Toledo Talk

Toledo Bitcoin Discussion

This is something I haven't seen here so curious of all your input. As you might know I'm a programmer and sys admin. I'm pretty well on top of tech so been riding this wave since Jan.

I invested $60 in SHA asics, but CPU/GPU mined scrypt mostly dogecoin. But now I'm a big blackcoin guy,

Anyway it's an interesting phenomenon. As an avid "stock market" amateur. but never going to market this has been a godsend.

No more brokerage fees or regulations just purely brain vs market.

Not including electricty cost but my ASICS were old when I bought them and lower power.

Any way in 6 months I turned $60 investement into $1200. In fact I quit my job last week due it being insane and immoral. I cashed out just 1/4 of it and have $300 in my wallet no conjured from thin air.

As a programmer I'm REALLY loving this! Plus as an long term market watcher. In fact I even wrote my own program to watch the market on 2 exchanges and trade on my behalf... and know what? It's making me MONEY

While I sleep I am getting money while I am not daytrading in cryptocoin, Anyway this is REALL new wave. But curious if anyone else in TT land is mining/trading :)

created by INeedCoffee on Aug 06, 2014 at 05:18:11 am     Comments: 10

source      versions


Comments ... #

I don't trust it

posted by shamrock44 on Aug 06, 2014 at 06:31:12 am     #  

I wouldn't put any money into bitcoin. The price is too volatile for my taste.

The comment about no government regulations will look foolish pretty soon. Some countries are already regulating bitcoin. The US is not far behind. Contrary to the claims of its supporters bitcoin is not anonymous, so when the regulations come you can bet the IRS will become involved. Are you ready for this? Additionally some governments view bitcoin as a tool for money laundering. Are you prepared for the consequences of investing money viewed by many governments as a money laundering tool?

I like the idea of bitcoin, but the government will never tolerate a currency outside its control. Please keep that in mind the next time a virtual currency is introduced and plan accordingly.

posted by tolbuck on Aug 06, 2014 at 07:26:13 am     #  

While I am intrigued with the emergence of virtual currencies, I would not approach them with anything more than the level of expectation a person should have when entering a casino. Sure, you might get lucky and wind up with a pocket full of cash, but only bet what you can afford to lose.

posted by historymike on Aug 06, 2014 at 08:02:37 am     #  

It is volatile but that is good for day trading. I was overstating "unregulated" but I was comparing it to traditional markets like forex, stocks, bonds, etc.

A lot of people were upset with the SCOTUS decision this spring but personal I was excited about it. The US now considers bitcoin/crypto currencies like any property and is taxes 15% like stocks. So in my eyes they legitimized it.

I do keep a well documented paper record. Though I reinvest my profits and believe you only have to pay taxes once you cash out. With the caveat you have to hold the BTC for 1 year before it can be taxed as a capital gains.

Still fun, I wouldn't ditch my 401k for bitcoin but it's an amazing community to be part of. Was mostly curious if others around here were into it and spark a discussion.

posted by INeedCoffee on Aug 06, 2014 at 07:30:27 pm     #  

"you have to hold the BTC for 1 year before it can be taxed as a capital gains."

That's interesting. Can you suggest an IRS pub regarding appreciated assets or other source that I can use to go learn more about that?

posted by justread on Aug 06, 2014 at 07:35:53 pm     #   2 people liked this

IRS Notice 2014-21 addresses bitcoins and other virtual currencies.

The link goes to an IRS PDF file, so don't freak if your popup blocker goes batty.

posted by historymike on Aug 06, 2014 at 08:08:20 pm     #  

justread posted at 07:35:53 PM on Aug 06, 2014:

"you have to hold the BTC for 1 year before it can be taxed as a capital gains."

That's interesting. Can you suggest an IRS pub regarding appreciated assets or other source that I can use to go learn more about that?

Publication 550 discusses investment income and expenses. Any asset that you buy for an investment is a capital asset; but a long term (held one year or more) capital gain has a more advantageous tax rate than a short term capital gain (less than one year).

posted by MrsArcher on Aug 06, 2014 at 08:09:19 pm     #  

Fricken-fracken; let's try this IRS link, which sends you to the page where the PDF is located.

posted by historymike on Aug 06, 2014 at 08:10:20 pm     #  

Thanks MrsA and Mike.

The IRS is pretty clear in IR-2014-36 that bitcoins are property and not currency. Might as well be a rare book. Or a breeding mare.

I have failed to find a one-year grace period for the tax-free liquidation of an appreciated piece of property.

In fact, it appears to be the opposite.

Hmmm.

posted by justread on Aug 06, 2014 at 08:20:57 pm     #  

you lost me at Bitcoin

posted by BulldogBuckeye on Aug 07, 2014 at 04:42:53 pm     #