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China has (officially) decoupled their fiat institutions / payment processors from virtual currencies. This is entirely expected and welcomed.
90% of the speculation has just been eliminated (for now at least). The price of a bitcoin can finally stabilize (up).
In related news, not a single exchange over there has had its bitcoin trading abilities diminished.
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Actually, the second line of this post makes a good point: The speculation/bleed-you-dry money has finally been pushed out, and the institutional capital necessary to grow the technology is finally entering. The first line (and title), i don't know about.  |
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Yep, the noose is already tightened.
Yaun is just too controlled by the Chinese government for it to be useful to all the speculators out there.
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But see, they didn't ban Bitcoin. China has not banned or shut down a single exchange. They have not outlawed businesses from taking bitcoin, or individuals from mining/trading for them.
They merely (as expected), cut off their financial institutions / payment processors from supplying the exchanges with yaun.
Chinese can still trade bitcoin. Now it's just very, very hard to buy bitcoins or sell them into mainland yaun.
The real question is: how much of that mainland yaun is gonna get funneled offshore. ;-)
The Central Bank is probably just trying to protect the Yuan from just that- flowing out of China at an uncontrolled pace. That is exactly why they did it. China (and Russia) has some of the tightest capital control laws in the world. You can only export/import so much capital in or out. They are 100% yaun protective/manipulating and knew they had 0 ability to control the flow out if they allowed it to continue. Same thing happened in Russia a couple months ago. |
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It's just really, really, really hard to buy bitcoins with Yaun and/or cash them out into mainland yaun.
But wouldn't you be able to get around that by simply going Yuan -> dollars (or any currency) -> Bitcoin? I don't get it. China has strict export / import capital controls on any and all currency instruments interfacing with the yaun. On top of that, you can only export so much fiat in or out, regardless of the type. You basically have to now figure out an extremely creative way (i.e. become a criminal) to either buy bitcoin with mainland yaun, or sell out into mainland yaun. That being said, there is so much corruption at the higher levels of "government" in China that it is likely they may still have a smallish, but visible, impact on the price of a bitcoin. |
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April 15th pretty much already happened on the 2nd.
It was actually quite a nice little coupe - totally took all the china whales who were waiting later to dump completely by surprise.
Perhaps this was done on purpose....
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China didn't ban Bitcoin. They didn't ban a single exchange. They haven't outlawed privater or business use of bitcoin. They did, however, entirely ban their financial institutions / payment processors from interfacing with the exchanges. It is very, very hard now for Chinese to buy bitcoins or cash out into yaun. It's virtually impossible for businesses to cash out into yaun after receiving bitcoin. China is basically out of the speculation game, but nothing has changed if people want to buy/sell in bitcoin and receive bitcoin. The real question is: how much of that mainland yaun is gonna get offshored?  |
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But see, they didn't ban Bitcoin. China has not banned or shut down a single exchange. They have not outlawed businesses from taking bitcoin, or individuals from mining/trading for them.
They merely (as expected), cut off their financial institutions / payment processors from supplying the exchanges with yaun.
Chinese can still trade bitcoin. Now it's just very, very hard to buy bitcoins or sell them into mainland yaun.
The real question is: how much of that mainland yaun is gonna get funneled offshore. ;-)
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China has not banned Bitcoin. They have not banned a single exchange.
They simply decoupled their fiat market from the virtual currency market.
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Hum, maybe i'll just pay the tax and not even bother.
maybe you should stop mining ?? maybe that is what the us govy wants to accomplish is stop you and other americans from mining. if the us govy is taxing capital gains then they must think that bitcoin value will increase ?? or are they attempting to kill bitcoin ?? not sure if killing bitcoin is in their interest or not really since the us reserve dollar currency is on it's deathbed. i think what we have is a complex thing involving currency wars. in any case you still have two or three years to mine even if you don't make a profit ?? u could just give up the ghost and stiop mining ??  That is a rather..interesting... take on things. lol |
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Well, the fact that it runs with the TC at 8192 tells me that it shoudn't be a driver issue or miner issue. Did you try running with higher clocked ram with that TC val? Say 1500?
4GB ram is enough to run 4 290s @ 20481 np....
That being said, -4 Enqueing kernel onto command queue = not enough system ram.
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Hum, maybe i'll just pay the tax and not even bother.
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Are there any IRS requirements for Coinbase or our local banks to report to the IRS when we move funds in/out of Coinbase (or similar services)? I'm wondering how on earth the IRS is going to know you sold a bitcoin in the first place? Or how will they know that a bitcoin you've sold was bought at XXX price, or was it one of the coins you mined?
Moreover, if we mined it shouldn't we be able to deduct the cost of electricity and the cost of mining hardware? Like many altcoin miners I've spent a good deal more on my mining hardware than I'll ever get in mining revenue, so I don't see the justice in the IRS taxing my mining revenue as if it had a cost basis of 0.
Let's say I instead use my BTC to by a Gyft card and spend it at Walmart - is there any way the IRS can possibly learn about the Gyft card purchase and use currently? Because that's the route I'm thinking of taking for any BTC I do cash out. I still think the IRS is in for an accounting nightmare if they want to try to wade through all my penny-altcoin trades at a half dozen exchanges, etc.
Coinbase is registered with FINCEN, and FINCEN can send information to the IRS. You can write off just about every single facet of your operation. I am going to tabulate all of my hardware costs, electrical usage each month, my internet bill, my rent.. just about everything associated with mining. I am certain that i am obligated for 0 tax burden. ya should get a business license before april 15th us tax day and china bans bitcoin .. Already did an LLC registered in Texas about a month ago: www.steeltidellc.com |
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What is Bitcoin actually worth at this moment in time, with no speculation about future events factored into the price?
The Bitcoin protocol is worth every single penny of the global $1.5 trillion payment processing fee business it would replace. |
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Are there any IRS requirements for Coinbase or our local banks to report to the IRS when we move funds in/out of Coinbase (or similar services)? I'm wondering how on earth the IRS is going to know you sold a bitcoin in the first place? Or how will they know that a bitcoin you've sold was bought at XXX price, or was it one of the coins you mined?
Moreover, if we mined it shouldn't we be able to deduct the cost of electricity and the cost of mining hardware? Like many altcoin miners I've spent a good deal more on my mining hardware than I'll ever get in mining revenue, so I don't see the justice in the IRS taxing my mining revenue as if it had a cost basis of 0.
Let's say I instead use my BTC to by a Gyft card and spend it at Walmart - is there any way the IRS can possibly learn about the Gyft card purchase and use currently? Because that's the route I'm thinking of taking for any BTC I do cash out. I still think the IRS is in for an accounting nightmare if they want to try to wade through all my penny-altcoin trades at a half dozen exchanges, etc.
Coinbase is registered with FINCEN, and FINCEN can send information to the IRS. You can write off just about every single facet of your operation. I am going to tabulate all of my hardware costs, electrical usage each month, my internet bill, my rent.. just about everything associated with mining. I am certain that i am obligated for 0 tax burden. |
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That's the thing: if all their exchange payment processor accounts are frozen / non-existent.. how are they gonna cash out?
This is why i posture that the worst is mostly behind us. Most if not all of those payment processor entities have already stopped doing business with the exchanges.
There may be some stragglers here and there, but by and large, yesterday was April 15th for all practical purposes.
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Government isn't going anywhere. Regulation can only go so far with something as decentralized as Bitcoin, but it will be there. Taxation isn't going anywhere.
The libertarians and/or anarchists who believe that Bitcoin is somehow the "perfect weapon" to "stick it to the man" will all be sadly disappointed because it isn't their coin and it isn't their technology anymore.
They will be marginalized to the fringes where they belong (and want to be). In fact, that marginalization has already begun. Individuals like Andreas Antonopoulos and his ilk will be hushed down to a murmur because mature people willing to fit within the framework of society will adapt Bitcoin into an acceptable fit for what it is most capable of doing: reforming the current banking system / payment processing platforms.
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