The bitcoin pyramid scheme How is that working out, where are the Lambos?

[purbeast0]

Nobody knows yet means pump n dump. Sadly people will think it is back and hop on board only to lose their shirts again.

If I ever get back to what I put in, I'm selling immediately lol.

 

[Red Squirrel]

Ethereum seems to be a bit higher too. $237.94 as of now. I have about $449.7 worth. I think once I hit over 1k I will consider cashing out. Either through mining or the rate going up.

 

[Staples]

Nobody knows yet means pump n dump. Sadly people will think it is back and hop on board only to lose their shirts again.

Well I am considering the growth trends since the burst in Jan 2018. All those false breakouts have been a 2 day pump followed by the overall downward trend. If you look at it this time, it has been upward for a month. There is good reason to believe this time may be different than last year.

 

[ultimatebob]

A lot of the little No Name cryptos like Nimiq have doubled in price (from a tenth of a penny to two tenths of a penny) as well. I doubt that they'll stay there long, though.

 

[Walaanehh]

The owner of bitconnect.com got arrested in India for $14 billion ponzi scheme using bitcoins

 

[allisolm]

I don't do cryptocurrencies so I don't know how much this means, but for those of you who deal in them apparently the IRS is looking at you.


IRS is going after cryptocurrency users with warning letters about back taxes
https://www.cnn.com/2019/07/26/tech/irs-cryptocurrency-taxes/index.html

 

[gill77]

It means that if you ever sold any bitcoin or used it to purchase something, you have a tax liability, unless you did so at a loss.

The liability exists, it is just a matter of if, when and how the tax man cometh.

Huge accounting pita.

 

[DrMrLordX]

I don't do cryptocurrencies so I don't know how much this means, but for those of you who deal in them apparently the IRS is looking at you.

. . . and that's why I already reported my Ethereum gains to the IRS last year. And why it's so hard to use Bitcoin (or anything similar) as a routine unit of barter.

 

[Red Squirrel]

I don't do cryptocurrencies so I don't know how much this means, but for those of you who deal in them apparently the IRS is looking at you.


IRS is going after cryptocurrency users with warning letters about back taxes
https://www.cnn.com/2019/07/26/tech/irs-cryptocurrency-taxes/index.html

Unfortunately even here in Canada it's taxed too. Quite ridiculous really, but does not surprise me. Governments always find new ways to tax us and purposely make it as complicated as possible to encourage mistakes so they can then fine us. It makes trading very complicated too because they want you to pay taxes for each transaction. Not even sure how that's suppose to work, since it's not real money, but you need to somehow put a value on it at the time of the transaction and track that. Not even sure how you would go about submitting that. Not like you get a form in the mail. It's also not a good idea to move money around wallets if you don't need to since that counts as a transaction as well.

Either way it also means you need to make sure your transactions always yield a big enough profit in order to cover taxes otherwise you could lose money fast. I wanted to experiment with doing lot of micro trades but it's really not worth the hassle.

I'm technically suppose to claim taxes on everything I'm mining but I don't even know how to do that. My tax person told me to not even bother, she does not know what crypto is and the dollar amounts I gave her are too small to bother with. Hopefully the CRA does not come after me. Once I mine enough to make it worth cashing in I'll cash in and then just get out of it completely while I'm ahead.

 

[OCGuy]

Well since I am the only one who possibly got a Lambo out of it...... If anyone with an active Coinbase account hasn't taken the quiz invites for free $$$, You will be helping a certain 8 year old lady who is learning about this stuff...cheers.

https://coinbase.com/earn/xlm/invite/qfwcy417

https://coinbase.com/earn/eos/invite/7fxds49w

 

[DrMrLordX]

@OCGuy

If I did get lambo-type money you can rest assured that I didn't use it to buy a lambo . . .

 

[Red Squirrel]

I decided to retire my mining rig the other day. Sitting at 2.45 eth which is around $675.24 as of now. My hydro bill recently shot up from $140/mo to $280/mo, part of that is probably more the A/C and not my mining rig as it's been a hot summer, but to try to bring my bill back down I really need to conserve more in the next 6 months or so until they readjust the equal billing again so turning off the mining rig is part of that.

I was slowly making money and if I had more GPUs I think I'd be doing better, but really the tax implications started to worry me more and more. Not dealing with small <$100 amounts anymore, I'm close enough to 1k which might raise flags. The money is technically not in my name right now and not sure how far the CRA goes to track wallets to an IP and to a person but I think I'm probably safe if I just offload the wallet's content to someone else.

Not sure what I'll do yet. The issue is a lot of people who say they are giving crypto away are scammers so I need to figure out a way to do it that people won't think I'm scamming them. Probably just do a Youtube contest of sorts or something, but my channel is kinda small.

Was a fun run though, and it gave me an excuse to build a system. Now I can just purpose it for something else. I might convert it to a gaming rig or something.

 

[ultimatebob]

I decided to retire my mining rig the other day. Sitting at 2.45 eth which is around $675.24 as of now. My hydro bill recently shot up from $140/mo to $280/mo, part of that is probably more the A/C and not my mining rig as it's been a hot summer, but to try to bring my bill back down I really need to conserve more in the next 6 months or so until they readjust the equal billing again so turning off the mining rig is part of that.

I was slowly making money and if I had more GPUs I think I'd be doing better, but really the tax implications started to worry me more and more. Not dealing with small <$100 amounts anymore, I'm close enough to 1k which might raise flags. The money is technically not in my name right now and not sure how far the CRA goes to track wallets to an IP and to a person but I think I'm probably safe if I just offload the wallet's content to someone else.

Not sure what I'll do yet. The issue is a lot of people who say they are giving crypto away are scammers so I need to figure out a way to do it that people won't think I'm scamming them. Probably just do a Youtube contest of sorts or something, but my channel is kinda small.

Was a fun run though, and it gave me an excuse to build a system. Now I can just purpose it for something else. I might convert it to a gaming rig or something.

If you only have about $600 (now more like $500) worth of Ethereum, I'd probably just buy something like a few Amazon gift cards with it and unload your stake that way. With that small amount, you really don't need to worry about the tax man coming after you.

Now, if you're only making $50,000 a year and suddenly you somehow have enough money in your checking account to actually buy a Lambo... that's a different story.

That said, does anyone else find it odd that only Bitcoin seemingly held it's value and most of the other cryptocurrencies tanked? The only thing Bitcoin has going for it is name recognition... the transactions are slow, the transaction fees are high, and the mining process is a total waste of electricity. It always kinda sucks when the worst technology seems to win, but that seems to be the case here.

 

[Staples]

Yes, BTC is definitely version 1.0. Others are version 3.0 and getting better as time goes by. Bitcoin will always remain proof of work and has no intention of innovating which makes it pretty terrible now and 10 years from now even worse. Not only does it have the most name recognition, people seem to think it was fairly distributed so it is one of the only “legit” currencies.

oh, can’t forget those who love it because it is the most secure proof of work coin based on distributed hash power.

 

[ponyo]

If you only have about $600 (now more like $500) worth of Ethereum, I'd probably just buy something like a few Amazon gift cards with it and unload your stake that way. With that small amount, you really don't need to worry about the tax man coming after you.

Now, if you're only making $50,000 a year and suddenly you somehow have enough money in your checking account to actually buy a Lambo... that's a different story.

That said, does anyone else find it odd that only Bitcoin seemingly held it's value and most of the other cryptocurrencies tanked? The only thing Bitcoin has going for it is name recognition... the transactions are slow, the transaction fees are high, and the mining process is a total waste of electricity. It always kinda sucks when the worst technology seems to win, but that seems to be the case here.

It's winner takes all market. Market thinks Bitcoin will win.

 

[DrMrLordX]

That said, does anyone else find it odd that only Bitcoin seemingly held it's value and most of the other cryptocurrencies tanked?

Many of the other crypto coins/tokens were based on a non-currency model that didn't prove out. Or has yet to do so, anyway. Plus Bitcoin Maximalists are a stubborn bunch.

 

[JM Aggie08]

tO tHe MoOn

 

[Rifter]

As long as the darknet markets keep taking bitcoin as main currency it isnt going anywhere. That said XMR(monero) is taking over now and bitcoin is loosing traction even on the darknet.

 

[Red Squirrel]

I had to hire SpaceX to put some of my lambos on Jupiter, was running out of room in my garage. I'm debating on if I want to build a bigger garage, or just buy Jupiter. I think the ring around it would make a cool race track.

 

[JEDI]

I had to hire SpaceX to put some of my lambos on Jupiter, was running out of room in my garage. I'm debating on if I want to build a bigger garage, or just buy Jupiter. I think the ring around it would make a cool race track.

psst.. 1st world problem thread is that way ----->

 

[ultimatebob]

It seems to me that this currency is unstable in its value, but it is very convenient in its functionality

The funny thing is that Bitcoin is not at all that convenient to buy stuff with. Most places won't take Bitcoin for payment, and the for the few that do you either have to wait forever for your transaction to process or give a big tip to get it to process faster.

There are plenty of other cryptocurrencies out there that can process transactions cheaper and faster, although none of them currently have Bitcoin's name recognition.

 

[CZroe]

The funny thing is that Bitcoin is not all that convenient at all to buy stuff with. Most places won't take Bitcoin for payment, and the for the few that do you either have to wait forever for your transaction to process or give a big tip to get it to process faster.

There are plenty of other cryptocurrencies out there that can process transactions cheaper and faster, although none of them currently have Bitcoin's name recognition.

This is either an ESL student's assigned post or a clickfarm/guerilla marketing account. Either way, the "functionality" is has over regular currency is that it is effectively untouchable for regulations or governments or law enforcement.

 

[ultimatebob]

This is either an ESL student's assigned post or a clickfarm/guerilla marketing account. Either way, the "functionality" is has over regular currency is that it is effectively untouchable for regulations or governments or law enforcement.

Yep... I spent the last 19 years making thousands of posts here just to have a platform to badmouth Bitcoin. You got me, dude

Also, you might want to try Googling the FBI bust of Silk Road. The "government" is having no trouble tracking illegal Bitcoin transactions and shutting them down.

 

[CZroe]

Yep... I spent the last 19 years making thousands of posts here just to have a platform to badmouth Bitcoin. You got me, dude

Also, you might want to try Googling the FBI bust of Silk Road. The "government" is having no trouble tracking illegal Bitcoin transactions and shutting them down.

I'm talking about the 1 post user who baited you... and subsequently me... into responding. Just making it clear that you and I were farting in the wind despite my willingness to join in.

Yes, I know all about Silk Road. I didn't say it was untraceable or private or useable without consequence. I said they couldn't regulate it (true) or take it without permission (also true). That is the "functionality" Mr. Outsider was talking about.

When someone registers to make a single post like that with no insight, no question, and only surface-level "restating the obvious" commentary, it should raise red flags.

 

[ultimatebob]

Stories like this are also scaring me. I can see a future where state sponsored cryptocurrency becomes the law of the land and the independent players get marginalized or even potentially outlawed in more restrictive governments:

China held a $1.5 million lottery to test a new digital currency

China is taking its digital currency tests to a new level by giving away more than 10 million yuan ($1.5 million) in a new lottery.

www.engadget.com

I'm looking forward to my first cease and desist order from China when I try to send someone Coolcoin there