I don't know if we have such thing as capital gains tax in Estonia. Seems that we only have income tax so profits from investments would be subject to income taxing.

Thanks everyone for really great posts. I'm not going to quote you all so here's a general reply:

I might at some point move out from Estonia but I'm not yet sure to where as I don't see it as a near future yet. But my friend wants to move to Thailand for real one day so maybe I will let it influence me, although I like cold climates.

Also, I'm thinking of cashing out only a small fraction of my bitcoin holdings to buy an apartment and a car. This means that I am going to pay the income tax on just the bitcoins I cash out and not all of them which is a really pathetic sum of money in comparison to the whole stash.

One of the options that came to my mind is getting a job and taking a loan for 20 years like many people do. I am sure that Bitcoin rises even farther than what is my cashing-out-a-bit point, thus paying the interest on the loan would actually save me a lot of bitcoins. But then again, I really hate banks and wouldn't want to support their system by taking a loan.

Don't get me wrong as if I was not rebellious for the current system. I am but I also seek for the most rational solution. So, sooner or later I would have to explain where did I get the money to buy an apartment. In that sense I think it's wiser to pay the maffia their share. It's just one apartment and I think of the money they get as a donation to some of the good stuff the government does.

I totally agree that the current taxation and government system sucks. Also software patents shouldn't be given out, this is so deep bullshit like taking a patent on mathematics . However, I have no idea how this could be changed. Ideally every tax payer should have a choice where to send the money and the government should be somehow decentralized. I suspect that I came to be in this time-space combination segment starting from 1989 to destroy the old system but not so much to rebuild a new one

Yeah, but I would like to have some cypher punk attitude added in the mixture of the advice I'm seeking. Anyway, I'm interested in stocks for their dividends to have some constant income. But maybe I should go all in and get my dividends based on bitcoin businesses paid in raw bitcoins...

No they aren't. But think of the government and banksters as maffia that comes behind your door asking their share for "protecting" you from their competitors. I mean sure this shit sucks but at least there are some illusionary benefits for paying taxes and you don't get a skeleton into your closet. I would rather pay them their share than risk with going to jail. What's the point of being sick ass rich if you are locked up?

I would like to make sure that my first million won't be the last one. For this I would reinvest a portion of my bitcoin profits to stocks.

3 questions rise:
1. Must I pay income tax before investing my bitcoin earnings to stocks?
2. How profitable can stocks be?
3. This is probably lame but: what stocks would you suggest to buy?

I wouldn't own stocks to trade them but to get the dividends. However, I have no idea how profitable stocks are in that sense. Can anyone tell me how much money I should invest in some nice stocks in order for them to earn me noticeable dividends?

Good point. I did a lot of research lately and came to a conclusion that the right thing to do is just to pay the taxes and not complain. People who desperately seek to avoid paying such taxes are criminals. I support paying taxes because when I buy property with my bitcoin earnings I expect my government to protect my rights for my property and so on.

Thanks, I will. Don't have a shell though. By the way, I actually meant to send you love, it was not fake but I needed to imaginatively equalize your essence with mine in order to be purely sincere.

You're looking for a fight. You're not getting it from here. Much of love to you nevertheless.

If you brought this up then I'll put it on bold: a user's day to day OS somehow determines their computer competency.

This is true. I switched to full linux in all of my computers 2 years ago when I had too many bitcoins lying around in my windows machines. Knowing that windows is a giant security vulnerability, a bitcoin techie should never want to use this OS.

The demented meathead on my avatar is me. It's a nice trap for people who judge by stereotypes and you just fell for it.

I never insulted you (at least not on purpose). But sorry for bringing up a painful memory or something. Just thought that others may learn something from your mistakes.

Yes, I was being sarcastic. Nevertheless, I would still want to know how did you get hacked as I didn't spot the attack vector in the text you referred to.

So, techie, how did you get hacked?

I think the important thing here is to reinvest a significant portion of the bitcoin profit to other stores of value. If you won the money with a lottery it would be stupid to just spend it.

I haven't cashed out anything but the mere fact that I have some nice wealth stored somewhere makes me spend my ordinary money a bit more loosely. Also, this looming wealth has somehow altered my aura in a way that I've been attracting more women lately.

Maybe the confidence has increased or something but I can tell you that the vibe is different these days. The difficult part is determining how much money you can spend per lady in order to remain within the borders of rationality (the most efficient risk/reward ratio). Luckily this amount can be calculated from a typical price of a hooker making the intrinsic value of a female being equal to the cost of paid sex. I wonder if Thai chicks accept bitcoins already.

Pic somehow related.

Thanks, I will. I also heard in a bank to tellers speaking that stocks accounts are used in order to bypass the income taxes. But that's basically just gossip I haven't checked the facts. However, maybe if I get my btc earnings to my bank account and immediately transfer the funds to my stocks account in the same bank and buy stocks, then maybe income tax is not taken?

So, here in Estonia the income tax is 21%. This means that should I cash out some of my long-term bitcoin earnings the vultures will take 1/5 away.

Any tips and tricks for paying my taxes the way smart people do? (without ending up in jail and also not paying too much)

I would send the temporary fiat straight to real estate and stocks.

I also support this prediction. Also, regular Joes are starting to appear and asking me questions about Bitcoin. I mean literally dudes with no computer background are showing up interest.

I hate banks. So it immediately angered me a lot when my balance got greater than 2k euros in a bank. Therefore all the money that I didn't need to spend any time soon ended up accumulated in crypto coins. Smartest financial choice of my life so far.

10k+ is the danger zone.