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Author Topic: Few questions from a new user entering the market  (Read 396 times)
Denzol
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March 22, 2013, 01:18:23 PM
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Hello ladies and gents,

Recently bitcoin has caught my attention and I became interested enough to want to invest in it. However, there are still a few questions on my mind. I'll number each question so if you could answer one or a few, I'd greatly appreciate it!

1) Is there an option available on a site such as mtgox, that once the bitcoins reach a certain value, the site automatically sells them for you?

2) Will governments try to counter the bitcoin market once it becomes popular? Bitcoins seem to be something that would negatively influence a governemnt's profit.

3) As for storing your bitcoins, is it safe enough to keep them in the wallet of a site like mtGOX, and make use of a mobile autenticator to log in and prevent hackers from using your account?

4) Once you've made a decent profit from selling your bitcoins, and you put the money back in your bank. Will you have to pay taxes and will de bank go after you to ask where this money came from?

5) As I understand it, miners protect the bitcoin market. It would require one person more computing power than all miners together to manipulate transactions. What if miners team up and create a conspiracy to manipulate transactions to their benifit?

6) Seeing as the bitcoin market is yet relatively small, it seems to me that a big player with a huge amount of money at his disposal could greatly influence the market. This player could buy a huge amount of bitcoins (maybe as much as 50%-75%?), this would create an artificial increase in demand, which would cause a solid increase in bitcoin value. Once the value of his bitcoins has increased, he would sell his bitcoins again, and walk away with the profit. Bitcoin value will lower again and the rest of the users will have to cover the losses. Am I applying correct logic here, or are my assumptions flawed?

That's it for now, thanks in advance!
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Chet
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March 22, 2013, 01:28:43 PM
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Just my opinion as another newbie but on #4
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4) Once you've made a decent profit from selling your bitcoins, and you put the money back in your bank. Will you have to pay taxes and will de bank go after you to ask where this money came from?

Sounds like you are not yet thinking of bitcoin as money. Don't 'put back in the bank', use it Smiley
And as far as I know yeah, its income if you make value and turn it back into whatever fiat 'legal tender'.
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March 22, 2013, 01:43:17 PM
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True, however there aren't a lot of places accepting bitcoins as a payment yet. So unless this changes over the next few years I'll most likely have to convert them back to money.
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