Investing in/donating to small startups with bitcoins? Bitcoin based Kickstarter

[Voltius]

Would you guys invest in a small business using bitcoin? What's your opinion?

With bitcoins you wouldn't have to worry about current regulations that angel investors have to follow. (must have at least $1million in assets, must have a certain income level...)

The legal question is => if you invest in the business with bitcoin, and the business converts it to USD, in order to avoid some serious shit hitting the fan later on, the business should pay taxes on the exchange, yes?

[adrian33]

The argument for being an accredited investor is that mammas and pappas are too easily duped by con artists when they invest, whereas high net-worth individuals have more knowledge and won't be duped, and thus the accredited investor policy will lower crime. (I am more cynical about the reasoning myself)

It's the wild west. You can do what you want. But there are big questions marks on everything. It's probably too early for something like this... try and keep everything in the bitcoin ecosystem without converting, save the headaches.

[adrian33]

Check out http://invested.in - something equivalent in Bitcoins would be great.

[willebra]

economy is always taxable, regardless of currency, or commodity. With bitcoin, it might be easier to hide, but it doesn't remove taxation as an the obligation of actors. If you make profit with bitcoin, you have an equal obligation to declare and pay taxes, as with any othor _similar_ commodity.

of course what is similar, might be difficult, but I would compare it to gold, coffee, oil or another similar commodity.

it then depends on the rules of the country in whicch you are taxed whether you should report profits or not and at what point. Many countries say that profit realises when the commodity is sold, but you may need to assess thee value of assets held by you at another points too.

[Vitalik Buterin]

http://glbse.com/ ?

[AntiVigilante]

The argument for being an accredited investor is that mammas and pappas are too easily duped by con artists when they invest, whereas high net-worth individuals have more knowledge and won't be duped, and thus the accredited investor policy will lower crime. (I am more cynical about the reasoning myself)

It's the wild west. You can do what you want. But there are big questions marks on everything. It's probably too early for something like this... try and keep everything in the bitcoin ecosystem without converting, save the headaches.

It's time for BTC loans though. And actually it's to keep the service from being associated with fraud, not for the safety of customers. A seller is Paypal customer too and they get treated like crap.

[bitstarter]

Adrian33 - I believe you contacted me 

We are accepting projects in a Kickstarter like fashion but for Bitcoins check it out: http://www.bitstarter.co

Any questions just ask!