What’s the need for alt coins?

[Pekelo]

The title question could be asked this way: What is the need for similar, but maybe better, cheaper, etc. product when we have the original product?

Let's face it, the question is pretty stupid, unless the person asking doesn't like competition and innovation and cheaper prices.

Once upon a time a company came up with a new type of phone. They called it iPhone. It was revolutionary, it changed the way how we interacted with our phones. Now what was the point of making other type of smart phones, when everyone could have just used iPhones forever?

I will dumbify the answer: The existence of alt coins proves that cryptos are not unique, not rare or particularly inherently valuable.

 

[johnarb]

You moving money across borders is the part that will be fought the hardest. Avoiding taxation is a huge threat to the government and it can’t let BTC exist as ANYTHING unless they can figure how to get their cut.

Bitcoin is on the blockchain, it has no location

Don't avoid paying taxes. I recommend to consult a CPA

you speak of “crypto banks”, does one exist yet?

Yes, there's a few crypto banks on the blockchain via smart contract. You can deposit crypto asset and earn interest in-kind, and you can also borrow any crypto asset against a collateral crypto asset

AAVE is the biggest one

I would be worried about guys in army boots showing up at my door and demanding that I prove I’ve paid my share of taxes.

You should be very very very worried... and very very very scared, no joke. US is hiring additional 85,000 IRS agents and they will be armed. You are fucked

 

[GlobalMacro90]

The title question could be asked this way: What is the need for similar, but maybe better, cheaper, etc. product when we have the original product?

Let's face it, the question is pretty stupid, unless the person asking doesn't like competition and innovation and cheaper prices.

Once upon a time a company came up with a new type of phone. They called it iPhone. It was revolutionary, it changed the way how we interacted with our phones. Now what was the point of making other type of smart phones, when everyone could have just used iPhones forever?

I will dumbify the answer: The existence of alt coins proves that cryptos are not unique, not rare or particularly inherently valuable.

Alternative interpretation:

the existence of altcoins, almost none of which have gained users/ adoption outside of the handful, proves the immense value of the existing network affects for BItcoin and Ethereum to a lesser extent.

this is why bitcoin is worth so much more even if other cryptos are faster, have more bells and whistles, etc.

 

[long]

Bitcoin is on the blockchain, it has no location

Don't avoid paying taxes. I recommend to consult a CPA



Yes, there's a few crypto banks on the blockchain via smart contract. You can deposit crypto asset and earn interest in-kind, and you can also borrow any crypto asset against a collateral crypto asset

AAVE is the biggest one

You should be very very very worried... and very very very scared, no joke. US is hiring additional 85,000 IRS agents and they will be armed. You are fucked

Bit coin may not have borders but you have probably evaded the exit tax. I have spoken with several foreign workers in the US that talk about having to pay taxes at the border or at customs if they are transporting cash out of the country. There are other taxes and fees that would apply if you were to transfer US funds from a US bank to an account in another country. Bitcoin has made these penalties easy to circumvent. I have no idea if it can be traced or if the US (or other government) can enforce it but the exit tax is one they are worried about. I believe that it may be one of the biggest issues the gov has against crypto.

On another note, that quick price spike in XRP today was interesting. What was that about?

 

[johnarb]

Bit coin may not have borders but you have probably evaded the exit tax. I have spoken with several foreign workers in the US that talk about having to pay taxes at the border or at customs if they are transporting cash out of the country

Are you a TAX CPA? You should really put a disclaimer if you are not one before spewing out shits like that on a public forum

I have a TAX CPA who does our taxes who is constantly being updated on crypto laws that are still changing

You're conflating a few things (on purpose maliciously?), exit taxes for foreign workers? exit taxes? transporting cash out of the border at customs?

Do you know that a US resident residing outside of the US is still responsible for paying taxes on income that is earned no matter where the income comes from? exit taxes is if you give up your citizenship

Let me say this to you, the bitcoins never moved. Here's a food for thought, if someone in the US has 1 bitcoin and is traveling to Paris for vacation, are you saying the person has to declare more than $10k worth of currencies at the border?

That is why bitcoin is a commodity, a property, not considered legal currency by the US

And here's another thing that will be difficult for you to comprehend, what happens if we move back to the US next month? or go to the US for vacation?

The bitcoins never moved, they're always on the blockchain

What happens if someone from Dubai who owns $10M worth of bitcoins establishes residency in NY?

The bitcoins never moved, they're always on the blockchain

Stop posting tax advice on the forum unless you are going to provide legal disclaimer or proof you are qualified, ASSHOLE

On another note, that quick price spike in XRP today was interesting. What was that about?

https://twitter.com/x/status/1724168916933485020

 

[long]

Alternative interpretation:

the existence of altcoins, almost none of which have gained users/ adoption outside of the handful, proves the immense value of the existing network affects for BItcoin and Ethereum to a lesser extent.

this is why bitcoin is worth so much more even if other cryptos are faster, have more bells and whistles, etc.

As far as I'm concerned, all cryptocurrencies are iPhones without access to a network. Enormous potential for some particular uses but still useless at the present time. We're betting that they will soon become more than a religion by actually being implemented as the tools they were designed to be.

Are you a TAX CPA? You should really put a disclaimer if you are not one before spewing out shits like that on a public forum

I have a TAX CPA who does our taxes who is constantly being updated on crypto laws that are still changing

You're conflating a few things (on purpose maliciously?), exit taxes for foreign workers? exit taxes? transporting cash out of the border at customs?

Do you know that a US resident residing outside of the US is still responsible for paying taxes on income that is earned no matter where the income comes from? exit taxes is if you give up your citizenship

Let me say this to you, the bitcoins never moved. Here's a food for thought, if someone in the US has 1 bitcoin and is traveling to Paris for vacation, are you saying the person has to declare more than $10k worth of currencies at the border?

That is why bitcoin is a commodity, a property, not considered legal currency by the US

And here's another thing that will be difficult for you to comprehend, what happens if we move back to the US next month? or go to the US for vacation?

The bitcoins never moved, they're always on the blockchain

What happens if someone from Dubai who owns $10M worth of bitcoins establishes residency in NY?

The bitcoins never moved, they're always on the blockchain

Stop posting tax advice on the forum unless you are going to provide legal disclaimer or proof you are qualified, ASSHOLE

https://twitter.com/x/status/1724168916933485020

I’m sorry but I don’t know why you’re angry

 

[johnarb]

I’m sorry but I don’t know why you’re angry

This ^

No worries and I'm sorry too if I reacted harshly

I am not a tax expert, I consult with a professional for my taxes

Bitcoin is considered (digital) property in the US tax code

The important thing is cost-basis and what price at the time of sale, i.e. capital gains or loss. If you look at my previous post, I borrowed Usdt against my bitcoins and spent the Usdt

Think of someone who purchased a property for $100k many years ago, now worth $1.5M borrowed $800k, if the property value crashes, and gets repossessed by the bank, the person is still liable for capital gains taxes based on cost-basis (I am not a tax expert, but going by what I've read)

Bitcoins can be used to store life savings like a long term "bank account", but they are digital asset commodity and property according to US tax code, unless it changes in the future

 

[long]

View attachment 327439

This ^

No worries and I'm sorry too if I reacted harshly

I am not a tax expert, I consult with a professional for my taxes

Bitcoin is considered (digital) property in the US tax code

The important thing is cost-basis and what price at the time of sale, i.e. capital gains or loss. If you look at my previous post, I borrowed Usdt against my bitcoins and spent the Usdt

Think of someone who purchased a property for $100k many years ago, now worth $1.5M borrowed $800k, if the property value crashes, and gets repossessed by the bank, the person is still liable for capital gains taxes based on cost-basis (I am not a tax expert, but going by what I've read)

Bitcoins can be used to store life savings like a long term "bank account", but they are digital asset commodity and property according to US tax code, unless it changes in the future

Yeah I didn’t mean anything by it. What made me think of it is a friend of mine employs seasonal workers from other countries. The IRS gives them social security numbers and they pay income tax just like we do. When they send money back to their families it costs them another 10% in other taxes and fees. After reading your story I thought that these workers may be able to use BTC to beat that 10% slippage. I shouldn’t have used the word “evade” for your situation as I don’t think you’re doing anything illegal, but other people trying to move large amounts of money internationally are having to pay a tax to transfer wealth from the US system to their home countries system. If everyone started to use methods like yours to move wealth around the world freely then the IRS would need new methods and tools to recover the lost revenue.

 

[johnarb]

...but other people trying to move large amounts of money internationally are having to pay a tax to transfer wealth from the US system to their home countries system. If everyone started to use methods like yours to move wealth around the world freely then the IRS would need new methods and tools to recover the lost revenue.

I'm not an expert, but from what I understand, there is no capital controls in the US unlike China

If an American multi-millionaire has millions of $ in the bank, and decides to buy $1M worth of bitcoins, that $1M has already been taxed however the person made it i.e. from a business venture or sale of a RE property

If the person decides to move to one of the properties overseas, there is no tax event until the bitcoins are sold for profit

It does not matter where the person is located at the time of sale, perhaps back in the US or still living outside of the US

But in any case, such a person would have a qualified professional tax advisor

 

[long]

Here's a good interview with the author of the new book "Number Go Up". I thought I got the link from a thread on this forum, but I can't find it so I'm linking it now. This will be offensive to true believers, but I think everyone should hear this viewpoint. This is exactly how I've felt about Bitcoin since hearing about it in 2017. I thought this way the whole time while it rose from $1000 in 2017 to $69000 and back to $15000. I still feel the same about it, but I've watched it defy all logic for the better part of a decade now and that's why I decided to buy some. I'm going to have to read the book, but I feel the exact same way that these guys do. I'm terribly conflicted with my BTC position but I'm going to hold it even though the SPX looking much more promising for me at the moment.