Bitcoin Price Thread

[S2007S]

This is unfu©king believable....just shows you how rigged cryptocurrency is....huge drop from just days ago...now under $10k

In 2013, bitcoin was worth just $150 when suddenly, the price spiked.

Within two months, one bitcoin was worth $1,000. Four researchers from the Tandy School of Computer Science at The University of Tulsa and the Berglas School of Economics at Tel Aviv University now believe that this spike was caused by one individual person.

https://www.cnbc.com/2018/01/23/one-person-caused-bitcoin-to-spike-from-150-to-1000-in-2013.html

 

[Cuddles]

If you have bad luck you can pay 25% on $19000 per coin, and have a few weeks later a second hit when the markets hit below $10,000.
You go then from $19,000 per coin to $5,250 per coin, or minus 72%. You should then go up 300% just to be break even again.

This is different from the story when a man sold his house, was paid in bitcoins and sold these bitcoins when the market was up 50% again.

Bitcoins can make you rich , and bitcoins can ruin you.

This is my beef right now with the IRS. it shouldn't be taxable until converted to fiat

 

[schweiz]

This is my beef right now with the IRS. it shouldn't be taxable until converted to fiat

That would lead to a huge decline in taxes, as people would then just pay on the money they really spent. So billions that stay invested would never be taxed and grow for ever.

In other words: if you make 1 billion profit on a portfolio of investments, but only cash in 100K to pay your living expenses, you will not pay on 1 billion minus 100K. You will only pay on 100K.
You repeat that year after year and after 10 years and you will have 10 billions of investments, and pay in total on 1 million income taxes.

I know already 1 man who got caught with 1100 bitcoins he should have declared. He will have a lot of expenses on lawyers and fiscal advisors, and receive a hefty taxation. I hope his bitcoins will not end up below $1000 each or he will be broke or even unable to pay his bills.

 

[Cuddles]

That would lead to a huge decline in taxes, as people would then just pay on the money they really spent. So billions that stay invested would never be taxed and grow for ever.

In other words: if you make 1 billion profit on a portfolio of investments, but only cash in 100K to pay your living expenses, you will not pay on 1 billion minus 100K. You will only pay on 100K.
You repeat that year after year and after 10 years and you will have 10 billions of investments, and pay in total on 1 million income taxes.

I know already 1 man who got caught with 1100 bitcoins he should have declared. He will have a lot of expenses on lawyers and fiscal advisors, and receive a hefty taxation. I hope his bitcoins will not end up below $1000 each or he will be broke or even unable to pay his bills.

By that logic, I should be paying taxes every year for the Amazon stock I got 5 years ago and haven't sold. Crypto exchanging isn't really selling as it's not ubiquitous enough to be exchanged for goods imo.

 

[schweiz]

By that logic, I should be paying taxes every year for the Amazon stock I got 5 years ago and haven't sold. Crypto exchanging isn't really selling as it's not ubiquitous enough to be exchanged for goods imo.

No, only the additional profits are taxed. So difference between first and last day of the year. But for somey countries losses are not deductible.

All funds and companies holding financial values have to book their actual value end of each year. That's the basis for taxation.

Example:

 

[Cuddles]

No, only the additional profits are taxed. So difference between first and last day of the year. But for somey countries losses are not deductible.

All funds and companies holding financial values have to book their actual value end of each year. That's the basis for taxation.

Example:

View attachment 181834

I'm pretty certain we don't get taxed on appreciating holdings unless sold

 

[Pekelo]

Crypto exchanging isn't really selling

The IRS would say it is like exchanging your AMZN stocks for NFLX ones. Unfortunately in that process there is cashing out involved. In short, the IRS disagrees with you...

By the way under 11K it is a buy just like it was a sell at 13K.

 

[Cuddles]

The IRS would say it is like exchanging your AMZN stocks for NFLX ones. Unfortunately in that process there is cashing out involved. In short, the IRS disagrees with you...

By the way under 11K it is a buy just like it was a sell at 13K.

And that's why God invented the 1031 loophole. May be a hail Mary, but I may be willing to dance with the IRS over it.

At least for 2017 trades.... Have yet to read the details now that they've tailored it for Trump and friends.

 

[Pekelo]

Looks like short term we are going down. Descending triangle forming ready to break below 10K...

 

[Cuddles]

Looks like it's still getting battered by regulators. China still bleeding the market?