Most of my earning have come from mining on two machines way back when the mtgox price was.... .20 cents a btc (early 2010). I generated quite a few coins. This to me is a taxable event because I now have something of value that far exceeds the costs of electricity and hardware.
Suppose the MtGox price had plummeted and your BTC had become worthless. Would you have been entitled to a tax deduction for your losses? If not, it hardly seems fair for you to be taxed on your gains. It seems everything is classified as a hobby with write-offs disallowed until you make the first cent of profit, then it's a taxable enterprise. The laws are always slanted in favor of the US Treasury. However, if it Bitcoin became classified as a true currency, you could likely write off the first $3000 per year in losses (with carry forwards allowed). This is my understanding at least. Laws on hobby income are weird. The government tries to make everyone report things as a hobby unless it's in the governments interest to make you classify as a business. I had hobby income for a few years where I may have been able to count it as business income, but it made no sense. I would have had few deductions and would have had to pay the extra social security and medicare taxes on it. Usually, the government is very strict about what counts as a business. I filed as hobby for a while. Then they mailed me and said the previous few years should count as business income and I owed a lot of money. It took a big fight but eventually they let me count it as hobby. You can profit and still have it counted as a hobby in some cases (I won't advise on which cases those are, though, save that for a lawyer). Even if it's not a currency, you could deduct losses (if I traded baseball cards at swap meets, I could deduct losses if I had been profitable in the past). |
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Ohnoes, I must permit the government to steal a percentage of money from me and possibly later to allow me to collect a percentage of the stolen monies at a later date? What is the reason for this again?
Not getting assraped is a good reason to conform. When a mugger puts a gun in my face and demands my wallet, I pay him. It doesn't make him right. |
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I think Im going to have my corp accountant write a brief on tax obligations with trading and having btc increase in value. I may publish the report here on the forum under a cc license.
... or maybe there is an accountant on this site who can speak authoritatively on the subject.
My understanding is that I would need to report the gains at the end of the year.
Thoughts?
Another thing I'm considering is hiring a local attorney who is knowledgeable with FTC laws to write up a brief on the legality of doing btc trading against USD. I figure being on the correct side of the law when you liquidate could go a long why in protecting your earnings.
Dont trust this as fact, but I'd imagine you are subject to the same rules as capital gains. So if you don't sell, you don't gain yet. But hopefully someone actually knows. |
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Well if a better currency comes along I'd imagine people would move to it over a period of time, similar to what is happening with BTC/USD now.
We can only speculate, but if you're making false assumptions, you're speculating poorly.
As far as branding, it doesn't matter if we don't or do advertise it - once people use it, it advertises itself.
Drink Kool-Aid much? I obviously know the reference, but not what you're referencing specifically. As shown, the folks who believe that bitcoin can hyperinflate are simply wrong. Until you can come up with a good reason for bitcoins to hyperinflate, then you are beating a dead horse. It's been explained already. There is nothing that makes Bitcoin unique among cryptocurrencies. You are claiming "it doesn't matter about advertising" as well. You couldn't be more wrong. Without advertising, no one would be here. |
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Well if a better currency comes along I'd imagine people would move to it over a period of time, similar to what is happening with BTC/USD now.
We can only speculate, but if you're making false assumptions, you're speculating poorly.
As far as branding, it doesn't matter if we don't or do advertise it - once people use it, it advertises itself.
Drink Kool-Aid much? |
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if many miners stop mining, wouldn't the difficulty drop?
They would mine but not process transactions. |
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Why would people begin to accept other currencies? Without an economy backing them up, they'd be useless. It's like all these crappy little news sites that pop up on the web - it's trivial for them to be setup, so why not do it? But people don't go to them, because they aren't reliable, or just that the bigger news sources are better.
Why would people use Facebook/Myspace? After all, Friendster has all of your contacts! |
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It's very, very, very hard to get a lot of people to collude without cheating and with no enforcement.
"Oh sure, I'll only accept transactions with a fee of 1 BTC". Then accept anything over a bitcent.
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Bitcoin support capitalism!
I mean, Satoshi is probably going to be the richest man in the world!
I prefer see a Satoshi become rich than few person that have control over our life like bankers that they can decide if your son can go at school or if you can have home or if you can eat or if you can go to the hospital, i think bitcoin will be a compromise between capitalism and communism. Really? Decentralization of anything seems directly in conflict with communism, which requires central authorities (or people acting like angels). |
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I'm not a betting individual...I get queasy buying scratch tickets. I sincerely hope you are wrong, though.  They did not have the same ethos that a lot of the people here do. It's not exactly hard work to mine, though. As long as there is free money, someone will be after it. If selling becomes too much of a pain, they might stop. Or if the price crashes. |
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okey tonight i understand a lot of thing, thank you  But my dubts and questions don't end here i trust in this money. And you see me again in this forum  Money is for Bourgeoisie. |
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The next difficulty increase is already projected to be an incredible 37% now!
For prospective miners: Whatever your projected income is right now, multiply that by 0.73 and that's what you'll be making in 4.5 days. If you ordered a card at this very moment, I doubt it will show up before this difficulty increase reduces your profits to less than 3/4 of what you'd make with the same card today.
I'm betting on some reduction in difficulty after the OC.net people get bored. Since a lot of them are gamers, I don't imagine that will take all that long (I saw that thread you mentioned...it was very sad). I'd love to bet against this if you want. |
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>>>>Yes, but only for take the money and split among developers, nothing more.
I want to say that i want eliminate that person and make equal to others, think if that person will be arrested (i don't know why, but i think that this money will be illegal if a lot of people use it just like p2p that in my country wants to limit) the money goes away, and other developers don't receive their money.
But i don't know how.
Escrow
All the developers discuss about the work and how to split the job among themselves in a way that no one work more than other.
They discuss among themselves like a democracy.
Before create a software p2p( organizer, chat, vote, and total balance and individual balance), i want listen trough you some ideas or criticism
How do they decide? Does it have to be unanimous? Can 5 guys just screw over the 6th? What if the 6th doesn't do anything at all?
In this business all of the developer are anonymous, what is important is to complete the job that was assigned to them.
But my question is how can i pay, for ex i am a customer, directly to the developers without intermediaries and automatically.
When a company hires me and I outsource something, they don't know who I pay or how it's done. This is not really anything that amazing. The simplest way to do this is to say "hey, pay these addresses this much". Then it's done directly. Please, don't be aggressive with me, i only want understand.
Is it possible to include in one bitcoin address a group of address, that when the money pass trough a node, the anonymous miner split it automatically among the developers?
I'm not being aggressive, but Marx was right about a lot of little things but was very wrong about a lot of big things. I'm sorry if this hurts your feelings. If you disagree, good luck on your own commune or whatever, but once it grows beyond small scale, you'll learn those lessons pretty easily. You could write code to do that. You could have someone send it directly. |
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>>Why does the guy who does more work (works with the customers) get paid the same as the other guys?
No one works with the customer directly, is the customer that come on the site and buy the product.
But your picture has "this customer interacts directly with the buyer". Which is it? >> What happens when the other guys contribute unequally?
The work will be split in a way that no one contribute more or less than others.
Who does this? Or who monitors it? What if there are disagreements? >> Or are we being trolled?
In this business all of the developer are anonymous, what is important is to complete the job that was assigned to them.
But my question is how can i pay, for ex i am a customer, directly to the developers without intermediaries and automatically.
UPDATED
In this kind of business, there is not one important than other, everyone are equal to other, and the cost of the hosting, or other thing is paid by all of the developer.
Please understand me I try to bring the ideology of karl marx, in something that is possible in real life, and i want to do that trough this coin, do you think that is possible?
No, I do not think that the ideology of someone who cannot understand extremely basic concepts would work in real life. |
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Copycats and government intervention in other words.
OK, let's say you forked the bitcoin chain right now. Would you expect robm-coin to be more succesful than the main chain? If so, why? If not, why would other copycats be better off? If you don't agree on a currency you can't trade, it's as easy as that. Which means that it pays off to use a chain/cryptocurrency that other people use as well. They could be more successful if they were easier to use, easier to obtain. Perhaps the distribution through mining was too steep with Bitcoin. Perhaps someone creates a slick new client for theirs that is easier for casual users to have. Perhaps someone markets it better. I guess you guys are all on Friendster since why would anyone ever displace them since they were first to market. |
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Bitcoin hoarding might be an issue as well. Price deflation (measured in bitcoins) would make it a bad decision to ever spend them unless you have no alternative.
Lower transaction volumes would reduce its utility as a form of exchange. Then it becomes more of an investment tool than a transactional tool. Plus it would gravitate towards the hands of a few rich people, as with all forms of wealth since time immemorial.
Unless you had no alternative, or ACTUALLY WANTED SOMETHING. Gee, I'll just live in a cardboard box hoarding my bitcoins since tomorrow they might be worth more. I guess I won't eat today anything more than cat food and out of a dumpster since I have to eat something, but the I'll save the rest for the magical day that I actually want to spend my bitcoins. |
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Bitcoin supply is limited. So far so good.
The supply of alternative, competing cryptocurrencies is unlimited. Very bad.
Imagine a world with dozens or hundreds of competing cryptocurrencies. They would each have minimal value.
Bitcoin doesn't look like a hard currency solution to government money printing. It's the ultimate soft currency.
Bitcoins may have a brief moment in the sun as media coverage inflates a bubble of interest. But I doubt it's sustainable.
I'm sure this simple observation will grate with many of you. Sorry.
Spare me your rants. Share your solutions.
This is my #2 worry, besides a government crackdown. Might even be #1. Imagine being able to instantly create something that was just like gold, but green. Then purple. Then red. Then any other color. And there was just as much of that to be mined as there was gold. And then repeat 1000 times. Gold isn't looking that great then. |
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This just sounds like any other web design business. There is no differentiation here, if that is what you're thinking. Basically, you just described a web design business with a manager/owner and several developers. Sure this can work, but you asking us this question is analogous to asking us if we think a business that serves food really fast will work. The answer is painfully obvious by driving a mile down any road.
the business that i have in mind is this: Is there a way that when the customer pays 300btc, this money is split at the time of payment without intermediaries automatically. If yes how much time take for the customer to wait in order to complete the transaction. Why does the guy who does more work (works with the customers) get paid the same as the other guys? What happens when the other guys contribute unequally? Or does it just magically happen? Or are we being trolled? |
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That is the standard argument that in a deflationary environment after some time people will get tired of deferring consumption and will start to consume and that will end the deflation of its own accord. But those arguments were made historically for closed economies or economies where external trade was minor compared to GDP (say <10%). What we are talking about is the exchange rate between bitcoin and a much larger fiat economy. That is why I said "They would rather hold them since they are rising and spend fiat currency which is falling" . They do have a choice, they can use fiat currency to eat for now. Human nature is they will hold BTC while it is rising, and as soon as it start to fall they will try to buy everything in sight with BTC, it will fall faster and then merchants won't want to take it anyway. We don't have an experiment of a diversified mostly closed economy that can supply most its needs internally that runs 100% on BTC. If we did we should see inflation of 43% - grwoth rate.
Bollocks. I have to resist the urge to spend bitcoin, as it's only "1 or 2 BTC" for y product. I guess all those electronics manufacturers should be out of business any day, since customers will just resist buying new computers/televisions/etc... since the price keeps getting lower for the same stuff (or better stuff). If only customers were smart enough to just keep waiting! |
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Can you imagine the price of BTC when it is actually in day to day for more people buying regular goods!?
Depends if its higher or lower than cash. |
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