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Are you guys going to do anything about the fees? I don't want to move my coin to some stupid altcoin in order to withdraw. Transaction fees should be covered by the exchange. The monthly rate is so low already, if we have to pay the fee too, it's just not worth it. I will wait for your answer before I withdraw.
It would be cool if the manager checks the thread and answers questions more than once a month.
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What does verifying messages and signatures mean and how is it useful?
I see this all over thr community but need help grasping what exactly it is.
It's used to prove that you own a certain address, and therefore to prove your identity, this is why there is a thread in the meta section to "stake your address". So the idea is that you post a bitcoin public address that you control, someone quotes it for you, and then if a hacker hacks your account, they couldn't edit a quoted post of someone else, so what you would need to do is to sign a message with the quoted address. I use Bitcoin Core to do this, it's really easy: https://www.youtube.com/watch?v=3oxM9_OCQKM |
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Lol, dont even get into that, you will get caught out in the end. I am self employed and I declare every penny I make Its just not worth trying to launder money
I recommend not laundering money as well, always be legal guys. But you must consider this too: When governments make bitcoin illegal (and they will sooner or later) they will ask people to deposit their bitcoins on the government's hands, just like they asked for people to put gold into the government's hands in 1933. The difference is gold does not have a blockchain, but bitcoin has, so if you declared your bitcoin, you are already on the list of "person that owns bitcoin" so you will be the first to get a letter by the government asking you to give them all of your btc. Consider that. Nearly all the highly economically developed countries have embraced crypto-currencies, and are currently rewriting legislation to make it taxable as either a security or a currency. What makes you think that it's going to be banned? Bitcoin is just as difficult to trace as cash, and yet cash remains.Not for long. Cash remains temporarily while governments work on their cash-removal agenda. Have you really not realize yet that physical cash is going to be removed in the next decade or two? And once they remove cash, do you really think that they are going to let people continue having financial freedom with bitcoin? they aren't going to remove cash to see how everyone starts using bitcoin, they will try to ban it. The good news is, no amount of banning will stop it, it will continue rising because there will always be a demand for financial freedom. The problem is, if you want to buy real state with bitcoin... you will not be able to do it, at least easily, you would need to find a country where it's not banned and move there. |
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Lol, dont even get into that, you will get caught out in the end. I am self employed and I declare every penny I make Its just not worth trying to launder money
Money laundering is about turning dirty money into clean money so that you can openly spend it. How would you declare money on illegal income? Indeed, the problem is bitcoin is such a grey area, that im scared that the government wouldn't like the evidence one presents when you cash out and they decide to steal all of your funds. For example I've explained before how I did some trades on Mintpal, and Mintpal now does not exist. This mean that I have money on my wallet coming from an address that cannot be proved to belong to a licit source because the exchange does not existing anymore so I cannot log in on there and prove that I received it from my trading account and I also lost my trading history on Mintpal (and others like Cryptsy) because they disappeared out of nowhere and when I woke up I wasn't able to get an updated trading history downloaded. Now these Bitcoins im worried to sell because what if they don't like the explanations I gave? Im also worried about one time that I sent 1 BTC to some mixer to test things out and learn how a mixer works. So when I recieved the money back into my wallet... now I can no longer prove that I obtained them here in a signature campaign (for example). So they only money I could prove that I obtained in a licit way are from signature campaigns, from trading in exchanges that are still not dead and I control the accounts like Poloniex, and from buying and selling as usual. But other than that, a lot of my BTC I think would lead to problems if I tried to cash them out... this makes me sad because it's a good chunk of my savings. What would you do?? I never did anything illegal to obtain my BTC and I would be pissed that the government confiscates them from me when I sell these and they don't like my explanations. |
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Lol, dont even get into that, you will get caught out in the end. I am self employed and I declare every penny I make Its just not worth trying to launder money
I recommend not laundering money as well, always be legal guys. But you must consider this too: When governments make bitcoin illegal (and they will sooner or later) they will ask people to deposit their bitcoins on the government's hands, just like they asked for people to put gold into the government's hands in 1933. The difference is gold does not have a blockchain, but bitcoin has, so if you declared your bitcoin, you are already on the list of "person that owns bitcoin" so you will be the first to get a letter by the government asking you to give them all of your btc. Consider that. |
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Sometimes you don't even know you suddenly own a bunch of new coins because someone decided to fork bitcoin while you wasn't paying attention (because keeping track of all these damn forks is near impossible).
How do taxes work with forks?
What's funny is, in some countries is considered a crime not reporting quantities higher than a certain amount, a pretty big amount like let's say $500,000
Of if you are a bitcoin whale (im not but I wish) let's say you own 1000 BTC
Suddendly someone forks bitcoin, and now you own over $500,000 in some fork, and it would be considered a crime because you didn't report that.
It's pretty stupid but that's how laws work in some countries. I was wondering what are your thoughts in this.
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If you deposited and withdrew BTC from Mintpal, those transactions are permanently recorded on the blockchain. It doesn't matter what transactions took place on Mintpal's internal database.
You sent BTC from Address A (which you can prove control of). You received a higher amount of BTC at Address B (which you can prove control of). The difference is your BTC profit, but what matters for taxes is the USD profit. Each trade on Mintpal is taxable, and the net of those gains determines your taxes due.
The fact that Mintpal no longer exists just makes it harder to disprove the records you provide for your Mintpal trades. That's why any good faith effort to pay taxes on the gains made between Address A and Address B is probably good enough. You made 4 BTC profit, which had a USD equivalent when you bought back BTC. That's your taxable gains. When you cash out an amount of any relevancy, you must prove the origin. There is no real way to prove that the addresses where you deposited and withdrew from, are from Mintpal or from a drug dealer or anything else, because Mintpal doesn't exist, so there's no way to link them properly into the exchange, unless you can prove me otherwise, because all we got is some addresses on the blockchain now, without the context of the website. I don't know about the US, but in other countries you MUST prove the origin is not ilicit, and if they don't like the evidence, you risk losing your money because they would confiscate it or tax it to ridiculous levels. So again, you send 1 BTC to Mintpal. You make 4 BTC from trading it against some altcoin. You send back your BTC to your wallet. You end up with 5 BTC. Now prove these addresses belong to Mintpal. And no, you can't prove ownership of the deposit address, because you don't control the private keys of a deposit address of an exchange, so you can't sign them. How can they definitively link addresses together? Personally, I am extremely careful about linking wallet addresses together, even if it means paying higher fees to consolidate outputs.
Well, if you are going to sell years worth of signature campaign earnings, they will ask where it came from and they will see the address is linked to your account where you posted at with a simple google search, then they could browse your posting history and track all of your receiving addresses for the signature campaigns. In this case, you are going to need to explain the origin of your coins, and im not sure how I would explain I made some BTC posting in some internet forum, this may not be convincing to them even if it's the truth.
-snip- People deposit millions in banks from selling art made out of their own sperm and turds.yeah some posts on this forum are no different in terms of quality or value  I have never heard about banks asking about the origin of your coins unless you go over a certain threshold or they come from tainted or flagged sources if you are totally afraid to use banks,sell for WU,Paypal or any other electronic currency sell here or at localbitcoins get yourself a bitcoin debit card and fund it with bitcoins and cash out at any ATM your options are limitless They are not limitless, they are very limited, if the goal is to buy some real state. You basically have to be 100% transparent, pay all taxes, and be able to proof 100% that the gains are licit. |
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UPDATE!
I have stop talking about Bitcoin to all my friends and family. I just smile and change the topic or ignore, when ever alt-crypto and that Ponzi Token, XRP, comes up. I over hear them saying they just bought LTC and XRP. Nothing about buying BTC.
And I know what they are thinking, you said to invest in BTC and not XRP. Now look what we have got, I just turned $400 into $5k.
People are going to get hurt when XRP falls back to nothing.
Let noobs be happy with their shitcoin gains while it lasts. Once it all crumbles back to being worthless and only bitcoin shines, they will learn the hard lesson by first hand experience, it's then when they realize they should have cashed these altcoin gains into bitcoin and held, instead of converting it all over fiat again. The key moment will be during the next financial recession, as their fiat makes their purchasing power go down while bitcoin saves the day once again. First you learn to not hold alts, then you learn to not hold fiat. |
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Mintpal dies out of nowhere and now you don't have your account anymore. How do you prove the origin? and if you can't prove the origin, you are fucked. You can prove the origin of your coins, though. Let's say you have some signature campaign earnings as the OP indicates. Those transactions and the threads that describe them are archived. You can sign an message from your receiving address. Mintpal's wallets are (or can be) identified. You can show the transaction from your campaign receiving address to Mintpal, and you can show a withdrawal from Mintpal (on the blockchain) to an address you control. Segwit's scripting complicates this, but this wasn't an issue in the days of Mintpal.  Similarly, if you wired money to an exchange to buy BTC, you can show bank records that reflect that. And you can show withdrawals on the blockchain that reflect your BTC holdings from that transaction. Can you explain how do I prove that: 1) I sent my coins to a Mintpal deposit 2) I withdrew the coisn to a Mintpal deposit If mintpal doesn't exist? Exchanges create deposit and withdraw amounts for each individual account and the exchange is dead, im not sure how this could be proved. All that there is is some transactions in the blockchain which would be anything. As with other IRS investigations, they would need to prove that you received income that went unreported. The only way that your trading records can be disproven is by direct coordination with an exchange. If an exchange did not enforce KYC, this becomes difficult. I think that blockchain records reflecting the coins under your control during the relevant times are more than enough to show good faith effort. I think this is especially true in the case of exchanges that disappeared. About unreported income... if you receive an income here in exchange of working in signature campaigns, as soon as you give them one address, they could link it to an account, the look for every address ever that you used with your account and they could see how much money total you've made with your account, and then accuse you of not having reported that income when you sell a part or all of it. So im not sure how this could work out. |
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Whenever you see "everything going red" it typically means that bitcoin is taking a break after a couple days of upside. In this case we've had a rise of $15,431 and a dip to $14,241, nothing out of the norm, bitcoin is doing great, but people are really shaky. The altcoin market is basically comprised of noobs trying to make more BTC by gambling random altcoins. XRP is a pump and dump scam, so dump it when you see good BTC gains.
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In this case, you are going to need to explain the origin of your coins, and im not sure how I would explain I made some BTC posting in some internet forum, this may not be convincing to them even if it's the truth.
But it is the truth. You should hopefully still be able to prove that you own the account that posted. You'll be able to point to the thread where you signed up. The thread will be there that describes the sig campaign and the pay rates. If you're sensible you'll retain the private key of the address that received the payments and lists each tx. Screenshot everything now just in case. People deposit millions in banks from selling art made out of their own sperm and turds. This is less weird by a long way and fully traceable. Not less weird at all, it's very weird to them, and precisely because it's traceable, you must prove it, if you can't prove it, then how are you supposed to sell? Again, suppose that I sent coins into Mintpal, traded 1 BTC for LTC, and sold this LTC when it went up for a profit of 4 BTC, I end up with 5 BTC, then I deposit this 5 BTC back into my wallet. Mintpal dies out of nowhere and now you don't have your account anymore. How do you prove the origin? and if you can't prove the origin, you are fucked. This is why im scared to sell BTC. Yes you may be able to solve it with signature campaigns (and im still worried that I should have been paying taxes because it would be considered a wage in exchange of a work and not an investment). They may decide to tax you with an extra for all the months that you didn't pay taxes on what is considered a wage when they realize you had a lot of payments (because once they have your bitcointalk account, they can trace all of your payments ever here, not just what you are reporting). I can't imagine tax authorities asking you for your Bitcointalk login or private keys. They certainly shouldn't, and technically that wouldn't prove ownership of the funds at the time they were paid. I'd archive the sig campaign threads in case the site gets nuked, but that's more about proving where funds are derived from and less about taxes.
I think the IRS really just cares that people are making a good faith effort to pay their taxes. It seems like signature campaigns would fall under regular "wages/salaries/tips" or "other income" and taxed at the standard tax rate for the cost basis, and capital gains for any gains from holding.
They won't really care. None of them care. You just tell them you have a screenshots and few bits and bobs that'll let them offload the problem on someone else if it ever arises, and it won't. They won't even ask to see them. Yes they will care and it's only going to get worse. Any money without a dubious origin is at risk of being confiscated so you better be able to prove you obtained it legally. |
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My favorite right now is Poswallet: https://twitter.com/poswalletYou can find more info mere. Basically it's a project to stake a lot of different proof of stake coins at the same time online an in a decentralized way without the risk of getting your funds stolen as they are being staked. This is a gamechanger and worth billions in my book. I think it's unbeliably underrated. Every PoS coin is going to want to be part of the PoSW site. Get some tokens and a masternode, who knows if this thing blows up somewhere this year when ETH goes PoS. |
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Well the problem is if some of your bitcoins have an origin in for example, dead exchanges, as I explained here:
Tell 'em. It's all a straightforward fact. They won't really care about the ins and outs. They won't understand any of it anyway. All they want it for is to offload any potential blame on you. You provided their arse cover. That should be enough. I'm in the same boat with sig earnings. I'll tell them what it was and show a few inputs that look regular enough for it to fit that explanation. But that's the point, they will try to find the minimun mistake or lack of data (in this case, lack of conclusive data that the origin of the funds in your bitcoin wallet come from an account that you controlled in a dead exchange, something you can't no longer prove due the exchange database being missing) to conficaste your BTC gains the moment you sell them. Let's just hope they are ok with the sig earnings. Nothing guarantees they will not screw us up and decide our funds are from dubious origin, even if we did nothing wrong (posting here). Too scared to sell anything for the time being. |
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Well, the problem with bitcoin is, it seems some banks are making an automatized process where if they detect ANY suspicious activity that had to do with an exchange, you would get your funds frozen until further notice. This has been seen a million times with Coinbase.
For this reason i have always been so scared to sell a single satoshi, you never know what the State is going to come up with, I think I will wait until it is clear as water what the conditions are.
It's going to depend on your bank of course, but if decent amounts were arriving in my account I'd pop along with a paper trail and explain it beforehand. Their primary terror is having their arse fined off for money laundering. And you can avoid banks completely by getting a debit card and withdrawing via normal ATMs. Not so great for huge amounts of course and you have to have to be in the US or EU these days. Well the problem is if some of your bitcoins have an origin in for example, dead exchanges, as I explained here: https://bitcointalk.org/index.php?topic=2671573.0It's hard to prove the origin is from an exchange's account you owned, if the exchange is dead! what do you do then? Also, how to prove the origin is from a signature campaign? https://bitcointalk.org/index.php?topic=2671454.0It's also tricky. I mean it should be as easy as proving you own the addresses linked to each thread where you posted your address to recieve payments, but tax agencies have no idea about address signing that I know off, so I don't know what to expect exactly. Also, if you get paid on a website (like my current campaign) you get a different address on each withdraw, and if the site ever goes offline, how do you prove the origin? (same problem as dead exchange problem). Bitcoin is so damn tricky to tax. I would like to buy some real state some day. If it goes to $1million, what's the point of being rich if you can only spend it on small things to go under the gov's radar? I would rather get it taxed and buy real state, but like I said, im worried that even if I got all of my bitcoin legally, the proof I present wouldn't be convincing to them and then they decide to confiscate all of the BTC that you tried to sell plus anything they would be able to find... |
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I have been selling my bitcoins earned from signature campaigns for more than a year now and never faced any problems with it. I sell them to local merchants in Localbitcoins.com and get the funds in my desired bank account and then i cash them out on ATM. There are no regulations regarding Bitcoin in my country and maybe that is the reason why i was never bothered by the bank or any authorities, but someone might have to answer a few questions if there are regulations implemented on Bitcoin in their country.
This may be ok if you are just dealing with small amount of sales, but let's say in 10 years 1 BTC is worth $1,000,000 How do you cash out $1,000,000 or any other amount near that? you can't do it through localbitcoins, you would need a million different merchants to cash out that much money. Also there's no way to buy a house without going through the taxman. You may be ok cashing out a small amount to buy a new phone, but im talking about buying real state with bitcoin gains. In this case, you are going to need to explain the origin of your coins, and im not sure how I would explain I made some BTC posting in some internet forum, this may not be convincing to them even if it's the truth. They are too paranoid of anything bitcoin related. |
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What would the legal situation be if you want to cash out some BTC that you withdrew from an exchange that is now dead? This im sure it's the case of a lot of people.
Imagine that you sent some BTC to Cryptsy, or any other now dead exchange. You sold your BTC for LTC. LTC then went x4, and you sold it back to BTC. You made a x4 BTC gain, and you withdraw it back to your wallet.
If you tried to sell this BTC to buy a house or something, you couldn't be able to prove your gains due the exchange being dead, and most likely you weren't able to save your trading history because these things happen randomly, exchanges just disappear from nowhere. AND even IF you were able to save your trading history... so what? what proves that you didn't made up your trading history? if the exchange is dead there's no way to verify that your trades and addresses belong to Cryptsy.
Honestly this is a big mess. This is another reason why im so scared to buy BTC. They could come up with endless reasons to try to steal all of your BTC from you, even if you did nothing wrong. At the minimum opportunity where you can't proven something (such as being unlucky and losing trading history on a dead exchange) they im sure will not make it easy for you, but as worse as possible.
Any thoughts and solutions to this situation?
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Sounds kind of ridiculous and is most likely going to ruin it for part of the americans.
I thought this was the case too for a lot of other countries too, such as some countries in Europe (I couldn't quote the specific ones or the details, but It was something along the lines of needing to report EVERY single transaction you did ever). So supose you go into Poloniex, trade back and fort tiny amounts worth of satoshi between altcoins... well you have to report ALL of that, even the smallest tinniest satoshi transactions! this is absolutely nuts. I wonder why they do this to themselves? their services will collapse looking at all this data. Also the big problem that I (and a lot of other people) have is that we have lost some of our trading history on dead exchanges like Cryptsy... what do we do then? how do we report our trading history here? the exchange is dead! |
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I totally disagree with people saying bittrex is better than binance.
Both exchanges have real differences between them.
Binance on the first hand has the upper hand in terms of live exchanging, minimal fees, faster platform, more reliable system with profit loss.
no validation for withdrawal for those who dont want to put their ids, and they should know the risk, not putting your id's means lower security in all possible ways.
Bittrex on the other hand fees x5 times higher than binance 0.25 and binance 0.1 and 50% off thats 0.05, and bittrex let you deposit without verification but when you withdraw you must have identity verification otherwise you wont be able to withdraw anything, and the only feature maybe is selling of the mining profit immediatley which goes in the bittrex hand also , bittrex allows you sell your satoshis till the end but binance allows only high figures and low satoshis doesnt count on exchanging which is the only low side of binance.
So in my opinion give or take binance has a better platform than bittrex in overall
Bittrex used to make more sense back then when they allowed you to trade small amounts. Now you need verification even to do altcoin to altcoin trading which is nonsense. Back then people used to have a "Legacy" account that you could use even after these verification requirements entered into place, but I think the people that had these old Legacy accounts have got their funds frozen unless they give full verification. I tried verification once and it failed. Some people tried to verify themselves with funds on there and they can't verify their ID and address so they have their funds stuck in there, it's crazy, careful with the exchanges. |
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Hitbtc doesn't care for customer support requests. You never get an answer from their support agency. If you have a problem, your funds are lost forever in hitbtc since they don't reply. In Bittrex, the situation is similar. Avoid both.
Well what's left? If you are an altcoin trading, it's either Bittrex or Poloniex, I have never used HitBTC and im not aware of their altcoin volume, but Bittrex and Poloniex are the leading altcoin volume markets. Bithumb is getting huge but it's mostly for koreans, im not sure if you can register there if you are not korean, at least I don't understand anything, last time I checked they didn't had an english translation set. The problem of Bittrex is that they ask for so many verification steps that it becomes insane. Im scared that they would get hacked as all exchanges do, and they my information would be all over the place in the hands of who knows what. |
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Best to get some professional advice, but in general you pay tax where you're registered to pay it. I used to do a lot of business in Europe but all profit was banked in the UK and that's where I lived so that's where the tax was paid.
Yes, you have to pay it where you have your "tax residence" or whatever it's called in English (residencia fiscal in Spanish). So in your case it is most likely to be France but as gentlemand says, it is better to ask for professional advice if you have a significant amount. If it wasn't too much, I wouldn't worry. Well, the problem with bitcoin is, it seems some banks are making an automatized process where if they detect ANY suspicious activity that had to do with an exchange, you would get your funds frozen until further notice. This has been seen a million times with Coinbase. For this reason i have always been so scared to sell a single satoshi, you never know what the State is going to come up with, I think I will wait until it is clear as water what the conditions are. |
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