Ethereum GPU mining?

[Red Squirrel]

That sucks, guess I'll avoid playing with that then. I don't even know how to claim it, and there's not really much info out there, not to mention I'd lose more than what I make unless there's a HUGE increase in price so I can make like a 100% return, otherwise it's not really worth it.

Come to think of it... what about real stocks, is that taxable? I never even thought of it. I recently started trading a bit, but most of my stocks are long term so I only bought, but I did cash in some. What is involved in claiming that and how much do you claim? Or do stock brokers send you some kind of form in the mail for that so I can just give to my tax person?

 

[VeryCharBroiled]

not sure on stocks, might depend on how you bought it.

if you just mine with a gaming rig or two mining at night or when youre not around would be an easy way to collect some alt coins, just to hold or mess around with for fun.

mining is taxed on the usd value of the payout amount when you get paid from the pool and is treated as regular income. so even small amounts technically should be reported to the irs. but again with the small amount a typical game rig (single 1080ti say, mining 16 hours a day) would make.. 20-40 bucks worth a month.. maybe.. i wouldnt worry too much.

anyway i just hand everything to my cpa. there are programs/web sites that will gather all your trades from exchanges and check mining payout addresses and generate the proper forms/files to hand to the cpa or import to your tax program.

 

[Red Squirrel]

Hmmm good to know such programs exist. Though will they work for Canada or are they specific to US tax laws?

 

[IntelUser2000]

I thought you were in Canada?

For trading you just have to figure out net profit from all your trading for 2017. Now I don't know the intricacies for tax details, but overall you really only need to find out your net gains.

Selling shares in a company are treated the same way as selling cryptos. 50% of your gains are taxable. Your losses from previous years are counted as Capital Loss and they can be used to reduce taxable income.

Here's the site I used for figuring out Crypto gains: https://bitcoin.tax/

Input the exchanges you used for trading/buying/selling, and the mining pool used to earn Cryptos. You can then figure out your total gains/losses.

Here's an example:
-You sold $10K worth of Crypto
-After which you traded 50 times in 2017 for a total gain of $500, now you have $10500
-You earn $35K annual from your day job
-Total taxable income is: $35K + $10,500(0.5) = $40,250

Now the amount you pay on your taxes for 2017 is based on your income of $40,250. The tedious part(and slightly difficult) is adding and subtracting numbers from your trades to get the total amount.

 

[Red Squirrel]

Holy crap is the rate really 50%? Bunch of crooks that's ridiculous. I'm in Canada but I assume the tax thing is similar. The CRA does mention that crypto is taxable but they really don't give you much details on what you're suppose to actually do and how to report it.

And why does my day job even factor into that? So do I end up paying tax twice on my day job too just because I'm dealing with crypto? Do I pay taxes on the gross income or the net income? what goes in my bank). I'll have to talk to my tax person though, maybe here in Canada it's not as bad. It sounds like the states are really cracking down on crypto.

 

[IntelUser2000]

Holy crap is the rate really 50%? Bunch of crooks that's ridiculous. I'm in Canada but I assume the tax thing is similar. The CRA does mention that crypto is taxable but they really don't give you much details on what you're suppose to actually do and how to report it.

And why does my day job even factor into that? So do I end up paying tax twice on my day job too just because I'm dealing with crypto? Do I pay taxes on the gross income or the net income? what goes in my bank). I'll have to talk to my tax person though, maybe here in Canada it's not as bad. It sounds like the states are really cracking down on crypto.

No, that is for Canada. I'm in Canada too, remember? BC to be more precise.

I think from the tone of your paragraph, you are misunderstanding a few things here.

-You aren't going to pay 50%, that's the taxable amount.
-From the perspective of the CRA, income is income. Again you aren't paying twice.

Refer to the CRA site: https://www.canada.ca/en/financial-...al-toolkit/taxes-quebec/taxes-quebec-2/5.html

There are Provincial and Federal tax rates, but for the sake of simplicity let's just talk of Federal tax rates.

$45,916 or less = 15%

That means if you earned $45,000 by working, you'll fall under the bracket of having to pay 15%.

If you didn't work day jobs at all, but got your money entirely by selling Crypto/Stocks, you need to sell $90,000 for the same taxable amount of 15%. That's what I mean by 50% is taxable.

Comprende?

 

[Red Squirrel]

Oh ok I thought taxable amount was just a different word for rate. So the rate is based on my job income too, like it's not separate? I would have figured it would be two totally different things. This is just so complicated, that's why I always get a pro to do my taxes lol.

I'd probably be better off doing this as a business, since I'd be able to claim losses, like computer hardware and hydro.

Like right now I won't be seeing any kind of ROI for at least a year, so if I did it as a business don't think I'd end up having to pay any taxes since businesses only pay taxes on net income.

 

[IntelUser2000]

Oh ok I thought taxable amount was just a different word for rate. So the rate is based on my job income too, like it's not separate?

Yep. You got it.

I would have figured it would be two totally different things. This is just so complicated, that's why I always get a pro to do my taxes lol.

Yea it can get complicated. Like the numbers I gave are for just the Federal. There are Provincial taxes too. Then there are basic rates which are used as a deduction. Then there's CPP/EI.

Here's a calculator for 2017: http://www.ey.com/ca/en/services/tax/tax-calculators-2017-personal-tax

At least it does the math for you. The T4 slip you get at the end of the year has your day job numbers.

I will admit governments are greedy. They double tax you. You pay tax on your income from your hard work, then when you use to buy stuff using the leftover, they tax you again using sales tax. Regarding dividends, the company pays tax on the income they earn, and they pay dividends from that. From the dividends they take away 15% of it if you own american shares, and from leftover it counts as a capital gain which are added to your income to be taxed again.

 

[VeryCharBroiled]

Here's the site I used for figuring out Crypto gains: https://bitcoin.tax/

yup thats what i used. pretty painless.

well except for the numbers it gave me that i will be taxed on. that part sucked.

 

[IntelUser2000]

So the Ledger Nano S arrived today.

Took about an hour to set it up. Of course I had to figure out myself the deal about 24-word recovery. I first selected 12-words and wondered why it didn't work. You have to choose the right amount of words to recover. Did it a total of 3 times, first two to figure out its operation, and third to verify transactions(by sending a tiny amount).

Didn't get MEW. Just used a chrome app.

 

[WiseUp216]

Just in case you hadn't seen the recent announcement - https://www.ledger.fr/2018/02/23/announcing-new-ledger-wallet-desktop-mobile-applications/

The Ledger desktop app will be coming soon to replace the Chrome extension.

 

[thilanliyan]

Just in case you hadn't seen the recent announcement - https://www.ledger.fr/2018/02/23/announcing-new-ledger-wallet-desktop-mobile-applications/

The Ledger desktop app will be coming soon to replace the Chrome extension.

That's cool, but I'm not sure if I like the idea of not having to connect the device to see balances. Wouldn't that defeat the purpose of plausible deniability?

 

[Feld]

That's cool, but I'm not sure if I like the idea of not having to connect the device to see balances. Wouldn't that defeat the purpose of plausible deniability?

You don't even need a ledger app to check your balances. Just put the public address into a block explorer, like etherscan.

 

[IntelUser2000]

That's cool, but I'm not sure if I like the idea of not having to connect the device to see balances. Wouldn't that defeat the purpose of plausible deniability?

No, because your records are still online in your public address. The private address is what's needed to access your account and stays on your device.

 

[Red Squirrel]

Damn, eth really took a dump. Under 1k now. Hopefully long term it starts to climb again.

 

[IntelUser2000]

There are hundreds of cryptos out there. Attention and money can potentially be divided in hundreds of different ways. Ethereum needs to show real progress towards being able to handle much more transactions per second and credible ICOs that are more than just money grabbers. Most ICOs make it look like pre-dot-com bubble companies where they aren't even worth a dollar.

 

[Feld]

There are hundreds of cryptos out there. Attention and money can potentially be divided in hundreds of different ways. Ethereum needs to show real progress towards being able to handle much more transactions per second and credible ICOs that are more than just money grabbers. Most ICOs make it look like pre-dot-com bubble companies where they aren't even worth a dollar.

I'd say the abundance of crappy ICOs is more a function of crypto being largely unregulated rather than anything to do with Ethereum itself. Over 90% of ICOs are done on the Ethereum platform, so of course most of the bad ones will be there just as a by product of most of everything being there.

Scaling is coming. Here is a presentation just from today about proof of stake and sharding from one of the main guys working on those things, Vlad Zamfir. https://www.reddit.com/r/ethereum/comments/82yde9/vlad_zamfirs_correctbyconstruction_casper_slides/

I expect significant scaling to be live this year. Other so-called "Ethereum Killers" don't scare me, because for one thing, Ethereum has nearly all the developers already and has the flexibility to add any good tech some other blockchain might come up with, but also because all the other chains that offer faster transactions per second right now are seriously sacrificing decentralization in exchange for that speed. With all the transactions being routed through a small number of powerful nodes, users are forced to trust those nodes to be honest. It undermines the entire basis of cryptocurrency and public blockchains. Might as well just stick with Paypal and the like in that case.

 

[Red Squirrel]

I wonder how many of these ICOs are just slightly modified versions of ethereum. I have a hard time believing that many people are coming up with cryptos that fast. It is a serious undertaking to develop something like that.

 

[IntelUser2000]

I wonder how many of these ICOs are just slightly modified versions of ethereum. I have a hard time believing that many people are coming up with cryptos that fast. It is a serious undertaking to develop something like that.

Most ICOs are indeed based on an Ethereum ERC20 token. I think there's about hundred different ERC20 projects out there. Ethereum is indeed the dominant crypto for ICOs.

But there are actual, hundreds of different cryptos out there. Some can be mined with GPUs, some are ASIC mined like Bitcoin, some are just offered, like Stellar.

 

[SimianR]

I'm actually kind of hoping the prices dip lower and retreat for awhile, as an opportunity for others to invest and for the GPU market prices to recover to normal levels.

 

[ultimatebob]

Damn, eth really took a dump. Under 1k now. Hopefully long term it starts to climb again.

As of the time I'm writing this, it's now under $700. Which wouldn't be so bad, except that the mining difficulty is still through the roof.

It seems like mining this stuff is no longer profitable enough for me and my insanely overpriced Connecticut electricity. What are all the cool kids mining nowadays?

 

[Neurodog]

I'm split getween ETH and NiceHash mining. I might stop mining this spring but for now I have it heating my house and power is cheap here in Quebec,Canada.

I'm talking a break from checking Blockfolio...the price drop is hard to take.

 

[DrMrLordX]

Damn, prices are dropping to the levels where I sold out. Doesn't make me feel any better though. I might have to take the miner rigs down in this keeps up.

@Feld, I have to say I am a little disappointed with how slowly they are moving on sharding. Buterin et al were trading banter earlier this year about how they had testnet-ready code that could get sharding implemented for 10k/s transactions "today", but nobody has even bothered trying it out yet. The LN project showed us how things can get out of hand quickly, so some caution is understandable, but . . . they need to do something to attract attention to the product, unless they just don't care that ETH value is dropping.

Maybe the EF and most "serious" Ethereum developers don't care about that.

 

[IntelUser2000]

I have to say I am a little disappointed with how slowly they are moving on sharding. Buterin et al were trading banter earlier this year about how they had testnet-ready code that could get sharding implemented for 10k/s transactions "today", but nobody has even bothered trying it out yet.

They've got quite a ways to go. Sharding according to Vitalik has 4 phases of development. The first phase is split into 4 parts, and they announced in January the first part is done, and second part would be done in about a month. They've been quiet since then. Well, there's the deleted twitter message.

Maybe the EF and most "serious" Ethereum developers don't care about that.

I'd rather see their way of doing things than developers that hype to the moon. Arguably, even at $600 it begs the question whether it has that kind of value. When it rose to $300 with the advent of ICOs, I think it made sense. But the rise to $1200? For what exactly? It echoes the statement by Vitalik when he asked the community whether the crypto community deserved to have that big of a valuation. I know a few folks that are into crypto and there always seems to be a feeling that they are using tech/decentralization as a way to justify having great amounts of money into it.

Ignore the tech. At the moment all cryptos are store of value. The governments are retarded, and interest rates are record low, so people moved to cryptos.

How long until we are past that and into real world? I'm thinking 5 to 10 years, and that's a start. I do want to know that EF has a solid plan though.

 

[Red Squirrel]

My mining rig is probably still profiting, in the sense that it's also adding "free" heat to the house so even if I'm breaking even it's something, not that it really makes much difference though.

Going to keep mining though as if the prices go up I can just sell then. will keep it as eth for now. I did convert some to CAD a while back, tempting to just rebuy more eth now with that money.