More public node are a very good thing. People get less local latency and are able to compete better with dedicated nodes, lowering the barrier to entry, so more p2pool participants.

Nice to see p2pool steadily growing in hash rate and network share BTW. We are back down to about one day per block, after getting close to two days per block a few weeks ago.

Non overclocked S1 should be about 0.018 right now

You are correct. I must have seen LIFO in one of the (apparently inaccurate) second hand reports, but it seems it didn't come from the IRS.

Maybe. In its guidance the IRS has stated a LIFO rule for virtual currencies. With LIFO even if you melt-and-combine when you do a trade it could be that your cost basis is not derived from either of the coins you melted. If you are able to use the specific lot method, which seems likely but is not clear from the guidance, then the weighted average calculation is correct, but probably have to identify the original purchase date and price if the melting process is not a taxable event (reset of basis).

Also, let's not forget about holding period. LIFO might be more advantageous if it shifts more of your gains into the long-term category. If you buy two coins today, melt them together, and then spend that new coin, the tax treatment might ignore both the purchase and melting and consider your basis and holding period from some coin you bought long ago.

All this remains to be worked out. Some of this (for example preference of long term over short term holdings) could also be implemented in a wallet.

This is not clear. The question I have is whether "melting down" coins and using those to create new coins is itself a taxable event, or whether you actually have to engage in trade to constitute a taxable event. I think the latter.

The history gets lost in the wallet, but according to the recent IRS guidance, that doesn't let you off the hook for keeping track of the history for tax purposes. You still appear to be required to keep track of the original history to report gains under a FIFO rule or possibly other rules such as using specific lots.

I suppose a wallet could be constructed that would recognize that certain coins are made up of a combined lot of several other lots of coins, and then produce tax-compliant reports accordingly.

I'm not sure whether you can treat the mere act of combining the coins as realizing the gain or loss. I would guess not, but my confidence on that is low.

It wasn't a pitch, just asking a question about Islamic loans. I'm trying to understand is all. Thanks for response.

Sold out from bitmain but you can find them for sale for much less.

$100 left now

Best offer in the next 15 minutes. You send first.

I'm curious about sharia loans. My understanding is that it is allowable for the lender to accept a share of the profits (as opposed to interest)? So if you are borrowing to buy a miner for example, the lender could receive a portion of the mined coins. Is that correct?

Seems like too much trouble and shipping costs for a 0.06 loan.

Combine with some other collateral that can be shipped together for a larger loan and this is more feasible.

"Price changes daily" and, no, it's not going to be $180 for an item that includes shipping a heavy box halfway around the world.

I'll buy 5.

Sorry to hear you are troubled by a statement some random guy on the internet makes. Well, no I'm actually not. But if so, you should really pay less attention to what random people on the internet say.

Unless, of course, you want to engage in the conversation with respect to substance. I think that train left about three replies ago, however.

What I said was wrong is that every transaction is "taxable" because there are reasonable methods of conducting transactions using specific lot identification such that there is no gain or loss on routine day-to-day transactions, and people engaging in these transactions can routinely ignore the tax consequences, because there aren't any. In some abstract theoretical sense these transactions may still be "taxable" but for all practical purposes they are not, because the tax on a gain or loss of $0 is $0.

No one is suggesting that you purge transaction histories from your wallet or otherwise fail to document or report anything you are required to report.


Then you didn't read his original post. He explained how specific lots can be used to offset capital gains such that routine day-to-day transactions do not generate capital gains. Everything continues to be documented.

Stop this straw man. Nobody claimed this means never having capital gains events. It means choosing specific lots such that capital gains events, but not necessarily (or even at all) the amount of capital gains, are (greatly) reduced.

You realize that specific lot identification is used to calculate capital gains for billions if not trillions of dollars assets each year, right? This is nothing new to bitcoin.

Your tax bracket does not change the calculation of gain-or-loss on the sale of an asset. It only changes the amount of tax calculated on the gains.

He's wrong. Every transaction is not taxable. It may be taxable if it produces a gain.

It is trivial to show there is a method, at least in theory, to manage a wallet such that many transactions are not taxable.

Imagine that you purchase small number of coins on a continuous basis (using a robot most likely). You will in all likelihood have a small number of coins with a cost basis exactly matching the current market value at any time (unless the market value is at a new high). When you sell/spend coins with a basis of $498.37 and the current market value is $498.37, the transaction is not taxable. There may be reporting and recordkeeping requirements, but those can easily satisfied by the software. The user does not need to think, "Oh, this cup of coffee costs $3 but it also generates a capital gains tax of $0.37." If the purchase is larger, you will likely not have coins with the same cost basis as the current market value, and will generate a capital gain (or loss), but only on these larger, relatively infrequent, transactions.

If you have a large number of coins with a much lower cost basis, you will definitely have to incur a capital gains tax at some point (in the above example, by selling a block of those coins and giving the funds to the robot to start accumulating your collection of coins). This is not some "magic" method of avoiding capital gains taxes. If it were, you would be correct that it can't work, but it isn't.

The ZGL wallet is a slightly more complex way of doing the same thing.

Perhaps the confusion is based on the the fact that you posted in the Lending forum. There is another forum for stock investments. Just saying.