How to get the money when 1 BTC = loads?

okthen

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Quote from: DieJohnny on May 25, 2014, 10:14:24 AM

would be nice if one person who has actually dealt with this in real life (bought 50k bitcoin in 2010), or one person who is truly ready for this to happen and doesn't want to flee the country, renounce citizenship or sell gift cards for 10 years would actually comment on this.

it is an entirely real scenario that in 18 months bitcoin is worth 25k each. Even at that price, I don't want to use an exchange to get my fiat as I simply don't trust them.

1. I am ready to deal with tax consequences, that is not a battle i want to waste any of my energy on.
2. I don't believe that in 18 months we will have reached a matrix state and I can pay my mortgage with bitcoin
3. I may need to sell Bitcoin and I don't trust any current exchanges.

So how do i do it without getting killed?

What I worry is not even not trusting the exchanges. Is being tracked by the tax office.

Because face it, even if there is a bubble that reaches 10000 quite soon, it might be long before this is the "normal" price, and way before you can live off bitcoin only.

One solution I've been thinking about is gold. Maybe it already exists, maybe it will be created soon, but I guess there will be a way to buy gold with btc.
Then sell the gold for cash...

Hope we all have to worry about it very soon Grin

r34tr783tr78

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There is no reason to don't trust a big exchange, like Bitstamp, Bitfinex or Btc-e, for a fast trade and withdraw.
They are big exchanges, that earn a lot on fees. Scamming would be absurd, they are already making a lot of money. Even if their hot wallets get hacked, they have enough money to keep going on.
Or you can use localbitcoins with some trustworthy trader.

DieJohnny

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would be nice if one person who has actually dealt with this in real life (bought 50k bitcoin in 2010), or one person who is truly ready for this to happen and doesn't want to flee the country, renounce citizenship or sell gift cards for 10 years would actually comment on this.

it is an entirely real scenario that in 18 months bitcoin is worth 25k each. Even at that price, I don't want to use an exchange to get my fiat as I simply don't trust them.

1. I am ready to deal with tax consequences, that is not a battle i want to waste any of my energy on.
2. I don't believe that in 18 months we will have reached a matrix state and I can pay my mortgage with bitcoin
3. I may need to sell Bitcoin and I don't trust any current exchanges.

So how do i do it without getting killed?

600watt

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Quote from: okthen on May 11, 2014, 03:17:29 PM

Quote from: bananaControl on May 11, 2014, 03:02:11 PM

Quote from: okthen on May 11, 2014, 02:27:00 PM

So when BTC reaches an astronomical value and one wants to withdraw a portion to have some pocket cash... How to do it? Which country is best in terms of not getting a huge tax?

Denmark is the place it seems: http://www.coindesk.com/denmark-declares-bitcoin-trades-tax-free/

This is certainly good to know, thanks!

Hmm what should we do... Move to Denmark? Or should everybody marry a Danish chick? Cheesy

no, just buy danish bitcoins & you´re fine.
Wink

edit:
in germany gains on btc are tax-free when you hold them more than 1 year.

r34tr783tr78

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Even so, as more merchants adopt bitcoin, more consumers will have to buy bitcoins to pay for things. That introduces them to bitcoin and many will keep bitcoins thinking of future purchases and for investing purposes.

Usually, people adopts a payment system precisely to buy things.

BitchicksHusband

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Quote from: Unluckyduck on May 18, 2014, 06:18:30 AM

Quote from: theonewhowaskazu on May 11, 2014, 02:47:32 PM

Useit to buy products and services directly or buy gift cards. = no tax

Problem is that currently almost all merchants who accept bitcoin staunchly refuse to actually hold onto it and rather have it processed instantly by a service like bit pay. Bit pay sells the coin immediately on an exchange which actually drives the price down.

Actually, Bitpay allows you to specify the percentage to be held in bitcoin. Coinbase too, I believe.

Stousers

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What is good today will not be good tomorrow. Giving an educated guess now is plausible but that bridge will have to be crossed when and if a huge value hike happens

r34tr783tr78

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Single Euro Payments Area, a system of wire transfers between european banks: free and fast (24h-48h on working days)

Malin Keshar

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Quote from: Unluckyduck on May 18, 2014, 06:18:30 AM

Quote from: theonewhowaskazu on May 11, 2014, 02:47:32 PM

Useit to buy products and services directly or buy gift cards. = no tax

Problem is that currently almost all merchants who accept bitcoin staunchly refuse to actually hold onto it and rather have it processed instantly by a service like bit pay. Bit pay sells the coin immediately on an exchange which actually drives the price down.

more people entering the game will balance it, and sooner or later btc will be recognized as a reserve asset and will be hold too.

And what is SEPA?

Unluckyduck

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Quote from: theonewhowaskazu on May 11, 2014, 02:47:32 PM

Useit to buy products and services directly or buy gift cards. = no tax

Problem is that currently almost all merchants who accept bitcoin staunchly refuse to actually hold onto it and rather have it processed instantly by a service like bit pay. Bit pay sells the coin immediately on an exchange which actually drives the price down.

ejinte

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Quote from: r34tr783tr78 on May 17, 2014, 09:55:14 AM

Quote from: Bibop on May 14, 2014, 06:51:30 PM

How the exchange process to my bank goes?
do someone specific need to transfer to my bank the value?
or some exchange company that takes fee for the process? and if there is, how much they taking?

The major part of exchanges accept withdraws by wire transfer to a bank. But usually they require that you verify your account by sending personal documents. You can use Bitfinex or Bitstamp.

If in Europe you could go with one of the exchanges that does SEPA, like kraken or safello. SEPA is much quicker and cheaper than bank transfer.

r34tr783tr78

sr. member

Activity: 481

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Quote from: Bibop on May 14, 2014, 06:51:30 PM

How the exchange process to my bank goes?
do someone specific need to transfer to my bank the value?
or some exchange company that takes fee for the process? and if there is, how much they taking?

The major part of exchanges accept withdraws by wire transfer to a bank. But usually they require that you verify your account by sending personal documents. You can use Bitfinex or Bitstamp.

ejinte

hero member

Activity: 644

Merit: 500

I don't think any of the governments will make any bigger tax income on bitcoin. At least not in the sens that they would tax people selling their coins. My government today, the Swedish, says that bitcoin sells will be taxed if they were bought at a lower prices.

Then the profit would be taxed at 20%.

If however one makes a lose then that lose could be used to pay less taxes.

The problem is that none of the exchanges report bitcoin trades to the local IRS.

So if one want to tax for his earnings it's up to him or her. And of course no one would like to do that. So no one will. They could tax stores making sells in BTC and they already do in the same way they tax fiat.

They could also tax employers getting payed in BTC.

hamza171

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Why not just using it as money instead of trading it ,I mean if it hits the 1k or 10k the news will be all over the internet and that will make it more popular and accepted in more stores

bitcoinboy163

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There in China I was told that the road is getting narrow

Bibop

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How the exchange process to my bank goes?
do someone specific need to transfer to my bank the value?
or some exchange company that takes fee for the process? and if there is, how much they taking?

f3tus

sr. member

Activity: 317

Merit: 275

Zero taxes in Slovenia for any trading/capital gains with bitcoins. Only mining is taxed, but only if you're stupid enough to willingly admit you mined them.

solimi

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Just leave it, a little bit out, do not accumulate too much, then you're the lamb to be slaughtered

r34tr783tr78

sr. member

Activity: 481

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In the end, avoiding taxes is risky and demands one of two another risky things:
1) to hold bitcoins and risk going thru the cyclical drastic bear markets;
2) or exchange to fiat and risk to trust an exchange to keep your money, since withdrawing to a bank might mean troubles with fiscal authorities.

Razick

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Quote from: okthen on May 11, 2014, 02:27:00 PM

So when BTC reaches an astronomical value and one wants to withdraw a portion to have some pocket cash... How to do it? Which country is best in terms of not getting a huge tax? Would you take the amount you want straight away or little by little? Sell it in some other way?

If you are a US citizen you don't have a choice of tax jurisdiction (even if you move) unless you renounce your citizenship.

Topic: How to get the money when 1 BTC = loads? (Read 3655 times)