Bitcoin

[RicInOR]

Every banking transaction (as you draw your money out of BTC and into USD) $10,000 or over is automatically reported to the IRS as are multiple near $10,000 transactions. If they decide the transactions are suspicious the money will get confiscated and it is up to you to prove it's legitimate in order to get the money back. There is a famous case where a fellow who owned a restaurant made several cash deposits just under $10K that were his daily sales. He was able to prove it was all legitimate but several years later has yet to get his money back.

Best case scenario is you have complicated tax returns and pay a third or so of your profits as capital gains taxes. Worst case is the money gets confiscated and you go in debit paying lawyers to keep from being incarcerated.

Right. Asset Forfeiture is a racket. Evidence the police are nothing more than a gang.
Lots and lots of cases where people loose cash.
A Pastor, asked "is that your money?" truthfully responds no. It was his congregations donations for relief. The po-po kept it.
A man on his way to the big city to buy a truck, for his farm business. Cash for a truck? Po-po kept it.

However, like gold, if you do not transition the funds at a US financial institution, what is to be reported? what is to be done? What if we agree to a gun for gold trade. Is that OK or do we have to do deal in dollars? gun for gun?


If you goto a gun show, can you use electronic payment - ie Visa? Probably not. Square and many of the companies which facilitate payments do not do business with guns. So what are you going to do, lie - "machined parts" right.

If we do a bitcoin deal, there is no server, no intermediary, we just do the deal. it gets recorded in many (millions) of places. I can't claim you didn't give me the money. I can't claim that it needs to be reversed. If we have a problem, then we have to use some other arbitration. PayPal was supposed to be an easy arbitration, but the web tends to conclude they favor the buyer.

Is this the best method for "mail" based sales? I don't know.

Face to face - here are your 22lr, here is your transaction on the phone. Nano seconds later we can get a beer.

Electronic - here is your license to print 100 targets, When you have done so, the license expires. Done.

You may hate the idea of a license, rather than ownership, but some major companies, notably John Deere, do just that. Did you remap your engine. Then you brought our tractor back to us. No you don't get it back, nor a new one. f

Can you hack the printing of targets, or the messing with the computer? Today, sure. If they were in a blockchain, not likely. It can be thought of as a very good password - in this use.

 

[RicInOR]

If you make some real money off it, yes, the IRS would want their cut. If you made a real bank on this it would be no different than say winning big on some bet. If they can show you made money and you don't tell them, yes they would come after you. If you make a few hundred K and drop it in the bank, yes you best show it on your taxes.

I have my financial world in a nice well ordered position and I am going to keep it that way. Those of you who make huge bank on bitcoin or what ever the f it is, can wave at me as you drive by in you new Mercedes and I will wave back. My head is exploding trying to understand it, so I give up, not that much brain left to give away.

Made me think of Superman III



If you are living a lavish lifestyle, how lavish does it have to be before the IRS knows? I ask because I never hear of drug dealers going to prison for tax evasion. They could.

 

[RicInOR]

Instapundit » Blog Archive » BITCOIN MAY OR MAY NOT BE SOUND LONG-TERM, BUT IT'S A BUBBLE RIGHT NOW: The Force Behind Bitcoin'…
Many comments

The Force Behind Bitcoin's Meteoric Rise: Millions of Asian Investors


I would not use this as an investment, but rather as a currency. I have just enough Canadian dollars for when I visit. I don't hold them hoping for a favorable exchange rate.

 

[RicInOR]

 

[Alexx1401]

Made me think of Superman III



If you are living a lavish lifestyle, how lavish does it have to be before the IRS knows? I ask because I never hear of drug dealers going to prison for tax evasion. They could.

Good question. I of course don't know since I don't live large. I would have to "guess" the IRS goes more for the soft targets. In other words the easier the better. Of course if your "lavish style" has you actually on title to anything they can of course just grab it. Then tell you to take them to court and prove it's yours. Some of the people who hit it real big with any kind of thing would most likely find themselves hurt this way before actual prosecution. Feds are great at just taking stuff then telling you take us to court and prove us wrong. In the mean time they keep the stuff they took.

 

[USMC1911]

Almost 18k now! Just saying...

 

[gryghin]

My kids were talking about crypto-currency and a friend turned me to this website.

Coinbase - Buy/Sell Digital Currency
https://www.coinbase.com/join/5a2e2e3da4b85d0102c5272b
I'm going to keep looking into this, as APMEX.com does accept Bitcoin for payment.

And in any case, like my other "Plan C" account, this is only money that I can afford to not rely on.

 

[RicInOR]

What Bitcoin Isn't: A Ponzi, Unbacked, Tulipmania | Mark E. Leftovic

A good overview of some of the recent headlines about BitCoin.

 

[Oregonhunter5]

18,000 is great! Now has anyone ever cashed in on here gains? Can't seem to get that answer yet.

 

[B5Ben]

Yes. I have. Transferred some to my bank and there are a couple ATM's that cash out BTC as well. It's easy to not have any gains reported. Theoretically you can pay for things with bitcoin and there won't be a record of it. Maybe not cars or houses yet, but you can buy gold. And gold is better than cash almost anywhere.

 

[3MTA3]

After BTC's rocky Friday, what are you all doing? Standing pat to see what happens or taking your profits from when you bought in at a lower price?

 

[B5Ben]

I try to leave it alone. I know its volatile, so unless I am able to sell and watch closely for a drop to buy again, I just leave it alone. If I have some cash and its at a low point, I will buy a little more. Its a little stressful knowing that the value changes by 30-40% some days but that is the way it is. I just dont have the time to play the waves. I am more invested in ETH and LTC that BTC or BCH, but they are just as volatile, percentage wise.

 

[USMC1911]

should of sold week/s ago consensus support seems to be around the 13-14k level

 

[teflon6string]

Where's a handy place to buy Bitcoin and cryptos in general without paying a lot for the transaction? And how about a wallet? Thanks.

 

[B5Ben]

Coinbase is the easiest to set up but can lock up with high activity levels. GDAX is good to but is available only on a computer, no mobile support.

 

[teflon6string]

Coinbase is the easiest to set up but can lock up with high activity levels. GDAX is good to but is available only on a computer, no mobile support.

Just learning how it all works, I put $200 apiece on BTC, ETH and LTC last week.

Of course, with 3 separate Coinbase transaction fees deducted, my $600 total investment was immediately worth only $585. But that climbed to $608-ish over the past few days. Who-Hoo!

Not gonna get rich at this minimal level, obviously, but I want to at least know how to buy/sell if I feel like it.

Anybody know what sort of fees Coinbase will charge if/when I decide to sell later? And where do the proceeds go? Back on the card I used to buy it? I don't want to try it today just to find out, but like the wounded bank robber on the sidewalk says to Dirty Harry, "I gots to know..."

 

[IronMonster]

I just am never going to get over not buying the first time I set out too.... @ $24/bitcoin

 

[MilitantBEEMER]

I have a coworker that bought Ripple on Dec 2nd. He invested $850.00 which a month later is at ~$15,000.00 in value. Not bad for a months labor.
I told him to pull $7500 and let the other $7500 ride. He is leaving it all in... Bears make money, bulls make money and pigs get slaughtered.

 

[Oregonhunter5]

I have a coworker that bought Ripple on Dec 2nd. He invested $850.00 which a month later is at ~$15,000.00 in value. Not bad for a months labor.
I told him to pull $7500 and let the other $7500 ride. He is leaving it all in... Bears make money, bulls make money and pigs get slaughtered.

Would you buy ripple today?

 

[USMC1911]

I have a coworker that bought Ripple on Dec 2nd. He invested $850.00 which a month later is at ~$15,000.00 in value. Not bad for a months labor.
I told him to pull $7500 and let the other $7500 ride. He is leaving it all in... Bears make money, bulls make money and pigs get slaughtered.

That one will be very interesting to see what happens with the news coinbase is not going to carry it.