Bitcoin Winners

GohanX

Horrible Goose
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It's more of a speculation game right now, Bitcoin is pretty useless for actually buying things due to the transfer fees. When you want to cash out it's pretty much you convert it to one of the coins that Coinbase uses, transfer there, sell for USD and transfer it to your bank account (after Coinbase takes their not insignificant cut.)

The catch to this method is that the IRS is all over Coinbase's ass about turning over records since people aren't paying taxes on their gains. Some people are going to be in pain with back taxes that they owe.
 

smokehouse

I was Born This Ugly.,
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It's more of a speculation game right now, Bitcoin is pretty useless for actually buying things due to the transfer fees. When you want to cash out it's pretty much you convert it to one of the coins that Coinbase uses, transfer there, sell for USD and transfer it to your bank account (after Coinbase takes their not insignificant cut.)

The catch to this method is that the IRS is all over Coinbase's ass about turning over records since people aren't paying taxes on their gains. Some people are going to be in pain with back taxes that they owe.

That's what I was curious about, how this translates to real money. So you buy $500 in bitcoin when it first hit the market...now it's worth millions...now what. How do I pay off my mortgage or put my kid through college? No matter how much I look it up, I never seem to find a good answer to this.
 

GohanX

Horrible Goose
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I'm going to use a whole Bitcoin here to make the math easy.

Lets say you bought a single bitcoin years ago for whatever amount. It's in a wallet somewhere and you decide you got bills to pay. You'd set up a Coinbase account (or something similar, some banks allow for a BTC account but not many.) You transfer the bitcoin to your coinbase account. When you log into Coinbase it shows the current USD value of a single bitcoin, which as of me typing this is $10,599.99. You'd "sell" your bitcoin for that current market value to Coinbase, which really just put converts it to $10,599.99 in your USD wallet. You can then tell it to transfer to your bank account, takes a few days then you'd probably have about $10,000 cash after Coinbase takes their fees out. You don't have to use whole units of currency, I've only withdrawn $100 as a test once to make sure it would go through.

There are other ways of doing this, but that's probably the easiest for the layman. I've only got a few hundred of play money tied up in it right now as I don't have a lot of faith in the market, and the last few months have been rough.
 
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NeoSneth

Ned's Ninja Academy Dropout
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And Coinbase is 3rd party. There was a time that it was rather difficult to convert directly to cash.


Normally I wouldn't be concerned with the US getting access to those records, but this company is based in the USA.
I looked it up as I was writing this, and they just agreed to disclose those records on Feb 23, 2018.

There has almost always been ways to spend BTC through other companies. You could just buy physical items with BTC, and then sell for $$$. It was never designed to be directly ported to cash.
 

smokehouse

I was Born This Ugly.,
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I'm going to guess that uncle sam is going to want their take on this...wouldn't they? You invest $500, it turns into $10,000...you're not going to just skirt way with a $9500 profit tax free once you sell the stock.
 

GohanX

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Yup, exactly. I don't know the exact laws but I think it counts as capital gains. It seems that if you withdrew more than $10k the IRS is getting the records now.
 

NeoSneth

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I'm going to guess that uncle sam is going to want their take on this...wouldn't they? You invest $500, it turns into $10,000...you're not going to just skirt way with a $9500 profit tax free once you sell the stock.

Would the IRS know the gains? They would just know the sale price.
I imagine anyone cashing out large sums would argue cryptocurrency doesn't fall under currency trading. A losing battle, but it would delay the inevitable.
 

smokehouse

I was Born This Ugly.,
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Would the IRS know the gains? They would just know the sale price.
I imagine anyone cashing out large sums would argue cryptocurrency doesn't fall under currency trading. A losing battle, but it would delay the inevitable.

Death and taxes...if there is tax to be made, they will find a way to collect it.

I'm watching them deal with vaping at the moment...same deal. It's not a tobacco product, so there's no tobacco tax on it. One way or the other though, they'll find a way to slap a hefty tax on it.
 

Fygee

Bewbs! Z'OMG, Teh BEWBS!,
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Crypto is taking a giant bath across the board right now. Prices are tanking.

I've invested a few hundred bucks in TRON/TRX and ADA. Will probably throw a few more at them once they bottom out from the bear market, but these look to be actual legit cryptos that will go somewhere outside of Bitcoin and Ethereum.
 

madmanjock

Bare AES Handler
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Is there any new crypto currencies that are cheap and might overtake Bitcoin that are worth chucking a few quid in to see what happens?
 

Rot

Calvin & Hobbes, ,
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OK OK...

Moral question... if someone pawned in a laptop... that was used for bit mining...

AND... they happened to be late in paying... would you try and info strip his hard drive?

xROTx

PS. This is a theorectical question... for now :p
 

Tripredacus

Three 6 Mafia
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There are only two things you can use.
1. The wallet (having the ID is not enough)
2. The account that they mine through (coinhouse website account)

Any smart person would transfer the work into the wallet and not leave any on the coinhouse account, but it is possible there is some, but you'd need to transfer to a wallet of your own.
 

basic

back to basics
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OK OK...

Moral question... if someone pawned in a laptop... that was used for bit mining...

AND... they happened to be late in paying... would you try and info strip his hard drive?

xROTx

PS. This is a theorectical question... for now :p

This would only work if they didn't enable authentication for the wallet and/or they didn't encrypt. If they did, there'd be nothing you could really strip since you'd need the private key to get access to their wallet address. The crypto is not actually on the hard drive. The only thing that is stored is the blockchain state at the time the wallet application was last sync'd.
 

tacoguy

Rasputin's Rose Gardener
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Is there any new crypto currencies that are cheap and might overtake Bitcoin that are worth chucking a few quid in to see what happens?

I don't see anything that's cheap and can overtake bitcoin. But there are a few coins that could probably make you a nice profit. Be careful though since the price of bitcoin and most other coins have been in decline for sometime now.
 

Poison Sama

The Hentai Christ
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Cryptocurrency is probably the best thing to happen to console gaming since Nintendo entered the industry.
 

SML

NEANDERTHAL FUCKER,
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After a few stagnant months it looks like BTC is finding a new floor. How's everyone doing?
 

tacoguy

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I've taken some big hits with this recent crash but im still holding strong. It's been a very rough year but i'm still feeling optimistic.
 

evil wasabi

The Jongmaster
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I've taken some big hits with this recent crash but im still holding strong. It's been a very rough year but i'm still feeling optimistic.

Why? Serious question. My clients in crypto are wallowing in dispair with the collapse of market faith in anything crypto related. Even looking at chipmakers nvda and amd is hurting my soul.
 

tacoguy

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Why? Serious question. My clients in crypto are wallowing in dispair with the collapse of market faith in anything crypto related. Even looking at chipmakers nvda and amd is hurting my soul.

Many economist are predicting another crash in about 1-2 years time. No one can predict the severity of the crash but some are saying this will be worse than the 2008 crash caused by the banks. Everything will go down even lower than what it already has been. I think more and more people will realize we can't keep trusting the banks. So this might present an opportunity for crypto to make a change. And hopefully by that time, there are a few projects ready for mass adoption.
 

SpamYouToDeath

I asked for a, Custom Rank and, Learned My Lesson.
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Many economist are predicting another crash in about 1-2 years time. No one can predict the severity of the crash but some are saying this will be worse than the 2008 crash caused by the banks. Everything will go down even lower than what it already has been. I think more and more people will realize we can't keep trusting the banks. So this might present an opportunity for crypto to make a change. And hopefully by that time, there are a few projects ready for mass adoption.

If you feel like hoarding against the collapse of the banking system, just use gold. Bonus: no Internet required.
 
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