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1  Bitcoin / Bitcoin Discussion / Re: New mining pool imposes KYC and censorship on: November 16, 2020, 09:23:21 AM
Does anyone know the IP address of the node(s) they use? It would be nice to add this to the default banlist in bitcoin core.

https://twitter.com/dmgblockchain/status/1327037069340774400
2  Bitcoin / Bitcoin Discussion / - on: April 22, 2020, 12:14:53 PM
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3  Bitcoin / Bitcoin Discussion / Re: Type of wallets and questions on: April 13, 2020, 05:59:26 AM
Hardware wallets which I personally use trezor t, I've never had an issue and their interface is simplistic, one of the hands down best ways I've seen yet, but I like to diversify a bit. Anyone have issues with these? I doubt it. 

If their servers go down, you won't be able to view your balance and you won't be able to create outgoing transactions.

They also know every UTXO you've ever sent or received. You couldn't develop a better way to spy on Bitcoin users if you tried.
4  Economy / Trading Discussion / - on: April 09, 2020, 03:22:10 PM
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5  Bitcoin / Bitcoin Discussion / Gold quickly becoming more scarce. Which will be worth more, Bitcoin or Gold? on: March 25, 2020, 06:37:56 AM


Gold selling out, private persons are going to have trouble taking delivery:
https://newsroom.proaurum.de/pro-aurum-schliesst-edelmetall-shop-vom-23-bis-einschliesslich-25-maerz-2020/
 
https://www.handelsblatt.com/finanzen/maerkte/devisen-rohstoffe/edelmetalle-mangelware-gold-nachschub-aus-der-schweiz-geraet-ins-stocken/25672404.html?ticket=ST-511794-2IgeAmgrQz4Q730T9Yxt-ap1

Refineries in Switzerland melt 70% of all gold, all are shut down:
https://www.aargauerzeitung.ch/wirtschaft/schweiz-schmilzt-das-gold-der-welt-die-groessten-raffinerien-sind-hier-129626667

https://goldswitzerland.com/swiss-gold-refiners-cease-production-end-of-paper-market/


Limited supplies and great demand can drive prices very high. Which will be worth more in a year, Bitcoin or Gold?


 
6  Bitcoin / Bitcoin Discussion / Re: I realise Coronavirus is not a reason why on: March 23, 2020, 09:17:43 PM

People who were facing margin calls had to sell of their liquid assets (Bitcoin and Gold) to meet their obligations. Many of these people were "professional" investors.

Now, Bitcoin is artificially cheap, and real hodlers are loading up before the upcoming massive price pump.

7  Economy / Trading Discussion / Re: Maker arbitrage on: March 21, 2020, 01:11:30 PM

Something to consider is price volatility on different exchanges. If your bot communication is delayed at all with the exchanges, it might get stuck holding a heavy bag when prices begin to move quickly.


A related issue to be aware of is intentional rate limiting. Some exchanges will mess with your API response timing to screw over your trades. Many algo traders have left entirely due to some of the more popular exchanges doing this.




8  Alternate cryptocurrencies / Altcoin Discussion / - on: March 19, 2020, 05:33:08 PM

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9  Bitcoin / Bitcoin Discussion / Re: Russia Banned Crypto Trading on: March 19, 2020, 11:43:37 AM
This is not good news, BTC price could be dump even more.

Alexey Guznov, head of the legal department at Russia’s central
bank, revealed the news in an interview with local news agency Interfax on March 16.

 Issuance and circulation of crypto in the country poses an “unjustified risk”
 Although the original bill “On Digital Financial Assets” stipulated that cryptocurrency trading would be allowed in Russia, the amended document will apparently prohibit nearly everything about crypto except holding, according to Guznov’s latest remarks.

 The official said that the upcoming law will explicitly prohibit the issuance and circulation of cryptocurrency and would introduce penalties for violating this law. Guznov argued:

 “In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.”

 Russia’s central bank would unlikely be able to regulate Bitcoin transactions
 Besides claiming that the crypto bill would ban Russian financial institutions from issuing digital assets, Guznov provided little clarity about the upcoming bill. When asked whether the Bank of Russia wants to ban residents from converting crypto into local fiat currency, the Russian ruble, or a foreign currency, Guznov did not provide a direct answer.

Governments might try to prevent people from offering securities in the form of tokens. But this just hurts them. People will create the securities in a different jurisdiction where it is legal.
10  Bitcoin / Bitcoin Discussion / Re: Store your bitcoin on: March 19, 2020, 09:46:53 AM
The halving is in under 2 months, miners won’t be selling much due to the low prices, the supply of coins is cut in half so it’s very likely that the price will rise fairly significantly before the end of the year.

The OP doesn’t need a crystal ball to predict a rise in bitcoin once this COVID-19 rubbish is over.
I highly doubt we'll recover until the end of the year. This is going to take a very long time and I don't think crypto will be the asset people will focus on. I believe BTC will recover too, but it's most likely going to take a long while until then unfortunately. Smiley

On the other side though, this opens the opportunity for me to accumulate more. I always considered BTC dumps something like going back in time and getting a second chance to accumulate while prices are low. Hopefully things will evolve the same way they used to in the past few years as soon as the crisis is over.

I think there are a number of factors which will drive up the price of Bitcoin sooner, rather than later. Maybe the pump comes this summer.

People are concerned about the money they have in the bank. In the US there is no reserve requirement now, and with the supply of dollars increasing massively (and negative interest rates in Europe) people are actively looking for a place to store and protect their wealth.

Physical cash is an option, but it can be devalued overnight, is easily stolen at borders, and is difficult to convert to electronic format.
Gold is an option, but it has the same problems as physical cash (or worse). The only benefit of gold over cash is that it is impossible to devalue. But you still have to pay to store it (same effect as negative interest rates) and there are problems with price manipulation.

Securities are not a good place to be either, as the organizations offering them might very well go bankrupt and never be able to pay dividends in the future.

The only safe haven seems to be Bitcoin. It is the only commodity humans have which is portable, divisible, and can be transported through time without any loss.

After people realize this, and after the new supply of Bitcoin is cut in half, the price of Bitcoin will go wild.
11  Economy / Speculation / Re: Will Bitcoin Price Halving succeed with Currently Situation on: March 19, 2020, 06:47:23 AM
Bitcoin price drops almost more than 35% compared to the raise marked previous months, and it believed that bitcoin halving will raise the price, will it succeed as predicted before with current market and economic conditions.

Price is the intersection of two curves: quantity demanded and quantity supplied. If demand, or people's general taste or preference, for Bitcoin remains unchanged or increases, and at the same time the quantity supplied of bitcoin remains the same or decreases, then the price of Bitcoin must increase.
12  Economy / Trading Discussion / - on: March 18, 2020, 05:06:34 PM
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13  Bitcoin / Legal / Re: IRS/tax question: Exchanging bitcoin cash for bitcoin? on: November 01, 2017, 08:24:12 PM
The IRS views bitcoin as property. I would think this is not different than the case of a rancher, who started with 120 cattle and a couple years later has 450. Another analogous case is a stock split, such as when a company is split into two. Stockholders get proportional shares. Generally taxation occurs when the asset is converted to USD.

Consider if you had BTC on coinbase, and they gave you BTH. You wanted to convert it to BTC, and ON THAT PLATFORM this requires BTH-->USD, then USD-->BTC. A taxable event.

Another platform could allow BTC-->BTH directly. Viewing this as an exchange of property, rules for barter should apply.

Just the fact that you were airdropped new coins would not mean you had experienced a taxable event.

Barter is a taxable event in the US, but you're not bartering. It would be more like if you owned a sheep, which gives birth, and then you had to pay tax on the birth of the new baby sheep.
You owned a sheep which gave birth, and then you exchanged the lamb with a buddy for a hunting dog. The exchange of one property for another is pretty much the definition of barter.

But not if I expected my sheep to give birth to a sheep, and instead it gave birth to a dog. And my friend's dog gave birth to a sheep. The we trade the offspring, and everything is right again in the world. I just don't see that fitting with the concept of barter, and how that should be a taxable event. 
14  Bitcoin / Legal / Re: IRS/tax question: Exchanging bitcoin cash for bitcoin? on: November 01, 2017, 07:45:19 AM
Tax evasion is a criminal offense and helping someone to avoid paying taxes makes you complicit with these actions. All the profits from the free coins you received must be declared for capital gains. If the IRS or tax authorities request a audit of your returns and/or they audit these services that offer exchange of Bitcoin Cash to other currencies, then you will face stiff penalties.

Pay your taxes and avoid having to worry about the IRS or tax authorities for the rest of your life. ^hmmmmm^

Tax evasion is not tax avoidance. And yes, profit or loss on sale of commodities is a taxable event in the US.

But what we are talking about with hardforks is not the taking of profits or losses, we are talking about the technical and social maintenance of a complex technological system. We do not tax the action of placing dirty diapers into a dumpster. We see that as social (cleanliness is viewed positively in most cultures) and technical (we will get physically sick if we contaminate our environment with bacteria from shit) maintenance.
15  Bitcoin / Legal / Re: IRS/tax question: Exchanging bitcoin cash for bitcoin? on: November 01, 2017, 07:40:06 AM
Any one has found a way to do it without tax implication?

Please share any ways to avoid being taxed for something which is not really an income or any kind of capitals gain.

In the US, tax is due when you sell your Bitcoin for USD. That's capital gains tax on the sale of a commodity, no question.

But that's not what is going on when you go to an exchange and trade your Bcash for Bitcoin. Now, simple minds might try to shoe-horn this type of event into the definition of a like-kind exchange.

https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031

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What are the different structures of a Section 1031 Exchange?

To accomplish a Section 1031 exchange, there must be an exchange of properties.  The simplest type of Section 1031 exchange is a simultaneous swap of one property for another.

Quote
Real property and personal property can both qualify as exchange properties under Section 1031

Quote
How do you report Section 1031 Like-Kind Exchanges to the IRS?

You must report an exchange to the IRS on  Form 8824, Like-Kind Exchanges and  file it with your tax return for the year in which the exchange occurred.


But in the case of a cryptocurrency hardfork I argue that absolutely no "exchange" has occurred, even though you may have had to go to a market maker like Bitmex and you "exchanged" Bitcoin for Bcash. I argue that what you are actually doing is recovering your own assets. It's as if you purchased a 1kg bar of gold; then you watch as 0.05kg of some new material suddenly emerges from your gold bar. Let's say it's shit. Your gold bar took a shit, and now you need to clean it up. Some random person in another country conjured up a magic spell and made your gold take a shit.

Did this event remove some of the utility or value of your asset? Maybe. But nobody knows for sure. You do know that your gold now shits, which you may or may not need to cleanup, and that's a new consideration regarding your gold. But beyond that you have no idea what this means. But weirdly, there are people in this world that are willing to exchange their gold (which they now know also takes shits that they have to clean up) for your gold's shit. So you trade your gold's shit for their gold. Do you physically have more gold now? Yes. Is your gold as valuable as it was before? Nobody knows. You just know that you have gold that shits. There is no precedent for this event. What about when your gold shits something else one day, and you never even realize it because that new shit is odorless and invisible? Should you be taxed on that too? How does anyone even know that this exists?

All we can consider is that you should be able to convert your gold's shit back into gold without any penalty, because this event was not driven by you or decided by you in any way. And as far as you are concerned, your gold is actually shitting out some of its value each time it shits, and therefore you need to take action just to maintain it's relative value. That's not a like-kind exchange; that's "required maintenance". It's not a financial decision to clean up the shit as much as it is a technical or social decision.

Your gold's shit is not a dividend. It's probably not something you wanted or even knew about. And it may very well be important to convert that shit back into gold because it might be the case that every time your gold shits 0.05kg, you lose 0.05kg of gold. The fact is that at this point in time, nobody knows what is going on with these forks in terms of value creation/destruction. If you are a tax authority and start taxing people's decisions on which UTXOs to hold and why, without really understanding what's going on, then that can be super disruptive to the technology, and you might really lose out on big tax revenue opportunities in the future by destabilizing what little stability is there in the first place.

So to make a long story short: if you want to be extra safe, you could always file a like kind exchange report. But otherwise I think the technology is moving too quickly to make a call on these types of things, and I argue that filing a report about wiping your gold's ass is completely unnecessary and counterproductive. If the technology works out and it keeps increasing in utility, you will still pay more tax in the end, when you convert back to USD to pay for things.
16  Bitcoin / Development & Technical Discussion / Re: Atomic swap? Objection: I don't think it means decentralized coin exchange. on: October 31, 2017, 02:09:30 PM
I think not, because you are dealing with a complete stranger- perhaps an adversary. So you must validate for yourself that you have e.g. 1 confirmation and you really can't trust any external party for that information. There is also the question of adversarial forks, so this would be the only way to guarantee you are running on the chain you think you are, and that your trading partner is not trying to use a slightly different chain. But I'm sure these services will be made available anyway, and people will use them without thinking about it  Grin

So I interpret that it would be "possible" but potentially insecure. Well, for small amounts of less than (let's say) ~$100 (I think those make up the majority of altcoin trades) it would be a relatively "doable" solution if a swap-capable client checks various block explorers of different origin if the confirmations have happened.

Yes I think just like some merchants accept zero confirmations for coffee purchases, people can create XCAT systems that allow the user to take greater risks. But in XCAT systems your trading partner is likely an adversary..the relationship is the opposite of doing business with Bitcoiners in person, where we are excited to meet and do business with each other.

You'd probably only be able to trade with other people who have the same pruning settings on their chains, but this is just a wild guess.
Interesting, but I "don't get it" for now.  Could you clarify why you think the pruning settings should be similar or give me a hint where I could research?

If you prune to 550 and your trading partner prunes to 950, then she has a 400 block informational advantage over you. If she is able to introduce a serious network disruption (perhaps a hardfork attempt involving a lot of hashpower!?) during the trade she might be able to take your coins while giving nothing in return.

I would personally want to make sure that I'm not risking anything if some kind of serious instability arises, especially when trading larger amounts. So in many cases that means no pruning at all.
17  Bitcoin / Development & Technical Discussion / Re: Atomic swap? Objection: I don't think it means decentralized coin exchange. on: October 30, 2017, 06:12:38 PM
Thanks for pointing me to that software, will try to test it. A question arises: Would it be possible to use SPV wallets like Electrum for atomic swaps? If yes, then the storage problem would be solved.

I think not, because you are dealing with a complete stranger- perhaps an adversary. So you must validate for yourself that you have e.g. 1 confirmation and you really can't trust any external party for that information. There is also the question of adversarial forks, so this would be the only way to guarantee you are running on the chain you think you are, and that your trading partner is not trying to use a slightly different chain. But I'm sure these services will be made available anyway, and people will use them without thinking about it  Grin

If SPV wallets are not possible, Bitcoin 0.11+ style pruning could be the solution for that - a merchant then could easily accept up to about 100 currencies with ~1GB storage use for every chain.

You'd probably only be able to trade with other people who have the same pruning settings on their chains, but this is just a wild guess. The properties of the trading pairs are a key consideration, and would have an impact on your storage requirements. For example, with Monero you don't need to download the blockchain, you can connect to a remote node. So additional storage would not be required if you're swapping XBT/XMR. But a ETH/XBT swap is a totally different story, you'd have to have massive storage for that swap.

I think by their very nature, XCATs are going to be much slower than the centralized services that are available today. I think each swap, at least where Bitcoin is involved, will take at least 10 minutes. I don't really imagine XCATs will be used by "traders/speculators", but rather by people who genuinely wish to exchange 10 XBT for 500 XMR, wishing for complete privacy, near zero cost and assurance that the trade will not fail.
18  Bitcoin / Development & Technical Discussion / Re: Atomic swap? Objection: I don't think it means decentralized coin exchange. on: October 29, 2017, 05:52:29 PM

My biggest concern is scalability, obviously, but there is other challenges as well.

For XCATs you'll need to run a full node for each cryptocurrency you are trading, e.g. you'll need to run both Zcash and Bitcoin core if you want to exchange those two cryptocurrencies. You'll also need to run some middleware that connects everything, see https://github.com/zcash-hackworks/zbxcat

Merchants that want to accept multiple cryptocurrencies and convert them into Bitcoin for e.g. paying taxes in Bitcoin will probably have fairly significant disk storage requirements.
19  Bitcoin / Bitcoin Discussion / Re: Bitcoin in Swiss bank. What will be the next country? on: July 31, 2017, 12:16:01 PM
Falcon Private Bank has become the first Swiss bank to offer customers bitcoin and crypto asset management services, in cooperation with Bitcoin Suisse AG, an asset manager and financial service provider specializing in crypto-assets. The bank allows customers to buy, hold and sell bitcoin.
In your opinion, in what European country will be the next bank offering Bitcoin?
Is this news accountable properly? If true then I will be very confident that the future bitcoin will be acceptable in many big financial institutions. With increasing confidence in bitcoin then this is good for the growth of bitcoin is so positive. Investing in bitcoin is an option for everyone in the future.

Yes, Falcon is an established private bank that is building competitive advantage through a "digital first" strategy.
20  Alternate cryptocurrencies / Altcoin Discussion / Re: I support Bitcoin Cash and here's why. on: July 31, 2017, 10:00:22 AM
   Look at this chart https://coinmarketcap.com/charts/#dominance-percentage it says that from February 21 up to June 17 Bitcoin market share has dropped from 87% to 38! Doesn't it bother you people at all?

Nope. Market share is a soft metric used by CEOs. It's irrelevant here.

That's why price went down to 1700$, PEOPLE STOPPED USING BITCOIN, because of the lack of credibility- namely slow transactions and high as fuck fees.

If you want to get that 1st confirmation before the other users of the network, you pay the higher fee. The system has no downtime as a result. "Markets work."

After that price returned to ~2700$ ONLY because of speculations around Segwit2x. It's the only reason, bBitcoin  is dying and u all know it.

The fact is, better technologies exist for the use cases Bitcoin cash is meant to address.
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