Bitcoin is on fire again

[ultimatebob]

How do you buy litecoins?

An exchange that sells them, like btc-e.com. Getting your US dollars there is the tough part, after that it's easy to exchange them with whatever you want.

Sadly, it's probably just easier to buy some Bitcoin and exchange them to Litecoin that way.

Unlike Bitcoin, you can still somewhat profitably mine then with a video card, though.

 

[Attic]

The catch I see is that bitcoin needs to be regulated to ever be worth anything in an economy, but the main thing that adds value to bitcoin is it's unregulated.

I'd only be surprised and impressed if bitcoin trades in a tight range at some point soon.

Wouldn't be surprised to see it worth pennies or >10k within 3 months.

 

[quakefiend420]

If you think that Bitcoin is an "investment" at this point, you're deluding yourself. No investment has ever appreciated this quickly without crashing just as fast, whether it be penny stocks or a ponzi scheme.

Have fun trading this madness, but just remember that you're gambling at this point and not investing. I just hope that that you're playing with the house's money.

We've also never had a deflationary currency in a basket of inflationary currencies all backed by almost bankrupt nation-states.

Things are just getting interesting...

 

[Printer Bandit]

emerging threat

http://www.activistpost.com/2013/11/homeland-security-calls-bitcoin.html

 

[Printer Bandit]

do you have to pay taxes when you sell bitcoins for a profit?

 

[John Connor]

Fuck homeland security!

 

[Chiropteran]

but just remember that you're gambling at this point and not investing.

All investments are gambles. Bitcoin is an investment, albeit a risky one.

do you have to pay taxes when you sell bitcoins for a profit?

Depends what you mean by "have to". If you make money in any way, you are supposed to pay either income tax or capital gains tax. Depending on your exact situation, you might be able to deduct costs such as mining hardware and electricity, and reduce your tax burden to 0, but generally yes you are supposed to pay taxes on bitcoin earned money. It's not automatic though.

 

[sdifox]

do you have to pay taxes when you sell bitcoins for a profit?

It's an exchange of currency.

 

[BikeJunkie]

It's an exchange of currency.

I don't think so. The IRS does not recognize bitcoin as currency any more than it recognizes baseball cards as currency.

 

[sdifox]

No it's not. The IRS does not recognize bitcoin as currency any more than it recognizes baseball cards as currency.

IRS doesn't recognise it as anything, thus it has no value for IRS.

 

[BikeJunkie]

 

[Train]

do you have to pay taxes when you sell bitcoins for a profit?

You have to pay taxes when you sell ANYTHING for a profit. This includes WOW gold, an example the IRS has stated, "Yes, WOW Gold is taxable" But it is up to you to convert the value gained into dollars to pay the IRS.

 

[ultimatebob]

It looks like Bitcoins went back down to $380 and then rebounded to $530.

I guess there is good money to be made in day trading these suckers, but I sure as hell wouldn't want to buy and hold them right now.

 

[ultimatebob]

You have to pay taxes when you sell ANYTHING for a profit. This includes WOW gold, an example the IRS has stated, "Yes, WOW Gold is taxable" But it is up to you to convert the value gained into dollars to pay the IRS.

Now the question is... if you minted them yourself from scratch and sold them, what is your basis cost? The power used to create them?

What if I bought a new video card to mine Bitcoins early this year... can I deduct that as a business expense now, or do I include that in my basis cost? Or both?? So many questions that the IRS is going to have fun with

 

[AnonymouseUser]

I guess there is good money to be made in day trading these suckers, but I sure as hell wouldn't want to buy and hold them right now.

There definitely is good money to be made that way, but it is dangerous so be careful. Surprisingly though, it's actually fairly safe to buy/hold again. It bounced off 12-hour support this morning and has risen enough to break the recent downtrend from $900. The 1-hour 25MA is critical now, though. If it gets above that line it could become support again (buy), but until then it's resistance (sell). Just be careful!

12-hour support (yellow line/25 MA):

1-hour support/resistance (yellow line/25 MA):

 

[Puppies04]

do you have to pay taxes when you sell bitcoins for a profit?

Is your question "do you have to " or "are you supposed to"?

 

[AnonymouseUser]

Nope, still a sell.

 

[AnonymouseUser]

It's back over the 1-hour support, touching $650 again, and I'm liking the way it's trading now so I'm back in 100%.

 

[AnonymouseUser]

Rallied back to $780's, but I feel the rally is over (or will be soon). Has been fun gaining +1000% in one month's time, but I intend to keep my gains. I'll play some of the upcoming bounces, but won't be holding again until it settles down.

I believe BTC is currently in the "Return to normal" phase on this chart:

Current 12-hour chart:

Charts combined:

 

[Alienwho]

I agree with you above. Sold most of my stock and waiting to buy after the impending crash.

 

[AnonymouseUser]

I agree with you above. Sold most of my stock and waiting to buy after the impending crash.

It really is amazing how well those charts line up so far.

FWIW, three minutes after that post BTC rallied another ~5% to $822. I hate that I missed that rally, but at least I won't be panicking to sell into the upcoming crash.

 

[KlokWyze]

Selling all my LTC & BTC... unfortunately it's going to be stored as USD on the exchange I use... so it's kind of worthless in a sense. I think the coins will correct, but not lower as much as people expect.

GPU prices are up like 33% in a few weeks. They will fall too!

 

[AnonymouseUser]

Gox is no longer the leader, which explains how it managed to get back to almost $900 before correcting. BTC China is the leader now, and was pulling up the other exchanges until it finally corrected. I'm expecting sub-$400 (Gox), possibly sub-$300, before the uptrend continues, so I recommend delaying any purchases for now.

 

[gorobei]

Gox is no longer the leader, which explains how it managed to get back to almost $900 before correcting. BTC China is the leader now, and was pulling up the other exchanges until it finally corrected. I'm expecting sub-$400 (Gox), possibly sub-$300, before the uptrend continues, so I recommend delaying any purchases for now.

your assumptions about price/behavior may not be taking into account the nature of economics in china. they went through a housing bubble and a lot of regular citizens found out how little the homes/condos they saved up for are actually worth. its even worse with the amount of new developments that bulldoze only 10 year old complexes. the govt and the laws encourage the citizens to own a home as equity since they arent allowed to invest in something outside of china. BTC is a way to secret away money that the chinese govt cant touch.

given this, many of the china btc buyers driving up the price are unlikely to bother with trying to do some profit taking on the day to day up/downswings. so the value will stick regardless of traders playing the positions. the crash may not be as severe as the 'return to mean' pattern suggests. some of the chinese buyers are in it for the longer term or at least until they can find somewhere else to hide their money.

 

[KlokWyze]

well uhhhh no crash yet.... im back in... lol

The exchanges are going FUCKING CRAZY. I made $400 last night alone with about $1000. I can't peel my eyes away. Looks like the Chinese are just pouring their savings into it. Might as well stay in until there are more definitive signs of a crash.