Bitcoin Daily Discussion, December 31, 2017 |
- Daily Discussion, December 31, 2017
- New to Bitcoin? Follow these 5 simple rules.
- SegWit, Lightning Network, and Schnorr are way more important than the current price.
- The Anti Lightning Network/Segwit FUD is getting ridiculous. Please do your own research before believing FUD comments. Segwit works. LN works. 8MB blocks are for lazy Devs.
- BitMex has just liquidated and distributed their Bitcoin Cash in the form of Bitcoin to their customers.
- just found 1.5 btc in old wallet
- Happy New Year! Also, time to pay your Capital Tax! Here are all possibilities of a taxable event for cryptocurrencies. (US Residence)
- There are a lot of people selling to take profits in 2017
- Bitrefill Runs Successful Lightning Transaction Test
- Australian bank cash-reserve requirements buckle under bitcoin trading pressure.
- Worst part of New year!!
- A story to help convince you to take the long-term approach, zoom out, and hold.
- I'm getting started. Better late than never I guess.
- The Ultimate Bitcoin Article
- “The market of bitcoin never sleeps.”
- Those who would give up decentralization for convenience, will eventually have neither convenience or immutability.
- How to get kidnapped/mugged 101.
- Always Sunny in Philadelphia explains how Venezuela plans to copy Bitcoin's success with their oil-backed cryptocurrency.
- We must boycott exchanges without Segwit
- Annoyed by Bitpay's exclusive use of the Payment Protocol? Announcing the Payment Protocol Interface, a way to use the Payment Protocol without using a wallet that supports it.
- US dollar will end 2017 as worst since 2003 while Bitcoin up 1372%
- What the general public think about Bitcoin (conversation at the pub last night).
- Since SatoshiDice moved to Bcash's chain, they have accounted for 142k transactions, that's 6.5% of the transactions on the chain for the time period. Building bigger roads doesn't work.
- Fortune cookie says to HODL
| Daily Discussion, December 31, 2017 Posted: 31 Dec 2017 02:00 AM PST Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you! Daily threads are fast paced! If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow. Suggested Topics
Your price screenshots and repetitive submissions are being removed, so please stop submitting them! Please check the previous discussion thread for unanswered questions. [link] [comments]  | ||
| New to Bitcoin? Follow these 5 simple rules. Posted: 30 Dec 2017 12:16 PM PST
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| SegWit, Lightning Network, and Schnorr are way more important than the current price. Posted: 30 Dec 2017 03:45 PM PST | ||
| Posted: 30 Dec 2017 06:08 PM PST | ||
| Posted: 30 Dec 2017 07:38 AM PST
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| just found 1.5 btc in old wallet Posted: 31 Dec 2017 01:01 AM PST actually it was an old ripple wallet. back in the day on the bitcointalk forums, they gave 11k xrp to everyone in 2013... today i saw the price for xrp went up to all time highs .. I remembered i had that old wallet which I hadn't touched since then. boom 20k worth of ripple just sitting there untouched. just converted it to btc. any old school bitcoiners should check to see if you have an old ripple wallet laying around. edit - the post where i'm pretty sure i got them was https://bitcointalk.org/index.php?topic=145506.0 [link] [comments]  | ||
| Posted: 30 Dec 2017 10:10 PM PST So you Invested in some Bitcoin this year and made some sweet, sweet Fiat? Maybe you traded your Bitcoin, to Etherium. Then maybe you traded your Etherium for some Bitcoin and some Ripple. What are you taxed on? I hope to answer these questions. Selling for Fiat So the first way that you'll owe GAINS TAX is if you sold bitcoin for money, at a profit! It does NOT matter when you bought the Crypto. It only matters that you sold it in the last year. So if you bought a bitcoin 1 month ago for 8k. And sold today at 13k. You NEED to report a $5,000 on your taxable gains. Trading for Other Crypto The other scenerio when you need to report is when you trade for other other currencies. When a trade commences it is treated as you selling and then buying whatever your trading for. So if you bought bitcoin 1 month ago at 8k. And traded it to BCash today while bitcoin was 13k. It is treated that you sold the bitcoin at that price and you need to report the 5k. This might sound unfair, however the same method is used for trading rare materials (Gold, Silver), Stocks, other fiat currencies, and any other property type investments. Multiple Buys and Sells or trades... Note: If you bought Bitcoin at $8k, Sold at 13K Bought at $19k, Sold at $12K... You made $5k, then Lost $7k. So your capital gains is -$2k. You pay the total of all your transactions. Short Term Vs Long Term This is short, but if you sold (or traded) crypto-currencies that you've hedl for over 1 year that is considered a Long Term Investment. If it comes out as a negative you can carry those loses for 7 years. You can not carry loses from short term investments (Bought and sold(traded) in less than 365 days). So if you bought bitcoin 2 years ago for $20,000 (You got scammed?) and sold last month for $8k, you have a long term lose of $12,000. This $12,000 lose can be added to your income next year so your gains are less. (They carry over for 7 years). Mining For miners, Mining income is treated as self-employed income, NOT capital gains tax. When a coin is mined you report the income from the worth of the coin from when it was mined. So if you mined 1 btc (Good job...) 1 month ago at $8k. You'll report $8k under self-employed income. Say you sold that bitcoin you mined last month today for 13k. You will need to report both the 8k income, and the 5k capital gains. (These are taxed at different rates depending on your income...) Expenses are not included in the cost bases. So you WON'T subtract $100 from the 8k. However you can add any expense at the end of the year if you operate your mining operations like a LLC or somthing! Final Thoughts From my research (Professional accountant, amateur crypto-dude) these are the cases of taxable transactions. If you want Crypto-currency to be taken seriously, you need to treat it like a serious currency, which is taxable. There are ways to reduce your taxes, but I'm not going to outline them, since some of them are grey areas. Also, if you haven't been actively trying to reduce taxes until now... It's too late for 2017. Be smart. Hire a professional to assist you if you've made massive gains. It's better to pay a tax professional .05 btc than to lose all your bitcoin because you technically laundered money because of your ignorance. (That doesn't hold up in court). Disclaimer I'm just some guy typing this at my in-laws house over holiday break. Gone half crazy after spending time with them. While I am a professional accountant, I'm also a random redditor on the internet. Do your own research, or hire someone to do all this for you. I'M NOT RESPONSIBLE! Hopefully that gets the SEC and IRS off my back... Edit: Missed one... Making a Purchase When you buy something! Oh boy! So you treat this as gains from the purchase price of your coin to the sell price of your coin. So if you bought 1 btc for $8k. And you bought a new car for $8k today when BTC was worth $13k. You would pay the gains tax on what you "Sold" to buy that car. This gets complicated so I'll try to format it the best I can... You sold $8,000 worth of the bitcoin that is worth 13K. So 8/13 or .615%. Without going into FIFO or FILO options... We'll consider FIFO (Don't worry about terminology, just giving it incase YOU want to go look it up!) You'll need to take .615% of your original investment to get your cost basis. $8k * .615 = $4,920. $4,920 is the amount you'll consider that is your original investment, and you sold for 8k. So your capital gains is $8k - 4,920 = $3,080 <---- This is your taxable gains. THIS IS A TAXABLE EVENT! In regards to transaction fees... Technically The fee is part of the sale, so add that to the total of what was spent. There's a bill that is currently being looked at that will make any purchase under $600 non taxable. Until this is passed any purchase is taxable! [link] [comments]  | ||
| There are a lot of people selling to take profits in 2017 Posted: 30 Dec 2017 09:10 AM PST This is common investor behavior, it happens in every asset class. The Dow went down yesterday as well for the same reason. There are good tax reasons to sell some profits in 2017 and pay the estimated tax early - to avoid penalties. Especially with Bitcoin Cash and the uncertainty of how that will be taxed. There are also a lot of investors who are going to report and pay taxes on everything they bought and sold in the crypto world. This isn't a "Crash" - this is normal investor behavior. This is also just my opinion, but I have been investing in many things over the past 2 decades. Happy New Year! [link] [comments]  | ||
| Bitrefill Runs Successful Lightning Transaction Test Posted: 30 Dec 2017 01:46 PM PST
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| Australian bank cash-reserve requirements buckle under bitcoin trading pressure. Posted: 30 Dec 2017 04:55 PM PST /DEC 31, 2017/ Australia's "big 4" banks, dominating 83% of Australia's banking industry, stepped up their efforts to block crypto-currency trading and stem the outflow of customer cash this week, spiking a renewed wave of social-media condemnation. Banking regulation in Australia requires banks to hold a minimum of 11% cash against loans they write, so as crypto-investors move their savings out of the banking system, those banks loose their ability to legally write new loans, or worse, fall into non-compliance with their reserve obligations. The big-4 banks pay no interest (0%) to business accounts, while personal accounts earn from 0% to 1% annual interest and attract a range of fees and charges. Contrast this with cryptocurrencies, where bitcoin earned more than 1400% in 2017, and Ethereum earned above 8600% and it's clear to see why Australians have lost interest in keeping their deposits in their bank account. In just one year, a decent investment in crypto outstrips even an entire lifetime's investment in Australia's second-top performer: real-estate - a market that itself is seeing lower and lower returns, with widespread acknowledgement that it's also 30% overpriced, and on-path for a major correction in 2018. APRA, the body responsible for setting the cash reserve limits, increased the reserve limit shortly after the GFC, as Australians fearful for their funds placed heavy pressure on cash withdrawals, forcing the Australian Federal Reserve to print billions in additional cash to prevent widespread customer panic. APRA added 1% to the cash reserve minimum to help ensure the banks survive the next rush. Unfortunately, investigations reveal that interbank-loans accounts for more than 90% of their cash reserve requirements, and that when all these are taken into account, Australian banks are really only holding 1.22% in actual cash reserves. To put that into perspective - for every $12,200 invested in bitcoin, the big-4 banks need to deny or call-in $1M worth of loans. That's money that traditional investors ordinarily need for buying more houses. Australia's real-estate market is already on thin ice - it's catch-22: because houses are so overpriced, interest rates need to be kept extra low, but because rates are low and houses are overpriced, investors are now turning to alternative and better performing investments, which means less money to write loans, less people to buy houses, less chance of making money (and much higher risk) for real-estate. Australia's housing market is so overpriced that investments in Crypto are arguable less risky. So it's time for social media to stop blaming the banks for halting the outflow of cash into crypto: it's not their fault. Australia allowed banks to profit (and house prices to spike) off the back of "invented" money so long as banks hold a little bit back in cash. Now that Australia's real-estate-ponzi has reached 30% past it's breaking point, it's no wonder investors want their cash out. Don't expect the majority of Australians to shed any tears: 2017 also marked the turning point in Australia's history where house prices became so unaffordable that more than 50% of the population will never in their lifetime be able to afford one. 2018 will mark an interesting reversal of fortunes in Australia, where "Safe" is not "Houses" anymore. [link] [comments]  | ||
| Posted: 30 Dec 2017 08:26 AM PST
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| A story to help convince you to take the long-term approach, zoom out, and hold. Posted: 30 Dec 2017 06:24 PM PST A decade ago, I had been working my ass off, saved and invested a lot of money, just bought a house, and just learned my wife was pregnant. Then I lost my job and my side hustle went kaput. Then the stock market crashed hard. We couldn't afford the house and got foreclosed on. My wife and I did nothing but fight and we were stressed out 24/7. She had a miscarriage a few months later. Five months after that she left me. I cashed out half of what I had left in stocks to give to her in the divorce. I had a decision to make, do I cash out the rest of my stocks and live on my own or do I hold it all, stay in debt and live on my grandma's couch? I chose option 2, and I made a plan to get rich by investing because I believed that companies that survived would eventually flourish once again. I scraped by, and I was lucky to be on unemployment. I ended up getting a job at a place I hated but I needed to work. I saved and invested constantly, but only a few hundred dollars every few months because my pay was shitty, and I was more keen to get out of debt. During this time, I kept looking at my stocks as the way out, but I refused to cash out because I had a plan and a goal. My grandma was more than happy to have me live on that couch, and current independence was not as important as future financial independence and freedom. I eventually lost this first job within 6 months when they went bankrupt (which didn't matter as I hated it and it was just a need to stay alive), and a few months later got a new job in finance using my previous experience and education in tech and finance. Fast forward three years, I was no longer in debt, and my portfolio had more than quadrupled what it once was, and now that I was single I had a chance to just quit my job and live off of what I had. Of course I didn't, but now I had the freedom to do so. Around this time, I got into bitcoin after hearing about it from an old gaming friend of mine in 2012. At first I was a little wary of it because I didn't get it. Then I read the white paper, followed the trail, and fell down the rabbit hole. I started putting part of my allocation for stocks into it. Every crash that happened during my time in btc I would just remind myself about where I once was and where I am now, and how holding onto my assets that I believed in paid off over time. I made a decision, then a plan, and stuck to it. My plan for btc after falling I love with it was to eventually have all of my assets in crypto. I told my family and friends that one day I may have to sleep on their couches, but more than likely I will have couches for them and their children to sleep on one day no matter what happens. I will also be buying those couches with bitcoin, and the furniture store will accept it and keep that bitcoin. I still believe in my plan. As hard as it is to see such large usd shifts in my cryptfolio, I just remember that I have a goal and a plan. My goal has not been achieved yet because we still talk about exchange btc for fiat and I still look at my portfolio in terms of fiat. When we get to using btc as the primary means of exchange AND store of value then I will be satisfied. I will buy those couches for my friends and family if they ever need it. Most importantly, I will buy a new couch for my grandma and a new house in California close to where my grandpa is buried to go with it. If you believe in bitcoin and how it will shape the future, make a plan, stick to it, and remember that there is nothing wrong with sleeping on somebody else's couch. [link] [comments]  | ||
| I'm getting started. Better late than never I guess. Posted: 30 Dec 2017 10:43 PM PST
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| Posted: 30 Dec 2017 08:26 AM PST
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| “The market of bitcoin never sleeps.” Posted: 30 Dec 2017 06:47 PM PST
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| Posted: 30 Dec 2017 11:10 PM PST Something to think about. If you truly believe in the decentralised project that is bitcoin, you will be patient. Decentralization is the most important trait. Every. Single. Time. [link] [comments]  | ||
| How to get kidnapped/mugged 101. Posted: 30 Dec 2017 07:05 AM PST
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| Posted: 30 Dec 2017 06:50 PM PST
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| We must boycott exchanges without Segwit Posted: 31 Dec 2017 02:28 AM PST The division and inertia in the community are a serious danger for BTC future. Good forks must be successful and widely adopted or else we might get replaced by some shitty centralized coin. Most widely used exchanges have no motivation to adopt forks if the community does not threat their profits. Those who refuse to adopt new technologies must perish or adapt. Could someone post some newbie friendly advice on which exchanges to change to?
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| Posted: 30 Dec 2017 09:02 PM PST Bitpay's recent announcement of exclusively using the Bitcoin Payment Protocol (BIP 70) has caused some irritation. No longer can you just send to an address. Now you must use a wallet that supports the protocol, but switching wallets is not all that easy to do. Well never fear, today I am announcing the Bitcoin Payment Protocol Interface. This is a piece of software which lets you interact with the payment protocol manually so that you don't have to switch to using a new wallet software. The program will take in a bitcoin URI (such as the ones that Bitpay gives out) and it will fetch the payment request data. It then decodes it and shows it to you. You will get to see the addresses to send to and how much. Then, by just following the instructions, you will be able to complete the protocol manually instead of needing a wallet which supports it. The project is written in Python and has both a command line interface and a GUI. It can be found on Github: https://github.com/achow101/payment-proto-interface The project is open source and available under the MIT License. Parts of this project are borrowed from Electrum; those parts are also licensed under the MIT License. [link] [comments]  | ||
| US dollar will end 2017 as worst since 2003 while Bitcoin up 1372% Posted: 30 Dec 2017 01:12 PM PST
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| What the general public think about Bitcoin (conversation at the pub last night). Posted: 30 Dec 2017 02:09 PM PST Me: you guys heard about Bitcoin and all that crypto stuff? Mate 1: yeah it's a bubble Mate 2: yeah it's just crashed because the owner sold it Mate 1: yeah it's a terrible sign when the owner sells his shares so it's definitely a scam Mate 2: there is another one called ethretum that is well better Mate 1: I wanted some but the ship has already sailed Mate 2: why you asking do you have any? Me: yeah it's worth x10 when I bought in so I'm going to leave it for a while Mate 1: cash out, it's a bubble Mate 2: definitely Just thought you would be interested in what the average joe seems to think about this bubble crash owner dump. [link] [comments]  | ||
| Posted: 31 Dec 2017 01:20 AM PST Out of curiosity I pulled the number of transactions on SatoshiDice's addresses, total amount was ~142k transactions on 109 days. I also pulled the total amount of transactions on the chain for the same period: 2.2m transactions. When you do the math that equals to roughly 7 days worth of blocks to run a single service. Thought that might give you guys some perspective as to why building better modes of transportation is a better solution that just bigger roads (google "induced demand"). [link] [comments]  | ||
| Posted: 30 Dec 2017 10:26 AM PST
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