide since I paid tax on it last year?  No.    Its really no different than buying a stock.  You pay capital gains when you sell it, not when you receive it.

The only problem with your logic is that buy a share of stock is not the same as mining crypto. Let me explain.

If you were my employee and I paid you for your work in company stock it would be taxed at the price I gave it to you as income and when you sold it would be taxed again on the difference either as a either a capital gain or capital loss (assuming you held it for more than 12 months).

Now, if you buy crypto you only pay capital gains on the difference, again assuming you held it for 12 months.

Trust me.
member
Activity: 644
Merit: 24
I pay all my bills with the money I'm earning from mining, this is very convenient for me
all that earned money comes to one bank account, from there I'm paying all the bills.
very easy and fast. before I had to go to atm machine and pay cash there which was really not so convenient )) especially if it is raining or snowing outside 

First world problems.  How do you pay your electric bill with cash?  I don't even think my electric company takes cash anymore.  No idea where I would take the cash to them.
member
Activity: 238
Merit: 11
Do most of yall have day jobs and use your USD to pay for your bill or do you guys sell crypto to pay thus decreasing your potential from the profit? What are your guys strategies?

Im thinking Im just going to get a day job and be a slave to society for a little while.

I currently pay the bill with the result of being a worker, but I want to pay for it with a coin, but I can not.
I really hope someday be fulfilled
hero member
Activity: 852
Merit: 500
Do most of yall have day jobs and use your USD to pay for your bill or do you guys sell crypto to pay thus decreasing your potential from the profit? What are your guys strategies?

Im thinking Im just going to get a day job and be a slave to society for a little while.

If you live in an apartment and your lease is up soon, you can try looking into a complex that includes electricity based on the average of what all of the other units are using.
full member
Activity: 1179
Merit: 131
Nice this Is very helpful. Should i record how much I made in USD every month or keep the amount of coins that I made and convert to USD at a certain time frame. I believe it is the time that I actaully convert it right? What if i never cash out.

Technically you are supposed to recognize the revenue when the transaction is logged in the block chain. I don’t do that as it would be too hard. I recognize my revenue every month on the 28th. It doesn’t matter if you convert to fiat or not.

You are doing it wrong then and could possibly end up paying taxes on something you took a loss on.  You are only taxed when you convert to fiat.  Just to illustrate my point, lets say last March I somehow solo mined a bitcoin block and received 12.5 bitcoins.  And this was when it was at $1250.  By your reasoning I take a capitol gains taxation for $15,625.  Now lets say I hold the bitcoin and decide to sell it all this month netting $137,500.  You think the IRS will let this slide since I paid tax on it last year?  No.    Its really no different than buying a stock.  You pay capital gains when you sell it, not when you receive it.
copper member
Activity: 1442
Merit: 529
Here in Italy I do pay electricity bill from my mining rigs I own, we have a small farm of 20 rigs and 5 rigs each person, we are 4 friends. I take 100% from one mining rig and 20% from another to pay electricity bill which is high here 0.16 euro/kwatt . I think this does not damage my profit as the other 3 rigs plus the remaining 80% of the 4th one are making me about 1600 Euro/month but I like to make calculations with bitcoin as I save most of them because I have a daily job until now.

My advice even to a person having only one mining rig and let's take as an example the most common rig one with GPU-s RX 500 series, making about 400 USD month, and consuming 80 USD electricity, pay the electricity with this mining rig as this way you continue a normal life without having to spend money from your daily job to pay the mining electricity.
newbie
Activity: 24
Merit: 0
Was anyone tried wind generated electricity to power mining rigs ? I know i live in a constant windy location most of the year, 5-20 Mph, with gust with as much as 40 mph during average storms. Wouldn't a high amperage dc motor spinning in the wind give you .5-1 Kwh ?

ie. cloth dryer motor
jr. member
Activity: 56
Merit: 8
I pay my electricity bill with sell a coin. it's already planned, a half a profit to buy new hardware for build new RIG and the rest I keep in the form of coin.

I just keep the coins and use the fiat to pay for the electricity. That is similar to buying coins.

I respectfully disagree.  It is absolutely not the same, as far as I'm aware.  The electricity costs and other costs for my S9 means that I pay about $2,500 for 1BTC with mining, while it trades for $11,000.  So if I'm converting $2,500 to $11,000 (or on a smaller scale $250 in costs to $1,100) how is that the same as buying coin at $11,000?
sr. member
Activity: 434
Merit: 255
I pay for electricity on my own. In my country, the price of electricity is low. But we see that the cost of electricity will increase. Perhaps in the future we will see attempts by the state to limit the possibility of exchanging cryptocurrencies for Fiat to combat users of cryptocurrencies and increase the price of electricity to fight miners.
full member
Activity: 258
Merit: 100
Do most of yall have day jobs and use your USD to pay for your bill or do you guys sell crypto to pay thus decreasing your potential from the profit? What are your guys strategies?

Im thinking Im just going to get a day job and be a slave to society for a little while.

I’m paying both electricity and real estate with fiat and saving all the crypto for good. No selling until I have significant amount of the crypto that I mind and until it goes to moon  Grin Grin

newbie
Activity: 33
Merit: 0
I pay my electricity bill with sell a coin. it's already planned, a half a profit to buy new hardware for build new RIG and the rest I keep in the form of coin.

I just keep the coins and use the fiat to pay for the electricity. That is similar to buying coins.
member
Activity: 266
Merit: 50
I pay my electricity bill with sell a coin. it's already planned, a half a profit to buy new hardware for build new RIG and the rest I keep in the form of coin.
hero member
Activity: 980
Merit: 509
I'm stiil working now, so I paid electricity and bills with my salary. I do invest in crypto is for my future, so I will not sell my crypto to paid electricity and bills. Crypto better we setup for the future, because inside crypto have a investment and the profit more than gold. Salary we can paid for bills, saving money etc.
member
Activity: 308
Merit: 49
Well, if they succeed, you'll just have to wait a bit longer for free electricity...but meanwhile
you can still sell KWhs you get by holding MWATs  Cheesy
They plan to go global



If the coin project is a success, in the roadmap of the country of Indonesia entered the year 2022.
I feel very sad, and if I have to wait for four more years, that's a long time ago. LOL Grin
legendary
Activity: 1148
Merit: 1006
I pay all my bills with the money I'm earning from mining, this is very convenient for me
all that earned money comes to one bank account, from there I'm paying all the bills.
very easy and fast. before I had to go to atm machine and pay cash there which was really not so convenient )) especially if it is raining or snowing outside 
That's good you are saving your salary.

how come you will handle your IT. because you earned money will directly come to your bank account then every transaction will be noted in your IT right so you don't have any issues from your IT department.

For me in my local exchange, they allowed us to pay bills directly through bitcoins. that means my bill amount will deduct in my BTC balance no need to convert it into fiat.
sr. member
Activity: 420
Merit: 250
I pay all my bills with the money I'm earning from mining, this is very convenient for me
all that earned money comes to one bank account, from there I'm paying all the bills.
very easy and fast. before I had to go to atm machine and pay cash there which was really not so convenient )) especially if it is raining or snowing outside 
sr. member
Activity: 518
Merit: 250
I pay my electricity bill with taxed money i get from my day to day job. No way i would be selling crypto each month to pay the electricty bill. That would be a HUGE mistake in regards to profits. Either ive negotiate a contract making the payment once a year, or use normal fiat money. but keep track of the expenses you use for your hobby as they are normally subject to tax deduction  Cheesy
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