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bitcoin is far too small to effect the precious metals market.
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Wolf of Wall Street isn't about wall street at all. It is about drugs and sex and lots of partying.
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I think there would be no more news, the last hope we can do to get some of our BTC back is legal process. You may be right  . I really hope we hear something soon! |
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It just keeps getting worse and worse.
Ukyo also owes 2,000 btc for ukyo.loan liabilities.
I guess he is hoping people just will forget about it and go away.
He has said before that he has very little so that if he is sued, the legal fees will eat up what little he has left and we will get nothing.
Perhaps he has forgotten that unless he declares personal bankruptcy he is liable for the full amount of the ukyo.loan shares. And since he is being investigated by the SEC, personal bankruptcy might not even protect him.
I think bitfunder and ukyo.loan investors deserve more attention than we have been getting from him.
He's missed the target for the ukyo.loan portal by several weeks now with no explanation. I hope he pops up and says something very soon. I'm willing to wait until the end of the week.
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Sorry if this is in the wrong place or asked before. If so please move / point me to the right post!
So not sure if I understand completely, but are you only taxed on your Gains once you convert to USD or other fiat? I am located in the USA, so US dollar is my main concern here.
Lets say I have Bitcon and purchase a Visa Gift Card. Since I paid for the card in BTC, am I liable for any taxes? If theres an attorney in NY/NJ I would be willing to come to your office to discuss this as well as a few other questions I have about BTC and taxes / business advice I am looking for.
Thank you,
Kosta
Nope, you need to pay tax on any appreciation of the coins when you spend them! So in your example, of course you would owe taxes. Look up the laws regarding bartering if you don't believe me. Otherwise everyone would just use bitcoins to buy gold and then sell the gold to avoid taxes. The answer is that you can't avoid taxes. You might get away with it but if you get caught, you'll be in serious trouble. |
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If you operate a business (have a FEIN) and the equipment you purchased is directly related to your business class then you can deduct them as operating expenses...
Do you recommend I register as a business then? Here is my scenario example: Bill has 2 computers which he bought for $2,000 each for a total of $4,000. Bill was able to mine 20 Bitcoins from January 2013 to December 2013. Bill did NOT sell any of his bitcoins and did not purchase any items with his bitcoins. Bill also has a full time job and does mining as a hobby. What is Bill's best approach in reporting his hobby/business with the IRS that will benefit both Bill and the IRS while completely complying with the IRS. Bill does not want to get in trouble with the IRS I'm no CPA but I've operated a business for several years and handled my own taxes. Don't take this as legal advice. If you want to claim a deduction on the $4,000 dollars you will need to pay for a business license and get yourself a FEIN. Otherwise your expenses won't qualify as "business expenses." You would look at it like a business which operates under a loss until you make a transaction with your Bitcoins. Keep in mind if you spend them on more Bitcoin mining equipment this is deductible. Your bitcoins will be viewed as an inventory item and the cost of electricity is the cost of your inventory. Once you sell them or buy something with them (barter) you will need to record it and pay taxes accordingly. If you operate at a loss or break-even you probably won't owe taxes at all and if you make a profit you can claim the applicable deductions to where you may owe no taxes or at least reduce your tax liability. It's not uncommon for a business owner to pay themselves as a W2 employee. It's actually less of a headache in my opinion. I put myself on regular payroll with ADP and let them take care of everything. (Of course, it doesn't matter who is paying you as long as it's recorded accordingly.) You will have no trouble with the IRS if you treat it this way unless they come right out and set a public policy. This is the closest real world analogy I can see for tax purposes. The only way I would say "go ahead and register a business" would be if you plan to deduct your hardware expenses and electricity from other taxable income directly related to your mining. You can only reduce your personal income tax liability for certain business related expenses like (gas, lodging, basically anything required as part of your business.) I don't think you will be able to reduce your personal tax liability by operating a "bitcoin mining business" because I believe they will be filed as separate returns if you are a W2 employee with another company. I always filed separately at least... There is no point in getting a business license. It's a waste of time and money since you have no employees, no customers, etc. You can have a business without registering. You do not need a license. You only need to register if you decide to incorporate, but there is no point in doing so. These rules might be different in your state, so I recommend you consult an accountant. I have talked to an accountant and he advised that there is no reason to incorporate. Your business can be considered a sole proprietorship and all your expenses can be deducted. |
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I've never sold a bitcoin so I have no gains to report.
However, I've been mining for a year and purchased expensive computer parts to mine.
Will I be able to declare those as a business expense for tax purposes even though I didn't report any income( i didn't sell any coins)
If you are a miner, you have gains to report. Every coins you mined needs to be declared as income at the moment you mined it. Not true. You have no financial gain until you sell. Think of Bitcoin as an inventory item. Your asset cost is the cost of equipment and power. As a business you don't pay income tax on unsold inventory... If you own a rock quarry you don't pay taxes on all the rocks you own but haven't sold yet. Sorry, you are wrong here. BItcoin is not an inventory item. It is a capital asset. They are taxed when they are mined, and you are taxed again on any capital gains when they are sold. You will actually save way more money in taxes overall if they are treated that way anyways. |
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I've never sold a bitcoin so I have no gains to report.
However, I've been mining for a year and purchased expensive computer parts to mine.
Will I be able to declare those as a business expense for tax purposes even though I didn't report any income( i didn't sell any coins)
If you are a miner, you have gains to report. Every coins you mined needs to be declared as income at the moment you mined it. |
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Who gets my transaction fee ? The miner/mining pool who included my transaction in a block he/she/they mined ?
Yup |
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It is over valued by several orders of magnitude if you just look at its usefulness as an industrial metal.
Or diamonds. They are even incredibly cheap to make in a lab. It has value because someone somewhere a long time ago decided that a clear stone is "beautiful"? Not even that long ago. It was in the last 100 years that the DeBeers diamond cartel was formed and aggressively marketed the diamond as a precious stone. When compared to other precious stones (eg rubies, emeralds, sapphires), diamonds are even that rare and should be classified as "semi-precious" (like topaz, etc). The only reason why they command a high price is because DeBeers artificially limits the diamond supply. |
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There are about 210,000,000 kg of gold in the world.
And so, 1 BTC is comparable to 10 Kg of gold.
your comparing money to the illusion of money. Bitcoin is money and gold is the illusion. cryptomining is this forums latest troll. best just put him on ignore and move along. |
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Not exactly useful for BTC mining any more. I thought it was just interesting to see a company as large as Newegg mention Bitcoin in any advertisement regarless of how accurate it is.
I still can't believe not a single GPU make has started doing so. Manufacturers are likely aware that miners (scrypt) are buying up all available GPU's? Except this isn't true in the slightest. The GPUs bought for alt coin mining is only a drop in the bucket compared to GPUs sold for graphocs. |
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you guys hate the idea of intrinstic value because btc has none and its a requirement of real money.
you guys have created your own fiat, way to go, we already had fiat.
What intrinsic value does paper money have? It's a bit of paper. i agree, why i started this topic, finally someone gets it. What intrinsic value does gold have? It is over valued by several orders of magnitude if you just look at its usefulness as an industrial metal. |
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so if a carrington event happens bitcoin = 0
people wake up to the tulip mania and realize bitcoin has no intrinstic value = 0
it was a nice experiment. but not real money, by defintion.
this WoW of warcraft, linden buck, facebook coin experiment will end badly.
1) I also suppose if a giant meteor hits the earth and the human race is wiped out, then bitcoin = 0, too. 2) What definition of money are you using?? Obviously not one the rest of us are using. |
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1. Carrington type event
2. no intrinsic value
comments?
1. I think in the event of a solar flare large enough to take out the whole internet, we will have bigger things to worry about than bitcoin being unavailable for a little bit. Credit card processing, telephones, money transmitting, the stock market, cell phones, television, and radio would all be unavailable. 2. So? You need to provide a better explanation as to why this is a problem. |
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The term Automatic Teller Machine (ATM) has connotations that come with it that could be avoided if we just avoid using that term.
How many Coke ATMs have run into regulation difficulty? When getting tokens out of a token ATM did you need to have your hand scanned?
There is even a gold dispenser. No regulations necessary.
Except there are regulations necessary! A bitcoin ATM is a money transmitter and needs to be licensed appropriately as such. There is no getting around this by simply calling it a "bitcoin dispenser" or something. Changing the name doesn't change what it does. |
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Lots and lots of USB errors:
I have two 8 board stacks of bitbury boards. One stack has 2 broken usb connectors so I run 6 USB cables to it and have the other two connected via CANBUS.
I had this stack connected to a PC running Linux and it worked pretty well (average about 370-380 GH/s for the whole stack). That Linux PC recently died though and now I have it connected to a raspberry pi using a power 7-port hub.
The raspberry pi is running rasbian and the latest cgminer build for bitburner and I got lots of errors like:
[2014-01-13 16:49:12] BTB 4 usb transfer read error(-1): LIBUSB_ERROR_IO
Performance is also signficantly worse, at about 325GH/s (about a 50GH/s drop).
I have another stack of 8 bitburner boards connected with 5 USB cables (the rest via CANBUS). It has always performed worse than the other at about 340 GH/s. It's been connected to a raspberry pi too.
The worst part is that a couple times a day, they wiill just crash with a USB error and I'll have to power cycle the boards and restart cgminer. This never happeend with the Linux PC. Only with the raspberry pis.
Has anyone had any success getting the bitburners to work reliably with raspberry pis or do I just need to invest in some more linux PCs?
I believe it's a problem with the raspberry pi design. I don't know if they ever fixed it on later models but it had a known USB issues. The official response was that it was a power supply issue. See: http://www.raspberrypi.org/phpBB3/viewtopic.php?t=12097An alternative some are using is a TP-Link router with OpenWRT. See: http://wiki.openwrt.org/toh/tp-link/tl-mr3020Also make sure you never use a USB1 hub. It may work for a while but it will cause random USB issues because of how slow it is. This makes sense. I've heard about the power issues and I went and found a power adaptor with the highest current rating I could find. I should double-check my pis. One is working a lot better than the other. I wonder if that one has the better adaptor. I'm also using powered USB hubs, but maybe thats not enough. |
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Lots and lots of USB errors:
I have two 8 board stacks of bitbury boards. One stack has 2 broken usb connectors so I run 6 USB cables to it and have the other two connected via CANBUS.
I had this stack connected to a PC running Linux and it worked pretty well (average about 370-380 GH/s for the whole stack). That Linux PC recently died though and now I have it connected to a raspberry pi using a power 7-port hub.
The raspberry pi is running rasbian and the latest cgminer build for bitburner and I got lots of errors like:
[2014-01-13 16:49:12] BTB 4 usb transfer read error(-1): LIBUSB_ERROR_IO
Performance is also signficantly worse, at about 325GH/s (about a 50GH/s drop).
I have another stack of 8 bitburner boards connected with 5 USB cables (the rest via CANBUS). It has always performed worse than the other at about 340 GH/s. It's been connected to a raspberry pi too.
The worst part is that a couple times a day, they wiill just crash with a USB error and I'll have to power cycle the boards and restart cgminer. This never happeend with the Linux PC. Only with the raspberry pis.
Has anyone had any success getting the bitburners to work reliably with raspberry pis or do I just need to invest in some more linux PCs?
You are using sudo -i? sudo, but not with -i. Will that help? |
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