Bitcoin Discussion Thread Part 2

jojo69

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there was some kind of dif increase factored into that but when a new gen of ASICs hit LOL it just goes nuts

not really, now that we are on custom bare metal the easy gains are had

from here on we have die shrinks and incremental tweaks to architecture, expect future gains more in line with Moore's law, not the kind of quantum leaps we saw from CPU to GPU to ASIC

I fully expect to purchase 28-25nm 4u rack infrastructure late this summer that will operate profitably, albeit marginally so, for 3 years or better.
 

atp1916

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13MH/s of GPUs going manual on new scrypt coins coming out.

3 days. ASICs can kiss it.

 
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mkrohn

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Is that bitcoin?

looks to be a coinbase screenshot. For all we know the guy saved up coins for a while then just exchanged them today. Yesterday I had a good day with my 10Mh and made .21 for that actual day so 13 should average in the .18/day or so over the past like 14 days. My middlecoin stats have been linked on here several times and I haven't had to do any juggling at all
 

atp1916

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The screenshot i posted above was me mining out and exchanging Klondike / Leaf / Smartcoin to BTC over the past few days.

The exchange websites i use are:
CoinEx
CoinedUp
Poloniex
Coinmarket.io
Crypto-trade

I do not "save up coins for a while" and then "exchange them today" to impress people here. I posted that screenshot beacuse i want to show what kind of profit people can make going GPUs and hitting new Scrypt coins as they come out. I could have gone MC, and MC has been good lately - but wanted to show that there is even more profit in this method than even MC.
 

mkrohn

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So .......

how the heck does this work when I'm doing my taxes?

Quick summary is if you take the money out and into your bank account it is then INCOME, just like a paycheck. You will have to grab enough "expenses" to take care of the taxable income but you are now officially running a business out of your home.

Traditionally if its a small sum people just ignore it and hope they don't get audited and in that case the worst thing that happens is you have to pay whatever that is for your tax bracket.
 

oblox

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Quick summary is if you take the money out and into your bank account it is then INCOME, just like a paycheck. You will have to grab enough "expenses" to take care of the taxable income but you are now officially running a business out of your home.

Traditionally if its a small sum people just ignore it and hope they don't get audited and in that case the worst thing that happens is you have to pay whatever that is for your tax bracket.

Plus penalties of course.
 

Schro

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Plus penalties of course.

Depends on how much you owe at the end of the year. In most cases, if you've withheld more than you did the prior year and/or you owe less than $1k, there won't be a penalty.
 

vsboxerboy

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Well, I guess part of the question is how to calculate my gain. Because each exchange has different rates, I'm at a disadvantage because I bought from CampBX and then did a bunch of trading at Mt. Gox before trading it for USD via Coinbase. Using FIFO on the trades given the rate quoted by the exchange and not accounting for trade fees, I get a taxable obligation ~14k from realized gains. However, I only really withdrew 10k. But that 10k withdrawal means that the IRS surely was notified.

So do I treat it as if it were stock and I realized gains of 14k, or do I go with the 10k that I withdrew? I still have some money in BTC which is why those two numbers aren't the same.
 

lilfiend

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Well, I guess part of the question is how to calculate my gain. Because each exchange has different rates, I'm at a disadvantage because I bought from CampBX and then did a bunch of trading at Mt. Gox before trading it for USD via Coinbase. Using FIFO on the trades given the rate quoted by the exchange and not accounting for trade fees, I get a taxable obligation ~14k from realized gains. However, I only really withdrew 10k. But that 10k withdrawal means that the IRS surely was notified.

So do I treat it as if it were stock and I realized gains of 14k, or do I go with the 10k that I withdrew? I still have some money in BTC which is why those two numbers aren't the same.

btc isn't regulated under stock trading, just declare the amount you withdrew as income. So long as you weren't trading BTC>bank in usd then you should be fine.
 

vsboxerboy

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^ That seems to make the most sense. In any rate, it's less than the worst case scenario but still solid enough logic should it ever come into question so I'm comfortable with it.
 

Schro

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btc isn't regulated under stock trading, just declare the amount you withdrew as income. So long as you weren't trading BTC>bank in usd then you should be fine.

The IRS has not made any official statements about how they plan handling the tax implications of BTC. Either way, the sale of BTC to USD in a trading environment is a taxable event without regards to whether it hits your bank account or not. I would imagine that it would be treated the same way as ANY asset (including stocks, widgets, video cards and charcoal grills). When you sell it, your gain/loss from the sale is realized (proceeds minus basis) as either a short term or long term capital gain. In this scenario, buying BTC would not be a taxable event.

I think what you were trying to say is that BTC to USD transactions are not currently reported to the IRS in any manner, therefore, your reporting of those transactions is on the honor system.

^ That seems to make the most sense. In any rate, it's less than the worst case scenario but still solid enough logic should it ever come into question so I'm comfortable with it.

Its only solid if you don't share your transaction level detail with the IRS in the event of an audit.
 

Lorien

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Scan, the largest online computer hardware store in the UK now accepting bitcoin payments:

http://www.scan.co.uk/info/bitcoin


P.S: The whole bitcoin system is being attacked on several fronts. Exchanges specially are being hit pretty hard from a griefer DDoSing trying to exploit the transaction malleability glitch. Having said that I welcome any and all panic selling, I'm up over $700 in pure profits. Thank you for allowing me to fully repay my pair of 290Xs well ahead of schedule :D
 
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lilfiend

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The IRS has not made any official statements about how they plan handling the tax implications of BTC. Either way, the sale of BTC to USD in a trading environment is a taxable event without regards to whether it hits your bank account or not. I would imagine that it would be treated the same way as ANY asset (including stocks, widgets, video cards and charcoal grills). When you sell it, your gain/loss from the sale is realized (proceeds minus basis) as either a short term or long term capital gain. In this scenario, buying BTC would not be a taxable event.

I think what you were trying to say is that BTC to USD transactions are not currently reported to the IRS in any manner, therefore, your reporting of those transactions is on the honor system.
I wouldn't report crypto>crypto, I don't even know how I'd get a history of my trades to report it if I needed to.
 
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Lorien

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ekuest

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ive been following BTC for a while and even mined for a few days almost 3 years ago (yeah i know, should have stuck with it) but my electricity in hawaii is like 4 or 5 times what it is on the mainland so i gave it up pretty quickly as not profitable. i dont care to get into mining now as it is still not worth it here, but i wouldnt mind investing in BTC a little bit and riding the ups and downs. what do you guys think about the future volatility? for the past few days it seems i could buy at 650 and sell at 700 pretty easy on multiple cycles, but what if i just buy in now and sell when it hits 1000, or even 2000? think that will ever happen? or is the new value gonna stay for a while? just wondering what your thoughts are. imho i think the value will go back up to $1000+ someday, but even so i dont want to invest a ton, just a couple coins. would be more of a hobby than a moneymaking scheme.
 

Orddie

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hell... Im happy about tigerdirect accepting BTC. Did my first checkout the other day for a power meter... everything went as expected and I got delivery already. :D
 

ekuest

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Buy at 500 and if it goes lower, buy more.

heh yeah if it goes that low i definitely will get 6-10 coins. havent seen it happen yet though. lowest ive seen was around $650. what's the quickest and most secure exchange to use to buy a couple coins?
 

oblox

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heh yeah if it goes that low i definitely will get 6-10 coins. havent seen it happen yet though. lowest ive seen was around $650. what's the quickest and most secure exchange to use to buy a couple coins?

I like initially buying through Coinbase, especially being that you are a US citizen.
 

atp1916

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Coinbase is definitely the best for US-based bitcoin transactions to and from fiat.

They are registered with FINCEN.
 
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