Bitcoin hits $1,100 USD

[Dr. Zaus]

It's a thing with a known rate of inflation, an unlimited ability to divide it, and very little of it is liquid.

Demand will go up, supply will go down, and the value will approach infinite.

 

[Yakk]

if you can tell which way it's gonna go sure, but how do you know?

Well, you don't know... that's where you have to do your technical analysis and have a comprehensive trading strategy to follow to eliminate any emotional reactions.

Trading bots and "trade alert services" are a dime a dozen with the vast majority being peddled for profit being complete garbage. It's not easy and requires a solid knowledge of trading, but it can be very profitable if you know what you are doing.

If you don't know what you are doing, then I suggest don't start with bitcoins. Regular Forex trading is challenging enough, and has proper academic courses to get you started.

 

[Charmonium]

if you can tell which way it's gonna go sure, but how do you know?

I don't trade, either cryptos or anything else regularly, so I'm probably going lose something in translation, but from what I understand, in crypto trading, you can see the open order book. So IOW, you can see all of the offers to buy and sell and at what prices those offers are.

You can't do that in normal securities markets because apparently that would give you an unfair advantage. I don't really understand how but it seems an accepted fact that if you know what you're doing, you can use that information to cash in.

Now you would think, 'well, so everybody will do that.' Yeah, except not everyone has the expertise to make use of that information. So if you do, it's sort of like being the one-eyed man in the land of the blind.

 

[sdifox]

Yeah, I got out of crypto mining awhile back when the IRS started taxing it. I figured that the hassle of declaring the gains on my taxes would have offset the meager profit I was making in it at the time.

I can understand irs tacing on acquisition of said bitcoin when you mine it, but exchanging to usd is just forex, why is it capital gain?

 

[ImpulsE69]

I can understand irs tacing on acquisition of said bitcoin when you mine it, but exchanging to usd is just forex, why is it capital gain?

Probably because the price fluxes so much it is easier to tax on what you make on it, rather than just getting one.

 

[ultimatebob]

I can understand irs tacing on acquisition of said bitcoin when you mine it, but exchanging to usd is just forex, why is it capital gain?

I never really understood how I would calculate the initial basis cost for mining crypto for my capital gains. What would I use... the cost of the electricity used to mine it? The cost of the video card and computer I mined it on? A portion of the bill from my Internet provider? A mix of all the above? How would I accurately calculate that?

Of course, this is all hypothetical. Considering the types of shady businesses (drugs, kiddie porn, cryptolocker scams, etc) cryptocurrency attracts, I doubt that nobody actually declares the revenue they made from crypto mining.

 

[sdifox]

I never really understood how I would calculate the initial basis cost for mining crypto for my capital gains. What would I use... the cost of the electricity used to mine it? The cost of the video card and computer I mined it on? A portion of the bill from my Internet provider? A mix of all the above? How would I accurately calculate that?

Of course, this is all hypothetical. Considering the types of shady businesses (drugs, kiddie porn, cryptolocker scams, etc) cryptocurrency attracts, I doubt that nobody actually declares the revenue they made from crypto mining.

No need to figure that all out. Say you get one bt you get taxed at year end on the exchanged us dollar value. End of story. It is not a stock that rises or fall in value, it is just a different currency.

Not declaring your income should just be treated like any other case.

 

[WhoBeDaPlaya]

For $700k, i'd build a new room on my home to let the auditor set up shop for a while.

True enough
But keep in mind that I sold them off back around when mining had just transitioned from GPUs to FPGAs (was using the Butterfly Labs miners).

 

[quikah]

I never really understood how I would calculate the initial basis cost for mining crypto for my capital gains. What would I use... the cost of the electricity used to mine it? The cost of the video card and computer I mined it on? A portion of the bill from my Internet provider? A mix of all the above? How would I accurately calculate that?

Yes, it is just like any other business venture. You deduct whatever your expense is. Should be pretty easy to calculate, there are depreciation formula you need to use for the hardware. The consumables (electricity/internet) are a straight percentage, very simple.

 

[Imp]

You can thank China's capital controls and lack of controls on speculation in the crypto markets.

For once, I actually do agree that China is probably the main player here. Chinese seem to love buying already expensive "assets": property, stocks, now bitcoin.

As I write this BTC is at about $885.

Yep, just checked, it's pretty steady around $890. Anyone who bought over $1100 on Wednesday just lost 20%. It'll either go back up quickly or down hard like back in 2013. Doesn't even hold a candle to DRYS stock a month or so back.

 

[ImpulsE69]

Or Gold ETF's....lol.

 

[MrSquished]

Bitcoin is definitely doing better than GoPro

 

[Yakk]

For once, I actually do agree that China is probably the main player here. Chinese seem to love buying already expensive "assets": property, stocks, now bitcoin.



Yep, just checked, it's pretty steady around $890. Anyone who bought over $1100 on Wednesday just lost 20%. It'll either go back up quickly or down hard like back in 2013. Doesn't even hold a candle to DRYS stock a month or so back.

Many big BTC holders are reported to be in China. If you look at the trading candles in the last few weeks you can actually see the big transactions that set off the BTC market up & down. This has all the signs of a pump & dump which will probably end before the Chinese New Year. At which point BTC will probably stabilize again slightly lower, if it doesn't stay around $900.

 

[bbhaag]

Just saw this thread and decided to check out my wallet. Looks like it has dropped a little over the past few days but I was still able to cash out the last of my coin. Only had about $85 left in my wallet but I hadn't even logged in since August of 2015. All things considered my track record with bitcoin has been pretty good. I don't know if I'll buy or sell any more coins but it's been a wild ride over the past 3 and a half years.

 

[Imp]

China is supposedly doing shit in China which is affecting BitCoin. They're also supposedly doing shit with their currency... and stock market... and property market... and keeping dead factories/businesses alive. Oh China, is there something you won't do?

 

[Charmonium]

The joys of having a "managed" economy. Sooner or later you're going to screw the pooch.

 

[Ruptga]

The joys of having a "managed" economy. Sooner or later you're going to screw the pooch.

Which is completely different from what we do.

 

[Dr. Zaus]

Which is completely different from what we do.

Right. We leave it in the pooch and tell the pooch not to move too much... it's called soaking.

 

[MongGrel]

I guess I should have maybe bought some up when the were 3 bucks a pop, have never messed with bit coins I guess.

The exchanges on trying to redeem them has always been pretty questionable just from what I have read over time.

 

[Ruptga]

 

[Charmonium]

Which is completely different from what we do.

I see your point but there is a difference between subsidizing particular companies and giving tax incentives to particular industries. Or say directly owning commercial banks versus managing the money supply.

The difference being that in one case you're completely overriding the free market whereas in the other you're hip checking it in a particular direction. And yes, I suppose on some level you can say it's more a quantitative rather than qualitative difference but I think that at some point, govt involvement in the markets only serves to interfere with their efficient functioning.

 

[bbhaag]

I guess I should have maybe bought some up when the were 3 bucks a pop, have never messed with bit coins I guess.

The exchanges on trying to redeem them has always been pretty questionable just from what I have read over time.

It was pretty shaky in the beginning anyone remember Mt.Gox? There are sites around now though that make it less questionable but like any currency exchange there is always going to be a risk. The site I use is called coinbase. I signed up in 2013 and haven't had any issues. Sign up and buy an eighth of a coin to try it out.

 

[MongGrel]

It was pretty shaky in the beginning anyone remember Mt.Gox? There are sites around now though that make it less questionable but like any currency exchange there is always going to be a risk. The site I use is called coinbase. I signed up in 2013 and haven't had any issues. Sign up and buy an eighth of a coin to try it out.

Mt. Gox did leap to my mind, I was just watching things on the side late in the game then even.

 

[Imp]

It was pretty shaky in the beginning anyone remember Mt.Gox? There are sites around now though that make it less questionable but like any currency exchange there is always going to be a risk. The site I use is called coinbase. I signed up in 2013 and haven't had any issues. Sign up and buy an eighth of a coin to try it out.

Good 'ole Mt Gox was only a couple years ago. I remember going online to read about how people were dealing with losing all their money. Total unconfirmed but some people were saying how people they knew went out back to eat a shotgun.

 

[Imp]

Chinese government at it again and Bitcoin now down to the $700 range. Anyone who bought over $1000 now down about 25% in about a week.

http://www.bbc.com/news/business-38591929