Bitcoin goes legit by the IRS
- Thread starter jazzc
- Start date
- Mar 10, 2010
- 42,695
- 107,107
I've not gone anywhere near them due to the chance that they would be considered some kind of fraud or some such thing in the eyes of the Feds here and that ruling with the IRS makes sense to me. Imagine that, an IRS ruling that makes sense.
madoctopus
Supreme Member
- Apr 4, 2010
- 1,388
- 3,709
This means it 's not going to end up banned like weed
Lets hope it stays popular like weed
But for real I was not expecting them to not ban it. I guess they prefer to tax it. Maybe they though is too much hassle to ban it completely so let's at least tax it.
thejake
Power Member
- Nov 13, 2009
- 683
- 832
All the IRS really did was make some US-based pool operators nervous, there really hasn't been much ambiguity about how you should account for crypto transactions, just ignorance. It's the same IRS who clarified about 10 years ago how you should account for your income selling or producing crack, and reiterating that no business expenses for illegal activities are deductible. For the average person crypto money was and still is a line 21 item. Coinbase has been processing BTC transactions for almost two year now, they weren't sitting there waiting for somebody to explain tax accounting to them. Also the IRS didn't legitimize trading, at all, that would be the business of folks like the CFTC, and I'm sure in the wake of all the shady dealings on so many exchanges those folks will wake up soon.
Botwiz
BANNED
- Apr 24, 2009
- 4,112
- 2,084
Just shows the real agenda. So you will be able to trade your bitcoins/fiat for USA coins or whatever the government based crypto will be.
Already seeing places in the UK trying to do the same thing. Along with exactly what kim dot com is trying to do as well.
Already seeing places in the UK trying to do the same thing. Along with exactly what kim dot com is trying to do as well.
Patel
Senior Member
- Mar 1, 2011
- 1,154
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Care to elaborate?
As far as i know it looks like movement in a good direction but theres still a lot to work out, almost every time people talk about it everybody says something different and if they tax miners at the moment the get their payouts AND if they ever exchange it it would make just about every coin unprofitable and unfavorable.
Botwiz
BANNED
- Apr 24, 2009
- 4,112
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Sure I'd be happy to. Lets put things in perspective this was put together by some group/government/etc. (speculation)
So you build this idea and allow it to blossom then ensure it is adopted and infiltrates all countries regardless of a ban or warnings/etc. using heavy media attention.
Then as more adoption occurs atms, btc banks, exchanges, more alt coins, etc. you roll out stage 2. Which is the government based crypto that then becomes the standard for each country/globally. Then you do a smear campaign of sorts to undermine all the rest. Whether that is hacking or killing off exchanges or certain regulations or what have you. The government is more then creative.
Its pretty easy to understand. To me that seems like the road this is going down. Of course my opinion/perspective could be completely wrong though it definitely has plenty of signs pointing in my general belief at this point.
CustomBotShop
Senior Member
- Dec 1, 2013
- 1,101
- 251
This isn't really news.
The IRS has had the same tax policy on crypto-currency for 100+ years. It's called the barter system and you'll be taxed accordingly.
The IRS has had the same tax policy on crypto-currency for 100+ years. It's called the barter system and you'll be taxed accordingly.
Patel
Senior Member
- Mar 1, 2011
- 1,154
- 1,519
I see what your saying. I am thinking you're referring to HullCoin. Personally, I think the longer that Bitcoin is "the one", the better. Because more people will have a stake, causing a higher network effect. If so many people get attached to Bitcoin, when GovCoin comes out, people will be weary to switch because they are already financially, and emotionally invested in Bitcoin.
Plus, if GovCoin has the same characteristics as Bitcoin (similar algo's and open source), it won't be nearly that bad.
During the Senate hearings a few months back, Fred Wilson (investor of Coinbase) particularly pointed out that corporations and governments will try to release their own coins, but ultimately they will fail unless they have the same characteristics and Bitcoin and open source in nature. And the public won't adopt these coins because of it. It may trick the noobs who don't know what open source and algorithms are, but it definitely won't trick the technical people who have picked up knowledge of how altcoins and bitcoins projects work. Example, premines, inflation, open source, decentralization. The people who do see the flaws in GovCoin (smart money) will still use Bitcoin.
But to be honest, rather than this scenario playing out, I think its a higher chance that Bitcoin is already GovCoin/CorpCoin. Think about it, Satoshi(??) took the premine, the development and mining is highly centralized. Few developers, few pools, few pool owners controlling all the hashing power. The devs are policing and stopping protocols that add additional functionality into Bitcoin like Counterparty and Mastercoin. Taint is already developed for Bitcoin from the start. Fungibility is here now, but it won't always be there. Mike Hearn wrote some posts a while back visioning how miners can censor certain addresses that are on blacklists which are enforced by governments, and not include their transactions in blocks. There's your GovCoin.
But I think there will be plenty of options for everyone in the future. Even if Bitcoin becomes more centralized. People who want to use Bitcoin can, and people who want to use alts will too. Things like NXT, Ethereum, NEM, XCP, MSC, DRK, Zerocoin/cash and the most important Open Transactions will have a significant share of the crypto market. We'll see how it all plays out, these are all my opinions not to be used as financial advice.
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MrBlue
Senior Member
- Dec 18, 2009
- 975
- 695
IMHO Gox was artificially driving up the price (see theory linked below) as well as the demand in China which has since been curtailed by their Government. Now that these two factors are no longer at play the price is coming back down to reality and of course panic selling only exasperates matters.
Code:
https://bitcointalk.org/index.php?topic=497289.0
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jazzc
Elite Member
- Jan 27, 2009
- 2,964
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I don't see the point. You already have a global currency (the dollar) and a global electronic transaction system (visa, mc etc).
Botwiz
BANNED
- Apr 24, 2009
- 4,112
- 2,084
Abolish the debt potentially, finally get the amero/global currency in motion aka govcoin. Those are a few things that come to mind.
I honestly hope that I'm wrong as I do hold a nice stake of btc/alts so I want to see nothing but success. Just tossing out a semi biased/opinionated view on where this could potentially go.