Once again "nice living" =/= rich.  Please try to stay on topic.  The claim made was the "rich" pay little to nothing in capital gains taxes.  That is a false statement.  Poinring out that the middle class has a low capital gains tax is "proving" to me something I never disputed.


Also not sure what you mean by "beyond that you get 0% long-term capital tax rate"?  If you are "beyond that" (as in more income?) you would be in the next tax bracket and thus would pay MORE not zero in capital gains taxes.

That was my whole point.  THE LOWER INCOME BRACKETS have 0% capital gains, thus a post about how the rate can be as low as zero doesn't really apply when talking about being rich.  Would you agree?

The upper income brackets have 15% or 20% long term capital gains and short term capital gains are at NORMAL INCOME RATES (which is up to 35%).  Now in 2013 you get to add 3.8% "bonus tax" for Obama care.   Also don't forget most states treat capital gains as regular income so throw in another 3% to 11%+ depending on your state.  It varies a lot by states so your luck may vary, everything from full income tax rate, to reduced tax, to no tax.

http://taxes.about.com/od/capitalgains/a/CapitalGainsTax.htm

So say you are in the highest bracket (single >$400K taxable income) and live in California and you hold a Bitcoin for 364 days.   Your "low" capital gains rate would be 39.6% federal + 3.8% bonus + 10.5% state = 53.9%.

Oh and the fun part is it likely is only a matter of time before IRS treats Bitcoin exchanges like Forex exchanges which means the 60/40 rule comes into play.  That will mean even long term trades are taxed at a mix of long & short rates and thus capital gains could be as high as 39.6% (including bonus Obamacare tax) plus state taxes.  Worse there is no way to reduce it by holding 365 days or more. 

Starting to get the picture?   Yes capital gains taxes are lower than regular income primarily because there is no Social Security or Medicaire but if you are making >$108K in regular income those taxes are capped anyways.  If you want to make smart tax avoidance strategies (as opposed to tax evasion) you need to drop this "rich don't pay taxes" meme because it is only going to cost you a fortune if you are every rich.

As for flat tax.  60% of Americans pay no income tax in the US.  You really think they are better under a flat tax?  The top 5% of Americans pay 25% of the income tax you really think they are worse under a flat tax?   The flat tax may be fairer but it isn't fairer in the sense most Americans think.

How are you going to pay off your mortgage?  By selling $200K worth of BTC?  That is going to put you above the first two tax brackets. 

Can someone live on $38K in taxable income.  Sure.  People live on a lot less.  It is hardly what I would consider rich.  If you are living on more than that well you are going to pay capital gains taxes. 

Not really interested in debating anymore.  tvbcof wants to believe the "rich" pay nothing in capital gains taxes well maybe someday he will be "rich" and find out that isn't the case.   It will be far worse if in the future IRS decides to classify Bitcoin capital gains as Forex capital gains (which logically makes sense) as the rates will go even higher (60/40 rule).

That is why advanced replacement w/ security deposit (CC, bank wire, bitcoin) is the only viable option.  Hopefully if KNC wants to keep playing dumb and pretending it can't be done other comeptitors will see an oppertunity to provide a better service.

As for bar, please don't make yourself look silly providing really weak and easily countered excuses you come up with off the top of your head.   There is nothing to "game".  A customer could not order and claim to or they could order and claim they never got the product.  OH NOES ordering stuff can be gamed I guess KNC will stop selling products.  KNC deals with the "risk" of being gamed on orders but can't on RMA.

What is the difference between an order and a RMA?  Simple the first one makes you money.  There is nothing more complicated about a "company ship first" RMA than a "customer ship first RMA" other than securing a deposit to ensure the customer returns the defective unit.

No but multi-sig would.  However the chance of success is ~0%.  You are far more likely to die before reading the end of this post then ever having a collision occur.  Still alive?  Good your coins are probably safe too.

No they aren't.  It is like trying to get to another star and your progress is 0% so you decide to jump.  You get too feet off the ground and call that a noticeable improvement over zero.

Key word in the two lowest tax brackets.  I doubt most people would consider the two lowest tax brackets as "rich".

Where do you get the idea that capital gains are tiny or non-existent.  Have fun with that idea. 

Which is the same thing anyone else will do.  Yet you still think that because of a Bitcoin ETF, some bank is going to swoop in and buy up IXC for billions.

Well this is the great thing about open markets and low barriers to entry.  Being number one isn't enough you have to continually work to ensure you remain number one. 

I remember when people were worried MtGox would capture 100% of the market share.  How quaint those worries seem now. 

Or not.  The largest thefts and hacks in Bitcoin history all involved linux based systems.   Security goes way beyond the choice of operating system.  

Still I find the scenario and choice of username suspect.

Not sure?  Really.  After the long string of complete and utter failures by BFL they are only to the level of "not sure".  Maybe there is hope for BFL after all.  They don't need to be the best just need enough customers who are "not sure".

Virtual gift cards are regulated.  Namecoins is a virtual currency.  It doesn't matter what you "call" it it matters how it is used.  If you can buys goods and services with it, you can exchange it for real currencies, it is used as a store of value then FinCEN views it as a virtual currency.  You can call it NotACurrencyCoin if you want that has absolutely no relevance.

It also doesn't make sense a company would heavily hype early October tape out and then go silent without even a single one liner about tape out successful.

Saying "tape out successful" = good for future sales.
Saying nothing = bad for future sales.

There is absolutely no cost and only benefit for the company to announce their successful tapeout unless it hasn't happened.

Information is of no value when it isn't accurate.  Nobody is releasing a 38 TH/s rig.

Scenarios:
a) you misunderstood = why should anyone trust you in the future?
b) you were mislead by scammers = = why should anyone trust you in the future?
c) you are part of the scammers playing the part of the neutral third party = why should anyone trust you in the future?

Bitcoin was a proof of concept.  It had never been done and the subsidy was only one tiny part.  My guess was simplicity.  One school of thinking is that the initial distribution matters very little.  Miners sell coins, trade them, lose them to thieves, buy goods with them.  All of that is secondary distribution.   

Bitcoin =/= Mining

Hell even with a perfect distribution, give every single human on the planet 1 BTC (as if this could be done decentralized) you would see disparity of Bitcoin wealth within a decade.   It just is human nature.  Some people can't hold only to money, others have a talent (either honestly or dishonestly) of aggregating fortunes in a small period of time.

38 TH/s.  You just blew any credibility you might have for even accepting that without critical thinking.
Even at 0.5 J/GH that is 19 KW.  At 240V it would be over 80A of current.  

Why would you compare it to M3?

M0 = currency.  There is roughly $5T in currency (M0) in the world.  That is 500 trillion US pennies.  That is all the currency on the entire planet used by all people of all nations.  

Bitcoin has 2.1 quadrillion (2,100 trillion) divisible units that is 21M BTC @ 1E8 Satoshis per BTC.  There are roughly 4x as many divisible units in Bitcoin then there are pennies in the global currency supply. Also I think the "one coin to rule them all" dream is just that a dream.  Fiat currency isn't going away.  Bitcoin and other competitors will compete with national fiat currencies but they will still exist in some form.  However even under the absolute end game of end game scenarios where Bitcoin replaces all other forms of currency on the planet (and shares none of that with any alt-coins) there are still enough divisible units.

One could argue that curve is superior on the other hand it is possible Bitcoin would have never got off the ground without a benefit to early adopters.  So technically superior but dead on arrival still loses out to "good enough" Bitcoin.

Mining is forever or Bitcoin ends.  However if SOME (as in not all) miners quit then the profits of the miners who don't increase.  The system is self balancing that way.  As long as the network generates some revenue (combination of fees and/or subsidy) there will be someone willing to mine.