Topic: How degenerate is it buying and sitting on PayPal Bitcoin ? - page 3. (Read 1142 times)

Buying Bitcoin is not a taxable event. Selling it and converting to fiat is. That's why I make sure to always sell my coins FIFO, so I'm only owing long term capital gains.

Playing the devil advocate right now, but legally speaking, if you would have done this on Coinbase for example, wound't you still be liable for the same taxes? Or on any exchange? Of course, buying and selling at an ATM or P2P would have given you some privacy but still from a legal point of view that would be tax evasion, right? I'm not talking about what's moral or views on it but strictly legally! So, you do it with PPBTC or withBTC  at Kraken it's the same in the end, right?


Or, a solution to the above conundrum, hold till they will eventually let you withdraw real coins to your wallet, even if for some the average life expectancy often loses when it comes to good things getting implemented. If it took Coinbse 3 years to batch transactions we could assume 30 for Paypal real crypto withdrawals.


There is no need to argue, for a lot of people somebody else storing their coins is a better solution, guys like:
Twitter hack: Exchange 'blocked 1,000 Bitcoin transactions'

And at this point, I can say for sure that these services have just one way to go in terms of coins held, up!!! Of course, there will be thousands like us storing our coins in our own wallets but millions won't.

I don't ever use Paypal, but the fact is that for mass adoption most people are just going to end up letting a third party, like paypal or their bank or their investment firm, custody their bitcoin, no different than how most casual bitcoin owners (in the US) just bought and keep theirs on Coinbase or perhaps some other exchange. Paypal or in a bank makes it easy and convenient for them to spend, and investment firm that they trust makes it easy for them to invest and not worry about it (though I would assume these sorts of companies will get insurance for the bitcoin they hold, otherwise its gonna be hard to build trust).

Though the tax rules on Bitcoin make actually spending it a huge headache so until that happens there is not reason to keep it in an account that allows you to spend it easily.

I'll stick to holding my own bitcoin, but for the majority of consumers out there custody from paypal and other institutions will just make more sense for them. I would even argue that having these third party custodians is GOOD. That's right, good. Because it increases adoption, and likely a small percentage of those people will then be interested enough in actually learning about Bitcoin and taking advantage of its features beyond price appreciation. Also for using it as a currency, well, Bitcoin is simply unusable on a mass scale cuz of its block size bottleneck, so unless Lightning Network takes off and is easy to use and its tradeoffs are worth it, 3rd parties will allow vastly more usage (and therefore ownership) of Bitcoin to take place because they can just batch tons of transactions together and decrease the data going into the blockchain. The hardcore crypto enthusiasts will hate this idea, but it will in fact improve usability and adoption of Bitcoin by a huge amount.

I mean considering that specific company were going on about how they'd block accounts involved in it then I think it's pretty reasonable not to consider them trustworthy. Unless you've read, saved and printed your copy of the terms and service and read it all the way through to see what you're entitled to if they have another mood swing I'd do nothing with the.

I don't want mainstream adoption, I want INNOVATION. I don't want to experience a chapter in the middle of a long book I want its sequel.


"land of the free" more like land of the fee (pun creds to my autocorrect there).

Yeah im no longer annoyed at my 10% tax bill anymore...

and your are exactly the flaw in adoption that many many many many many old school people have.

As the Donald would say sad so very sad.

Just toss some more sand in the wheels of adoption.

I will not buy through Paypal. I do not need custodial services, and certainly not with an irrational behemoth

And no to the dildo too

It's considered normal income & uses the normal income tax rate. Federally it's anywhere from 10% to 37% marginal depending on your income. Then there's state income taxes added on, which can be anything from 0% (Washington) to 13.3% (California).

(I am not a CPA, etc)

Short term capital gains can get up to 37% PA, if you max the tax bracket.

I don't really use PayPal that much, but if you have some bucks sitting in the account I don't see why you shouldn't buy PPBTC instead of losing the purchase power of your money. This is for the situation you are too lazy to transfer the money out of your account and buy tangible BTC from a regular exchange and transfer them to your personal custody.

I am not aware of the tax rate on short-term capital gains in the United States. Is it 30-40%?

bob you a man after my own heart and soul.

I have two paypal accounts with about

250 in btc
175 in btc.

my feeling are this all members of bitcointalk.org that are legally allowed to buy btc on paypal

should.

obviously it does not need to be 1% of your btc it can be lower.

to not buy it when you legally can simply means you do not want btc to be mainstream.

jackg is correct in that it is not the same as having coin stored  in a bitcore wallet.

but i have been at this for 8 years. i have read  adoption adoption adoption.

and now i read dozens of bitcointalk  members speak against owning paypal btc.

i would give them twenty lashes with a flaccid green dildo for each and every time they say they wont buy it.

😯

From what I remember funds stored in paypal aren't insured like they are in a bank account. It shouldn't be used to store anything that you aren't happy losing.

Also if you can't transfer it out then that looks very shady, even if it is now physically backed. And everything you buy from them is giving them a profit if they already had reserves you're buying. There must be a reason they're doing it now 🤔.

So, in the course of doing everyday stuff, I use Paypal occasionally, which means I hold a cash balance with them.

I have started buying small chunks of PPBTC, and having them holding it in custody.

So far, it's been way profitable for me (unrealized), but I'm fully aware of the tax implications involved with selling PPBTC (Already had to sell off a sliver of PPBTC, and was forced to enter my SSN to continue. I see what you did there PayPal. Har har IRS. That $25 was sold at a loss !!)

Anyway, what are your thoughts on buying PPBTC ? I believe it's fully degenerate, mostly due to the fact you cannot transfer PPBTC out to your own custody.

The only way I'm rationalizing it right now, is whatever PPBTC I'm scooping, aren't going to be sold for at least 365 days after they are purchased, so I'm at least being taxed at long-term capital gains.

Thoughts ? Let's have a PPBTC catharsis thread.