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41  Economy / Speculation / Re: Do you really believe that Bitcoin will hit 1,000,000 on: June 08, 2014, 09:09:52 PM
Do you really believe that Bitcoin will hit 1,000,000

analyses never ends

Maybe if the US Dollar ha hyper inflation, otherwise not in any one who is alive today's lifetime.

If the price of BTC was $1,000,000 then the market cap of BTC would be greater then the US economy (as it is today).

I can give more comparisons including hypothetical calculations of growth of GDP, however this is simply unrealistic.
42  Economy / Trading Discussion / Re: Is MtGox the best way to withdraw BTC as USD? on: June 08, 2014, 02:43:41 AM
I would not recommend using MtGox for BTC trading.
43  Economy / Trading Discussion / Re: Payments on aircraft on: June 08, 2014, 02:36:30 AM
Is there any way bitcoin payments could get taken in an aircraft with no net connection for duty free sales or buying food?

I guess the airline could scan the qr code but there may not be any funds associated with that code. I know some airlines now have wifi but not many.

Many airplanes have internet connection and have wifi. In the event that they could not use the internet the process could be as follows:

1 - Download the blockchain immediately prior to takeoff

2 - When a passenger wishes to purchase an item the flight attendant would give the passenger a Bitcoin address to send the BTC to along with the amount to send.

3 - The passenger provides a signed transaction to the flight attendant. This could be done via wifi and/or bluetooth.

4 - The flight attendant checks to make sure that the outputs provided in the transaction are unspent as of when the blockchain was downloaded (this step would almost certainly be handled by the airlines software, but the flight attendant would cause this check to take place)

5 - The passenger gets their food/drinks (or the duty free items are ordered)

6 - When the plane lands the transaction is broadcast to the network by the airline

The risks involved are very similar to those for accepting a 0/unconfirmed transaction. Although the airline does not have an up-to-date copy of the blockchain, the passenger them-self would not be able to move any BTC around (someone else could if they had access to the private keys).

In the event that the passenger is ordering something duty-free then the airline simply broadcasts the transaction throughout the network when it lands, and the transaction would likely have (close to) 6 confirmations by the time the passenger arrives to pick up the order (the time spent taxing from the runway to the gate and the time it takes for all the passengers to get their luggage out of the overhead bins and exit the plane a lot of time will have passed, allowing plenty of time for the transaction to be sufficiently confirmed).
44  Economy / Trading Discussion / Re: Need an opinion on: June 08, 2014, 02:17:49 AM
I've received amazon gift card for 500$ from my grandparents and literally have no idea what to do with it, so I'm trying to sell but the problem is that I already redeemed card and card is already in my account, this bothers a lot of people and none wants to buy it. One guy messaged that he would like to deal with me if I'm gonna buy him camera for 499$, ship it to him and upon delivery he will pay me 450$ in BTC. I would never do anything like that but seems like guy has reputation here TECSHARE and he told me that even his account is worth more than 500$, how much truth in that? Should I go for it? I really don't want to be eaten by a bigger fish here and need second opinion on this one.

I would say that you should have the buyer send the BTC to someone who would act as escrow, purchase the item on Amazon, have Amazon ship it directly to the buyer. Your agreement with the person acting as escrow would release escrow once the tracking number that amazon provided shows as delivered. In the event of a dispute you could give your Amazon account credentials who could verify the tracking number is correct, that the address is correct and that the correct item was ordered.

If the buyer does not receive the product then escrow would be released but you would agree to work with Amazon to resolve the missing item.

I could offer to provide escrow for 3%, however I doubt you would wish to utilize me as I am very new to the forum. There should be a number of reputable members who have positive trust that you can utilize for escrow.
45  Economy / Trading Discussion / Re: How to prove Bitcoin transactions to a bank? on: June 08, 2014, 02:08:17 AM
If you are trying to show the bank that you own BTC in order to show you have sufficient "cash" reserves in order for you to qualify for a mortgage then it is unlikely that they will accept this even upon receipt of proof. Money in your bank account and other property can be garnished in the event that you do not repay your loan while it would be impossible for a bank to garnish your BTC.

You should be able to prove that you own the BTC that are in an address by signing a message with the address in question.

As for your proof of Dollars going into and out of BTC then the best way would be to show them account statements (invoices for coinbase) at the exchange that you use. The purpose of this is likely because there is so much money going in and out of your bank account it may look like that you are kiting checks in order to make your account balance look bigger then it really is.

My advise to you is to ask your contact person at the bank what specific documentation they are looking for. It would be very rare that a bank would ask for "proof" of something without giving specific examples of what they will and will not accept.
46  Economy / Trading Discussion / Re: Exchange or Other Place to Trade BTC/JPY on: June 08, 2014, 01:52:34 AM
Have you tried going to Japan?
47  Economy / Trading Discussion / Re: wrong bitcoin address on: June 08, 2014, 01:45:37 AM
Hi,
I bought some btc from virwox. I made a mistake with autorefill of the address field and sent it to an address i used long time ago in a web that has closed months ago. I did not used in a wallet ( I never understood its working...)I see the bitcoins are "not yet redeeemed". Is there any way I could recover that amount?
Thanks in advance!

If you are saying that the address you sent the coins to was a deposit address of some kind of website that has since closed down then your chances of retrieving your funds are slim to none. You could attempt to find contact information of the owner of the website, however even being able to contact then is a long shot as the contact email could have been an email for that domain. Even if you do get in touch with the owner of the website there is a very good chance that s/he will no longer have access to the database that held all of the private keys.

If you are saying that the bitcoins are "unspent" when you say "not yet redeemed" then that simply means they are available to be spent. That is similar to saying that you have a balance in your "account"
48  Economy / Trading Discussion / Re: Idiots reversing funds on Skrill on: June 08, 2014, 01:36:21 AM
So I sold BTC to someone on skrill, roughly 1,200.
He reversed the funds today, and here's the funny part:

1. Skrill didn't even bother letting me know...
2. Skrill put a hold on my account last Thursday, it was meant to be resolved then and there, but as usual they held out until today. So pretty much, if they had done their job, I'd still have my funds.
-> They also told me to wait 2 business days on my business account for a hold to be removed, it took them 47 days to follow that email up, every time I called it got 'escalated' again.

...
Annoyed, to say the least.

It sounds like the person you were dealing with was less of an idiot and more of a scammer.
49  Economy / Trading Discussion / Re: Advice on moving USD to another trading site please? on: June 08, 2014, 01:22:27 AM
I may be mistaken, however I do not think you can send USD from one exchange to another. If you insisted on staying in USD the entire time, you would likely need to withdraw to your bank account, then send funds to another exchange.

IMO the best way to do this is to buy BTC, withdraw to a wallet that you control then deposit to your other exchange. This should not take more then a few hours (counting the time it takes the exchange to process the withdrawal and the time it takes to get enough confirmations for the other exchange to accept your deposit. This should not cost you more then a couple of cents.

You will of course have exchange risk during this time. You could hedge this risk by betting that BTC will fall after 3 hours, but this would probably be unnecessary.
50  Economy / Trading Discussion / Re: where can i get $2 worth of btc via paypal? on: June 08, 2014, 01:14:11 AM
you can use http://www.bitcoininsanity.com/ for this ...

I looked at the site, and it's not clear how they avoid being ripped off with charge-backs.
Any idea how they actually control/avoid fraud?


It looks like they charge a huge markup. For example they are selling 0.032 BTC for $25.00 that works out to be $781.25/BTC. Bitstamp is trading at $657.21/BTC right now, so as long as they are scammed out of less then 18% of their orders they will be fine. That with the fact that they only sell relatively small amounts they are likely not a huge target for scammers.
51  Economy / Trading Discussion / Re: Invoice in Bitcoin - How to Agree on Exchange Rate? on: June 08, 2014, 01:00:00 AM
I have a business where I issue an invoice in the beginning of the month which is due on the 20th day.
I'd like to add an option to pay in bitcoin.

Here's the problem. If I use the exchange rate to EUR at the beginning of the month, the customer can choose bitcoin if the price falls. If the price increases he'd better stick to EUR.

How may I solve this problem?

You could add a disclaimer that the price in BTC is only valid if the price on BitStamp (for example) is within 5% of $657.11 and that is the price on BitStamp is below that threshold then they would need to pay an amount that uses the current BitStamp rate plus 4% (1.04 times the current BitStamp rate). Your customers could go to your website to get the most up to date amount of BTC they should pay to settle the invoice.

Another option would be to give a discount to pay via BTC but the invoice would need to be paid in a smaller window of time. In this case you would still be taking on exchange rate risk but it would be smaller.

If you do not plan on converting your BTC to fiat right away then you could do nothing and essentially let your customers pay less in BTC when the exchange rate decreases, this would cause happy customers (they got a discount) which would likely result in more repeat business and more referrals of other paying customers.
52  Economy / Trading Discussion / Re: So all my greendot prepaid cards got closed... on: June 08, 2014, 12:45:57 AM
Having other people load money onto your card is not the intended use for the card.

It becomes obvious that multiple people are loading funds to your card when they load it from locations that are sufficiently far from each other that it would be reasonable to say you are not traveling to those places.

For example if someone loaded funds on Monday from CA, then on Wednesday from TX and Thursday from England, they could reasonably infer that these transactions are from multiple people.

If they were to allow these transactions then they would essentially be acting as a Money Service Transmitter (it is my understanding they are not) and would need to use additional AML policies and checks.

Doing this is a "red flag" of money laundering, even if what you are doing is 100% legit (you are even paying taxes, ect.) and can prove this, it still looks like money laundering.

I would find it unlikely that you never receive your funds back that you had on your cards. It will probably take some time though. 

Coinbase is probably the best option for selling your remaining BTC if that is what you wish to do.
53  Economy / Trading Discussion / Re: Ebay/paypal scam on: June 08, 2014, 12:35:22 AM
I have seen many forum posts with this type of scam. It was apparently quite common around a year ago until the BTC community caught on to what was happening.

Even though paypal reversed the transaction you still have the possibility of getting your money back. 

Since you have her name and address you could possibly sue her in small claims court to get your money back.

I would not recommend contacting her Facebook friends/family as you do not know for sure that it was her (could have stolen her identity and/or used a hacked account) and you could possibly be committing libel against her.
54  Economy / Trading Discussion / Re: Cryptsy could be working on fractional reserve. on: June 08, 2014, 12:19:32 AM
I would find it unlikely that they are running on a fractional reserve.

There are probably two reasons for the delay in larger withdrawals:

1 - They likely have a relatively small amount of coins in their hot wallet. They would also likely send only a certain percentage of the coins in the hot wallet at one time (this could be done on an hourly basis or possibly on a per user bases, for example only send a max of 10% of coins in the hot wallet to users every hour, or only send a max of 1% of coins in hot wallet to each customer). The earlier would prevent them from having their entire hot wallet stolen if they encountered a zero day attack - in the above scenario they would only lose a max of 20% of the hot wallet funds if a zero day attack was discovered within 2 hours.

2 - By deducting coins from a user's account prior to transmitting the transaction to the network a user will have some time to login (or attempt to login), notice that their balance is lower then expected, and contact support. This would give them time to stop a withdrawal and investigate who the real account owner really is (and where to send the coins). A zero balance is on the dashboard is much more noticeable then a zero balance and a (for example) 2.5 BTC pending withdrawal as a user may not notice that the 2.5 BTC is pending withdrawal but would rather see 2.5 BTC and assume that everything is okay.
55  Economy / Economics / Re: How and why to hold bitcoins in your Roth IRA (yes, you can do it today!) on: June 07, 2014, 02:43:56 PM
Quote
3) It's not hard to avoid self dealing if you are intelligent and RTFM. The bitcoin addresses that belong to my IRA LLC have never been posted publicly and the funds are held in cold storage that is completely separate from the bitcoins owned by me personally.

Any BTC transaction is publicly available on the blockchain. Any time you buy BTC and send it that the address in your BTC IRA the transaction will show up. There are many BTC address with large amounts of BTC that often receive spam transactions of a very small amount along with a public message.

There is no guarantee that your security will protect you 100% from theft of your BTC. In the event that hackers are somehow able to get your private key (they would send the BTC to an address they control) and you could be accused of withdrawing funds prior to retirement age (and be forced to pay the associated taxes on doing so). The anonymous nature of BTC would make it very difficult to prove it either way. When you file taxes the burden is on your to prove that your tax return is accurate. 
56  Bitcoin / Legal / Re: mining rig capital or current expense? on: June 07, 2014, 05:59:03 AM
I'm wondering how I should file my mining rigs. Normally, I would make servers, laptops and desktops a capital asset and depreciate it. However, mining rigs and ASICs have a shorter life span and I typically sell them within a month or two of usage. I would like to file it as expenses but I'm not sure since IRS ruled coins as capital assets.

How are you guys filling your taxes?


If you are selling your ASIC rigs within a few months and in the same tax year that your purchase them, your question is irrelevant. From a business perspective it is best to sell any BTC mined right away.

Your tax equation should be as follows:

*Purchase price minus selling price (for ASICs) will be a short term capital gain.

*Cost of electricity to run ASICs should be an investment expense.

*(since you are selling your mined BTC right away your tax situation will be much simpler). The amount you sell your BTC for is short term capital gains (profit), (your cost basis is zero).

This is only applicable to situations when any ASICs that you own are sold in the same tax year. In the event of a tax audit and the IRS determines that something is misclassified then the net effect of total taxes due would be the same and you would not be penalized.

Although I believe this information to be correct it is advisable to seek professional tax assistance prior to filing taxes. 
57  Bitcoin / Legal / Re: Why localbitcoins dont need KYC ? on: June 07, 2014, 05:38:57 AM
Why localbitcoins dont need KYC ? Moreover they are being used across the continents. Dont they need to adhere by every country's law ?

It is the buyer's responsibility to adhere to KYC/AML laws.

Localbitcoins simply connects buyers with sellers and acts as an escrow service.
58  Bitcoin / Legal / Re: Petition to request the IRS change Bitcoin tax ruling - PLEASE READ! on: June 07, 2014, 05:20:02 AM
It really isn't that bad. As long as you don't cash out, there is nothing to worry about - as far as I know.

The problem with the IRS regulations is that it prevents other people from adapting BTC.

If you do not own/use BTC as of now and would have to keep records of how much you pay for BTC and the value of goods/services that you buy with BTC and pay taxes on any gains (and take a deduction on any losses) then you have little incentive to use Bitcoin.

The more people that use Bitcoin, generally the higher the long term price will be.
59  Bitcoin / Legal / Re: The IRS decision as it relates to ROTH IRA's - tax-free Bitcoin investment? on: June 07, 2014, 05:10:24 AM
I had $10,000 in ROTH IRA basis money (money I invested in a ROTH IRA acct and paid taxes on) that I pulled out penalty-free in January to invest in Bitcoin. My original thought was that I was going to treat this as a regular capital gains type investment - no tax shelter.

Now that the IRS has come out and said that Bitcoin investments are to be treated like stock market investments, it sounds like my $10,000 investment can grow and be cashed out tax-free since my withdrawal is really just a movement of my investment from one vehicle (the stock market) to another similar investment vehicle (Bitcoins).

Thoughts?

It sounds like you invested $10,000 in a Roth IRA several years ago, have had earning/gains on this investment (it is now worth more then $10,000) and now that you have had your Roth IRA open at least 5 years and are above the retirement age ave withdrawn these funds. You have subsequently invested these funds in BTC.

IMO the best and simplest way to invest in BTC in a retirement account would be to invest in a BTC EFT (once they start trading). This will allow you to avoid probably several thousand dollars in expenses in setting up an entity to own the BTC and high recurring expenses in managing the entity that owns the BTC.
60  Bitcoin / Legal / Re: I didn't pay capital gains tax on bitcoin sales to IRS today on: June 07, 2014, 04:18:12 AM
If you sold BTC today then you would not own capital gains taxes on these sales until "tax time" next year.

It is highly advisably to not openly break the law. The IRS is a very powerful agency.
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