nrd525 Market Tracker - page 29. | Bitcointalksearch.org

Samarkand

sr. member

Activity: 658

Merit: 282

Quote from: nrd525 on December 06, 2017, 03:28:35 PM

Not sure if this would affect Bitcoin.
https://www.bloomberg.com/news/articles/2017-12-06/this-little-known-tax-proposal-takes-aim-at-your-trading-account

I think there are ways you can circumvent this new rule. I´m not from the US so take my advice with a grain of salt, but
in my country it is possible to circumvent this by using "layers". By this I mean separate trading accounts (or wallets
in the case of BTC) where you can easily prove that the stocks/coins had a different investment purpose.

E.g. you could have a long-term investment hardware wallet and a short term trading wallet. If you sell coins from
the short term trading wallet it is irrelevant if you still have "older" (=bought earlier) coins in the long-term investment wallet.

The financial authorities accept this kind of structure even though FIFO is generally the standard.

Of course you have to stick to this method once you start to declare this way, it is not possible to use "layers" when it suits
you and FIFO when it suits you better.

On an unrelated note, Bithumb is going crazy right now. BTC is trading for nearly 18k $, which would make
for a really nice arbitrage opportunity if you are able to setup a Korean exchange account.

nrd525

legendary

Activity: 1868

Merit: 1023

Not sure if this would affect Bitcoin.
https://www.bloomberg.com/news/articles/2017-12-06/this-little-known-tax-proposal-takes-aim-at-your-trading-account

nrd525

legendary

Activity: 1868

Merit: 1023

We could see a big blow-off top around the time the CME goes through. So December 18. I've got no real idea, but something like a run at 15k or 20k followed by a crash to 7-9k would be along the lines of what is possible.

nrd525

legendary

Activity: 1868

Merit: 1023

Syke I agree with you that is how it should be.

...

Digital kitties clog the ethereum blockchain. Has Ethereum finally found its main use case? Wink

https://www.coindesk.com/loveable-digital-kittens-clogging-ethereums-blockchain/

Syke

legendary

Activity: 3878

Merit: 1193

Take for instance this case referenced in a linked article.

Quote

Let's say that your boss gives you a paycheck and you put it in your desk drawer - and then you quit and forgot about the check. You still got paid. The check is still taxable to you even if you never take steps to cash it (such as replacing the check).

In that case, you accepted the check. You took control of it, therefore it is taxable. But that's not how airdrops went. The correct analogy would be this:

Quote

Let's say that your boss says he wrote you a paycheck, but he never gave it to you. Did you get paid? No, therefore it is not taxable.

Syke

legendary

Activity: 3878

Merit: 1193

I disagree. If I put money in a safe and say it's now yours, you don't have to declare that as income until you actually take the money.

nrd525

legendary

Activity: 1868

Merit: 1023

Forbes article:

https://www.forbes.com/sites/greatspeculations/2017/08/04/how-to-report-bitcoin-cash-and-avoid-irs-trouble/#113405cc3066

Syke

legendary

Activity: 3878

Merit: 1193

Quote from: nrd525 on December 03, 2017, 08:06:10 PM

For US taxes, you also have to probably declare Bitcoin Cash and Bitcoin Gold as income even if you never sold. Possibly even if you didn't get it yet, or possibly even if you didn't get it at all!

I don't see how they can make that argument if you never take control of the airdrops.

nrd525

legendary

Activity: 1868

Merit: 1023

For US taxes, you also have to probably declare Bitcoin Cash and Bitcoin Gold as income even if you never sold. Possibly even if you didn't get it yet, or possibly even if you didn't get it at all!

So you would have a cost basis for those based on the market value at the time of the fork.

I'm less sure about forks like Bitcoin Diamond. Maybe it if catches on with some major US exchanges and/or is supported by wallets then it might count as income. They gave out 10 Bitcoin Diamonds per bitcoin - so with it trading at $45 - that is some serious money if it actually happens.

In theory you might be responsible for all of the coin drops as "income". Though in practice most of the past ones were minor.

nrd525

legendary

Activity: 1868

Merit: 1023

Oops.

So I've been using cost-averaging as an accounting method. You can do this for mutual funds, but for Bitcoin you need LIFO, FIFO, or offsetting lots.
https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/definitive-bitcoin-tax-guide-chapter-1-trading-gains-and-losses-c-lifo-fifo-offsetting-lots.asp

Pro - my federal capital gains tax rate just went to zero. And at these prices I might even sell some more as I'm solidly in the longterm rate.

Negative - I get to refile all my returns for past years and change my accounting method. And maybe need to talk to a tax accountant?

FiendCoin

sr. member

Activity: 462

Merit: 263

The devil is in the detail.

Quote from: nrd525 on November 28, 2017, 05:47:18 PM

Bitfinex USD swaps are at $497 million at the price bounced off 9998 =)

https://www.bfxdata.com/swaphistory/usd

That is up a lot from January ($30 million) or July 2016 ($40 million). July 2016 was higher because it was before the hack.

I have no idea what is going on with the market. We seem to forget things like the Chinese exchanges being closed.

I'd expect a blow-off top (ex a 5-10% increase in a single hour, followed by a 30% correction and then a bear market). But instead we're going up more steadily than I'd expect. Maybe the internationalization of the market which includes trading in different currencies as well as markets having different premiums has made numbers like $10,000 USD less significant?

If I could pay the long term capital gains rate, I'd be more tempted to sell some BTC. But as it is, I'm holding.

I'm going to sell 2% of my holdings soon and have a VERY merry Christmas and I wish everyone the same!

nrd525

legendary

Activity: 1868

Merit: 1023

Bitfinex USD swaps are at $497 million at the price bounced off 9998 =)

https://www.bfxdata.com/swaphistory/usd

That is up a lot from January ($30 million) or July 2016 ($40 million). July 2016 was higher because it was before the hack.

I have no idea what is going on with the market. We seem to forget things like the Chinese exchanges being closed.

I'd expect a blow-off top (ex a 5-10% increase in a single hour, followed by a 30% correction and then a bear market). But instead we're going up more steadily than I'd expect. Maybe the internationalization of the market which includes trading in different currencies as well as markets having different premiums has made numbers like $10,000 USD less significant?

If I could pay the long term capital gains rate, I'd be more tempted to sell some BTC. But as it is, I'm holding.

nrd525

legendary

Activity: 1868

Merit: 1023

An interesting point from Tone Vays is that it can be (according to some lawyers) a larger crime if you try to avoid regulation intentionally. So creating an instrument like Tether, if done so intentionally, is worse than just violating the AML/KYC laws directly.

Of course Tone Vays is very opionated and not always correct.

The possible precedent is E-Gold. They were shutdown harshly by the US government.

...

According to Reddit, Bitfinex just started allowing in/out wires for individual customers in USD. So they are either in the last throws of an exit scam (unlikely) or things are looking very positive.

...

The World Crypto Network video was very bad for the pro-Bitfinex side. Flibbr was butchering the arguments and resorting to poorly designed attacks. Possibly because he really doesn't know what is going on with Bitfinex. But if they fix their banking then most people will be happy. Unless of course the number of Tether continues to increase exponentially...

TheQuin

hero member

Activity: 2576

Merit: 883

Freebitco.in Support https://bit.ly/2I9BVS2

Quote from: nrd525 on November 21, 2017, 02:46:58 AM

There is also a possible regulatory issue. If Bitfinex runs afoul of regulators, and they already are unable to use regular banking - how are they going to survive? As a crypto only exchange I think they'd lose most of their market share.

That is what Tether is all about, allowing exchanges to trade USD and reduce the risk of regulatory intervention. Tether's banks stopped receiving international wires but still accept USD deposits from Tawainese bank accounts. This has the effect of barring retail traders and only being open to large institutional clients and wealthy individuals, those who can get access to Tawainese banking facilities. It is a lot easier for them to verify that these funds are from legitimate sources than trying to find out if every retail customer is a funded by a Columbian drug cartel.

Quote from: nrd525 on November 21, 2017, 02:46:58 AM

Bitcoin attracts tons of scammers, but it also attracts conspiracy theorists. So you need to be skeptical about the skeptics as well as all the projects and people.

Very well put. So far the Tether business looks like classic conspiracy theory material. Lots of anonymous people pointing at partial facts that are easy to frame as being suspicious, but no real substance behind them. That being said I only have a small proportion of my holdings at Bitfinex as I've been around long enough to know how quickly the picture can change.

Quote from: nrd525 on November 21, 2017, 02:46:58 AM

I think the forks aren't dividends. They are extracting value from Bitcoin and over time they will become increasingly less valuable and ignored. They're only succeeding because we're in a super-frothy part of the bull market and very near the top. Eg. people will buy anything without due diligence.

True, we'll struggle to remember the names of them in a few years.

Interesting thread, I wish I had found it sooner. Thanks for sharing your thoughts.

nrd525

legendary

Activity: 1868

Merit: 1023

I've got Bitcoins. I'm diversifying. I think Bitcoin could fall 90% in a year and stay down there for a year. Or it could even be replaced.

That said, this Tether story is beginning to look a bit scarier. Making me a bit skeptical of loaning BFX USD swaps.

https://www.reddit.com/r/Bitcoin/comments/7eex7c/tether_critical_announcement_30950010_usdt_was/

And really bad audio interview of anonymous user "Bitfinexed" who is arguing that Tether is problematic, and "Flibbr" (with much better audio - which gives him the advantage) who is arguing that there is no problem.
https://www.youtube.com/watch?v=TerIjELO7IY

There is also a possible regulatory issue. If Bitfinex runs afoul of regulators, and they already are unable to use regular banking - how are they going to survive? As a crypto only exchange I think they'd lose most of their market share.

I think the forks aren't dividends. They are extracting value from Bitcoin and over time they will become increasingly less valuable and ignored. They're only succeeding because we're in a super-frothy part of the bull market and very near the top. Eg. people will buy anything without due diligence.

Bitcoin attracts tons of scammers, but it also attracts conspiracy theorists. So you need to be skeptical about the skeptics as well as all the projects and people.

Samarkand

sr. member

Activity: 658

Merit: 282

Quote from: nrd525 on November 14, 2017, 08:08:56 PM

...So now I've got a lot of funds that aren't doing anything. Hopefully I'll setup a US LLC to lend money on Bitfinex. Otherwise I might put some funds in the US stock market - but it's pretty high. I don't want to put more money into Bitcoin unless it falls dramatically (aka $2000 or less).

I´m pretty sure that the expected value of investing in Bitcoin directly is higher than lending money on Bitfinex - even at the current BTC price level.
This is assuming that you can endure a short-term drawdown if it would occur, which obviously can´t happen if you decide to lend the funds at BFX.

Investing in BTC directly would also save you the hassle and the costs of setting up a US LLC.

Another argument in favor of buying BTC directly is that you can take advantage of upcoming forks, which basically
is like receiving a dividend payment everytime it happens (of course you have to make sure that you don´t do anything
wrong or fall for a scam wallet while splitting your coins).

nrd525

legendary

Activity: 1868

Merit: 1023

With billions of dollars at stake and millions of dollars to invest, Bitcoin Cash (and Gold) can afford to buy/hire a strong team of developers. The level of potential financial resources available to alt-coins, ICOs, and Bitcoin forks is unprecedented this year when compared to 2016 and before.

The new developers are likely to have less experience and community trust, but they should be able to do a good job and reduce the chance of a major bug that could lead to a hack. Especially if the crypto-currency is run by a team that is competent and open to suggestions. And it helps if they can rely upon work from similar projects. For instance, Ethereum gets to make new bugs/mistakes (like the DAO, and the latest bug that caused people to have their funds stuck or lost) because it is very different from Bitcoin.

--

Got all my money out of Bitfinex as I'm a US resident. So now I've got a lot of funds that aren't doing anything. Hopefully I'll setup a US LLC to lend money on Bitfinex. Otherwise I might put some funds in the US stock market - but it's pretty high. I don't want to put more money into Bitcoin unless it falls dramatically (aka $2000 or less).

nrd525

legendary

Activity: 1868

Merit: 1023

If you're going to pump crypto currency, do it on Saturday night!

That was the most epic pump I've ever seen when you consider both market cap and percent. Then BCH/BTC fell 26% in one minute on BFX! I think the pump was so far outside of the realm of the imaginable that most traders stayed far away from it. As such, there was relatively little shorting and BCH was able to go up to 53% of BTC on Bitfinex. Fortunately I didn't short it.

With this as a precedent, we're likely to see a growing number of forks of Bitcoin and forks of forks. At some point reality might set in, but it if doesn't the forks will create their own communities with people who have millions to lose or gain based on their outcome they may be driven enough to succeed.

nrd525

legendary

Activity: 1868

Merit: 1023

Bitcoin Cash 25% of BTC and Bitcoin Gold 6% of BTC.

This looks like the biggest pump in Bitcoin (and crypto currency) history. It's based on greed and some classic pump/dump methods. Hard to say when it will top, but I think soon.

One of the dangers of Bitcoin just being a store of value is that you don't need merchant adoption. The exchanges will rollover competing with themselves (except possibly Coinbase which is slow to add new coins). And with so much money involved you could easily train and/or buy the best developers. It might take a while to get them up to speed and to build community trust though.

nrd525

legendary

Activity: 1868

Merit: 1023

The candle that had BTC shoot up to 7900 had people like Tone Vays (and others) calling it the annual top. So that combined with the cancellation of the Segwit2x hard fork - makes it a pretty good time to attack Bitcoin and try to replace it with Bitcoin Cash (and even sketchier projects like Bitcoin Gold).

I'm still super skeptical about merchant and general community adoption.

On the other hand, I've definitely been wrong about alt-coins being a bad investment.

There might be a lot of people who are rich due to the Bitcoin and Alt-coin bull markets who have decided they are smarter than they actually are (basically we mostly all got very lucky), and that they are capable of making even more money by having Bitcoin Cash replace (or steal half or most of its community) Bitcoin.

Topic: nrd525 Market Tracker - page 29. (Read 83024 times)