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JayJuanGee 路 2017-01-16 13:09:00 路 #3407
(01-16-2017 01:30 AM)Skank_Hunt Wrote:  I get what you're saying about discussing altcoins; the only reason I mentioned them was to compare market caps, and potential for appreciation relative to BTC, the point being that BTC must surely find it harder to appreciate in % terms compared to when it was priced at, say $1 or $30.

We are probably more or less on the same page here because it seems that the thrust of your comments was about bitcoin rather than altcoins...... and sure the alt coin thread may need some love, sometimes, but probably not this time... hahahaha

I am not denigrating the potential value of some of the alts or even the fact that some of them may either have decent long term potential or even the ability to be pumped in the short term to such an extent that a guy could make way more money than he could in bitcoin.

Maybe under current market conditions bitcoin gets pumped 2x or 3x in 6 months with an outside chance of a 10x pump, yet historically we saw that when bitcoin was a lot smaller, it had received multiple 10x pumps and greater, which resulted in less than a year periods that guys could have made close to 1000x if the timing was good.

Also, if we research into the matter of comparing alts, we can find several examples of alt coins that have been pumped in the past few years to a lot higher degrees than 10x, such as dogecoin, ethereum and zcash, just to name a few

So, yeah, I agree with your overall point regarding the ability for an alt to be pumped to very higher degrees with a lot less capital than it takes to pump bitcoin, but those kinds of facts do not necessarily justify getting into alt coins instead of bitcoin - except for limited purposes in which you believe that you may be able to time one alt coin pump or another or to some how strategically play the alt coin odds in order to make way better returns (and maybe even with some kind of stability) than you could achieve with bitcoin.

I really have no problem if guys want to structure various aspects of their crypto investments in such a way that they are playing multiple coins, even if their ultimate goal is to accumulate BTC or fiat, but I assert that I personally am very disinclined to such a strategy based on my own personal reasons (mostly I do not want to spend that much time trying to keep track, and I don't think that I have that level of stress tolerance or even a timeline to recover if something goes wrong with such a strategy involving multiple alt coins).

(01-16-2017 01:30 AM)Skank_Hunt Wrote:  As for price potential, my basis for the $2-3k suggestion or extended correction this year is based on Elliot Wave theory. It's a bit of an inexact science and wave counts often only reveal themselves after the fact, and those who use it with 100% trust are definitely naive, but it can prove useful. There's also a lot of room for subjectivity in it.

I appreciate that you acknowledge upfront that there could be quite a few ways to read waves in order to attempt prediction and maybe even to use them in varying ways to describe the past.. which may be another way of attempting predict what is going to happen based on what your assessment is about what has happened and why.

I personally do not directly employ wave analysis, but I frequently will come across the perspectives of various posters who employ such analysis and sometimes the analysis is more convincing than other times to describe probabilities of what will happen with price short or even long term.


(01-16-2017 01:30 AM)Skank_Hunt Wrote:  I quickly did a wave count of my own and found it matched that of some random trader that posted his own, which suggests our wave counts are reasonable. What I found was a complex (multiple wave and sub wave) correction could be possible, with price likely going as low as 500-600 range, before beginning the next wave up beyond the ATH.

I find this sometimes, too. I will find someone who has an assessment that is very closely in line with my own, and like you, I attempt to give the other person's assessment the amount of weight that I believe that it deserves and maybe even reconsider my own assessment based on such factors that are pointed out through the other person's assessment (whether those factors are actual facts, inferences or logic).

Regarding the $500 to $600 range, I would not hold my breath. Sure that range could happen, but I think that each of us needs to be careful and even to invest a little now (into bitcoin), just in case that does not happen and just in case the exact opposite happens.

In the end, you are coming up with some kind of probability of the $500 to $600 price range occurring in a specific time range - let's say within 2 months.. just for hypothetical purposes. Let's say best case scenario, you put those odds at 80%, but let's say I am a big skeptic, and I put the odds at less than 30%. Of course, you may consider my view and why I am coming to such a conclusion, and you may even decide to reconsider your own prediction and to lower your odds to 75%, but in the end, you are the one who has to decide for yourself about what to do, exactly to figure out how you are going to invest at this time (today) and maybe in the short term, in the event that either it appears that your scenario is becoming more or less likely with the passage of time (as you know these scenarios are not locked in and they become more or less likely based on subsequent happenings).

I am saying that if in the end, you are considering such occurrence to be 75%, then it would not be prudent for you to wait with 100% of your money that has been allocated towards bitcoin investment, and you gotta figure out what you are going to do with your other 25%. invest now or some other plan that accounts for your 75% prediction?



(01-16-2017 01:30 AM)Skank_Hunt Wrote:  There was another scenario where the double top on the chart would be the AB of a "flat" ABC correction, so the C wave would require price to go as low as the approx. $150 low it reached on the last correction from the ATH. That is a possibility and would lead to a lot of fear and panic (headlines "Bitcoin is dying" etc.) but I don't see that as the most likely wave count at all, because of this theoretical ABC, all waves have to be corrective rather than impulsive in form. A is corrective, while the B wave (the latest pattern to the all time high) is a clear 5 wave impulsive pattern rather than a 3 wave corrective pattern (simple or complex). So that is why I rejected that count.


Yeah, sure there are a whole hell of a lot of scenarios and since we are talking about the future rather than the past, each of the scenarios have probabilities of occurring. There are scenarios of $150 and there are scenarios of $0, and they each could occur, even though the lower you go the less probable it becomes.

I recall that in July/August 2015, I was making very reserved predictions and giving low probabilities about prices in the $400 or $500 range in the coming year or two and going past all time high of $1,163, but after the passage of events of October 2015 through March 2016, my perspective became much more bullish and gave greater probabilities to the occurrence of the same events and even tweaking my numbers upwards. The changes in my perspective occurred based on changes in the facts but not really changes in my logic (even though maybe I may have learned a few more things during that period to help me with my logic, too?) In the end, what was possible changed and the odds of various outcomes changed based on changes in the past performance facts.



(01-16-2017 01:30 AM)Skank_Hunt Wrote:  Without getting into too much detail on the most likely wave count, the current 5 wave pattern from the lows since $150 would represent a "wave 1" of a 5 wave pattern of a larger degree. Wave 1 has completed, we are now in wave 2 (corrective), and it is unknown whether this wave 2 will be complex and therefore extended in both time and shape (i.e. consisting of subwaves of waves within itself). Typically, wave 1 patterns are heavily retraced, Fib levels of 32% already reached are shallow compared to the 68% or even more often observed. That is a 400-600 range. I guess that would be the bad news.

I agree with you that if buying support is broken at certain levels then those breaks can cause further down cascading of prices due to a variety of factors including momentum and loss of confidence and people hoping to mitigate losses by selling when then had planned to either hold or buy.

Nonetheless, I think that it is a bit illogical to predict too much in one direction or another because, for example, for $600s to even be possible, support between $770 and $800 needs to be broken, and yeah, if support at that level gets broken then a lot of what you are saying about $600s and lower becomes possible, but we gotta get below that first. Second, there are quite a few areas of support below $600 too that would cause predictions of lower than even $300 to be quite difficult to achieve (not impossible, but difficult)




(01-16-2017 01:30 AM)Skank_Hunt Wrote:  The good news being that while wave 2 corrections are usually deep, wave 3 (if/when it starts) is commonly the greatest impulsive wave in terms of both speed and amount of price movement. The bad news about that is wave 1 is already split into subwaves, so wave 3 is less likely to be split into subwaves and therefore less likely to be longer than wave 1, but there is the possibility of a simple wave that "explodes" past the ATH and goes to say $2000. $3000 or something ridiculous like $10000 could happen as they have happened before with BTC, but as I said it is a lot more difficult now that price is $800 vs when it was $2 or $30 or $100 going to $1000. After wave 3 another correction, followed by a final push upwards. If wave 2 correction is not deeper than to $800 currently, then the wave 4 correction is likely to be the deep one.

Reading your upside analysis in comparison to your downside analysis seems to demonstrate that we reach a lot of similar conclusions and we talk about the factors that influence those conclusions in different ways. I think that there is nothing wrong with varying ways of discussing and even giving differing weights to different factors, and it is also true that sometimes, when someone discusses a matter in a different way, then either one of us can become aware of either a factor that we were not considering or realize that we may have been giving the wrong weight allocation to one factor or another.

My analysis for up is similar to my analysis of down, and my consideration that we have to get past certain resistance points before one scenario or another becomes more or less probable.

For example, a few months ago, when prices were in the lower to mid $700s, I kept asserting my belief that we were likely to have one more correction of 15% to 25% before we broke above $800 into the $900s. When we pretty much sailed through the $800s into the $900s, I asserted that since I was wrong about that prediction, then I was fairly confident that $1,000 would not be much resistance and that our next resistance point would be in the $1,060 to $1,180 range, which ended playing out as I had predicted in the second revised scenario. Even though I had predicted correctly in the revised scenario, I don't go lording it as if I predicted the inevitable because there was also a decent chance that I could have turned out wrong in a variety of ways.. because in essence there are a multitude of factors that are unknown and maybe even unknown to others until they are actually played.. and sometimes those unknown factors can tip the balance in one direction or another.




(01-16-2017 01:30 AM)Skank_Hunt Wrote:  That's my "reasoning" behind it but caveat emptor: EW as I said is an inexact science. I find it to be more useful in keeping me from losing money in stocks rather than making tons of money from them,

Personally, I have created a strategy that does not attempt to predict the direction of the market, except a kind of assumption that in the long run it is going to continue to increase in value. Accordingly, I sell small amounts in small increments on the way up and I buy on the way down. I may tweak a little bit here and there to the increments or amounts based on my assessment of the future, but I am tweaking mostly on the margins, rather than changing my overall strategy in any kind of way.


(01-16-2017 01:30 AM)Skank_Hunt Wrote:  but if you're an independent investor/trader and your account is at 0 net loss so far, you're already ahead of most who lose their shirts in these crazy markets. And that's just stocks, BTC is a very volatile beast in comparison. They call the GBP/JPY currency pair "the red dragon" due to its dangerous volatility, but BTC, 35% drops in one day? Something else.

Ultimately, I think that I do tend to make a lot more money because of the volatility that is expected in bitcoin, but so far I am not cashing out of my bitcoin investment, just folding everything back into a overall portfolio that I have that is increasing in the accumulation of bitcoins even while the price is going up, but yeah, there may be some need, at some point, for me to take some of the profits off of the table in case bitcoin does go down rather than up in the longer term.

My strategy is not specifically intended to be a trader but instead just a means to attempt to offset some of the up and down volatility of BTC prices, even though along the way, I have been learning some trading strategies, and seemingly engaging in a whole hell of a lot more trading than I had originally intended.

By the way, if you don't know, I did buy my very first bitcoin(s) at $1200 with the initiation of a strategy that I more or less maintained, a kind of hybrid dollar cost averaging strategy.. that has evolved over the years, but mostly retains dollar cost averaging principles and practices. In about the past month, based on the high volatility of the price, my average price per BTC went from mid $430s to close to $410 and then back up to mid $430s and currently floating around $430, and my accumulation of coins went down about 4% and then up 8%, and currently I am holding about 3% more coins than I had a month ago even though the price is higher. My overalls strategy does not really seem to make me rich quickly but just an ongoing accumulation of BTC that does not require very much more investment (beyond what I am doing with ongoing dollar cost averaging of modest amounts and the rest is just using already invested capital to quasi mechanically (almost like a bot) employ that capital in one way or another depending on which way the price goes).
Mr. Scumbag 路 2017-01-17 01:14:00 路 #3408
I would have sold all my buttcoins when it when it hit $1100 last month, then buy back at the dip. It dipped this past week, now it's probably back on its way up as of today.

Now would be a good time to get in again. What is it projected to get to next if it soars again, $2000-$5000?
JayJuanGee 路 2017-01-17 01:55:00 路 #3409
(01-17-2017 01:14 AM)Mr. Scumbag Wrote:  I would have sold all my buttcoins when it when it hit $1100 last month, then buy back at the dip. It dipped this past week, now it's probably back on its way up as of today.

Now would be a good time to get in again. What is it projected to get to next if it soars again, $2000-$5000?


I will presume that you are referring to bitcoins, unless I am not understanding part of your reference.

I think that I largely agree with your assertion that prices are likely on their way up, but we can never know for sure about these kinds of matters in bitcoinlandia.

In essence, in the last couple of weeks, we got the dip that got us as low as the mid $700s, and then we had a large number of attempts at pushing the price down and to get back down below the $800s with lows becoming increasingly higher and higher and it seems to be likely that soon thereafter folks started to realize that BTC prices had bottomed out for this particular cycle and prices were not really going to go back below $800 this time around (or at least it became less and less likely that folks waiting for below $800 were going to be fulfilled in their hopes).

I do personally believe that $2k to $5k is reasonably within the range of overshoots in an upcoming pump that could be successful, and maybe to narrow it down a bit, $3k to $5k could be within reason for this upleg.

But, yeah, who knows for sure because it dos not really seem very healthy for guys to get their hopes up too high or to bank too much on some situation that could be less probable than what we are currently considering.

So, considerations of how to approach this matter and how many coins to buy may vary depending on how many coins a guy has already accumulated, or whether a guy feels that he is still in the early BTC accumulation stages.

On my personal level, I still feel that I am about 1.5% overallocated in the bitcoin side of my holdings but when the market is looking like it is currently, I don't feel bad having a bit of an overallocation in that direction though I am hoping to even things out a bit and maybe to get a bit more rebalanced if the price continues upwards in the coming days, and maybe longer...as seems to be the current inclination (and especially with the current pump that seems to be occurring as I type this response post).


Scumbag... do you feel sufficiently accumulated in bitcoin or are you currently buying?
Satoshi 路 2017-01-17 02:24:00 路 #3410
Target is $29.000
JayJuanGee 路 2017-01-17 22:03:00 路 #3411
This article seems to point out some interesting dynamics that may or may not end up giving more support to bitcoin... at least in terms of some things that Mercedes is doing and there may be other companies in the auto industry exploring similar blockchain related technologies.

Some of these companies are dabbing in "blockchain", but they may also be building some aspects of their new systems upon bitcoin - and it remains unclear how much is bitcoin and how much is going to end up being just some internal company data bases that are claiming to be "blockchain" friendly.

http://bitcoinist.com/mercedes-bitcoin-d...-strategy/
JayJuanGee 路 2017-01-17 22:13:00 路 #3412
I found this article to be interesting and likely to be a bit true.

The gist of what I got out of it was that as bitcoin grows up, it is likely going to attract some wallstreet folks who are more sophisticated traders and are more capable (than some amateur bitcoin traders) to take advantage of bitcoin's volatility and lack of regulation.


http://bitcoinist.com/demeester-digital-gold-cash/

I am actually not sure if I agree with some of the premises of the article regarding what is going to happen, but it still does outline some interesting trends of increasing interest in bitcoin that are likely true.
JayJuanGee 路 2017-01-17 22:39:00 路 #3413
As many of us realize, bitcoin is constantly increasing it's hashing power, even in spite of some naysayers suggesting that there may be some drop off in hashing power after the 2016 halvening...

But, nope.. still going strong and still going to considerably high and difficult to fathom levels.. 3 exahashes...

https://news.bitcoin.com/why-bitcoin-is-...ing-power/
JayJuanGee 路 2017-01-17 22:42:00 路 #3414
I kind of like this one in the bitcoin jobs category..


The post office is hiring a few bitcoin specialists..

Interestanting!!!!


https://news.bitcoin.com/us-postal-inspe...xperience/
CleanSlate 路 2017-01-18 00:01:00 路 #3415
Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?
Armogan 路 2017-01-18 01:17:00 路 #3416
Highly unlikely they "freeze" your bank account and/or transactions because you have a potential seven figure wire come through. Some ultra-high net worth individuals have wire transfers in the 5-50m range on a routine basis, much more than you would think.

Two scenarios likely happen:

1) Your bank automatically files a suspicious activity report (SAR) if you have a large incoming transaction compared to other activity in your bank. This means almost nothing and tens of thousands, if not, hundreds of thousands of these are filed each day. Essentially just a red flag that gets tracked in a database by FinCEN. You won't know this is filed.

2) Absolutely nothing happens and you don't report anything. IRS may or may not issue you a tax delinquent notice, depending on if they have several SARs filed or other reasons (e.g. whistler blowers are much higher reason than you may think). You settle it with them from there.

You could alternatively figure a way to store it in an overseas account. But that's another story.

You could launder it through gold coins, or various other methods. I'd worry about it when/if bitcoin appreciates 10 fold.
JayJuanGee 路 2017-01-18 03:42:00 路 #3417
(01-18-2017 12:01 AM)CleanSlate Wrote:  Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?


Are you trying to suggest ways to avoid paying income taxes because that is going to vary from one country to another? by the way, I think avoiding would be legal but evading would be illegal, no?

I think that it is possible to spend some bitcoins overseas and through other means, without having to report capital gains, but if you make a really large quantity then you may need to report some of that in order not to raise some red flags.

I am currently having some of that dilemma myself regarding how much to report because some of the money that I cashed out (actually almost all of it) was folded back into bitcoin in a timely manner (within a couple of days in most cases), so I would argue that I have not really gained anything, and my position is reasonable, but I am still kind of thinking that it may be better for me to report some gains, merely in order to not raise red flags to the amount of dollars that are flowing through my accounts, and in that regards, I have made a good faith effort to reasonably report all of my material and relevant activities.

Probably the same principles apply to if you have made a lot of money as compared with earning modest amounts of money, you probably want to report some of that to the extent that you do not want to raise red flags, but if there are ways that you can spend it in legal ways that avoid (rather than evade) income taxes, then that could be reasonable too. I think no matter what you want to have an explanation to provide to the IRS if they do ask about some of your activities and you would not want to be caught with your pants down especially if there are some considerable amounts of accounts that are attributable and traceable to you and you have not either said anything about those transaction or you are not prepared with some reasonable explanation to respond to the inquiries of the tax men (if they were to make such inquiries).
JayJuanGee 路 2017-01-18 03:52:00 路 #3418
(01-18-2017 01:17 AM)Armogan Wrote:  Highly unlikely they "freeze" your bank account and/or transactions because you have a potential seven figure wire come through. Some ultra-high net worth individuals have wire transfers in the 5-50m range on a routine basis, much more than you would think.

Two scenarios likely happen:

1) Your bank automatically files a suspicious activity report (SAR) if you have a large incoming transaction compared to other activity in your bank. This means almost nothing and tens of thousands, if not, hundreds of thousands of these are filed each day. Essentially just a red flag that gets tracked in a database by FinCEN. You won't know this is filed.

2) Absolutely nothing happens and you don't report anything. IRS may or may not issue you a tax delinquent notice, depending on if they have several SARs filed or other reasons (e.g. whistler blowers are much higher reason than you may think). You settle it with them from there.

You could alternatively figure a way to store it in an overseas account. But that's another story.

You could launder it through gold coins, or various other methods. I'd worry about it when/if bitcoin appreciates 10 fold.

I agree with everything that you said Armogan and you made several decent points, except for your point about the don't worry until 10x appreciation.

I personally think that 10x appreciation scenario (even if possible) is a bit of a distraction to the main issues of the various issues presented - and even now it is not that far out of the realm of realistic considerations - because maybe even a guy could engage in some conduct or activities that reduce his average cost per BTC down to the lower $100s per BTC, and then he is getting very close to 10x appreciation... but even if that considerable amount of appreciation does become the case, then part of the point becomes that a guy is cashing out a large percentage of pure gains, which becomes a bit of a problem and maybe even a bit more expensive than he had anticipated - but he may also need to budget for reporting and/or paying some of those gains because it could be a lot less hassle than either serving time in jail or going through the hassles of audits and/or unnecessary penalties.
Armogan 路 2017-01-18 04:28:00 路 #3419
(01-18-2017 03:42 AM)JayJuanGee Wrote:  
(01-18-2017 12:01 AM)CleanSlate Wrote:  Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?


Are you trying to suggest ways to avoid paying income taxes because that is going to vary from one country to another? by the way, I think avoiding would be legal but evading would be illegal, no?

I think that it is possible to spend some bitcoins overseas and through other means, without having to report capital gains, but if you make a really large quantity then you may need to report some of that in order not to raise some red flags.

I am currently having some of that dilemma myself regarding how much to report because some of the money that I cashed out (actually almost all of it) was folded back into bitcoin in a timely manner (within a couple of days in most cases), so I would argue that I have not really gained anything, and my position is reasonable, but I am still kind of thinking that it may be better for me to report some gains, merely in order to not raise red flags to the amount of dollars that are flowing through my accounts, and in that regards, I have made a good faith effort to reasonably report all of my material and relevant activities.

Probably the same principles apply to if you have made a lot of money as compared with earning modest amounts of money, you probably want to report some of that to the extent that you do not want to raise red flags, but if there are ways that you can spend it in legal ways that avoid (rather than evade) income taxes, then that could be reasonable too. I think no matter what you want to have an explanation to provide to the IRS if they do ask about some of your activities and you would not want to be caught with your pants down especially if there are some considerable amounts of accounts that are attributable and traceable to you and you have not either said anything about those transaction or you are not prepared with some reasonable explanation to respond to the inquiries of the tax men (if they were to make such inquiries).

While it may seem reasonable that you don't have a taxable gain, the taxing authorities (I'll assume U.S.) would disagree. Once you sell the BTC you have realized a gain that is subject to taxation. Buying the same asset shortly thereafter wouldn't exclude you from tax liabilities. The IRS would never accept that based on how the code is written now. This is similar to the wash sale rule: you can't sell an asset for a loss then buy the same asset back within 30 days and still deduct that loss. Only difference is that in your scenario you have a gain.

BTC is fairly new and treatment for more complex tax events is pretty vague. Additionally, exchanges don't issue 1099s, so authorities wouldn't know of any taxable events unless you tell them. I'd say if you have small gains (<50k), don't even bother reporting. If anything happens plead ignorance.

If it's significant mid-six figuress, seven figures, either keep it all offshore or pay the tax. I'm not a tax professional so do whatever makes you sleep at night, but ask Wesley Snipes if he paid his taxes last year.
JayJuanGee 路 2017-01-18 04:50:00 路 #3420
(01-18-2017 04:28 AM)Armogan Wrote:  
(01-18-2017 03:42 AM)JayJuanGee Wrote:  
(01-18-2017 12:01 AM)CleanSlate Wrote:  Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?


Are you trying to suggest ways to avoid paying income taxes because that is going to vary from one country to another? by the way, I think avoiding would be legal but evading would be illegal, no?

I think that it is possible to spend some bitcoins overseas and through other means, without having to report capital gains, but if you make a really large quantity then you may need to report some of that in order not to raise some red flags.

I am currently having some of that dilemma myself regarding how much to report because some of the money that I cashed out (actually almost all of it) was folded back into bitcoin in a timely manner (within a couple of days in most cases), so I would argue that I have not really gained anything, and my position is reasonable, but I am still kind of thinking that it may be better for me to report some gains, merely in order to not raise red flags to the amount of dollars that are flowing through my accounts, and in that regards, I have made a good faith effort to reasonably report all of my material and relevant activities.

Probably the same principles apply to if you have made a lot of money as compared with earning modest amounts of money, you probably want to report some of that to the extent that you do not want to raise red flags, but if there are ways that you can spend it in legal ways that avoid (rather than evade) income taxes, then that could be reasonable too. I think no matter what you want to have an explanation to provide to the IRS if they do ask about some of your activities and you would not want to be caught with your pants down especially if there are some considerable amounts of accounts that are attributable and traceable to you and you have not either said anything about those transaction or you are not prepared with some reasonable explanation to respond to the inquiries of the tax men (if they were to make such inquiries).

While it may seem reasonable that you don't have a taxable gain, the taxing authorities (I'll assume U.S.) would disagree. Once you sell the BTC you have realized a gain that is subject to taxation. Buying the same asset shortly thereafter wouldn't exclude you from tax liabilities. The IRS would never accept that based on how the code is written now. This is similar to the wash sale rule: you can't sell an asset for a loss then buy the same asset back within 30 days and still deduct that loss. Only difference is that in your scenario you have a gain.

BTC is fairly new and treatment for more complex tax events is pretty vague. Additionally, exchanges don't issue 1099s, so authorities wouldn't know of any taxable events unless you tell them. I'd say if you have small gains (<50k), don't even bother reporting. If anything happens plead ignorance.

If it's significant mid-six figuress, seven figures, either keep it all offshore or pay the tax. I'm not a tax professional so do whatever makes you sleep at night, but ask Wesley Snipes if he paid his taxes last year.


I am still pondering over the whole of your post, but here I just want to respond to the wash sales rule points that you are making, and I will consider whether I want to say anything about the other points at a later time.

I think that I understand that the wash sales rule can only be applied to a person who is in the licensed financial trading business, and other people cannot claim that rule, so I think that I understand your point there.

I think that the point that I was attempting to make is that if I were to put $10k on a trading account - or let's use bigger numbers.. if I were to put $100k on a trading account, and then I trade back and forth, and I come up with $150k because I made a bunch of good trades. The taxable event comes from my cashing out the $150k and I have to report $50k in gains, not all the back and forth trades that I made within the account.

I am kind of the consideration that what is the difference that I am trading between accounts rather than within one account, but I understand that when I trade between accounts, then even though the principle is the same (I have not really realized any gain), the IRS does not treat that the same because they treat the cashing out of accounts and into new accounts as taxable events (at least the cashing out part of it).. so it really does not matter that a guy cashed back in, they act like he has actually used that money to buy ice cream and cadillacs rather than folding it back into the same investment and not really profiting at all from the fact that the money was out of the account for a few days.

So in the end, maybe I am quibbling about what to do and how to report my activities and whether to report it and how much to report - because I probably have passed enough money through those accounts that the activities could raise red flags, even though overall on a regular basis the amounts going back into the accounts were greater than the amounts coming out..... so I really did not gain anything, even though the IRS may want to consider that I did possibly "gain" within their definition of the concept.
booshala 路 2017-01-18 14:51:00 路 #3421
^^ Tax laws and regulations aren't what you think are logical or what you feel is right. Obviously, there's tax attorney's making millions of dollars figuring out loopholes, arguing the merits and language of certain provisions of the code, but correction on some points you made:

Firstly, wash rules apply to everyone, not just financial professionals. I use this quite a lot when tax loss harvesting stocks at the end of the year. Because you're only dealing with BTC, you're not eligible for these provisions unlike someone for example who sells VTI (Vanguard Total Stock Market ETF) and gets into VTSAX (Vanguard Total Stock Admiral Shares) to get around the 30 day period.

Secondly, every little buy/sell transaction that you do is considered a taxable event, you can't just aggregate them all into one lump transaction. There'd be too many ways to game that scenario if you could do that. If you want to remain compliant with tax laws, your buys/sells up and down the spectrum over the many exchanges you use need to be recorded one by one. Making it even tougher is figuring out which BTC you sold (e.g. was it the BTC i bought at $500, $800 or $1000?) to see if that transaction was a loss or a gain.

Personally, I thought you had some sort of master system to be able to keep track of the seemingly crazy buying/selling volume that you do. Like Armogan said, the exchanges don't send out 1099's, and I doubt they have end of year tax statements like brokerage companies... you have a lot of work ahead of you.
JayJuanGee 路 2017-01-18 19:38:00 路 #3422
(01-18-2017 02:51 PM)booshala Wrote:  ^^ Tax laws and regulations aren't what you think are logical or what you feel is right. Obviously, there's tax attorney's making millions of dollars figuring out loopholes, arguing the merits and language of certain provisions of the code, but correction on some points you made:

Firstly, wash rules apply to everyone, not just financial professionals. I use this quite a lot when tax loss harvesting stocks at the end of the year. Because you're only dealing with BTC, you're not eligible for these provisions unlike someone for example who sells VTI (Vanguard Total Stock Market ETF) and gets into VTSAX (Vanguard Total Stock Admiral Shares) to get around the 30 day period.

Secondly, every little buy/sell transaction that you do is considered a taxable event, you can't just aggregate them all into one lump transaction. There'd be too many ways to game that scenario if you could do that. If you want to remain compliant with tax laws, your buys/sells up and down the spectrum over the many exchanges you use need to be recorded one by one. Making it even tougher is figuring out which BTC you sold (e.g. was it the BTC i bought at $500, $800 or $1000?) to see if that transaction was a loss or a gain.

Personally, I thought you had some sort of master system to be able to keep track of the seemingly crazy buying/selling volume that you do. Like Armogan said, the exchanges don't send out 1099's, and I doubt they have end of year tax statements like brokerage companies... you have a lot of work ahead of you.


Thanks for providing some perspective, and in the end, each of us make decisions regarding how we are going to document and/or report - based on whatever we conclude is reasonable based on our knowledge of standards and our life experiences.

I certainly have some ideas in mind that are in no way as exhausting as you are suggesting, but yeah we may have some differing perspectives about which events are taxable or reasonably taxable and we also may have differing levels in which we leave some of the matters to accountants or rely on the advice of consultants in order to decide how to proceed.

Have you had any BTC taxable gains in the past few years that you have reported?

Pretty much I have already been keeping track of various BTC transactions that are going a bit differently than they were in the previous years, and therefore likely to be categorized differently than they had been in previous years, and I already have some framework in mind for what I was planning to do for 2016, which I will likely be tweaking in the coming months (that is if I file my taxes timely this year - which seems pretty likely, so maybe the topic is not over - come March /April there may even be further posts from me on the topic.. if I change my thinking about it.. hahahaha).



(01-18-2017 02:51 PM)booshala Wrote:  Tax laws and regulations aren't what you think are logical or what you feel is right.

By the way, I found this comment to be a bit presumptive regarding whether I had any kind of knowledge of standards, and whether I was planning to just make up my own standards based on feelings or whatever. Whether I phrase some proposition in a forum thread in one direction or another may not necessarily reveal my complete intentions or my complete ways of framing matters to government officials in official documents or official communications, whether that be taxes or otherwise. Nonetheless, certainly it is good to hear a variety of perspectives regarding approaches that guys here might be taking.
Midnight Cowboy 路 2017-01-18 19:54:00 路 #3423
[quote='CleanSlate' pid='1488156' dateline='1484715704']
Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?
[/quote

Sell them for cash to someone around: localbitcoins.com
Use a bitcoin ATM anonymously. Here's a map where you can find one around you: http://www.coindesk.com/bitcoin-atm-map/

I haven't used these services myself. If anymone tried them out, I would like to know how it went.
JayJuanGee 路 2017-01-18 20:08:00 路 #3424
(01-18-2017 07:54 PM)Midnight Cowboy Wrote:  
(01-18-2017 12:01 AM)CleanSlate Wrote:  Alright, here's an hypothetical question.

Let's say you're invested in BTC, and it explodes ten-fold or even a hundred-fold. You sell at the peak, and now you have hundreds of thousands of dollars (or even a million plus) in your BTC account.

What do you do with that money?

Do you transfer it all into your fiat bank / savings account? That's bound to attract questions from the bank, and they may even freeze your funds until they "sort it out". Could the IRS get wind of it?

Or do you transfer a little bit at a time to keep things under the radar? Still, with such large amounts it might get you a phone call from the bank.

Thoughts?

Sell them for cash to someone around: localbitcoins.com
Use a bitcoin ATM anonymously. Here's a map where you can find one around you: http://www.coindesk.com/bitcoin-atm-map/

I haven't used these services myself. If anymone tried them out, I would like to know how it went.

Those are both decent avenues to attempt to engage in some quasi-anonymous transactions. I use local bitcoins quite frequently or some other direct interactions with folks - sometimes guys can attend bitcoin meet ups too, and attempt to engage in some direct trades. I don't know if these possible proposals are completely addressing clean slate's concerns, and I thought that there was some variations with Bitcoin ATMs in terms of fees, levels of KYC /AML and sometimes daily limits, too.
JayJuanGee 路 2017-01-18 21:26:00 路 #3425
I found this article to have a quite a few interesting points regarding how bigger and bigger players are becoming more and more interested in various possible future bitcoin use cases.


http://www.nasdaq.com/article/bitcoin-wh...o-cm734833
JayJuanGee 路 2017-01-18 21:30:00 路 #3426
If you did not know about this bitcoin conference in Miami, here an informative piece giving an overview of the first day.


https://news.bitcoin.com/the-north-ameri...e-day-one/
JayJuanGee 路 2017-01-18 21:38:00 路 #3427
This below-linked article has a lot of real great visualization describing a war on cash, and seems to be putting crypto currency in the place for possible remedies.


http://money.visualcapitalist.com/global-war-on-cash/


And, this below linked article has a lot of decent segregated witness information resources (make sure to click the link at the top of the reddit page):

https://www.reddit.com/r/Bitcoin/comment...age_about/
Satoshi 路 2017-01-19 02:04:00 路 #3428
Here is an article discussing the waste of energy that the "future" currency bitcoin is using.

http://www.abc.net.au/news/2015-10-06/qu...gy/6827940
dasher 路 2017-01-19 04:32:00 路 #3429
(01-19-2017 02:04 AM)Satoshi Wrote:  Here is an article discussing the waste of energy that the "future" currency bitcoin is using.

http://www.abc.net.au/news/2015-10-06/qu...gy/6827940

'Economics professor' telling us about the virtues of green energy. Give me a break.
JayJuanGee 路 2017-01-19 08:30:00 路 #3430
(01-19-2017 04:32 AM)dasher Wrote:  
(01-19-2017 02:04 AM)Satoshi Wrote:  Here is an article discussing the waste of energy that the "future" currency bitcoin is using.

http://www.abc.net.au/news/2015-10-06/qu...gy/6827940

'Economics professor' telling us about the virtues of green energy. Give me a break.

Plus the article is from October 2015 - which kind of coincides with the various bitcoin is dead mantras of Ethereum et al and the new improved Bitcoin 2.0 themes that did not quite come to pass as planned.

in other words, one of the lame, pie in the sky criticisms of bitcoin to some how suggest that the value and security of bitcoin is not worth spending some energy and other forms of currencies are not without their energy costs.
Satoshi 路 2017-01-20 00:37:00 路 #3431
(01-19-2017 08:30 AM)JayJuanGee Wrote:  
(01-19-2017 04:32 AM)dasher Wrote:  
(01-19-2017 02:04 AM)Satoshi Wrote:  Here is an article discussing the waste of energy that the "future" currency bitcoin is using.

http://www.abc.net.au/news/2015-10-06/qu...gy/6827940

'Economics professor' telling us about the virtues of green energy. Give me a break.

Plus the article is from October 2015 - which kind of coincides with the various bitcoin is dead mantras of Ethereum et al and the new improved Bitcoin 2.0 themes that did not quite come to pass as planned.

in other words, one of the lame, pie in the sky criticisms of bitcoin to some how suggest that the value and security of bitcoin is not worth spending some energy and other forms of currencies are not without their energy costs.

The arguments are just as valid today. If we want a currency for the future, shouldn't it be one that uses energy in an efficient way?
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