i have one question..
in 2011 bitcoins per 50,000 to 500,000 we spent for nothing, just pranking and stuff...
if one person kept 50,000 bitcoins in his account from 2011 up till now,
would the bitcoins still be valid for transactions?
All bitcoin remains valid as long as owner retains keys to access them. This thread was dead for over two years and then was resurrected out of nowhere by this comment, but why??? Did you just randomly happen across this thread and decide to post to it regardless of the date? This thing must have been buried deep in the middle of a bunch of similarly dead threads. This is so random. |
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I'm not sure if what I'm doing is trading?
I've started buying small amounts of bitcoin through Coinbase and I"m just doing something simple like when my balance is more than what I purchased (bitcoin has gone up) I subtract what I'm over and send it over to a wallet.
I don't know if that makes sense regarding depreciation/value...
But that money I Just "made" what is that considered as for taxes? I don't know part of it too it's like "bitcoin can be not traceable" haha but I'm buying bitcoin through coinbase I have a trail and have no reason to use it anonymously so, I'm wondering how to deal with taxes. I doubt I'll make much either but I'm going to put some time in on writing scripts to grab data from random sites and maybe that will help me with figuring out when to pull out money/buy more.
So... what about taxes?
Thanks for any help.
To this point I've only bought through Coinbase, never sold. I would imagine if it was something you needed to worry about reporting, Coinbase would provide some kind of year end statement and also supply it to the IRS as a report if what "income" you've earned. This is how it works for most other financial services companies, like banks or brokers. At the end of the year, you get a statement disclosing what they provided to the IRS and what you have to report in your taxes. But because the IRS considers Bitcoin property, I'm not sure it will work the same way. |
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I should have mentioned I'm in the US. I was reading a wikipedia page on Bitcoin Taxes and it mentioned "currency-holdings" or something. Also mentioned depends what state you're in. Yeah I'm just buying/reselling.
I was curious about those fees. I saw for example in the Copay Android app you can choose what processing fee, looks like a rate thing but it's tied to the fee. I wonder if that is part of what Coinbase deals with when you are charged for buying, I think for sending as well (to wallet).
Interesting stuff though. Thanks
edit: It's kind of confusing like I don't even understand what I'm doing it seems to make sense.
So say I bought 90 "units" and I gained 10 units, I transfer those 10 units to a wallet, I still have the original 90 units in my Coinbase. But if prices go down and say between the two I now have 80 units, say 72 in Coinbase and 8 in wallet... it's like did I actually gain something? I'm just portioning part of what I own? It's weird, I guess the only way to get a "tangible return" is to buy some physical good when the price is up, at least when the price goes down, you don't lose that physical good or possibly other currency like the more stable FDIC-backed Fiat. Yeah gotta read more.
The IRS has classified Bitcoin as property and thus you are subject to taxes under that classification. They have said this is subject to every transaction you make, which in my opinion is unwieldy and unreasonable. It would be far more natural to treat Bitcoin like a stock and pay capital gains as you realize gains or losses when you convert from fiat to Bitcoin. I think they are worried about the incentive that creates to deal only in Bitcoin as an attempted tax dodge. The ruling as currently decided is not friendly to anyone using or trading Bitcoin. |
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Hey wetsuit,
Seems my dogecoin reward is halved for the first tier. Can you fix it? I don't know my UID and I think I've completely derped out because I can't figure out how to find it. If it helps you locate my account, my referral ID is listed as r=1151. Let me know if that let's you solve it.
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Man I have been on this site for almost 3 years and have yet to win 20dollars or more. But from all the screenshots a have seen. I guess I am just pretty unlucky.
Man you not alone many thousands members unlucky because its very hard to win big prize on this faucet as we have very minimal chance to win just 2 or 3 members with big amount its not good enough but still many trying day and night for good prize hope we have some more in near future You basically get a free lottery ticket every hour, think of it like an instant game scratch off ticket. The highest prize you can win is generally a few hundred bucks in those games, except here, it costs you nothing but the few seconds it takes to solve the anti-bot puzzle to play. Like a lottery ticket, you shouldn't expect that you will win the big prize. But unlike a lottery ticket, even when you lose you gain a tiny bit. It's statistically improbable that you will win $200 on the game, but it doesn't cost you anything, so no real sense complaining about how hard it is. You can always avoid it if you don't like it. |
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I don't think we are actually going to here that bitcoin is dead for the next 20 years for sure. But even if something like this occur we can't call it dead because if the price reaches 10$ people will of course pump it and it can become normal again. For me if the price drops till 800$ i will sell all my coins and wait until all the dump is over. If the price never pumps again mostly i won't invest again
It's hard to predict when bitcoin will die exactly, and your "20 years" I accept very skeptical. But I'm agree that people will buy bitcoin and use it even if the price will be 10$. Bitcoin will die only in the case of 0$. If it reaches 10$ i wouldn't believe my eyes at all but all i was thinking if it actually drops to 10$ can we pump it again to another 1000$. And ya i don't think bitcoin will die at 0$ as the price was 0.001$ or something per bitcoin. SO 0$ is definitely not a stop for it. You're saying you can pump it from 10 to 1000 without any real understanding of what that would entail. You can't manufacture the demand required for the coin to regularly trade at $1000. There's just too much demand required for someone to manufacture and sustain that level. You're seemingly saying that all you need to increase the price is will power. What's stopping you then from increasing it from 1100 to 2000? Why don't you try tomorrow and see how far you get? |
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I never really thought of it that way because when you grow up in a society where prices are always going up because more money is being printed you tend to automatically not think outside of the box.
Technically it's still a free market although because you're using fiat it's a grey area where you feel free, but your currency is actually causing you to lose out.
The currency is your choice though. The government only declares what the legal tender is in the system (the fiat currency) but this is not oppressive. In Northern Ireland, I'm told that the old pound coin is technically out of circulation, but shops routinely accept it - anyone could use anything as a currency. In fact, if I said "I'll give you some magic beans for that cow" an you accepted the deal, we could equally view magic beans as a currency. My point is that what the government declares about currency only restricts the free market if trading with anything except the legal tender was illegal. Even if they restricted the use of Bitcoin or any other specific currency, even that would not affect the free market any more than restricting the sale of currently illegal products does. In the US, people were prosecuted for hoarding gold during the Great Depression. The public was ordered to surrender excess gold, and seizures and prosecution was authorized for those who didn't comply. In the 1970s, Nixon abandoned the last vestiges of the gold standard by signing an order that disallowed the exchange of fiat for gold. While that may not affect private deals, the legal authority to require creditors to accept certain currency in payment of debts is what determines how the government establishes what the official currency is. |
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When a bank closes an account, they don't just get to keep the money. That would set up a perverted incentive structure to find as many reasons to close accounts as they can so they can just confiscate any funds in the bank. Allowing such a policy would lead to a lack of confidence in the banks. A bank doesn't have to open an account for you, but they can't steal your money either.
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there won't be any free market with fiat, because fiat is the pillar of the country's economics and it need to be controlled so the inflation rate can be controlled and without controlling the fiat there will be chaos, but it is different with bitcoin, the purpose of bitcoin was to create a currency that nobody can control, that is why bitcoin is very suitable as sub currency but not as a main currency
No person singularly can control it, but there are factions that wield immense control over bitcoin. The largest mining pools control the fate of bitcoin every time they decide to support one fork over another. If the intent was to create a currency that couldn't be controlled by any one person, they may have succeeded. If the intent ws to create a currency that couldn't be controlled, they did not succeed. |
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Do you have a special exchange rate in your head where you would totally dump all your coins because you think Bitcoin is dead? What is your magic number?
Two different things. The rate at which you dump and the rate at which you think bitcoin is dead should probably not be the same. It would seem that a value of 0 would make bitcoin "dead." However, can it ever reach zero? Doge constantly depreciates, it's worth far less than a penny per coin. It's not "dead" and I don't know that it would ever reach zero either. A coin doesn't reach zero until there is no longer trading activity.If a coin will not have any trading activities means it will have constant value and not zero value. Only by continuous dumping (or simply through trading activity of selling), a coin may reach zero value. Hopefully bitcoin will remain as an attractive trading option for traders until it will get all 21 million units mined out. So, I guess bitcoin will not have stable prices for next ~140 years hence some trading activity is highly possible and that will be on buying way as people want to use bitcoins as store of value. I'm not talking about exchange trading, though that's part of it. I'm talking about all trading, as in trading coins for fiat, other coins, or goods and services. As long as there is any of that trading going on, the coin has value. It's only when all trading stops that a currency is dead (valueless). Any currencies that are like that are lost to history. There are currencies that are no longer in circulation or printed, but they are collected either as novelties or artifacts, and they still have value. |
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The fact that fee will eventually grow as the reward for mining a block gets lower has always been part of the plan on the development of bitcoin, the issue here is there is not a solution backed by everyone to make bitcoin scale.
Well I'm not disputing that fact the mining fees were a part of the original plan but when there is discrimination in the determination of the fees then I have a problem because we need to be treated equally. Why should my transaction delay because I couldn't pay more fees? This is my bane and if we don't get it solved it can kill Bitcoin eventually There is no need to be treated equally To force equal treatment in the way you want it would kill Bitcoin even faster. Socialism is not sustainable in a closed system. You basically want that someone else should pay the fee for you if you want to be treated equally and at the same time pay less. In fact, you don't need to be treated equally at all since if there were a true free market in the mining department, all transactions would be included even if higher paying ones (i.e. with more fees) would still be prioritized. The reason is pretty simple, in a free market miners would be interested to include all transactions with however small fees just because that would be a rational choice to increase profits. Right now they can increase profits by raising the fees themselves by excluding low-fee transactions. This is possible because there is a mining oligopoly in Bitcoin and users have no other choice but to pay higher fees You can't include all transaction when there isn't space though. The limited block size means wait time for the lowest price/byte transactions. Increasing transactions to increase profits isn't possible when the blocks are maxed out on size. And you can look at the blockchain itself to see that blocks are just about maxed out, so there just isn't capacity to increase profits by accepting more transactions. |
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Hi,
Today I was preparing something for my bitcoin workshop when I came to the following observation.
If we are in a free market society with the principals of capitalism how can it be that the money we use (fiat) isn't part of that same system. And isn't it so that to have a truly free market system that money also have to be denationalized and uses the same principals like the free market itself ?
Can there be a free market with fiat currency ?
And if so isn't bitcoin and it's competition not the ultimate form of payment in this free market.
I'm no expert in economics, I read al little bit of Hayek's works this afternoon, but it would be great of anyone can help me with this question.
Thx
We are a mixed economy, not a pure free market economy. Bitcoin is more free market than fiat, but not completely free market either. At this point, the miners and the bitcoin foundation are both special interests. They govern and jockey for influence based on their own needs and there is a lot of money at stake (billions of dollars in total), and any time big dollars are at stake, ideas become corrupted. |
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Making money from money don't make any sense.
In order to make money from money, you need to have the money first. To have the money you need to be able to know how to make money. If you know how to make money, you don't need to know how to make money from money. Because you already know how to make money in the first place Empty verbiage and meaningless drivel Anyone with a half working brain and functioning hands can make some money (for example, by enrolling in a signature campaign here), you don't need money for that (just a half functioning brain and a pair of hands), so all your hubble-bubble unreservedly and instantaneously goes down the drain. The real and genuine question is not how to get money (this is the easiest part, obviously) but how to make the money which you already have bring you more money in a consistent and (more or less) scalable way And that is the difficult part. How to sustain your money making scheme. If it cannot sustain you, then all your effort will be put to trash and you are back to square one again. So at least you need to sustain it, then to have to divert or you need to re-invest iin other ways n order to sustain your money making plan. Making money from money is known as compounding. It's what has made Warren Buffet a billionaire. Since he was a child, he recognized that earning money and putting that money to work would generate more money, which could be put to work to generate more money. Compounding capital is how you build wealth. I would recommend the documentary Becoming Warren Buffet. It's less than 2 hours, and a fascinating look at Warren Buffet specifically, but compounding generally. |
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Do you have a special exchange rate in your head where you would totally dump all your coins because you think Bitcoin is dead? What is your magic number?
Two different things. The rate at which you dump and the rate at which you think bitcoin is dead should probably not be the same. It would seem that a value of 0 would make bitcoin "dead." However, can it ever reach zero? Doge constantly depreciates, it's worth far less than a penny per coin. It's not "dead" and I don't know that it would ever reach zero either. A coin doesn't reach zero until there is no longer trading activity. |
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It's Saturday. Hope that payments are released today.
Considering they were due Wednesday, that'd be great. |
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We are now two days late on payments, following a late payment last week. Payments have not been this delayed before. Anyone know what's going on? I'd like to believe it not to be the case, but this campaign is trending towards the unreliable side of the spectrum.
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Additionally, I do believe the most recent price crash was a bit of market manipulation by large traders. As an anecdote, the rate to borrow margin on poloniex went from the typical .02 to .03 percent daily rate, to typically .25 to .45 percent, and I had one offer accepted as high as .77 percent. This suggests to me that traders were buying up as much margin as they could to trade the volatility, which I believe they created for that purpose. With how fast the price was dropping, it looked to be all shorting action with that margin. But this is also a theory.
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This is just a theory, so bear with me (constructive criticism is welcome)
And this theory asserts that Bitcoin dumps like what we've seen recently (i.e. today and right after the rejection of the Winklevoss ETF by the SEC) contribute to more even Bitcoin distribution over time and will help stabilize prices in the future (read make Bitcoin growth more consistent). What real world facts is this theory based on? We know that initially there were only a few users (so-called early adopters) who held the majority of coins, so they could easily move the price by dumping their stashes (at least, some part thereof). In the case of the lack of major news (either positive or negative), the price is pretty stable right now. So the only viable explanation for all of a sudden price crashes is most likely someone dumping huge amounts of coins (maybe, the bros themselves). This causes the price to plunge (even if momentarily). It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually. That's basically why dumps are important since they are caused via massive sell-offs by a relatively small number of large Bitcoin holders and get absorbed by the market
I don't know if I buy the logic that dumps have to result in wealth equalization for the reasons stated. It takes as a given things which I don't think are a given. While one explanation for price crashes is large traders dumping a large amount of coins, I don't find that a given, though it might be the side that's the more likely explanation. But assuming it's true, I think the buyers during a crash are just as likely to be large traders as the sellers are, so this is the main reason I don't find that crashes mean a more equal coin distribution. |
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paper money have your days count
While I agree with you, it's not because of Bitcoin. Digital fiat is the reason paper currency will go away, as I find digital fiat to be far more versatile and stable than any crypto. Bitcoin might be the best crypto, but all that makes it is the best version of the least dependable payment option. |
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