The Aftermath - Where will it leave BTC?

[SlaveInDebt]

Opinions, speculation, confidence for the coming week.

Poll reset 6/20/11 17:46 EST

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[jatajuta]

MtGox had 60.000 accounts aproximately.

After the press hits on this story and a lot more people realize about the potential of BTC we must have more buying  pressure.

Wonder where the prices will go when a medium size exchange have 1.000.000 users.

[dayfall]

All, I know is, I wish I had money in other sites to buy.

[bitcoinminer]

All, I know is, I wish I had money in other sites to buy.

while price<15;
buy;
BTC++;
do()

[Anduril]

MtGox had 60.000 accounts aproximately.

After the press hits on this story and a lot more people realize about the potential of BTC we must have more buying  pressure.

Wonder where the prices will go when a medium size exchange have 1.000.000 users.

Do you really think people in the wider community will invest any money in this? I was sort of thinking of investing about $1000 USD for a laugh if the price dropped under $8 USD (I can afford that and more). Just yesterday I had a talk with a day trader friend of mine, and he warned me that any profits coming from BTC would look bad from a tax perspective, and really warned me to stay out of this, but I told him I would be careful.

Now I would not touch BTCs with a bargepole.

[cottoneyeJoe]

Just yesterday I had a talk with a day trader friend of mine, and he warned me that any profits coming from BTC would look bad from a tax perspective, and really warned me to stay out of this, but I told him I would be careful.

Now I would not touch BTCs with a bargepole.

What does "bad from a tax perspective mean"? As far as the state is concerned it's either taxable or it's not. In the former case, as long as you report it as income, what issue could they have?

Having nothing to hide, I plan to report my proceeds from selling BTC as hobby income.

[finnthecelt]

MtGox had 60.000 accounts aproximately.

After the press hits on this story and a lot more people realize about the potential of BTC we must have more buying  pressure.

Wonder where the prices will go when a medium size exchange have 1.000.000 users.

Do you really think people in the wider community will invest any money in this? I was sort of thinking of investing about $1000 USD for a laugh if the price dropped under $8 USD (I can afford that and more). Just yesterday I had a talk with a day trader friend of mine, and he warned me that any profits coming from BTC would look bad from a tax perspective, and really warned me to stay out of this, but I told him I would be careful.

Now I would not touch BTCs with a bargepole.

You're friend's an idiot. What profit looks bad from a tax perspective? He knows this why? Because he's a day trader and therefore has the authority to state something and it means a damn thing? Sorry Mr Gman, I made a profit, here's my money. Are you mad at me? Drivel.

Plenty of people will buy this. Greed hath no friends nor gives heed to logic.

Traders (unlike your friend) will smell blood. The play I see is a sell off, dead cat bounce and then another sell off. That's when I'll buy. And then I'll hold. I don't plan on buy, sell, buy, sell. Supporters of BTC will buy this. Speculators will buy this.

BTW, were you just sorta thinking you would buy this so you came on the forum to post that? The message I typed wasn't really for you.

[Anduril]

What does "bad from a tax perspective mean"? As far as the state is concerned it's either taxable or it's not. In the former case, as long as you report it as income, what issue could they have?

Having nothing to hide, I plan to report my proceeds from selling BTC as hobby income.

He was nervous that it could have negative impact with regulators for tax purposes if BTCs were declared illegal. His argument was that you don't get taxed if you profit from drugs, you go to jail I didn't buy this argument, and was still willing to invest a small amount for a laugh and to see if there was anything in Bitcoins because I'm very interested in it from a professional perspective (I'm a lawyer specialising in electronic commerce).

[Anduril]

You're friend's an idiot. What profit looks bad from a tax perspective? He knows this why? Because he's a day trader and therefore has the authority to state something and it means a damn thing? Sorry Mr Gman, I made a profit, here's my money. Are you mad at me? Drivel.

He had a point if BTCs are illegal. I disagree as I could declare it as investment in securities, but as BTCs are not really securities and commodities either, this could leave me open to an audit. In fact, the legal status of BTCs is very blurry territory.

Traders (unlike your friend) will smell blood. The play I see is a sell off, dead cat bounce and then another sell off. That's when I'll buy. And then I'll hold. I don't plan on buy, sell, buy, sell. Supporters of BTC will buy this. Speculators will buy this.

Only if you can trust the exchanges, and at the moment, you can't. On top of all of the other risks involved, I'mn sitting this one out. I'm still really interested in Bitcoin from a professional standpoint.

BTW, were you just sorta thinking you would buy this so you came on the forum to post that? The message I typed wasn't really for you.

This is an open forum, people are free to reply to stuff, that how Internet forums work 

[evoorhees]

I think this event will shake out many of those who are in Bitcoins for the wrong reasons. Those who don't understand why it's valuable, or how revolutionary it is. The thin-skinned will be gone, the price in terms of dollars may drop for a while. So what?

This is all part of the growing pains of this new monetary system. Creative destruction. As an exchange falls, others learn and build better alternatives. Learn from the mistakes, be careful, and march forward.

My fundamental resolve in the currency is not shaken in the least, though it was a wild day and I expect many more wild days in the future. Exciting times.

[dust]

$12.50-$14.99 this week.

[Oldminer]

No $20+ option = poll fail.

[yoake]

Why would you even consider trading with them anymore?  

Let someone else make the market.

[Grant]

In the shortrun it will likely crash <5$ (i know bitcoin time is faster than RL time and ppl got used to >10$ as if we had that price for years, but only couple of weeks ago we were at $8 and couple of months ago we were at $2)

On the positive side, lots of fun for daytraders.

[jatajuta]

No $20+ option = poll fail.

+1

[JonathanHiggins]

MtGox had 60.000 accounts aproximately.

After the press hits on this story and a lot more people realize about the potential of BTC we must have more buying  pressure.

Wonder where the prices will go when a medium size exchange have 1.000.000 users.

Yes, im sure millions of people are just waiting to join up, especially seeing bitcoin go from near $20 to 1 cent and everyone having their account info posted online.

Who wouldnt want to be a part of that?

.......WAKE UP!

[BitCheddar]

MtGox's incompetence will cripple bitcoin for the near future.  Will bitcoin recover? Who knows. 

[jatajuta]

MtGox had 60.000 accounts aproximately.

After the press hits on this story and a lot more people realize about the potential of BTC we must have more buying  pressure.

Wonder where the prices will go when a medium size exchange have 1.000.000 users.

Yes, im sure millions of people are just waiting to join up, especially seeing bitcoin go from near $20 to 1 cent and everyone having their account info posted online.

Who wouldnt want to be a part of that?

.......WAKE UP!

Even someone with minimal understanding on economy and p2p technology can see the immense value in this technology.

And we have entire countries that don't have access to any exchange right now, like Brazil, Argentina, etc.

I've talked to a lot a people from there and when they see the price dropping they just wanna buy because is cheap.

You can't relate a website security breach with a flaw in the bitcoin technology.

If you are so afraid and wanna wake up and leave this risky game I can buy all your coins for 15 bucks each, what do you say?

[JonathanHiggins]

I wasnt silly enough to buy any bitcoins.

And i wont be purchasing any.......period.

[Bit_Happy]

...I'm a lawyer specialising in electronic commerce).

Welcome to the forum Anduril.

How ironic, a lawyer who is "afraid" of Bitcoin investing due to tax implications.
Think of it like making virtual money in Second Life: When you convert to USD, then you report the income. I do see your concern is about the legality of BTC itself.

1) If you convert from BTC > Paypal USD you are taking a huge risk the buyer will burn you.
2) If you use LR (for example), then your LR > USD transaction is taxable income, but how does the Gov ever know Bitcoins were involved?
3) If your Bitcoin investment rises in value (or at any time) you can use some to buy products and services.

IMO, #2 has tax implications, but you are not really exposed to being caught doing anything illegal.
#3 is a barter issue(?) and you have tax liability if you are following the letter of the law, but talking about jail seems pretty extreme, IMO.

Too much typing... 

Maybe I should have stopped here:
Think of it like making virtual money in Second Life: When you convert to USD, then you report the income.
How is the Gov going to know BTC was involved? + they are not really even illegal (yet?)


Considering how dangerous everything is, nothing is really very frightening. ~Gertrude Stein