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1  Bitcoin / Legal / MtGox vs USA IRS question on: March 30, 2014, 04:54:25 PM
If someone were to have had, for example, 338 btc at MtGox and lost it, how will they be able to file that on taxes now? How can we prove that we had it to begin with if it's gone now? According to what I have read, the IRS is treating btc as property vs currency which would put it into capital gains. Would someone just file it as 338*600 capital gain loss for 2014? What type of documentation can/would we/they need to provide to do this?

Thanks
2  Alternate cryptocurrencies / Altcoin Discussion / Stake on: March 21, 2014, 07:38:59 PM
Asked with no answer, what is this 'Stake' about and what do I do? Mining SHAcoin.

ty
3  Alternate cryptocurrencies / Altcoin Discussion / Idea but need help on: March 16, 2014, 02:01:50 PM
Hey, I have an idea for a new coin and before you roll your eyes at least hear me out.

I see a problem with all coins, no matter SHA256 or scrypt and it's a fundamental problem. At it's root is no control on payout. From what I have read, each coin is set to payout at 'X' when a block is found (am I saying this correctly?). Example: Bitcoin = 25. The only control factor is difficulty but what if there were other control factors? Additional factors that would make a coin self stabilize. Right now the problem I see with anyone mining bitcoin (just an example) is that the more hardware is added, the faster it is mined and the higher the difficulty is thus making it harder to get the next block. Also, the only people who can mine these are those who spend massive amounts of money for the hardware. Hope I understand this correctly. I maybe way off but my idea is still sound no matter the fine details.

What if there was an algorithm that controlled all aspects of the coin?

Let's make a new coin for an example, call it ExampleCoin or EXC for short.

The basic laws of economics is supply and demand. The more people want something AND the quantity supply of that thing makes the price increase or decrease. If 10 people want a basketball and I have 100 basketballs for sale, the price probably won't go up because I have plenty to sell. I could raise the price if I want to but I'm taking the chance that a percentage of those 10 people will no longer want what I have because they feel it is not worth the increased price.

Law of EXC:
1. Have a defined quantity of mineable coins (unknown right now).
2. Allow for diminished coins (wallet loss).
3. Charge 'X' fee per transaction, roll 100% of that fee back into mineable coins until mining is complete.
4. Charge 'X' fee per transaction, roll 'X' percent back into new mineable coins.
5. Set maximum difficulty. Once it hits 'X', it stops thus adding additional hardware is wasted.
6. Once mining is complete, allow for coin quantity percentage of law #2 to return to new mineable coins.
7. Re-mining not to resume until 'X' coins have been returned into the mineable coins.
8. Retarget difficulty every 'X' days.
9. Transaction fees set on percentage, not flat rate fee.


Why are there so many altcoins? I think it's because people want coins they can use for something but do not want to spend $100k to mine them. I recently purchased an AntMiner U2, I paid $40 for it. With the current difficulty of bitcoin, I could make $0.14 per day. It would take me 300 days at that rate to recover my $40 cost and that is not to include power consumption and mining 24/7. It's just not worth it.

Thanks for reading.
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