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You are correct. My mistake. If you would delete the embarrassing quote in your post I would appreciate it. Did not have my coffee yet this morning.
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Is this picture from a PBC coin? Try this,
1. write it out in reverse (bottom right- left) (middle right- left)(top right-left)
2. add a 5 on the front
3. Swap the the last 2 digits
4. Swap the 15th digit with the last digit
This is your private key
WTF? Are you serious? Where did you get that? Did he screw up printing the private key like that on purpose or by accident? |
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I do not know what the heck blockchain.info is doing with the improperly formatted private keys you are entering there but using the "WIF checksum checking" dialog on this page: http://gobittest.appspot.com/PrivateKeyWe find: L4iBNP5mEeoYznpS4Mhwe5ruZTmWWyitK5TyCvrqB7nHd8Yv3L6F has a valid check sum (2767919C) L4iBNP5mEeoYznpS4Mhwe5ruZTmWWyitK5TyCvrq L4iBNP5mEeoYznpS4Mhwe5ruZTmWWyitK5TyCvrqB L4iBNP5mEeoYznpS4Mhwe5ruZTmWWyitK5TyCvrqB7 L4iBNP5mEeoYznpS4Mhwe5ruZTmWWyitK5TyCvrqB7n all fail the checksum test as is expected. All of these should have been rejected as they are not properly formated WIF private keys. BTW since this starts with an "L" you should use the compressed public key format and the corresponding compressed version of the Bitcoin address, which you did. ALSO I found that if you use the "Wallet Detail" tab here: https://www.bitaddress.org/bitaddress.org-v2.4-SHA1-1d5951f6a04dd5a287ac925da4e626870ee58d60.htmlIt will give you both the compressed and uncompressed bitcoin addresses, which in your case are: 13DQcF6FwiqNqzN38CP5Ux6KqpfHYv4VCe (compressed) 12X1rVtFnzYAZKskBakfAZYPF4HeqkgUSq (uncompressed) And it properly rejects all the incorrectly formatted keys you generated by hacking off the tail of the WIF formatted key. |
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 Viz This picture clearly shows that the private key starts with a 5 and that is followed by letters and numbers. This means that the private key is (probably) in the "Wallet Import Format". This means that the key is base 58 encoded. This means that the only allowed characters are the following 58 characters: 123456789ABCDEFGHJKLMNPQRSTUVWXYZabcdefghijkmnopqrstuvwxyz Notice that 0 (zero), O (the capital letter O), I (the capital letter I), and l (the small letter l) are all missing. So your private key will not contain those characters. Also there is a checksum in the WIP format so if you type the private key into a good private key decoder it will immediately be able to tell if there is an error because the check sum will fail. Obviously if you see any of the illegal characters then transpose them to legal characters "0" and "O" to "o" for example then try again. Assuming you get a good checksum you will then have a valid WIP encoded private key. Since the encoded private key starts with a 5 it should correspond to an uncompressed public key. However since there were some issues in the key pair generation and encoding just try both the compressed and uncompressed forms of the public key to form the Bitcoin address. Does not hurt to try. The private key you get can give you two different Bitcoin addresses as I stated above. First try the correct version, the uncompressed version (since the private key started with a 5). If that does not work then with some contortions you can calculate the compressed version of the same public key and the corresponding Bitcoin address. If neither of those is the correct Bitcoin address on the coin then you are out of luck. Reference: https://en.bitcoin.it/wiki/Wallet_import_format |
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I was able to generate numerous public addresses from a single private key due to the way they were generated....
What exactly did you mean by this statement? A private key is just a random 256 bit number. A private key maps to exactly one point on the specified secp256K1 elliptic curve. The point on the curve can be expressed in only two ways: the full form with the full x and y coordinates of the point and the short form with just the x coordinate and a sign bit. Then these two forms of the point can be encoded into exactly two different Bitcoin addresses. Are you saying you found a way to get more than the two possible Bitcoin addresses from your private key? There are 4 options for public keys Public key Public key compressed Public address Public address compressed There are 5 private key options Private key WIF Privatekey WIF compresses Private key Hexadecimal Private key base64 Private key BIP38 All from 1 random 256 bit number These: Private key WIF Privatekey WIF compresses Private key Hexadecimal Private key base64 Private key BIP38 are just forms of private keys. A single private key (a 256 bit random number) can be stored/transported/encoded in one of these forms. These: Public key Public key compressed Are the two forms of public keys. A single public key (a single point on the elliptic curve) can be stored/transported/encoded in one of these forms. These: Public address Public address compressed Are the two forms of Bitcoin addresses that correspond to the two forms of public key above. A bitcoin address is the check summed triple hash of the corresponding public key. They do not represent new forms of public keys. They are hashes of public keys. In other words: The private key on the coin will be stored on the coin in exactly one and only one of these forms: Private key WIF Privatekey WIF compresses Private key Hexadecimal Private key base64 Private key BIP38 You need to decode the private key in the correct form. There will be only one correct choice. Then from that one private key you can generate exactly two different forms of the one public key: compressed or uncompressed. From these two forms of the one public key you will get exactly two forms of the Bitcoin address. The compressed public key form will give you the compressed Bitcoin address form and the uncompressed public key form will give you the uncompressed Bitcoin address form. One private key -> one public key -> two public key forms -> two bitcoin address forms. |
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I was able to generate numerous public addresses from a single private key due to the way they were generated....
What exactly did you mean by this statement? A private key is just a random 256 bit number. A private key maps to exactly one point on the specified secp256K1 elliptic curve. The point on the curve can be expressed in only two ways: the full form with the full x and y coordinates of the point and the short form with just the x coordinate and a sign bit. Then these two forms of the point can be encoded into exactly two different Bitcoin addresses. Are you saying you found a way to get more than the two possible Bitcoin addresses from your private key? |
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If you use one address once, it will be very difficult for them to track. However, this will create big trouble for yourself also.
I use an HD wallet (Trezor), never use any address more than once, not a problem at all. You must have an antiquated wallet if address reuse is an issue for you. |
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If you donīt have a job in the US you can cash out 38000 $ worth of BTC per year without paying a single $ in taxes. If you are content with a modest lifestyle, this amount could actually be enough to live off  Besides, you could always use a debit card that can be funded using BTC and pay at a merchant directly. If you pay for clothes, groceries and so on using a debit card like this, the 38000 $ could be sufficient to pay for the remaining costs like rent. Where are you getting this? Please post a reference to the appropriate regulations. Where did you get the $38,000 amount? Even if you end up owing no taxes you still have to fill out the Schedule D and account for your capital gains and losses. BTW using a debit card to pay for things directly in BTC does not help you as far as the IRS is concerned. When you buy something for BTC you have to account for the transaction as if you converted the BTC to cash (causing a capital gain or loss) then used the cash to purchase the item. So if you cashed in the $38K in BTC with no tax your use of the debit card would add to that, possibly pushing you over the magic $38,000 number and causing you to have to pay tax. For example: I once bought a case of girl scout cookies using BTC so in my books I took a capital gain on the BTC for that transaction at the value of the cookies I got. |
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'The IRS figures hundreds of thousands of American residents did not report income from sales or exchanges of cryptocurrency'
Obviously, if bitcoiners in US have to pay big amount of taxes, they will try to find some way to avoid it. Pay 15% for hold bitcoin in long term and people have to pay 25%-35% for short term which is most likely as trading activities. Bitcoin surges over 400% within 8 months is incredible achievement, and Uncle Sam wants big pieces of cake from everyone who involved in crypto-world. Better to hold bitcoin for long term or exchange it outside the country, send some amount of bitcoin to other exchanges and withdraw to another fiat currency  None of that matters to the IRS. Only way to avoid paying the tax is to move and give up citizenship. I have never done that so it might be that even then they can claim the taxes up to the point you give up your citizenship. Anyone out there do this and have direct experience? |
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Based on my experience with securities, the recommended method for tracking cash basis on a stock spin-off is to split the basis over the two stocks according to the percentage of value that each had at the moment of the spin-off. In this case, it would be roughly 8.5:1 weighted towards BTC, reflecting the $2550 value of BTC compared to the $300 BCH futures were trading for just before the split, which the value of BCH roughly tracked for the first few weeks. The acquisition date should be at the time the BTC was originally acquired, since that's when the cost reflected in the cost basis was actually incurred. I am not a tax attorney, but based on my memory of advice I've been given by my accountants in the past this seems to be the best way to track the value of your investment over an event like this.
This is pretty much exactly what the first accountant I talked to said. "Let's treat is like a stock spin-off". This is great for those of us that have been around a long time as it means our gains on any spin offs [Bitcoin cash, CLAMS, Lumens, etc. etc.] will all be long term capital gains. Small favors... I am verifying with one more accountant but we already have two votes for this methodology. |
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I personally haven't paid any tax over my Bitcoin gains, but that's mainly due to the fact that I barely actually cash out fiat to my bank account. That directly makes me wonder what the exact point is that I am supposed to pay tax. Is it (1) once I have sold whatever number of coins, but the fiat is still in my exchange account, or is it (2) once the fiat hits my bank account? I am hinting towards the latter option, but the first option makes sense too.
It is obviously (1), because that is when you have realized your gains. The exchange account is no different from your bank account. If you extend the logic a bit further, are taxes due at (3) when you withdraw the fiat from your bank account?  Are you talking from experience, or is it just what you think? In essence, there is no real evidence of me having gained any profits if I don't actually withdraw the funds back to my bank account. If I just continue to keep the fiat in my exchange account, how would whatever government agency ever know that I at that point realized a gain at all? The only way would be to force the exchange in question to hand over my entire account/trade history. Banks on the other hand, are basically an extension of the government since incoming deposits above a certain range or monthly transfer volumes are reported to the authorities. Being able to hide your gains because there is "no evidence" (for now) does not mean you do not owe the tax (according to the IRS rules). If they ever catch up with you, by for example getting the information from the exchange exactly as you stated, you will then owe the taxes, penalties and interest on all of your unreported gains. At one point I had three law firms on retainer burning through about $250,000 of my money: a Bitcoin savvy federal felony criminal defense firm [in CA], a special federal civil asset forfeiture defense firm [in CO], and a federal tax law firm specializing in Bitcoin tax law [in NY]. So from direct experience: you owe the tax the second you convert your crypto to fiat and realize a gain over what the price was in fiat when you bought it. Normally you can wait until the end of the year to fill out your Schedule D and report all your gains (minus all your losses) and then pay all the tax at once. But if you have a large underpayment of taxes for the year there will be penalties and interest charged because you did not pay the taxes on time throughout the year when you realized the actual gain at the time you sold the crypto. |
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Its impossible to engage the legacy banking system and not leave a trail. Just pay the 13 - 15% on long-term capital gains and be done with it. (Most people have held for more than a year.)
I don't understand why someone would risk potential fines and audits or even jail by not paying. Whatever your stance on taxation is, you're not going to change the system from inside a jail cell.
Agreed. One open question is the impact of the Ver Tantrum Coin fork since it had/has some value. The IRS hasn't given guidance yet as far as I am aware as to how to handle it. When do you pay taxes: 1. At the fork? 2. Converting it from Ver Tantrum Coin to BTC? 3. Selling any resulting BTC? Probably #2, but hopefully #3. My limited understanding is that any real income is determined by local currency. So the conversion from whatever crypto into fiat is the taxable event. It could be more complicated, but until specific guidance is issued, you're better off paying something rather than nothing. It is in your favor to have had attempts to settle potential tax instead of avoiding it all together. In order to pay the taxes on your Bitcoin Cash there are really two questions: What is the basis? And even more importantly, when is the acquisition date? If you "acquired" them at the moment of the spit then selling them now is a short term capital gain. If you can attach them to the original acquisition date then you might have a long term capital gain. Basis could be handled by splitting the basis of the original coin over the two coins you now have or just assuming a zero basis on the new coin and keeping all the original basis on the BTC. I expect the IRS would not care one way or the other on this point because as it results in the same overall tax either way (like letting you pick your basis method as FIFO or LIFO - over the long haul you will pay the same in taxes so they do not care). But the acquisition date is a trickier question as it affects how much tax is owed. I am in the process of getting the opinion of a couple of tax expert on this for my own accounts. Well the IRS ... a while ago.
Signature spam much you signature spam scum. |
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If I bought some BTCs many years ago, I will need to report only at the time when I sell, right? I am in US.
If you are being taxed then pay that taxes with your rabbitcoins  Well I am not being taxed paying my taxes, as IRS does not records when I bought it at MtGox, lol until I am audited, the IRS finds my unreported income, charges me interest and penalties, garnishes my wages and makes my life a total hell.FIFY |
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no law in any country exist on bitcoin mining tax......
Bullshit. In the US any Bitcoins you receive from mining are considered ordinary income. So your statement is totally false. To clear this discussion up, we need someone to chime in who has gone through the rigamarole of doing taxes on Cryptomining.
Paying the taxes on bitcoin you mined on XYZ date makes no sense whatsoever.
I have paid all the taxes required on my Bitcoin mining and Bitcoin trading. For mining you must claim the value of the Bitcoins you mined on the day you mined them. The way I did this was to use the average price on that day as the value. So if I mined 1 Bitcoin on a day when the average value was $10 then I have $10 in ordinary income on that day. You do this for all Bitcoins mined and the sum is the amount of income you have and then you calculate your tax from there. Of course you can deduct the cost of the mining equipment, electricity, etc. since you are running a mining "business". So if the amount you spent making your coins exceeds the amount they were worth you have a loss and this loss can be taken against your income. Say for instance, you mined a 1 Altcoin on 7/11/16 at a price of $500 . A month later the price of the altcoin crashes to $15 dollars amd doesnt recover for the foreseeable future. The value of the alt-coin is only realized once the altcoin is converted to Fiat or used to purchase a good. Technically the Alt-coin is a useless abstract currency until this occurs.
Nope. On the day you mined the coin you had $500 dollars in ordinary income. This $500 is also the cost basis for the coin. If you sell it for $15 one year later you have a long term capital loss of $500 - $15 = $485 and you can deduct this long term loss against all your other long term gains. If you hold it for less than a year then you have a short term capital loss of $485 and you can deduct this loss against your other short term gains. So the IRS expects us to pay the taxes on a mined alt-coin, before we ever realize its true worth? This makes no sense, but, if that is the case, then miners should immediately cash out whatever they earned, then re-convert whatever fiat they want to re-invest in the particular coin. This would make it much easier for the miner to organize their particular taxes.
Yes, the ordinary income from mining happens on the day you mine it. If you don't have a lot you can wait till the end of the year and report all your income from mining on your form and pay the tax at that time. However, if you are making a LOT of profit (income minus all your expenses) then you will have to make estimated payments throughout the year or face a penalty for not paying your taxes on time. A friend of a friend recently purchased multiple Asic miners and he told me hes going to mine, hold, and whenever he cashes out present the earnings as capital gains. He will put down the value of the equipment used in column E on his Schedule D 1040 form. I view this all as straight capital gains. I feel thats the best thing for us miners to do, even if the IRS balks, your not going to jail and maybe have to pay a small fine due to the fact that this is a new field, for us and for the IRS.
The amount you make from mining is ordinary income, not capital gains. You can deduct the cost of equipment, electricity, etc. against your ordinary income. All of this needs to be done on a schedule C - not E. If, after mining the coins and correctly reporting their value on the day you mine them and determining the cost basis for the coins, you sell them then you have a capital gain or loss and the capital gain or loss is reported on schedule E. Another thing that may work is, mine, hold, and hope that your countries economy becomes like Japans, in Japan you can use Bitcoin as a taxless currency for goods, rent, property, cars and food. I foresee this happening after the price of a bitcoin starts to stabilize around 100K, which should occur toward the middle of the 2020's Using Bitcoin in Japan: https://youtu.be/xrauYRGDCjYDream on. |
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I am reading through all 600+ pages and found a partial answer to what I was looking for. Questions: On Windows where exactly is the database kept? [EDIT: found %localappdata%/byteball] Can I move it to my SSD? If so how? I am assuming I can copy it from my HDD to my SSD and change a config file to point to it somehow? Next question: Does running a full wallet help the network? I would like to help the network. What is the best way to do that? I am currently assuming a hub is different from a full wallet. Is that correct? If so, would running a hub help the network? We should really do something about the synch time though. Would it make synch faster if there were more hubs and relays? Do hubs and relays have to have public/static IP addresses?
I tried syncing a full node. It seems that most of the delay is caused by the wallet reading and writing to the local hard drive excessively. I don't know if it is possible to configure sqlite to work with a bigger memory cache or something to cut down on disk access but if so, that should help a lot. ..... I agree completely -my experiences: Core i5-321M @ 2.5 GHz RAM 8 GB hard disk Seagate MomentusWIn 10 64 Bit full Sync Time: >5 days (>120 h)Core i7-5500U @ 2.40 GHz RAM 8 GB SSDWIn 10 64 Bit full Sync Time: 1 day (24 h)SSD => factor 5 fasterOn mobile devices without ssd, the synchronization never ends (e.g. SD memory card). Clear recommendation: The read / write speed of the device is the bottleneck, devices without SSD (or fast HD) should prefer a light wallet. This recommendation must be pointed out during the installation in order to protect the users from frustration. |
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Now we know why they closed up shop: Bruno's questions.
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The author, there is no need to go to the 256-bit address. 160 bits is enough to ensure the security of the address.
The problem is completely contrived.
In order to get a collision with a probability of 1.77636E-15 (and this probability is negligible, there is a higher chance of winning the lottery) there must be a blockchain in which 2 ^ 56 addresses will be used, each address being 20 bytes (160 bit). In total, the blockchain with such an amount of addresses will occupy not less than 2 ^ 56 * 20 = 1441151 TB (this is the lowest estimate), by the way, at the moment, the blockchain is only 126 GB.
When you read the thread did you see this post: There are only 2,100,000,000,000,000 satoshis.
Therefore the maximum number of Bitcoins addresses that can contain value at any one time is only about 251 and that assumes only one satoshi per address.
At the time the block chain contains 255 transactions it would be somewhere between a petabyte and an exabyte in size. So a full node would need a multi petabyte drive to store the entire block chain.
Your estimate for block chain size is interesting. I will ponder that. Thanks. |
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None of Satoshi's mined coin transactions used P2SH. Therefore all of his public keys for about 1 million coins are in plain view. They have not been cracked and generating a private key from its public key is theory.
This is not true. Only the hashes of his public keys are in plain view, so there's nothing to attack. Even if ECDS were completely cracked, nobody could do anything with the hashes of these keys. If I recall correctly some early transactions were sent directly to public keys instead of sent to the public key hash therefore the public key is available in the block chain for some early transactions. |
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To find out why there are price differences between the various exchanges just try to sign up at all of them and then try to transfer your country's fiat currency to or from each of them. You will find just how difficult it is to do these things.
The price differences basically price in the differences in the difficulty in signing up (KYC and AML issues), the level of difficulty doing fiat money transfers to/from the exchanges and the costs of doing fiat money transfers to/from the exchange.
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None of Satoshi's mined coin transactions used P2SH. Therefore all of his public keys for about 1 million coins are in plain view. They have not been cracked and generating a private key from its public key is theory.
Very true. In fact all those millions of dollars can be seen as a "test" of the security of the ECDSA since they are just sitting there waiting for someone to crack ECDSA and take them. To answer the question about address reuse above: Reusing addresses -> very secure but damaging to the privacy of the Bitcoin system and the fungible property of Bitcoins. Using addresses once -> even more secure and enhances the privacy of the Bitcoin system and preserves the fungible property of Bitcoins.Address reuse is a minimal security concern but security is not the only issue. |
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