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401  Bitcoin / Bitcoin Discussion / Re: CEO OF BITCOIN EXCHANGE ARRESTED on: February 08, 2014, 12:17:48 AM
isn't money laundering if you turn black money into white?

Shrem turned white money into a different form of white money which was then turned black

only if the SR illegal sellers would hand over their black BTC to someone, to turn them into cash, knowing it is black BTC, that would be money laundering imho

Money laundering means you don't properly report transactions.  Conspiracy is when you work with someone to do that whether or not you actually perform the act yourself.  Of course it is all accusations at this point.
402  Bitcoin / Bitcoin Discussion / Re: CEO OF BITCOIN EXCHANGE ARRESTED on: February 07, 2014, 08:47:35 PM
Interesting follow up article.

The coin prince: inside Bitcoin's first big money-laundering scandal
What last week’s arrest of Charlie Shrem means for the virtual currency

By Adrianne Jeffries and Russell Brandom

http://www.theverge.com/2014/2/4/5374172/the-coin-prince-charlie-shrem-bitinstant-bitcoin-money-laundering-scandal

It is not interesting at all, it just shows some of the idiots that are involved with The Foundation and how they don't live in the real world.  You also now have Vessenes and his bankruptcy issues.  The judge is accusing him of trying to deceive the court.  I tried to bid on the mining rigs at issue but they refuse to give me specs or a picture after I questioned some of their ridiculous claims that they made to the court.

The Foundation needs to be dissolved ASAP so legitimate companies can form a reasonable organization.
403  Bitcoin / Bitcoin Discussion / Re: CEO OF BITCOIN EXCHANGE ARRESTED on: January 27, 2014, 08:09:17 PM
I'm sure HSBC spent a lot of time, money and effort to cover their ass, and Shrem will probably cooperate and facilitate a further investigation and get out with hefty fines

I don't think so.

It's easy to misunderstand what happened with HSBC.

The majority of what HSBC was accused of was about not doing enough to detect and block Mexican drug cartels laundering money. Note "not doing enough".

Shrem is accused of something entirely different - not just doing an insufficient amount of work, but knowingly co-operating with someone he knew was a Silk Road dealer explicitly to help him launder money. It's the "knowingly" part that makes the huge difference.

The US DoJ did not seem to have large piles of emails from the head of compliance at HSBC showing him buying drugs and helping known dealers to evade his own controls. With BitInstant they do.

It's really no wonder Bitcoin businesses can't get bank accounts, when guys like Shrem were putting on a respectable face and doing that kind of thing behind the scenes. Silk Road and those involved with it are by far the most damaging thing that could ever have happened to Bitcoin, especially so early on.

Hopefully Theymos, BFL, TradeFortress, and the members of the Foundation who are involved with them will be next.

I like to play devils advocate but that seems a little extreme. BFL and TradeFortress scammer would be nice but TBF and the admin of the main forum would probably hurt Bitcoin a little. You do understand that TBF members are most of the businesses that make Bitcoin what it is today, right?

Yes, the current Foundation should dissolve and the legitimate players can start a new one without being saddled by the historic acceptance of criminals that you see in today's Foundation.  This forum should be abandoned by all legitimate players before the admin get arrested for running an unregistered business, tax evasion, money laundering, conspiracy to commit fraud, etc.  That way the legitimate players can move forwarded and not be saddled by some of the idiots who have been permitted to run wild and cause all this damage.  I would include Alydian/Coinlab in that if you read their latest bankruptcy case.  The judge is accusing them of all sorts of things.  
404  Bitcoin / Bitcoin Discussion / Re: CEO OF BITCOIN EXCHANGE ARRESTED on: January 27, 2014, 07:47:03 PM
I'm sure HSBC spent a lot of time, money and effort to cover their ass, and Shrem will probably cooperate and facilitate a further investigation and get out with hefty fines

I don't think so.

It's easy to misunderstand what happened with HSBC.

The majority of what HSBC was accused of was about not doing enough to detect and block Mexican drug cartels laundering money. Note "not doing enough".

Shrem is accused of something entirely different - not just doing an insufficient amount of work, but knowingly co-operating with someone he knew was a Silk Road dealer explicitly to help him launder money. It's the "knowingly" part that makes the huge difference.

The US DoJ did not seem to have large piles of emails from the head of compliance at HSBC showing him buying drugs and helping known dealers to evade his own controls. With BitInstant they do.

It's really no wonder Bitcoin businesses can't get bank accounts, when guys like Shrem were putting on a respectable face and doing that kind of thing behind the scenes. Silk Road and those involved with it are by far the most damaging thing that could ever have happened to Bitcoin, especially so early on.

Hopefully Theymos, BFL, TradeFortress, and the members of the Foundation who are involved with them will be next.
405  Economy / Digital goods / Re: 4K.com (since 1996) for sale. Auction starting at 40 BTC. on: January 23, 2014, 09:16:01 PM
It is now for sale for $1.2 Million

http://sedo.com/search/details.php4?domain=4k.com&tracked=&partnerid=&language=us&origin=homepage
406  Economy / Digital goods / Re: [WTS] Bitcoin domains: BitcoinAccountant.com, BitcoinEscrowService.com + 40 more on: January 18, 2014, 02:52:46 AM
email sent
407  Economy / Digital goods / [WTS]PenDrives.net, ThumbDrives.net domains on: January 16, 2014, 04:22:51 PM
PenDrives.net, ThumbDrives.net domains
0.5 BTC for one.  Both for 0.8 BTC.

You must also transfer these out into your registrar which means you will need to pay a renewal at your registrar of choice. 
408  Bitcoin / Bitcoin Discussion / Re: A simple method to (probably) prevent big pools from 51% attacking on: January 16, 2014, 04:06:10 PM
Can you choose which pool you want to process your transaction?

I mean, is the problem now that if you made a 'patch' to the protocol that favoured P2Pool,  the big mining pools would never switch over to that version of Bitcoin and as they control the hashing power, they control Bitcoin. 

But what if the 5 biggest exchanges as well as Bitpay, Blockchain.info and Satoshi dice all said from this date and this time we are only sending our transactions to P2Pool?  Maybe those big players make up such a big % of the total transactions that the the big pools will be processing such a small % of transactions, and will be so totally against the will of the community, that the smaller fork will be the real fork.   

If it is pre-announced, hashers should pre-emptively switch to P2Pool anyway and enough of the friendly big pools, BTC Guild and Eligius might reluctantly point their own equipment into P2Pool too, maybe giving the new Bitcoin patch 51% of the hashing power anyway.

Leaving a 'potentially' nefarious Ghash.io stranded? 
In a P2P network, you cannot control where you send the transaction. You announce your transaction to the nodes connecting with you and they will relay it to their neighbours and go on.

Moreover, I don't think there can be a 'patch' to favour P2Pool. Bitcoin protocol itself has no favour to any miner as long as they can create a correct block.

Yes you can because you can control which nodes you connect to if you want.  You can start Bitcoin-QT with options to connect to specific nodes and only those specific nodes.  Most users probably just connect without those options but you can do it pretty easily. 
409  Bitcoin / Bitcoin Discussion / Re: A simple method to (probably) prevent big pools from 51% attacking on: January 15, 2014, 07:52:43 AM
Yes, but if a pool tends to use alternate address in mining, it proves itself malicious.
Not at all. Pools are supposed to use a new address for every transaction, just like everyone else.

Nobody is "supposed to" do anything.  Bitcoin can be used by anyone any way they see fit.  They have the ability to use different addresses if that is what they want to do.
410  Other / Beginners & Help / Re: Bitcoin Value on: January 12, 2014, 02:41:53 AM
Ok so the value of bitcoin has nothing to do with the difficulty? How do they determine difficulty? By the amount of miners that are working in terms of Hash power?

Yes.  If the price goes up/down some people may turn on/off mining equipment due to the profitability and electricity costs so it may indirectly affect the difficulty.
411  Economy / Goods / Re: Introducing BitTicker - Bitcoin Clock [ Physical ] on: January 07, 2014, 07:45:04 AM
is there a delivery date for these?

Did you read any of the thread? this guys got scammer all over him...

I ordered before the thread got going and I didn't look that close.  Usually I check a little closer.  I try to order all these things from Bitcoin vendors and so far I have never lost out.  I ordered all kinds of stuff like caramels, hot sauce, vanilla extract, a bunch of stuff from conscious cookery, neon signs, etc.  I just ordered a wood engraved wallet and one of those aluminum engraved wallet cards.  if I lose out on this then I will live with it.  He is using Coinbase and had to be verified so if I don't get delivery it will be reported to them and they will have to file a Suspicious Activity Report with FinCEN.  Not that anybody is going to do anything over a $30 ticker but at least there will be a record.  I sent him an e-mail and asked for a delivery date.

 I see some Android tablets as low as $35.  I can't believe the number of ticker apps.  I am putting together a list at http://bitcointicker.com/.  So far I have over 50 iPhone ticker apps and I am not done with that.  I have a few Android ones up there but there are probably at least that many for Android.
412  Economy / Goods / Re: Introducing BitTicker - Bitcoin Clock [ Physical ] on: January 06, 2014, 08:48:02 AM
is there a delivery date for these?
413  Economy / Service Discussion / Re: PSA: coinbase.com defrauds with different schemes on: January 05, 2014, 03:57:30 AM
I am mad a Coinbase for spending time contacting Snoop Dogg, blogging, and doing interviews where they pretend everything is alright.  I think they are just immature guys who got in over their heads.  I have been trying to discuss these issues with the venture capitalist and angel investors who are funding these people and the so-called DATA group.  they are completely unreceptive to any discussion of customer service or customer experience.  People who raise these issue are seen as trying to take down the people who are doing good things for Bitcoin.  In a way they are correct because without these crappy services there would be no services at all.

If you read the blogs and tweets of the investors you almost never see customer service issued mentioned.  All you see is discussions of how much investing capital they received. http://cdixon.org is involved in the latest funding round.  If you want a call back you will probably have to say you are representing Snoop Dogg. 
414  Bitcoin / Bitcoin Discussion / Re: FranceBitcoin.com For Sale & Bitcoin.me SOLD For $10,000 on: January 03, 2014, 07:31:17 AM
$10k for bitcoin.me is a ridiculously great deal, grats to buyer.

thanks, I bought it.

I also have USBitcoin.com
415  Other / Beginners & Help / Re: How long would it take to break a single wallet? on: December 31, 2013, 06:45:40 PM
A wallet is a collection of Bitcoin addresses and it contains the private keys (unless it is a watch-only wallet).  People normally encrypt the wallet file to protect it.  If you had a copy of that wallet file you could try to break the encryption.  That depends on the type of encryption, length of password, etc.  there are services that crack these wallets and I assume they use tools like John the Ripper.

If you see a Bitcoin address on the blockchain and you try to find the private key randomly most likely the sun will burn out before you find it.

I can't make heads or tails of the part about the mining difficulty of different proof of work algorithms.  ASIC miners can only do hashes, they can't generate Bitcoin addresses if that is what you mean:
https://en.bitcoin.it/wiki/Technical_background_of_version_1_Bitcoin_addresses
416  Bitcoin / Legal / Re: POLL: In what case will you be taxed on your bitcoin profits? on: December 31, 2013, 02:50:18 PM

but the question is how to define "sell"? what if i used my bitcoins to purchase $1000 in gift cards? does that mean i sold my BTC? i'd think the more correct term would be exchange your bitcoins for fiat.

Yes.  Smiley



Try NO.  Of course you have created a taxable event when you trade Bitcoin for giftcards.
417  Economy / Speculation / Re: Will people be selling after the 1st of the year for tax benefits? on: December 31, 2013, 02:28:26 PM
I sold ~$50k this year (Novemberish) to see what will happen with my taxes. I should know by April 15th if I'm going to continue to live in the US or not as I still own coin. If you guys want, I can start a blog about it or something. Right now I'm just doing as many home improvements and charity donations as I feasibly can.

Or if you could post in this thread. I think I will do the same.

The problem is how many accountants are well-versed in bitcoin, not to mention altcoin transactions? Would your local CPA know how the IRS considers these investment vehicles? Or am I going to have to find a bitcoin accountant online?

I'll try doing Google searches to find out.

I'd also like to find an accountant who understands bitcoin as mine is considering it currency trading ala Forex. I don't know if that is correct or not. I'd be happy to go to someone else who is an expert in this. There were a lot of losses and even more wins.

If names come up, please let us know. I'll also look....

See this link for some info:

http://www.bitcointax.info/
418  Bitcoin / Bitcoin Discussion / Re: Bitcoin.com & Bitcoins.com - Research on: December 31, 2013, 05:27:18 AM
More on bitcoins.com

http://www.domaininvesting.com/story-behind-bitcoins-com-domain-name/

I believe the story goes that Satoshi gave bitcoin.org/com to Sirius or Theymos but it is all kept under privacy so it cannot be verified.

I just acquired bitcoin.me which I think is the next best alternative.  I have hired a professional ad agency to assist me with setting it up.  coming soon...



Out of curiosity, what will be the purpose of the site ?

The basic idea is "Bitcoin Me" is an introduction to new users who have not used Bitcoin and want to get started.

The overall strategy is to help decentralize some of things that are going on in Bitcoin.  Namely, a small group of people are controlling bitcoin.org/bitcointalk.org, and the Github repositories.  I think some of these people are irresponsible for a number of reasons and I think there is too much control centered around this small group.  Nobody involved with bitcointalk.org/bitcoin.org will have any say whatsoever and I purposely chose people outside of Bitcoin to work on the project so they have an objective view.  I view Bitcoin as a technical solution that can be used by anyone of any political persuasion or for any reason.  I do not agree with the people who have political motives, have attached themselves to Bitcoin, and claim that people who use Bitcoin agree with their political view. 
419  Bitcoin / Bitcoin Discussion / Re: Bitcoin.com & Bitcoins.com - Research on: December 30, 2013, 05:09:57 PM
More on bitcoins.com

http://www.domaininvesting.com/story-behind-bitcoins-com-domain-name/

I believe the story goes that Satoshi gave bitcoin.org/com to Sirius or Theymos but it is all kept under privacy so it cannot be verified.

I just acquired bitcoin.me which I think is the next best alternative.  I have hired a professional ad agency to assist me with setting it up.  coming soon...

420  Economy / Speculation / Re: Will people be selling after the 1st of the year for tax benefits? on: December 29, 2013, 01:15:02 AM
I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

My understanding of tax law in the US is that, for forex (and bitcoin), you pay taxes on a marked to market basis. You calculate dollars out (or dollar value of bitcoins) minus dollars in, and pay taxes on that. It does not matter whether you "cash out" or not -- the tax is the same.


If you've been hodling since the beginning of the year and haven't done any day trading, you don't have any taxes since you haven't realized profits. I think the idea here is that some of these long term hodlers may be waiting for the beginning of the year to realize their profits so the income isn't factored into their 2013 taxes when they file them in April.

That's what I was thinking. Also another strategy is if you sold during the year and rebought. If the price drops significantly, you can resell and rebuy to offset capital losses, but with slippage that might not work at all.

No, when you rebuy there is no capital gain/loss until you sell again.  If you sold up high and rebought you still need to come up with the cash to pay your taxes on the gain you realized when you sold.   
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