With tax day fast approaching in the United States, the subject of Bitcoin and taxation has been all over the news lately. Over the past several years, Bitcoin miners, investors and startups have enjoyed a huge financial boon from the Bitcoin price explosion. As Bitcoiners, are we required to cough up real money to the IRS? According to the US Government, we owe the IRS some cash. Profits from Bitcoin mining are taxable and profits from Bitcoin investments fall under the capital gains tax. Yes, we owe the government money. But should we pay? No, I don't think so. The power to tax is the power to destroy. The Federal Reserve banking cartel understands the danger of Bitcoin eventually eclipsing fiat currency. They are, frankly, terrified. The US hasn't banned Bitcoin because it is not yet in mainstream usage. Stores don't accept Bitcoin. Most people don't own Bitcoin. Bitcoin might have entered the public lexicon, but it hasn't entered the public wallet. At least not yet. But the IRS and the Federal Reserve would love to establish a precedent of taxation for Bitcoin. Should they eventually feel threatened enough to severely restrict it, they could easily tax Bitcoin into oblivion. Already the government is seeking to regulate Bitcoin as a monetary instrument, hence the recent arrests of LocalBitcoin exchangers in Florida and the indictment of Charlie Shrem. By regulating Bitcoin, they ensure that the large Bitcoin companies (CoinBase, etc) will enjoy a monopoly, becoming extremely vulnerable to government regulation and taxation. Small players will be forced out of business and new players will have a hard time getting into the game. This has always been the model for banking in the United States and they are applying the same restrictive template to Bitcoin. The government doesn't need to ban Bitcoin. All they need to do is impose taxes and regulation sufficient to keep the big Bitcoin companies on top, and the little guys out of the game. My name is Dr. Michael Moriarty, and I own the Bitcoin Network of 50+ Bitcoin related sites, including https://BitPlastic.com, https://CoinChimp.com, https://BitLaunder.com and many more. We are not going to pay 1 cent to the IRS or any other government agency. Nor do we verify the identity of our customers. Nor do we report our customer's financial transactions to any government agency. The beauty of Bitcoin is that the average person can use it to escape from the fiat currency ponzi scheme that characterizes our modern banking system. By reporting your Bitcoin earnings to the IRS, you are implicitly embracing their financial scam and becoming part of it. Beverely Rubik says 'you can recognize a pioneer by the arrows in his back.' Maybe the IRS will put some arrows in my back, but they will have to find me first :-) |
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OP - I would invite you to write a crypto-anarchist/libertarian post on Bitcoin taxes for my magazine, http://BitForum.orgIt seems you have some interesting insights and we would be honored to have you as a Guest Author. Dr. Michael Moriarty |
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Good post.
I own the entire Moriarty Bitcoin Network of 50+ websites including BitPlastic.com, BitLaunder.com, etc ... we do transactions of over 100 bitcoins daily throughout the network.
Guess how much tax we paid?
0.00
The IRS is the biggest scam in history. The Federal Reserve can print all the money it needs. The only reason it taxes the population is to keep the middle class in check.
My network of sites reports transactions to no government whatsoever! And we do not maintain records on our customers nor verify identities. If you use CoinBase or CaVirtEx, the US and Canadian governments will know exactly how much money you spent on Bitcoins. And eventually you will get a knock on the door.
Stay safe.
Dr. Michael Moriarty
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It's not RSS. the 'magazine' section is original content, the News section is personally scoured from news agencies and manually posted to the site.
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[MODS: This post is non-commercial, but if it doesn't fit here, feel free to move it to a more appropriate category] Hi folks, I just wanted to let you know about the Bitcoin news magazine I just launched at http://BitForum.orgKeep up with the latest Bitcoin news (updated daily), read exclusive Bitcoin magazine articles, browse the Bitcoin web directory, connect with other Bitcoiners and post classified ads. Everything on this site is 100% free. Check out http://BitForum.orgBitcoinTalk users who have something interesting to contribute may become Guest Authors on the site to post articles and news. Enjoy this free service, Dr. Michael Moriarty http://BitForum.orgMoriarty.Bitcoin@gmail.com |
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The owner of CaVirtex is a known scam artist. He has been selectively scamming for years. Here is what happens on CaVirtex: 1. large deposits get randomly 'frozen' - there is no way to unfreeze them. 2. they suddenly freeze your account, requesting more 'verification' even though you are fully verified 3. they freeze your account (and seize your funds) if you access the site from an unauthorized IP address, like TOR (this happened to me personally) Don't use CaVirtex or other exchangers which demand ID. They are reporting to Fincen, IRS and (in the case of CaVirtex) Canada Revenue Agency. Not only will they rip you off, they'll report your transactions as well. Imagine if someone robs you at gunpoint then calls the cops and tells them to arrest YOU. That's what CaVirtex and Joseph David are up to! I suggest you read this warning: https://bitplastic.com/bitcoin-warningDr. Michael Moriarty |
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The owner of CaVirtex is a known scam artist. He has been selectively scamming for years. Here is what happens on CaVirtex: 1. large deposits get randomly 'frozen' - there is no way to unfreeze them. 2. they suddenly freeze your account, requesting more 'verification' even though you are fully verified 3. they freeze your account (and seize your funds) if you access the site from an unauthorized IP address, like TOR (this happened to me personally) Don't use CaVirtex or other exchangers which demand ID. They are reporting to Fincen, IRS and (in the case of CaVirtex) Canada Revenue Agency. Not only will they rip you off, they'll report your transactions as well. Imagine if someone robs you at gunpoint then calls the cops and tells them to arrest YOU. That's what CaVirtex and Joseph David are up to! I suggest you read this warning: https://bitplastic.com/bitcoin-warningDr. Michael Moriarty |
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WARNING: Hackers are targeting YOUR Bitcoin business! Surely you've heard about the recent spate of Bitcoin hacking, which has put large and small Bitcoin exchanges out of business. MtGox, Flexcoin and Vircurex have recently been hacked into oblivion. All of these unfortunate attacks could have been prevented! At BitSecurity, we want to help Bitcoin business owners and entrepreneurs defend themselves against the dangerous hacking threats in the Bitcoin world. We specialization in server security, ethical hacking, penetration testing, web application security and Bitcoind security. We are a full-service web security company specializing in Bitcoin! If you own a Bitcoin business, can you afford not to invest in security? Check out https://BitSecurity.net for a free consultation. BitcoinTalk users receive a 10% discount on the service. Thank you, Dr. Michael Moriarty The Bitcoin Network |
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Greetings BitcoinTalk Users! In light of the recent problems with Bitcoin exchanges including MtGox and BitStamp, we have decided to launch a fast, private, efficient and hassle-free ANONYMOUS Bitcoin exchange at https://CoinChimp.comNo ID verification, no documents, no country restrictions, and NO LIMITS. You can buy Bitcoin with Western Union, MoneyPak, and anonymous cash deposit at bank branches worldwide and in the USA. We intend to be a direct competitor to CoinBase, BitStamp and BTC-E as these exchanges do NOT protect your privacy nor are they managed efficiently. They are also ripe with fraud, as the MtGox debacle demonstrated. CoinChimp.com will protect your identity and Bitcoin financial transactions during the coming regulatory nightmare ... we do NOT store any customer private information, and we don't ask for name or address. CoinChimp is a full-featured exchange offering crypto-currency trading, converting BTC to USD and EURO, buying and selling bitcoin and much more. CoinChimp is brought to you by the same owners of BitPlastic.com, the Bitcoin Debit Card company and BitLaunder.com, the Bitcoin anonymizer. Please note that during the recent Bitcoin hacking crisis WE DID NOT FREEZE WITHDRAWALS WHATSOEVER for our clients. We are here to stay! And we want to serve the libertarian, privacy-conscious Bitcoin niche. Enjoy CoinChimp and I am always available if you want to submit feedback or recommendations. We listen to AND implement customer recommendations on our network! Dr. Michael Moriarty moriarty.bitcoin@gmail.com |
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"From reading the comments on one of the stories linked here, it appears when you go to load the card your bitcoins will mysteriously get stolen by a hacker using a man-in-the-middle attack. Classic, not our fault, we got hacked scam."
Oh, you deduced that from reading some comments in a forum, did you?
Well, let me explain. We repel THOUSANDS of hacking attempts daily. Bitcoin sites, including BitPlastic, get HAMMERED by attackers.
In one instance several weeks ago, a hacker was able to intercept incoming deposits for a period of about six hours. The hacker stole a few bitcoins and customers didn't know (or care) since we paid out of pocket. We have an 'insurance fund' which we build up from our profits that enables us to cover small losses like that. Only one customer actually lost money, and that we because he sent an unusually large amount (6BTC) which we didn't have enough funds to cover.
Unlike BitStamp or MtGox, we do not freeze withdrawals and all client funds are stored offline in a paper wallet, meaning even if our server gets rooted (and it has!) the attack generally cannot do much damage. He certainly cannot steal client funds in cold storage; it is physically impossible to do that. So, yes, we had one hacking incident in which ONE client lost funds he sent to his wallet on that specific day because those funds were stolen in transit before they made it to our cold storage wallet. The customer still uses BitPlastic but sends his large deposits directly to the cold storage wallet simply bypassing the site entirely, which works well too.
That being said, we have upgraded security and that kind of attack will never happen again. That's not to say other attacks aren't possible. As MtGox and BitStamp are finding out, no online wallet is 100% safe all the time. That's why we store funds in cold storage rather than online.
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"if you can't sell a debit card with the aspect and image of the one you are presenting at your site, don't use that image at all or you will be cheating your clients." Really, it matters that much what the card looks like? Personally, if I ordered a debit card, I wouldn't care whether it looks different from what is pictured on the site, as long as it WORKS. No matter though, I have updated the faq to show the correct image of the card: https://bitplastic.com/bitcoin-debit-card"In my case, and as I'm a client of the Bank Zachodni, with direct access to the account of a debit card with same image of the one I received from BitPlastic, I would never buy it from BitPlastic. I feel cheated." You feel CHEATED? You ordered a Bitcoin debit card and you received a Bitcoin debit card. Tell you what. Post your BitPlastic username here and an external Bitcoin wallet address. I will HAPPILY refund your debit card deposit and delete your BitPlastic account. Sound good? IN FACT, IF YOU FEEL 'CHEATED' BY SUCCESSFULLY PURCHASING ONE OF OUR PRODUCTS, AND RECEIVING IT, YOU ARE NOT SOMEONE WE WANT AS A CLIENT. WE WILL BE HAPPY TO REFUND YOUR DEBIT CARD DEPOSIT!! |
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Hi, I'm the owner of BitPlastic. I'm sorry you don't like our design, but it ranks very well in the search engines, which is why we used a custom design rather than a template like CoinBase. I do understand the CoinBase design looks 'cleaner', although many people like our design too. In any case, just google 'bitcoin debit card', and you'll see we're number one in google. We are more interested in high rankings than a flashy template design. As for money, I own 50+ other bitcoin sites, so I don't see how you can claim our web design suggests low funding. For example, sites on our network include: https://BitLaunder.comhttps://BitArmored.comhttps://CoinChimp.comhttps://TheBitcoinEscrow.comhttps://BitFiverr.comhttps://BitSweeps.comhttps://BitBing.comhttps://BitListing.comhttps://PaidBitcoin.comhttps://BitMeetup.com... and many, many more Obviously with this large of a network we are not lacking for VC funding. |
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Technically, yes, there is a $3500 USD limit on the card. What this means is that $3500 USD can processed through the card in a one year period. Please note this limit is set by the bank, not by us. Banks are required to set a low limit for the card because of anti-money-laundering rules. However, the limit means nothing. If you need to convert $35,000 per year from Bitcoin to cash, then you just need to buy 10 cards - either all at once or over a one-year period, it's up to you. The card is 100% FREE. So once you hit the $3,500 limit on your card, we refunded your card deposit fee, and you can request another card, if you so choose. As for the card being a 'scam', I don't see where that accusation would come from. Yes, you can buy similar prepaid cards on ebay, but how does that help you convert bitcoin to cash? Plus the ebay/paypal fees are significant. No, we do not issue these cards out of our own office; we are NOT a bank. These cards are issued by Bank Zachodni in Poland. We handle all aspects of the card for you, from registering (difficult, because it is in polish) to converting bitcoin and funding your card. Yes, you could do this on your own and probably save some money on fees. We automate the process and make it easy to convert Bitcoin to cash. For more info, please see: https://bitplastic.com/bitcoin-debit-card |
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*sigh*
It is not a scam. Someone hacked this user's account (needinto) on BitLaunder.com and transferred his coins here:
1M3AC6dyuQrEySFoU4F6jwYa4hXzRJCorZ
I have paid the user out of my own pocket.
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Laundering can take 2-3 hrs for a quick launder or up to 24hrs if the user chooses 'Secure Launder'
We have to mix the coins, so obviously it is not going to be instantaneous. If this user wants to provide his BitLaunder username, I am happy to investigate the claim
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This is exactly why you should not use exchanges like BitInstant, CoinBase, CaVirtex or MtGox! Charlie Shrem is going to provide all financial records of his customers to the FBI and IRS. Goodbye Bitcoin, Hello IRS. Did you buy significant amount of bitcoin through BitInstant? Expect a knock on the door. Good luck. Instead of using these government-compromised exchanges, try the anonymous exchange https://CoinChimp.com and the anonymous Bitcoin debit card https://BitPlastic.comWe do NOT store client information! |
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'You store customers IP addresses? Seriously? Any service claiming to be anonymous would delete all server records daily. bitplastic.com home page currrently says "It works!" by the way. Very professional.' I don't know what homepage you're viewing, but it's not https://BitPlastic.comAnd yes, we store client IPs to help prevent hacking. Every web service stores IPs, it's a major security precaution to prevent your account from being compromised. It is easy to change your IP if want to (TOR, VPN, etc..) |
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BitPlastic enables you to remain anonymous. Here are some tips if you are really paranoid. These will protect you even if the actual server gets seized by authorities (not very likely): 1. use TOR or NordVPN's new Double VPN service (make sure to type https://BitPlastic.com when using TOR or you could fall victim to an SSL man in the middle attack!) 2. create an anonymous email on safe-mail.net (using TOR or VPN) and sign up with that. 3. if ordering a debit card, have it shipped to a friend's house. We delete your shipping address immediately when we ship your card, so there's not much risk here. 4. Don't withdraw bitcoin to an exchanger (like Coinbase or CAVirtex) under your real name, or the transaction can be traced to you through the blockchain. Hope these tips help. Good luck and stay safe. |
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POS limit is $500, you're right I should update the FAQ with this information and I will. Most people just want to withdraw cash though
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You're right about one thing; you can not trust ANY service not to turn over records to the government. Expect that everything you enter on a webpage is going to end up in the hands of law enforcement, hackers, or marketers - perhaps all three!
That's why we do not collect any personal information from our clients. We have no information to give up.
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