I understand his frustration. The same thing is happening to me. I do not treat this as a pump and dump. I don't pump and dump any coin, but without a trading exchange that works for XDE2, yes, the price is going to go down. I own coins, I earned the coins, I can buy and sell the coin without anyone's permission and certainly don't need a lecture about what to do with my own coins. I do understand that dumping a lot of coins will drop the price and am sensitive to that. It is against an investors best interest to dump a lot of coins at once and frankly, not respectful to other owners of the coin.

Having said that, there has been no ability to transfer XDE2 to an active exchange in many days and that is not acceptable.

I have suggested looking into a different exchange so if anyone is on board with that, please voice your opinion.

Respectfully:

George D. Greenberg, Esq.
www.attorneybitcoin.com

The articulate and astute answer from the 15 year old is rational. There was another answer that gave an example of children and teenagers using money to purchase things in a store. They didn't need a parent with them. Now, if a 7 year old brought in two thousand dollars in cash to Fry's to buy a gaming computer, any reasonable person would locate his parents, or call the authorities.

I think the issue is converting it to cash and yes, you can have your parent or guardian set it up for you and then name you as ITF (In Trust For.) Of course the parent or guardian could take money out of there without your permission. Maybe they will let you have an ATM card. You might also look into converting the BTC into a gift or pay card.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

Yobit has made some progress; you can now send coins out from yobit but not yet allowing coins in.

I am also impressed with this coin. I mine and stake it in wallet. I will accept it for payment of my legal services until further notice. George D. Greenberg, Esq. www.attorneybitcoin.com

What a great question! Hell, I don't know! Lol! Most of the regulators are not sure either. It is definitely not considered a currency in any state as far as I know. It is not defined at all in some states. Other states hold it to be personal property. I have not read the laws in New York, theirs is the most developed.

If you could give me some context it would help. You can also search State Attorney Generals statements on Bitcoin.

Hope that helps.

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com

It just won't work as sports betting, as far as I know, is only legal in Nevada. It does not matter that you are dealing only in BTC, they will shut you down. If it is a business in the U.S. and if you are only doing business in other countries, well, I just don't really know the answer to that. Any input from anyone else out there?  You could hire an attorney to investigate it but I am not hopeful that the news would be good. Now, you could possibly run one just in Nevada, for Nevada residents only, and try to get approval from the Gaming Control Board.

There is a new law in Nevada where you can accept money from out of state into a business entity, that does sport betting. But you cannot tell the investors what you have wagered on until after you have placed the bets. In addition you need to get a sports book to accept your business entity as a customer, not an easy thing to do. If you want to talk to me more about this venture PM me here please or call my office.

I cannot advise you on the legalities in other countries, it is outside of the scope of my practice.

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com

I cannot advise on other countries but in my opinion, if someone wishes to do business in the United States then they are availing themselves of the resources of the population, which are considerable, because, among other reasons, we all pay taxes to support our currency, our military, our freedoms and safety in most areas of life, which creates an environment that is conducive to making money. Businesses pay taxes as well as individuals. If a person does not want to do business here they can do business in other countries and not have to worry about the laws, regulations and taxes of this country.   

I don't recall your asking your question to me. You may have asked others but that has nothing to do with me. Your question are very broad and cannot be answered simply. Do you currently run a BTC exchange site or are you contemplating doing the same? If you are currently running a BTC exchange then please PM me for private discussion.

It is my understanding that a non U.S. based company, just like a U.S. based company, must comply with U.S. laws both Federal and State. That is a very general answer. Depending upon the laws of a given U.S. State and depending upon how the Bitcoin business operates there may or may not be state regulations to follow.

I hope that helps.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

Bitcoin is NOT recognized by everyone. Many people have never heard of it. If your wallet is compromised you are not going to be covered by FDIC insurance, credit card refunds, bank reimbursement or the like. These warnings have been expressed by several Attorney Generals in the different states. Consumer Protection is a key issue with Bitcoin and virtuals.

There are measures you can take to better secure your coins. Don't keep too much in any coin or wallet. Try to diversify investments and ventures. Use due diligence to better understand the reputation of a coin, a company or a given venture. Educate yourself as to the problems that may arise, or the degree of risk you are taking.

For example with coin wallets you can back up your coins to a separate hard drive. This web site and others are important to assess reputation. Thank you for the question:

Best:

George D. Greenberg, Esq.

Attorneybitcoin.com

Sorry for the delay. I've been downloading staking wallets and trying to get masternodes up as well. No easy trick.

I would like to respond to Jasonmoney first then to Canchuacaro1 next.

It is not the tax basis I was addressing, I was addressing the conversion from Monero to BTC. That conversion, in and of itself in my opinion is not a taxable event.

Once you convert the BTC to fiat or use it to purchase good or services, then you are looking at declaring the portion converted or used as income.

Yes, it is my opinion that it is not income until converted, even if a miner used POW and then converted the alt to BTC.

Capital Gains is a separate issue. As to the fascinating POW example you gave, how would you figure the cost basis? You state "zero." Okay lets say it is zero (which is debatable;) you absolutely must itemize and deduct all costs and expenses, including but not limited to the cost of the hardware, electricity, consultations regarding the coin that you mined, fees in mining, transferring, converting, as well as declare LOSES. Just like gamblers we tend to hear about the "killings" people make in coins and not hear about the losses.

There are certainly very clever men and women out there who jump all over POW, mine that coin aggressively, then take profit. However, I think if we look at this realistically there will be measurable loses along the way: Alt coins that plummet in price, that are de-listed, BTC drops in price, hacking losses, ETC.

I am not a tax attorney, I express my legal opinions here. I do not advise to hold off on preparing to pay for income and capital gains taxes and your suggestion to set aside sufficient funds to pay ALL taxes is a prudent one. Everyone doing that? Lol!  It is a matter of risk tolerance. Some of my clients are risk takers and don't mind living with uncertainty; others want certainty and to not worry. Most do this as a hobby or avocation which is fine, but earnings and gains are still subject to tax rules once you convert or start to blur the line between crypto and fiat, especially if this is how you make your living.

Respectfully:

George D. Greenberg, Esq.

www.attorneybitcoin.com

 

You should probably PM me about this discussion.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

Bitcoin is not "criminal" in and of itself anymore than owning a kitchen knife. It is how people choose to use it that can cause concerns for governments. Yes, BTC can be used as a sort of anonymous way of money laundering or extortion but there are many other ways to achieve those illegal goals. It is my understanding however that true anonymity is pretty difficult to achieve.

BTC, like a kitchen knife, can and is used for many laudable functions. It has lower costs, cuts out multiple middlemen, it is very secure, and most importantly, it's just plain cool! Lol!


Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

I have not researched BTC being banned in some countries. I can guess that certain Governments want to maintain control over transactions of value in order to obtain a tax on those transactions; or to maintain a control over the population. Repressive regimes and fascists are capable of all types of controlling behaviors.

George D. Greenberg, Esq.
www.attorneybitcoin.com
 

I appreciate your ethics. I believe that your business idea is similar in the probate world to "heir finder" services. When a person dies and leaves an estate but has no family, heirs, beneficiaries, co-owners or the like, if no-one can be found then the estate "escheats" to the state. Here in Nevada it escheats (goes by default) to the state for educational purposes.

There are services that search for records of heirs on these types of estates. If they find the heir they charge a fee, usually a percentage, to share the information with that person so that person (usually the next of kin, distant relative) can then claim the money or estate through probate.

Another example is storage units, like on the t.v. shows. If the rent is not paid, then the storage company has to do legal notices, depending upon the state's laws, and after a period of time can put the unit up for auction to satisfy unpaid rent.

Another example is where a tenant abandons and leaves personal property, there are statutory notices that must be done before the property can be sold to satisfy damages to the property or unpaid rent.

As to this particular situation, I would like to discuss it with you further, but privately. Please PM me here and we can continue our conversation as to the details of legally and ethically locating and claiming abandoned BTC or other coins.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin

Bitcoin has elements of currency, of personal property/commodities and of securities. The State of New York has a special BTC License so they are far ahead of the curve as to state regulation. That is both good and bad. The State of Nevada does not consider BTC as a medium of exchange or as a store of value, there are just no laws here in Nevada relating to it.

Having said all of that, the U.S. Federal Government, U.S. Treasury, FinCEN enforcement arm or the Treasury, considers using BTC as money transmission for purposes of AML and KYC reporting.

As to Federal Income Tax; once you convert your BTC to cash, if you have made a profit (after itemizing expenses and costs of course) then it is considered income and you must pay taxes on it.

As to some states, depending upon the business model, acting as a business entity that trades BTC for profit can be considered acting as a money transmitter and a money transmitter license is required.

Everything clear as a bell?

Really the biggest challenge facing BTC right now, in my opinion, as to getting wider common use, is the fact that it goes up and down in value so much. That makes vendors shy. Wouldn't you be? If you sold an item for one BTC that had the cash equivalent of $400 and at the end of the day you sold the BTC and converted it to cash and the BTC was only worth $350 at that later time, well....you get the point.

Nevertheless, I think stability of BTC will come with time. Either that or there will be a replacement that solves this problem.

George D. Greenberg
www.attorneybitcoin.com

As to being a MSB and getting a Money Transmitter License that depends upon the State. As to FinCEN the activities are considered money transmission but that only applies to keeping and implementing some sort of KYC/AML procedures. These are differences if you are doing it as an individual or as business entity. Once you operate as a business entity you will get more scrutiny. The problems are not really the regulations, you can overcome that, but rather getting banks to do business with you. 

It is the nature of the business activity, not the amounts, that determines whether it is a M.T. business. There are however reporting requirements to FinCEN that depend upon the amounts of the transactions whether or not the activity is as an individual or as a business entity.

The State of Nevada does not currently hold BTC trading as a Money Transmission activity.

I do not have an answer as to the capital gains. Please speak to a CPA.

George D. Greenberg, Esq.

www.attorneybitcoin.com

To the best of my understanding. When I keep BTC in BTC any income I make in BTC is not taxable as to Federal Income Tax. When I cash out BTC, and have made a profit, that is taxable as income. State taxation laws will vary. Can you be more specific about the situation you are seeking clarification on please?

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com

Arbitration has it's place and it's limits as well. Judges and juries are also not experts on details of construction, surgery or engineering, they rely upon expert testimony and exhibits and could rely upon experts in whatever field of Crypto that there is a dispute in.

I will answer you questions:

1. Arbitration clauses are quite effective. This could be good and bad. If the only way to see a Dr. in an emergency is to sign one even if you don't really want to, that is called an adhesion contract and can be voided. But on everyday transactions, visits to Dr.'s for non emergency, business between moderately sophisticated business people, buying a house, they are binding.

2 Yes, I am an Arbitrator for the Clark County Eighth Judicial District Courts and have been so for 9 years under the Arbitration rules established by the Nevada Supreme Court. I am available to Arbitrate or Mediate out of court as well.

3. I charge by the hour. The rate depends upon the nature of the dispute, the complexity, and the amount in controvery.

4. I do not offer BTC escrow services. I do however accept payment in BTC and most other virtual coins.

Thank you for the questions:

George D. Greenberg, Esq.

www.attorneybitcoin.com

Yes I am an attorney. If you had bothered to check you would have seen that I have been in practice 24 years. I am transparent and public. Are you? Or are you just hiding and throwing out defamatory statements? 

My Nevada Bar number is 4278

www.attorneybitcoin.com

www.probateattorneyslasvegas.com

Law Offices of George D. Greenberg
7674 W. Lake Mead #245
Las Vegas, Nevada 89128

702 796 5221

Stop on by anytime so I can serve you with a summons and complaint for defamation.

Now to your question/statement: Purchasing Monero with BTC is quite different than purchasing real property with BTC. Although you pose a thought provoking scenario. If you purchase Monero you are still in the crypto world. This is not a taxable event. Talk to a CPA familiar with this and see if you get a different answer.  If you convert virtual currency to a real property purchase this takes the virtual currency out of the virtual currency world, and in my opinion, this would be equivalent to converting to fiat. Any gains previously made on the virtual currency would then become taxable as income, IN MY OPINION.

While I am not a tax attorney I HAVE studied this issue. Problems do arise in the characterization of BTC (and other virtuals.) BTC has elements of fiat, of securities and of personal property/commodities. So it depends upon who is regulating it and for what purposes. The previous question was regarding taxes on a virtual crypto purchasing another virtual crypto.

BTW, have you seen a house for sale that will accept BTC?  I think that would be rare or non-existent.

Respectfully:

George D. Greenberg, Esq.

 

It is my understanding that if you bought the Monero with BTC then you have not made a conversion to fiat and it is not a taxable event.

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com