Topic: The fate of the Miners - page 3. (Read 2455 times)

We have so much in common at the moment. When I decided to shut down my Rigs because I'm faced with the electricity bills and I still want to hodl the entire coin (ETH and BTG) that I mined and not even think to sell some coins to cover the electricity cost.

But it's not my final decision I've made. Sometimes when I found a good one coin, I'll mine them for a short period and take the immediate profit in those days.

Thanks this is good advice, from a man that runs a farm and speaks from experience.  I'll probably do something similar when doing my taxes

I already shut down my rigs, I know mining for hodl might be still a very good strategy, but I simply can't effort the electricity for my rigs at the moment, the problem is that the whole market in a very bad condition and no extra money to pay the mining chares and don't sell the mined EThereum so I just had to shut the rigs down. If I was able to cover my expenses I would not shut it down. The situation will differ from one miner to another, some will continue and some others like me will be forced it shut it down for now.

You take a monthly average of the coin cost(you can do daily if you want but so far its not needed).  Let's say 100 low - 200 high.  Avg monthly mining is 150.  If you sell the coin for 120 then you take a -30 cap gain hit.  

I am 100% sure on this as I have been audited.  ASK YOUR ACCOUNTANT anyway.

Also they ruled that crypto IS property and not subject to wash rules.  I just did that to take a neg equity hit because prices are so low.  That means I sold all my coin at a loss and rebought them all a few min later.  Perfectly legal.  Wash rules apply to stocks etc, you have to wait 30 days to rebuy.

You're not really wrong, but:

A) whether or not they are correct, NEVER RELY ON TURBO TAX FOR INFORMATION. If you earn more than $50K/year, they are a bad choice, and if your supplemental income from mining is substantial, get an accountant.

B) there is absolutely no way that the IRS is asking for value at time of realization, because it would bankrupt them to calculate that rate for a handful of miners, much less all. Market fluctuations are constant, and you mine in increments every second. No way they can determine that, and no way they can audit every single miner to determine fraud. Again, talk to an actual accountant about what you may or may not owe.

All market is not a good position. Everywhere Blood and Bleeding. Depending on the price vs electricity charge, I think mining not profitable mainly in our country.

so for them you have to sell your coins everyday at current price, for them you must not hold anything, and if you decide to hold then is a gamble, if the coin your mined is at $1200 and then it rises to $2000 and then you sell then by your example you will have to pay the tax based on the $1200, $800 is profit, now if the price crashes to $120 like now then you will have to pay by your own pocket $1080, so if tax = 10% then based on the $1200, you will have to sell your eth and pay the $120 as tax with it hehe.

I'm glad, i live in a country where I only pay tax when i sell something. If I buy 1 billion dollar of eth then they will tax me only when i sell it and they will charge me 15%. If I dont sell then they will never tax me.

NOooooo!!!  That is totally incorrect.  Please do not spread inaccurate information messing up peoples accounting.

https://ttlc.intuit.com/questions/4138638-how-do-i-report-cryptocurrency-mining-income

from turbo tax USA laws
"When you mine the coins, you have income on the day the coin is "created" in your account at that day's exchange value."

The 2nd red text I highlighted is also incorrect.  If you trade an alt coin for another alt coin that's a taxable event for 2018.  You can't use like kind exchange anymore, the irs made it only specific to real estate and not crypto.

Your first sentence is correct but is another separate taxable event for the day you mined and the day you cash out.

Also remember when you sell your equipment that's taxable.  IRS wants that also to offset the equipment deductions they gave you.

So what does this all mean.  If you mined 1 zcash at $400 dollars that's all taxable income.  If the value drops to what it is now $78. You just lost over 5x value.  You still owe taxable income on that $400 dollars so if your taxable income rate is at 25 percent, that means you owe the IRS $100 dollars for their cut but the value of your 1 zcash you mined early on the year is now only worth $78.  Congrats you made a dumb move by deciding to mine for all of 2018 in the red.

Your only way to get out of this is to sell some of your mined coins at a loss at full capitulation prices to REALIZE the lost.  If your in the usa and you mined for all of 2018 and hodl then your at a BIG LOSS when doing your mining taxes!


Mining not all fun and games.  There's a lot of record book keeping and tax accounting involved and risk

*shrugs* This isn't a question for me until April. Mining will ALWAYS be more profitable than running my heater, so...

Shutting down of the mining farms because of the disadvantage of mining has already begun. This can be seen in reducing the hashrate and mining difficulty of many popular cryptocurrencies, such as Ether, Bitcoin, Litecoin, and others. Apparently, mining as a mass phenomenon has already outlived its time.

Certainly a lot easier to buy than mine ETH at the moment. It's now about 1ETH per 2nd hand RX gpu, so ignoring electric costs, you'd need to spend about 15ETH to get 1ETH a month back.

How many have you bought recently?

As hard as it may seem it is better to sacrifice during this time and limit yourself a little bit in spendings because I believe the reward after one year or two will be huge. Many persons believe the price of bitcoin to be 35.000 dollars during May 2019 so I think it is worth any sacrifice anybody will make.

Buying like crazy right now! this is a GOLDEN opportunity.

$118!

I just bought some

$120 now, i want to see where this nonsense will stop, one thing i will say, when this is over and bulls start pumping eth again to $xxxx levels then we will see many people saying why i did not buy eth when it was $120.

it hard to cover electricity bill for 1-2 year.

if price not rise up in 3 month a lot of miner will stop mining.

Preparing for next mining profit wave after year or two.

Yes, getting electricity is easy, but electricity costs are very high when compared to income in mining. Indeed the price of coins doesn't always go down but when you buy hardware for now...and...then take ROI will be like a dream.

today ETH is 130$ maybe going to 110-120