Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[jbreher]

the IRS started sending out letters to Coinbase users telling them coins they bought for pennies require thousands of dollars in taxes on even if they used the coins to do something like buy a pizza before the price went up.  

Do you have any evidence to go with with your assertion, or are you just doubling down on your fever dreams?

Jim Rickards claims it was happening to people:

"But when K read the 1099, it got even worse. It showed that he owed $2.4 million in taxes, despite his estimate that he only put $8,000 into cryptos. K has decided to sit tight in the belief that he does not owe the taxes.  Big mistake."

Hmm. I've not had time to keep up with Rickards' emails lately. Trawling through my archives, I find this sent by him on 2018 Feb 26:

This would rank as the funniest article of the week if it weren’t so sad for the individual involved. We’re all familiar with the IRS Form 1099. That’s the one used to report most income other than regular wages that go on Form W-2. The person paying the income — it could be a bank, broker or any supplier — files a copy of the 1099 with the IRS and sends one to the income recipient. It’s the recipient’s job to report the income on their tax return. By the way, IRS computers match 100% of the 1099s they receive with what taxpayers put on their tax returns. It’s a kind of computerized audit. Those who don’t report the income may not get a knock on the door, but they will definitely receive an official letter asking the income recipient to explain the discrepancy. Cases just escalate from there. Coinbase, a major U.S.-based cryptocurrency exchange (not to be confused with Coincheck, the subject of the story above) just sent a Form 1099 to one of its customers identified only by the initial “K” in this story. K was initially freaked out even to be receiving a 1099 from a crypto exchange. What happened to the anonymity in the crypto world? Apparently, it doesn’t exist, as I have been warning for years. But when K read the 1099 it got even worse. It showed that he owed $2.4 million in taxes, despite his estimate that he only put $8,000 into cryptos. K has decided to sit tight in the belief that he does not owe the taxes. Big mistake. The IRS will take its copy of the 1099 from the exchange and assert that K does owe the taxes. The IRS puts the burden of proof on the taxpayer to show they don’t. Courts have backed up the IRS on this burden-of-proof approach. Just ask Al Capone, the notorious gangster who went to Alcatraz not for extortion and murder but for not paying his taxes! K will find this out the hard way, as will millions of other crypto customers. The IRS is warming up for a bonanza of tax claims. Cryptocurrency traders should get ready for the mother of all tax nightmares.

Something in this does not match my experience.

I've been 1099'd by Coinbase as well. Just buttresses my documentation. However, the 1099 I received was a 1099-K. Are you familiar with the purpose and structure of a 1099-K? Nowhere on a 1099-K is any indication of tax owed. All it is is a month-by-month accounting of USD-denominated revenues. Conspicuously absent is any mention of USD-denominated expenses.

As we know, the IRS does not claim that you owe income tax on revenue. The IRS claims you owe income tax on income. Which is revenue minus expenses.

Now, it is kind of odd that Coinbase chose the 1099-K as a form to file. This is usually used to track things such as revenue from credit card processors.

But regardless, it is pretty silly that someone in the chain (after reading the source article which is short on details, Jim seems to be taking on faith the claim that the specific 1099 sent to "K." shows tax owed) seems to be confusing revenue with income.

Tempest in a teapot.

[JimboToronto]

$8888 at Stamp. Very lucky. 

[jbreher]

it's GTFO

If GTFO is in any way a viable option, and you are not risking anything irreplaceable, then GTFO is always the best option. Even if you are certain to emerge the victor.

[cofefeGandalf]

it's GTFO

If GTFO is in any way a viable option, and you are not risking anything irreplaceable, then GTFO is always the best option. Even if you are certain to emerge the victor.

On that I agree.

--

Tripple bottom around 6k incoming?

[realr0ach]

As an example of how dumb money this forum has become, someone just made a post on the speculation forum telling people to buy copper.  As you might guess, I did not agree:

Copper is a joke of an investment compared to silver and gold.  It's way too abundant.  Even LEAD is scarcer than copper:

https://en.wikipedia.org/wiki/Abundance_of_elements_in_Earth%27s_crust

I don't really consider copper a true noble metal either.  Look at old Roman coins.  A lot of the gold and silver roman coins still look brand new.  The copper coins from those days look like someone took a shit on them.  They just don't hold up:







There is no need to search any further than silver if you're looking for the best trade for leveraged gold on steroids (due to silver being much smaller market cap and being the most downwardly manipulated metal on earth with the largest naked short positions).

As you can see, there is no instrumenet on the planet artificially manipulated downwards more than silver and this manipulation will violently implode soon enough:

[Torque]

I think we're gonna reverse from here. Bottoming, RSI showing oversold on the 6h and 12h.

But of course the whales are gonna try and punish anyone opening a long here.

[HairyMaclairy]

You need to understand.  Every time it goes under $8700 I’m poor again which means I will be rich but when it goes over $8700 I’m rich again which means I will be poor.  And I’ve been rich and poor five times today and trust me, rich is better except it means you are going to be poor which is worse so it’s better to be poor and worse to be rich.    

I hope you didn't try to catch a falling knife (I know, it's not falling very hard, but still...) with a leveraged long?

No I don’t use leverage. And I’m finished trading in this price range because I am happy with my position and strategy and any trade I could make would make me objectively worse off according to those metrics.  

The commentary was more directed at those panicking over arbitrary price swings, which we all know are inevitable.

[Toxic2040]

I think we're gonna reverse from here. Bottoming, RSI showing oversold on the 6h and 12h.

But of course the whales are gonna try and punish anyone opening a long here.

I was just posting this.



Its important to look at various indicators to get confirmation of your prognostications. If you discount the upward curl of raising volume and just focus on the MACD you can see a crossing that might indicate bearishness. Looking at the additional data of the stochastic RSI you can see we appear close to a local bottom. Its also critical that you change your perspective(time frame) when looking at a chart often so as to see if your narrative has continuity.

[Biro Bob]

Now that I’m poor, I wish I hadn’t told all those clients to go **** themselves in December.

Actually, I don’t. It felt kinda good.  

C’mon Bitcoin! Man up so I can do it to a few more!

[Last of the V8s]

https://medium.com/bitfinex/honey-framework-d1d37d02f1df
https://www.youtube.com/watch?v=NwTNn-WMvNU
The Honey Framework is an open-source toolkit for traders to develop and implement custom order types & trading strategies on the Bitfinex platform. With this framework, users will be able to connect trading strategies running on their own servers directly to our trading engine, and control their execution via the user interface they already know.

The Honey Framework will eventually feed into an open marketplace, whereby users can share & purchase trading strategies and custom order signals from other users.

[JimboToronto]

Now that I’m poor, I wish I hadn’t told all those clients to go **** themselves in December.

Actually, I don’t. It felt kinda good.  

C’mon Bitcoin! Man up so I can do it to a few more!

That's one great thing about self-employment.

If you're employed and your boss is an a-hole, you have 2 choices, putting up with it or being unemployed.

If you're self-employed and some of your clients are a-holes, you can tell them to f off and still have your good clients.

It serves as a sort of client quality assurance program. Not only do you weed out the a-holes from your clientele, your other clients will probably be happier and more loyal because they probably hate the a-holes too.

[jojo69]

https://medium.com/bitfinex/honey-framework-d1d37d02f1df
https://www.youtube.com/watch?v=NwTNn-WMvNU
The Honey Framework is an open-source toolkit for traders to develop and implement custom order types & trading strategies on the Bitfinex platform. With this framework, users will be able to connect trading strategies running on their own servers directly to our trading engine, and control their execution via the user interface they already know.

The Honey Framework will eventually feed into an open marketplace, whereby users can share & purchase trading strategies and custom order signals from other users.

sounds like a honeypot

[rjclarke2000]

Now that I’m poor, I wish I hadn’t told all those clients to go **** themselves in December.

Actually, I don’t. It felt kinda good.  

C’mon Bitcoin! Man up so I can do it to a few more!

This is so funny. That was my exact attitude. I’m being punished now!!

[Last of the V8s]

https://www.bloomberg.com/news/features/2018-03-09/bitcoin-is-ridiculous-blockchain-is-dangerous-paul-ford

This poor slob claims he came across btc in 2009, that his 'math is trash' so he couldn't grok the whitepaper so it's a bubble because other things were bubbles too

[btcbeliever]

As we know, the IRS does not claim that you owe income tax on revenue. The IRS claims you owe income tax on income. Which is revenue minus expenses.

actually the IRS has never defined anywhere in their code what exactly is income.  Moreover there is no where in their code that requires most ordinary people to pay an income tax.  But they will fine you $25000 for making any argument like this. And if you are a great communicator and share these views you may end up in prison, like Sherry Peel Jackson (Sherry Peel Jackson Tells it Like it is, IRS is Fraud - Part1) https://www.youtube.com/watch?v=ooHTg6-Y078

[cAPSLOCK]

?

[HairyMaclairy]

Solid but not 11

[sirazimuth]

...going shooting ...

Give Ted Nugent a buzz. You two would make great buddies...

You should probably leave your safe and cuddly echo chamber from time to time. You realize about 1/3 of all Americans are gun owners, right?

Salty?

[jojo69]

liking my litecoins about now

[Last of the V8s]

adapted from HaveIGotNewsForYou