The U.S. Government Tried To Shut Down Bitcoin

Tax information for Bitcoin and other crypto-currencies

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My Provisional List of COVID Anomalies, Red/ False Flags & Clear Indications of Scumbaggery And Scambuggery. LIHOP, MIHOP Or HOAX/SCAM? Def Not As Described. Very Much Updated Since 1st Posting. Please Let Me Know What I’ve Missed Or Add Links. Repost, Due To Strange Disappearance of 90% Of My Post.

My Provisional List of COVID Anomalies, Red/ False Flags & Clear Indications of Scumbaggery And Scambuggery. LIHOP, MIHOP Or HOAX/SCAM? Def Not As Described. Very Much Updated Since 1st Posting. Please Let Me Know What I’ve Missed Or Add Links. Repost, Due To Strange Disappearance of 90% Of My Post.
Here’s my Top 22 list of suspicious shenanigans and red flags surrounding the COVID narrative:

  1. The Imperial College Death data - Neil Ferguson and Gates-funded Imperial College, London Model that ‘persuaded’ Johnson and Trump to lockdown. Projected 500K deaths in UK and 2.2m deaths in US, EVEN WITH LOCKDOWN. Less than 10% accuracy but 110% alarmist, and evidence that the coding was deliberately flawed and designed to inflate numbers. Gates funding everyone involved in the staged 'debacle'.
https://www.dailymail.co.uk/news/article-8164121/Professor-predicted-500-000-Britons-die-coronavirus-accused-having-patchy-record.html
https://www.telegraph.co.uk/technology/2020/05/16/coding-led-lockdown-totally-unreliable-buggy-mess-say-experts/
https://www.ukcolumn.org/article/who-controls-british-government-response-covid19-part-one
https://www.corbettreport.com/gates/
Ferguson, with a terrifyingly consistent track record for hyping minor viruses that fail to transpire into pandemics (Swine Flu, Bird Flu, BSE etc), failing upwards as a ‘safe pair of hands‘.
https://statmodeling.stat.columbia.edu/2020/05/08/so-the-real-scandal-is-why-did-anyone-ever-listen-to-this-guy/
https://www.thesun.co.uk/news/11565369/useless-professor-neil-ferguson-antonia-staats/
EDIT: the material below has now disappeared twice, so I’m reposting with the 95% that disappeared some minutes ago....
2) Ferguson’s blasé attitude to his affair during lockdown - clearly not too worried for his lovers’ family, if he genuinely believed COVID was a threat. No "error of judgement", just a man who knew there was nothing to fear.
https://www.theguardian.com/world/2020/may/06/ministers-hypocrisy-over-neil-ferguson-lockdown-affair
3) Hospitals cleared of patients in readiness for a pandemic that never came. Desperate for cash, doctors and nurses were financially incentivised to put down patients dying with/ of COVID on death certificates to gain payments. In US $13,000 per patient, and $39,000 per patient on ventilator etc.
https://www.tweaktown.com/news/72070/this-is-how-much-hospitals-are-making-if-patients-have-coronavirus/index.html
Footage of empty hospitals worldwide: https://www.youtube.com/watch?v=wrJ9yaUOVKs
Nurses furloughed, sent home for suspected virus without testing. Nurses - with nothing better to do - on TikTok etc:
Nurses slammed for filming TikTok showing them carrying coronavirus 'body-bag':
https://www.mirror.co.uk/news/world-news/nurses-slammed-filming-tiktok-showing-21960411
https://www.youtube.com/watch?v=EMHU6MtPVqQ etc
4) Games played with age and numbers, proof that only the elderly and very sick elderly were dying, but less of pneumonia and flu than in previous years. Median age of 79 in US and 82 in UK. Meanwhile whole country on lockdown.
"The median age of the deceased in most countries (including Italy) is over 80 years (e.g. 86 years in Sweden) and only about 4% of the deceased had no serious preconditions. The age and risk profile of deaths thus essentially corresponds to normal mortality."
https://swprs.org/a-swiss-doctor-on-covid-19/
https://medium.com/wintoncentre/what-have-been-the-fatal-risks-of-covid-particularly-to-children-and-younger-adults-a5cbf7060c49
(table from 2/7 down the page...)
5) When this became apparent, initial scare stories in press about children dying of virus, later proven to have no merit, just to ensure the hysteria was generalised. Meanwhile, probability of a child dying from the 'virus' is 35m to 1.

https://preview.redd.it/ufir9p8nx8c51.png?width=2224&format=png&auto=webp&s=32ab3b0b0a83f3010abd9c6baf381f589bcc7c9b
"The second row shows that 2 deaths have been recorded among over 7 million school children aged between 5 and 14 (around 1 in 3.5 million), an extremely low risk — although additional deaths may be reported following coroners’ investigations. Over the last five years, there has been an average of 94 deaths registered over this 9-week period for those aged 5–14, and so the 2 Covid deaths represents only 2% of the normal risk faced by this group. That is, whatever average risk they would have faced in these 9 weeks if Covid had never existed — a risk which was extraordinarily low — was increased by Covid by only 2%."
from: https://medium.com/wintoncentre/what-have-been-the-fatal-risks-of-covid-particularly-to-children-and-younger-adults-a5cbf7060c49
https://www.telegraph.co.uk/news/2020/06/08/kawasaki-like-disease-affecting-children-caused-coronavirus/
https://www.dailymail.co.uk/news/article-8264135/UK-says-children-died-syndrome-linked-COVID-19.html
https://www.dailymail.co.uk/news/article-8316223/Up-100-British-children-mysterious-inflammatory-disease-linked-COVID-19.html
https://www.dailymail.co.uk/news/article-8278963/Ill-youngsters-directly-exposed-corona-victims-refused-tests-medics.html
6) The ludicrous claim that they had never considered economic and psychological DEATH toll of lockdown.
Admission they knew 200,000 lives to be lost due to lockdowns:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1232869/
"One of the most consistent themes that emerges from the minutes of SAGE meetings is how the Government repeatedly expected its scientists to account for the economic impact of lockdown restrictions – even though SAGE was not doing any economic modelling."
https://bylinetimes.com/2020/07/03/sagegate-part-one-treasury-and-downing-street-advisors-delayed-covid-19-lockdown/
Then on 20th July, the admission:
Official government estimates indicate more than 200,000 people could die as a result of lockdown and Covid’s impact on the NHS, it has been reported.Forecasts made in April calculated that 12,000 to 25,000 people could die from delays to treatment in the first six months of the pandemic, with another 185,000 deaths in the medium-to-long term.
Like they never considered this until AFTER the lockdown!
https://metro.co.uk/2020/07/20/coronavirus-lockdown-cause-200000-extra-deaths-13014848/
7) Doctors globally openly being told they can save paperwork and earn money by basing cause of death on ASSUMPTION of COVID, based on the vaguest of pretexts and symptoms.
https://www.inquirer.com/health/coronavirus/coronavirus-covid19-cause-death-certificate-pcom-20200401.html
https://www.rollingstone.com/culture/culture-features/anti-vax-doctor-covid-19-death-certificates-984407/
https://www.youtube.com/watch?v=tlGkCABfyLw
Also, from the UK...Health Secretary Matt Hancock calls for urgent review into coronavirus death data in England.
It follows confirmation from Public Health England that reported deaths may have included people who tested positive months before they died.
https://www.bbc.co.uk/news/health-53443724
8) The propaganda campaign against any form of alternative to vaccine (Vitamin C and D, African cures, HCQ etc)
Here’s the NIH admitting in 2005 that Chloroquine was effective against SARS:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1232869/
“The Government’s leading body for Covid19 drug trials – led by the controversial character Professor Peter Horby – Oxford’s Professor of Emerging Infectious Diseases and Global Health and heading the vaccine programme - stands accused of grossly misleading negative trial results for the coronavirus management drug Hydroxychloroqhine. (Conflict of interest, surely?)
The lead story in today’s France Soir – a long-respected and unaligned French daily – presents compelling evidence to suggest that the Whitehall/Cabinet Covid19 “advice” team cannot be trusted….and raises yet more doubts about BBC complicity in a false Coronavirus narrative.”
https://jonsnewplace.wordpress.com/2020/06/22/explosive-more-uk-covid-experts-facing-serious-data-manipulation-charges/
http://www.francesoir.fsociete-sante/remdesivir-une-molecule-dinteret-therapeutique-tres-discutable-sur-le-covid-19-partie ( in French)
The [Lancet’s] claim that hydroxychloroquine increases the risk of death in Covid-19 patients has been used by rivals as a stick to beat the US President, who has himself been taking the drug and hailed it a 'game-changer' in the war on coronavirus.
Mounting doubts over the study's reliability culminated yesterday when the authors retracted their study from the Lancet medical journal, whose editorial standards have also been thrown into question.
https://www.dailymail.co.uk/news/article-8391779/Lancet-paper-warned-against-Covid-19-drug-flares-accusations-political-point-scoring.html
“The Deputy Chief Investigator of the Recovery Trial, Prof. Martin Landray, gave an interview to France-Soir. What he revealed was quite remarkable.
Firstly, the mortality rate of the hydroxychloroquine patients was a staggering 25.7%.
The recommended hydroxychloroquine dose for an adult in the UK is no more than 200 — 400 mg per day. In France, 1800 mg per day is considered to be lethal poisoning.”
https://www.ukcolumn.org/article/the-hydroxychloroquine-scandal
https://time.com/5840148/coronavirus-cure-covid-organic-madagasca
https://www.livescience.com/coronavirus-vitamin-c-myth.html
9) The saturation of Gates into the narrative at every level.

https://preview.redd.it/3l08bdluole51.png?width=2224&format=png&auto=webp&s=d0311ee6b5d4df63d81c18801e740516fdf963e3
His hallowed and unquestioned presence in media as expert, the only Moses who can lead us out of this wilderness with his magic potions, release us from our prisons with his benevolence. His financial connections through BMGF to NIH, CDC, WHO, BBC, Guardian, CNN etc and of course every pharmaceutical company in existence....
https://www.corbettreport.com/gates/
Amazing Polly (pretty much every video this year):
https://www.youtube.com/watch?v=gm19xYwJ2nQ
Next year Gates will be the largest funder of WHO :
https://www.usnews.com/news/articles/2020-05-29/gates-foundation-donations-to-who-nearly-match-those-from-us-government
Gates funding of Impossible burger just in time for lockdown beef shortages in the US:
https://www.cnbc.com/2019/03/08/bill-gates-backed-impossible-burger-ceo-patrick-brown-on-fighting-meat.html
“A biometric digital identity platform that “evolves just as you evolve” is set to be introduced in “low-income, remote communities” in West Africa thanks to a public-private partnership between the Bill Gates-backed GAVI vaccine alliance, Mastercard and the AI-powered “identity authentication” company, Trust Stamp.”
https://www.mintpressnews.com/africa-trust-stamp-covid-19-vaccine-record-payment-system/269346/

BBC compromised:

“Transforming lives through media”? Gates and the CIA? Can we give up the pretence that neutral Auntie speaks for - or represents - us and our best interests?


Charities and foundations - without transparency, oversight and apparently universally trusted. Call your genocidal plans ‘charity’ and not only will you look like a philanthrApist, but people will even donate to their own demise.

https://www.bbc.co.uk/mediaaction/about/funding
EDIT: For further information, I just found this webpage:
https://unitynewsnetwork.co.uk/revealed-bbc-charity-receives-millions-in-funding-from-gates-foundation/
UK Guardian compromised:
Hear the Guardian is regrettably letting 180 staff go this week. Hopefully BMGF can find them suitable homes...
https://hectordrummond.com/2020/05/22/the-bill-and-melinda-gates-foundations-sponsorship-of-the-guardian/
From the article:
“This story came from a Guardian sub-section called ‘Global Development‘.
But then I came across this 2010 Guardian story about how the Guardian has started up this new ‘Global Development’ site in partnership with… the Bill and Melinda Gates Foundation.
https://www.thelibertybeacon.com/how-bill-gates-buys-mainstream-outlets-journalists-and-fact-checkers/
https://www.cjr.org/criticism/gates-foundation-journalism-funding.php
So much information on Gates...almost “paralysed” with possibilities. Ideas?
10) Recent US and UK stories where people clearly dying of other things - cancer, suicide, motorcycle accidents etc are ascribed to COVID. Officially, George Floyd’s death should have been ascribed to COVID, since I believe he tested positive during autopsy. Might have led to a very different world...
https://cbs12.com/news/local/i-team-deaths-incorrectly-attributed-to-covid-19-in-palm-beach-county
https://cbs12.com/news/local/man-who-died-in-motorcycle-crash-counted-as-covid-19-death-in-florida-report
https://www.independent.co.uk/news/world/americas/george-floyd-death-autopsy-coronavirus-protests-a9548386.html
HighImpactFlix video about case number “massage” and motorcycle anomalies:
https://www.youtube.com/watch?v=olz03OPeijM&feature=youtu.be
11) Recent US and UK stories of the deceitful practices by which:
i) the case numbers are conflated with all death numbers on certain days
ii) Dying "of" vs "with" COVID
iii) anyone who dies after testing positive is a COVID death
iv) cases being reported and subliminally conflated with deaths by the media, when death numbers fell too low to keep the public sufficiently terrified to accept coming measures
v) case numbers merely made up or inflated by a factor of ten, in Florida’s case last week.
https://www.cebm.net/covid-19/why-no-one-can-ever-recover-from-covid-19-in-england-a-statistical-anomaly/
Too many to include all here, but the recent Florida 'mistake' is here:
https://www.dailywire.com/news/florida-labs-found-significantly-inflating-positive-covid-testing-rate
https://www.youtube.com/watch?v=ta7g8BgKAXE
If this is a genuine event, what possible reason would there be to commit fraud in so many ways to keep it looking genuine, besides the need to control demolish the world economy and vaccine-shill?
12) Event 201. Drill gone live. Nuff said.
https://www.centerforhealthsecurity.org/event201/videos.html
CORBETT REPORT:
https://www.corbettreport.com/mml2020/
Amazing Polly:
https://www.bitchute.com/video/7O5RylrMUV8F/
13) The fact that there have been no surprises at all since the crisis began. Every next step had been telegraphed in the media well in advance. Everything began with the notion that a vaccine would be the only solution and the narrative has remained remarkably consistent to Event201.
14) Even with all of these statistical somersaults, the death numbers this year are not far from what they’ve been in previous years. Pneumonia and flu deaths are suspiciously down.


2020 - 6509 flu deaths in five months (Feb-June)
2020 - 6509 flu deaths in five months (Feb-June)
https://www.statista.com/statistics/1113051/number-reported-deaths-from-covid-pneumonia-and-flu-us/
Compared with:

2019- Flu killed 34,157 - more than twice amount for a similar period of five months this year.
2019 Flu killed 34,157 - more than twice amount for a similar period of five months this year.
https://www.statista.com/statistics/1124915/flu-deaths-number-us/
MUCH, MUCH MORE DATA NEEDED HERE....
15) That in the space of four months, they have managed to capitalise on this crisis and remove so many rights from us permanently. An opportunity for which they’ve been waiting for years, COVID sped up the process and kept us otherwise preoccupied.
Here is my list of achieved or achievable hidden agenda:
In no particular order:
  1. Controlled demolition of the stock market/ global economy. Global reset etc
  2. Transhumanist/ AI rollout (post-human, Gates patents for human batteries linked with cryptocurrency (60606). https://news.bitcoin.com/microsoft-cryptocurrency-system/
  3. Vaccine adulation and promotion (Gates etc promising vaccine = release from captivity - pharmaceutical companies in league with WHO to drum up mandatory sales)
  4. Expediting the climate change agenda, conflating it with the virus as a call for world government and global sustainability.
  5. Plus RFID/ ID2020 tracking through vaccines (mark of the beast, without which no transaction/ employment will be possible)
  6. Demonisation and eradication of cash (total financial dominion)
  7. Mass unemployment and Universal Credit system linked to Social Credit.
  8. Bank (and corporate) bailouts – this time round it looks legitimate and necessary, no public outcry.
  9. Using and conditioning us to the concept of quarantining as a future method of control should there be any hint of unrest.
  10. Cultification of the NHS to the point of a unifying religion (clapping and donations and lionisation of medical staff during what must be the quietest time in their history)
  11. Legitimation of multiculturalism and immigration (race-baiting through NHS and volunteers, #youclapforusnow
  12. A shot in the arm for the MSM and government as a whole: no longer irrelevant and dying, people watching 24-7 since pandemic. Taking attention away from alternative media.
  13. Privatisation of NHS/ public services – corporations will step in to ‘save’ us (public gratitude replacing scepticism)
  14. Makes government look noble and heroic (wartime/ WW2 mentality fostered)
  15. COVID19 as cover story for 5G radiation/ environmental pollution/ vaccine damage etc
  16. Mass Surveillance – using 5G ‘for our safety’ to track and trace
  17. Opportunity to pass draconian laws against human rights (assembly, sectioning, travel, speech)
  18. Social alienation/ conformity as preference/ patriotic duty
  19. Prevention of assembly in order to protest draconian laws
  20. Depopulation in stages (elderly first, then with vaccines and suicides/ bankruptcy etc due to system collapse)
  21. Censorship of social media and social discourse in general
  22. Installation of 5G during lockdown to avoid scrutiny
  23. Effecting the transition of the workplace, shopping district and school to the home, ending community and all nourishing human interactions.
  24. The ‘new normal’ - social revolution and culture creation through social distancing/ queuing for shops/reinvention of the word essential/ mask wearing etc
  25. Destruction of small and medium sized businesses and the high street in general
  26. Fauci’s early dismissive comments about virus, herd immunity and futility of masks, before the script was revised.
https://www.dailywire.com/news/watch-fauci-in-march-masks-make-you-feel-a-little-bit-better-but-unnecessary-for-general-population-warns-of-unintended-consequences
”You don’t need a mask.”:
https://www.youtube.com/watch?v=NUHsEmlIoE4
To the NEJM, he described COVID in March as a flu, with similar numbers predicted to suffer.
“WOW! Dr. Fauci in New England Journal of Medicine Concedes the Coronavirus Mortality Rate May Be Much Closer to a Very Bad Flu”
https://www.thegatewaypundit.com/2020/03/wow-dr-fauci-in-new-england-journal-of-medicine-concedes-the-coronavirus-mortality-rate-may-be-much-closer-to-a-very-bad-flu/
Why the u-turn? Surely we define our experts by their consistency.
F William Engdahl article:
https://fort-russ.com/amp/2020/04/shedding-light-on-the-dishonorable-record-of-dr-fauci-a-real-mengele/
Christine Grady (Fauci’s wife) and her sinister connections to NIH and Gates:
https://www.youtube.com/watch?v=jkYen0g4TRU
17) Boris Johnson, Matt Hancock and Nadine Dorries - The statistical chances (14%) of three members of the UK Cabinet (made up of 22 people), including the prime minister, actually catching it and one almost dying apparently, right before reversing his decision to let it pass.
https://www.spectator.co.uk/article/full-list-of-senior-government-figures-affected-by-coronavirus
https://www.bbc.co.uk/news/uk-51827356
A very intentionally dramatic start to our lockdown, announced by Johnson from his "death-bed", ensuring all were in the appropriate state of panic:
"Boris Johnson: Hospital doctors were ready to announce my death"
https://www.politico.eu/article/boris-johnson-hospital-doctors-were-ready-to-announce-my-death/
18) Meanwhile, racism knocks the virus off the front pages and our minds for a few weeks, but we’re meant to go right back to taking it seriously when requested.
https://summit.news/2020/06/05/1200-public-health-experts-sign-letter-advocating-mass-gatherings-because-white-supremacy-is-a-bigger-threat-than-covid-19/
19) The many proven fake media stories...of long lines for testing and hospital footage from NY, mannequins in beds etc
https://www.thedailybeast.com/cbs-news-accused-by-project-veritas-of-faking-footage-in-michigan-coronavirus-testing-report
https://www.youtube.com/watch?v=3BUBTtUTOII
https://nypost.com/2020/04/01/cbs-admits-to-using-footage-from-italy-in-report-about-nyc/
https://www.reuters.com/article/uk-factcheck-video-operating-dummy-coron/partly-false-claim-video-shows-doctors-operating-on-a-dummy-to-exaggerate-extent-of-coronavirus-crisis-idUSKBN21P2Q8
20) International care home scandals - Deliberately mandating coronavirus carriers into crowded care homes to bump up death toll and concomitant hysteria, kill off elderly...murder?
"It is remarkable how many deaths during this pandemic have occurred in care homes. According to the Office for National Statistics, nearly 50,000 care home deaths were registered in the 11 weeks up to 22 May in England and Wales — 25,000 more than you would expect at this time of the year. Two out of five care homes in England have had a coronavirus outbreak; in the north-east, it’s half.
Not all these deaths, however, have been attributed to Covid-19. Even when death certificates do mention it, it is not always clear that it is the disease that was the ultimate cause of death..."
https://www.spectator.co.uk/article/dying-of-neglect-the-other-covid-care-home-scandal
Her daughter Linda hit out at what she called a “scandalous” policy to release coronavirus patients into care homes and called for her mum’s death to be investigated as part of a wider review."
https://www.dailyrecord.co.uk/news/health/scots-gran-who-died-covid-22172074
Also, more than 40% of US ‘virus‘ deaths occur in nursing homes:
https://thehill.com/homenews/news/504885-over-40-percent-of-us-covid-19-deaths-are-linked-to-nursing-homes-nyt
21) (thanks to Reddit’s lawofconfusion!) Ventilators - All of the sudden, a clamour for them generated panic demand and buying.
“88% death rate among Covid-19 patients in the New York City area who had to be placed on mechanical devices to help them breathe.”
https://www.bloomberg.com/news/articles/2020-04-22/almost-9-in-10-covid-19-patients-on-ventilators-died-in-study
https://off-guardian.org/2020/05/06/covid19-are-ventilators-killing-people/
22) Testing inconsistencies:
Half of CDC Coronavirus Test Kits Are Inaccurate, Study Finds.
”The study... found that the testing kits gave a 30 percent false-positive rate and a 20 percent false-negative rate.”https://www.msn.com/en-us/health/medical/half-of-cdc-coronavirus-test-kits-are-inaccurate-study-finds/ar-BB16S6M6
“According to the creator of the PCR test, Kary Mullis himself, it cannot be totally and should never be used as a tool in “the diagnosis of infectious diseases.”
https://www.weblyf.com/2020/05/coronavirus-the-truth-about-pcr-test-kit-from-the-inventor-and-other-experts/
Tanzania scandal and the goat/ papaya ‘positive‘ testing (they had to put in the religious dig as a debunking attempt here, didn’t they?):
https://news.sky.com/story/coronavirus-tanzania-testing-kits-questioned-after-goat-and-papaya-test-positive-11982864
Also, this about CT testing irregularities:
https://www.thewesterlysun.com/news/covid-19/connecticut-says-it-found-testing-flaw-90-false-positives/article_91811362-a9b3-53ab-9485-00067ce9e0d5.html
Funny how all the “mistakes” err on the side of positive...

submitted by secretymology to conspiracy [link] [comments]

How to reduce your crypto capital gains by 50%

Not a clickbait title. I've imported my trades in Contracking.info (so they all have transaction IDs) and I've toggled "Group all purchases by day" and "Use Depot separation (tax lots)". The difference between one combination and another was 20% in short-term capital gains. Not bad. We're not even going into FIFO vs. LIFO.
Then I switched from FIFO to LIFO (which is legal since the 2019 guidance, more specifically Q38 & Q39 in this IRS FAQ), for a further reduction of another 30%.
The best combo has been HPFO with "Group all purchases by day". The difference between that and the worst method (LAFO) is 9.5x. As in, financially ruined, vs. actually able to pay.
UPDATE1: At the end of August, Cointracking introduced an "optimized" price calculation method ("OPTI"). It reduces my gains for some years, and increases them in others in which I only had losses. May be worth using it if,
From the CryptoTrader.tax link above,
It’s important to note that the IRS likes to be retroactive when it issues guidance. For instance, Notice 2019-24, which was the most recent guidance released that provided clarity to this specific identification question, was issued in 2019, but still can be applied to transactions that took place before 2019. This means that certain taxpayers who used FIFO in previous years may be able to reasonably go back and amend previous years tax returns using a different, specific identification costing method.
From the IRS FAQ, A39:
You may identify a specific unit of virtual currency either by documenting the specific unit’s unique digital identifier such as a private key, public key, and address, or by records showing the transaction information for all units of a specific virtual currency, such as Bitcoin, held in a single account, wallet, or address.
UPDATE2: I've written a separate post comparing different crypto tax accounting methods after I finished entering all my 14,000+ transactions. HPFO won.
UPDATE3: I've tested HPFO in Cointracking.info vs. HPFO in Bitcoin.tax. Cointracking won by about 10%. I guess this might be due to the "group by day" feature. BUT, Bitcoin.tax won by a landslide overall, because it allows selecting different accounting methods per asset (e.g. HPFO for BTC and AVCO for ETH). This has saved me thousands of dollars compared to Cointracking.info.
TL;DR:
QUESTIONS:
  1. Is all of this right, or am I missing something? 'Cuz it does sound like a bit of a joke that just by toggling some settings in Cointracking, e.g. "Group by day", you can literally end up (not) having to pay tens of thousands of dollars.
  2. Where on your tax return do you report the accounting method used, or how you've identified the trades?
submitted by bigoaktrees to CryptoTax [link] [comments]

Vertextrades.com Review: 2%-3.5% each working day for 50-75 working days

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Invest $20001–100000, earn 3.5% each working day for 50 working days and principal included
These are all the plans Vertextrades.com provides. Since trading takes place only 5 days a week, you will receive return on investment from Monday to Friday. I think the most suitable plan is the first one for all investors, because you only need $30 to start your investment journey. Let me take an example:
if you deposit $100, then you can earn 2% daily from Monday to Friday, and you can withdrawal or reinvest the money at any time as your willings. After 75 working days, you will earn $150 totally and initial deposit included. That is to say, your net profit will be $50.
Promotional Rewards
Referral Bonus
Existing clients can earn referral bonus by introducing new clients. Vertextrades.com pays 10% referral bonus if the person whom you have referred makes a deposit. Referral bonus is paid instantly. Even the accounts that are not having active deposit are eligible to get referral bonus. The referral bonus will be credited directly to the E-wallet upon the completion of the registration and investment process of the members present down the line.
Binary Matching Bonus
Binary matching bonus will be credited only to the accounts with active deposits. Binary matching income is calculated every 24 hours. Please refer the binary chart for different binary matching slabs.
In binary plan, the new clients are placed below the introducer (referrer) to the left or right side (left or right sub-tree). The tree of a Binary Network Plan will have two legs-left and right; but if a member recruits more than two, then the additional member will be added to the next member down-line. This concept allows the additional member to be shared with down-line member (power leg) and the one who recruited them. This is referred to as spillover. With respect to profit leg, there won’t be a spillover as the profit leg will be expanded with individually sponsored downlines. The binary plan is mostly quantity oriented and not based on the levels.
If you register through my personal link, then 10% of your deposit amount will be transferred back to your personal wallet. So don’t forget to submit your RCB request from top menu section on my website, I will transfer the money to you once admin processes my withdrawal request.
Payment Options
Vertextrades.com accepts PerfectMoney, Payeer, Bitcoin, Litecoin, Ethereum, BitcoinCash. Please remember that Bitcoin Payment takes 6 Confirmation in Blockchain. After Bitcoin deposit, it might take anywhere from 1 minute to 3 hours for the funds to be credited in your Vertex Trades account.
Withdrawal Type
The withdrawal processing time after withdrawal request is 48 hours, and the minimum withdrawal amount is 10 USD. Vertextrades.com charges a total of 10% withdrawal fee while transferring the funds from Vertex Trades E- wallet to your e-currency account. However, no fee is charged for internal transfer, i.e., transfer of funds from one Vertex Trades Account Balance to another Vertex Trades Account Balance, so you can use the internal transfer instead of withdrawal function to save the 10% fee. But remember that only use this function with your trusted friends to keep your money safe.
Whois Information
Domain Registration: 2020/01/23–2023/01/23
IP Address: 192.124.249.20–1,541 other sites hosted on this server
IP Location: California — Menifee — Sucuri
ASN: AS30148 SUCURI-SEC, US (registered Feb 13, 2015)
Summary
Vertextrades.com runs its website on an original template, and it now supportes 20 languages. Like most projects, admin also registered a UK company called “VERTEX TRADES LTD”, and you can check its certificate clicking here. From its investment plan, we can know that its profit is not too high, but from its promotional rewards, we can see profitable rewards for promoters. From the picture below, we can see that there is only 8 monitors although it has already operated for 92 days, maybe admin has his own promotional methods.
If you have more questions, you can contact admin through its online chat box or the contact info I wrote below.
Contact Info
https://www.facebook.com/vertextrades
https://twitter.com/Vertextrades
https://www.youtube.com/channel/UCmMJMXI4lduhYFf6jDJtJ_w
https://t.me/vertextrades
[email protected]
Register: https://vertextrades.com/registeVT44231665/right
From: https://www.hyiper.net/blog/183.html
submitted by vipinvestor1988 to u/vipinvestor1988 [link] [comments]

Tinfoil hat time... Don't take seriously, or do I guess. Whatever, I'm not your mother. This would make for a great story though.

The creator of the game, "Plague Inc" was interviewed for a CDC blog post from 2013.
How did you ensure it was a realistic game?
Without a medical background, I did a lot of online research in order to make sure it felt realistic to players. Luckily, I have always been very interested in biology as well as economics and current affairs. This helped a lot when I was building the algorithms and models inside the game. A critical stage in the game is the ‘Infection Cycle’ that dictates how people become infected with a disease and how they infect others. The game revolves around this stage, and I spent months making sure that it worked properly. The core design is based on the concept of ‘basic reproduction rate’ and I found lots of great papers online which taught me more about it.
What kind of audience does Plague Inc. reach and what do they get from it?
Plague Inc. has been downloaded over 10 million times worldwide and over 200 million games have been played to date. As an intelligent and sophisticated strategy game, I think Plague Inc. appeals to people looking for something more meaningful and substantial than the majority of mobile games. It makes people think about infectious disease in a new light – helping them realize the threats that we face every day.
Were players of Plague Inc. interested to know you had been invited to the CDC?
Yes, the reaction to the news has been extremely positive and people are keen to know more! In the first 24 hours after I announced my visit to the CDC almost 1 million people had seen tweets about it! I think people were excited to see that a prestigious organization like the CDC was interested in the game. A lot of people also hoped that visiting the CDC would give me ideas for future updates of the game (which it did!)
What did you learn at CDC?
It was fascinating to meet the people who are working hard every day to keep us safe from the type of threats that Plague Inc. features. I got a tour of the Emergency Operations Center and Broadcast Center, as well as a trip to the CDC museum. This gave me a lot of contextual information about how the CDC works, which will help me add a greater level of realism to the game in the future – especially in terms of how humanity reacts to outbreaks.
What are you working on now and what do you have coming out next?
Plague Inc. is still proving to be an incredibly popular game, so my main focus must be to keep improving the game and adding new content for players. Recently, I released an update that added a zombie-themed plague, as well as translating the game into four other languages. In the next update, I will be adding a new game mode for players, translating it into Japanese/Korean and hopefully adding some CDC content!
From this, we see that even before He went to the CDC over 200 million games had been played, and in the last 7 years, who knows how many more. Since 2013 he has taken highly detailed actual infectious disease data and implemented it into the game.
So at this point, we can assume that Plague Inc. It is a REALISTIC simulation, at least to a certain degree. Adding to this we know that hundreds of millions of simulations have been run. These simulations feature real-world decisions being made, realistic public events, and real sociological changes and variables. Even assuming the worst possible accuracy of the data(remember, companies like Twitter, Google, Facebook have no less than Ten Thousand data points on every US Citizen.), given enough time, a sufficiently robust deep learning AI can optimize this data to an extreme degree.
Let’s also assume that in addition to these PLAYER driven simulations, several AI-controlled simulations have been run as well. Not necessarily with Plague Inc.’s engine, but with Pandemic researchers. With this much data, it just makes sense that at some point this game would be able to not only model the “perfect virus” in order to infect a specific amount of people and cause a specific amount of symptoms. In addition, if the game uses actual virus genomics data, it could even, given enough time, develop the recipe to create this virus for us.
This isn’t even the extent of this AI possibility. Narrow, data-driven AIs are capable of crunching an obscene amount of data. And if you feed in the right data (GPS movements, Spending Habits, public reactions to public events and news stories, hell, I’m even sure memes could be effectively factored into these algorithms) these systems could very easily be linked together into a massive simulation that factors in and predicts all sorts of “likely eventualities”.
Brexit, Trump, Sanders, China, are all great examples of events that have an almost limitless amount of data points on the internet, all categorized by companies like Cambridge Analytica. Not only your reaction to the specific stimulus, but what you do after you've reacted to the stimulus, and how you react to that next stimulus, and so on and so on Ad Infinitum. Not to mention all the quizzes you’ve been filling out on Facebook, your Instagram account, your Spotify, your Tinder likes and dislikes and matches, YouTube and Pornhub browsing data all get fed into these systems. Ever wonder why Facebook and Amazon are making so much money? We can CLEARLY see that Billionaires run the world and can do ANYTHING they want right in front of us and they face ZERO consequences. Epstein didn't kill himself proved this. And Panama paper before that.
Hell Reddit accounts are the worst of the worst. Every time we upvote a meme, we are running calculations for these algorithms. We have become processing power for these AI Overlords. We willingly provide these companies with all of the data they need, they give us free smartphones and we welcome and integrate them into our daily lives. They listen to our conversations, and we are told that it is just for the mass aggregate data and that nobody actually listens to them. Humans don't listen to them, but Deep Learning Neural Nets certainly do. but forget about all the AI systems for a second. Collectively, the entire internet-connected totality of the human race is an actual computer.
If you think about how we all interact with each other in a single day, we can assume that most interactions function almost exactly like a math problem, just with a seemingly infinite amount of variables. Impossible to know that you said an innocuous thing that triggered the lady sitting next to you in some way that she was in a shitty mood for the rest of the day and ended up impulse buying $30 in lottery tickets. She was extremely rude to several people that day and acted like a typical "Karen" about it. All of this made a total of twenty-six people post funny statuses on Facebook or tweeted about her, which all were, to some varying degree of engagement, responded to and liked and emojied about. not to mention all the other interactions that took place in all that. Even if these AI algorithms miss seventy-five percent of all that sensory data and causal reasoning, we still make computations on that based on our own actions. The next time that lady sees that man in the coffee shop, she might remember the time she had a shitty day because of him. Then she iterates the loop again, adding more data to the pile... This process will inevitably guide not only each individual person to their own predictable outcomes, but humanity as a whole will eventually lead to some almost unavoidable outcome. We are a Neural Net running constantly. Our entire human race is working out calculations, and the interconnectedness of the world wide web has increased our processing power to effectively infinite levels. You know in "A Hitchhiker's Guide to the Galaxy" where they make a computer that is as big as a planet, well, we ARE that computer. (a better example, in my opinion, is found in the book "Children of Time" where spoiler alert: A semi-sentient hivemind race of ants get turned into an actual computer that an uploaded human mind that became part of a possible already conscious AI system eventually gets transferred to where it becomes a sentient human/AI Hybrid spaceship made of ants piloted by a semi-symbiotic sentient Spider Human Alliance)
When asked how much data is on the internet, Google says:
"One way to answer this question is to consider the sum total of data held by all the big online storage and service companies like Google, Amazon, Microsoft and Facebook. Estimates are that the big four store at least 1,200 petabytes between them. That is 1.2 million terabytes (one terabyte is 1,000 gigabytes)."
That is 1.2 billion gigabytes. Just to put this into perspective, let's say your phone has 512GB, for every Gig of data you have on your phone, these companies have 2,343,750GB... or put another way... for every megabyte you have, these companies have 2,343.75 Gigs of data. We all create all the data they need to do pretty much anything conceivable given enough computing power.
Speaking of us collectively being a massive computing system... Do you know what else does an unfathomable amount of calculations per second? You, you guessed it, Bitcoin. Across all of the Bitcoin network, mining could easily be doing billions of calculations every second.
from bitcoinmining.com ”With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.”
What math problems could these be working on? Without being able to look at the entirety of the math problems being worked out, it would be impossible to tell what they are working on. But imagine if these AI systems could distribute these ENORMOUSLY massive simulations on every single computer that is mining bitcoins, I think there would be enough data processing power do run something massive. Add in all the other Crypto mining and, well that's a lot of math. They aren't just doing your standard Multiplication tables either.
In conclusion, we absolutely are living in a simulation, just not how you think. There very well could be an extremely large number of simulations running, using REAL WORLD data to create predictive algorithms to not only predict outcomes but MANAGE them. i.e. what Cambridge Analytica did with Brexit and Trump. We know that this happened, and if that is possible, imagine what else could be possible to manufacture? One man can build a log cabin in ten days, ten men can build a log cabin in one day. And one computer can do a lot more math than ten people can...
TL;DR: Billionaires control the world using AI, and we are the operating system. We already live in the matrix, and it is too late to change anything about that.
GG no RE
submitted by LynxSys to China_Flu [link] [comments]

Summary of the new IRS guidelines (TLDR include)

Hey all - I know there's a dozen posts about the new crypto tax deadlines - so apologies for making it a dozen plus one.
Full disclosure, I work for Bitcoin.Tax, where this article was published. I've included the link to our summary, as well as our actual summary. Also - I'll be talking with a crypto tax pro on our podcast about these guidelines soon. I usually post links to our podcast on this subreddit, so stay tuned (if you want...) for that in the next few days. Hopefully this helps some folks, as parts of the new guidelines are fairly ambiguous.
Link: https://bitcoin.tax/blog/irs-crypto-tax-faq/
TLDR:
Generally, this is the same as the advice and common practice used by taxpayers and accountants. Although, the exception here is the clarification of the specific identification rule. We'll talk about that below.
Summary:
The IRS has issued their long-awaited guidance on the tax treatment for cryptocurrencies. You can read their FAQ On Virtual Currency Transactions on the IRS website.
This is the first official guidance since the original 2014-21 notice in April 2014.

IRS Cryptocurrency Tax FAQ

We have gone into more detail for some of the main points in their FAQ.

Hard forks and airdrops

Despite peculiar wording by the IRS, they have confirmed that receipt of crypto from an airdrop or fork is to be treated as income, and so subject to income tax.
ordinary income equal to the fair market value of the new cryptocurrency when it is received, which is when the transaction is recorded on the distributed ledger, provided you have dominion and control over the cryptocurrency so that you can transfer, sell, exchange, or otherwise dispose of the cryptocurrency
However, these drops typically have no market (perhaps a futures market) until they have existed for a period of time, so establishing a value could be difficult. It is possible that the value could be zero right at that exact moment it is recorded on the distributed ledger.
In order to receive income, you must have dominion and control over these new crypto. This effectively means you must be able to manage it; typically you would have the private keys or it is immediately available in a custodial wallet or online account, e.g. Coinbase.
If the crypto doesn't appear in your wallet, or you don't get control of it until a later date, then that later date is used to calculated the USD income value.
This had been a common question among crypto traders: if BTC was forked off into a new "BTC" coin, which you might not even have been aware of, do you still have income? The answer is no. Unless, you subsequently get access to those new coins, in which case you do have income on the date you receive control.
When you have income for an airdrop or fork, this also sets the cost basis (value and date) for any subsequent capital gains calculations.

Fair Market Value (FMV)

FMV is used to give something a value, i.e. what it's worth. If you list a bike for sale, you might research the prices for which other people are selling. Those prices give a FMV. But it you sell your bike and someone buys it for $100, then the bike's FMV was $100.
With crypto, sometimes we need to know FMV because we are not trading directly for dollars.
For example, if you sell 1 BTC for 150 LTC, you are disposing of the 1 BTC at FMV. You need to know the USD value in order to know the proceeds and to calculate any capital gains or losses.
So, first, if this was traded on an exchange, we use the spot price on the exchange at that time. This is true even if the transaction was off-chain.
However, where no FMV exists, such as a peer-to-peer transaction, then you have to get the value from elsewhere.
So, secondly, use the FMV of the service or product you are exchanging. With the above bike example, say buying it with crypto, the FMV would be that of the bike itself (the price it would have sold for USD).
Lastly, when no value can be obtained, then use a service that provides a consistent worldwide indices value (the IRS are calling this an "explorer" but that is a confusing term as blockchain explorers may not provide a USD value). If you do not use an "explorer" value, you can use an "accurate representation of the cryptocurrency's market value". Much like with fiat, this means using an establish and consistent source.

FIFO and Specific Identification

Advice from most tax preparers and accountants has been to err on the side of caution and go with First-In First-Out (FIFO). Basically, if you bought 1 BTC for $9,000 and later another for $10,000, when you come to sell 1 BTC (or partial) you would use the cost of the first 1 BTC that you had acquired.
This is the default IRS cost basis method and would not be challenged.
Some taxpayers had filed using specific identification, where FIFO was not used and instead the "lot" that was sold was chosen from their wallets. Summary strategies could also be employed, such as Last-In First-Out (LIFO), where the basis of the most recently acquired crypto is used instead.
These other strategies, such as last-in first-out, closest-cost or lowest-cost, often try to minimize the gains per transaction and defer them until later.
This is the biggest change in the new IRS guidance and confirms that specific identification can be used. However, you must be able to document this, which the IRS describes as:
You may identify a specific unit of virtual currency either by documenting the specific unit’s unique digital identifier such as a private key, public key, and address, or by records showing the transaction information for all units of a specific virtual currency, such as Bitcoin, held in a single account, wallet, or address.This information must show (1) the date and time each unit was acquired, (2) your basis and the fair market value of each unit at the time it was acquired, (3) the date and time each unit was sold, exchanged, or otherwise disposed of, and (4) the fair market value of each unit when sold, exchanged, or disposed of, and the amount of money or the value of property received for each unit.
There is no guidance if any extra information should be reported, but it is generally the same information that is added to the 8949 form where capital gains are reported.

Gifts and Donations

Similar to gifts of stocks or property, the rules regarding cost basis have remained unchanged. Received gifts are not immediate income but you do still recognize an capital gains income when you later come to sell, exchange or dispose of the cryptocurrency.
You can use the original basis (with documentation) from the giver in order to make use of long-term gains. However, your received basis becomes the lesser of the giver's cost basis and the FMV of the gift on the date you received it. This is to prevent from gifting losses. Also, if you do not have documentation showing the gift cost basis, then your basis is zero, i.e. you must declare 100% as capital gains.
Donations to registered charities do not recognize income, gains or losses. The value of your charitable donation is the FMV on the date of the gift if you have held the crypto for more than a year. For a year or less, it is lesser of the crypto's cost basis or its FMV on the day of the gift.

What was not mentioned

There are still some key questions and ambiguities that tax professionals have been looking for clarification. For instance, with hard forks and airdrops, if you have the private keys but no software, does that count as control?
Airdrop and forks generally have no markets when they are created, so is there a zero FMV? And should you take the value only when you exercise control?
Can specific identification be used at will or must it be done consistently?
Were 1031 "like-kind" exchanges ever a valid approach before 2018?

Guidance is retroactive

Finally, be aware that IRS guidance is always retroactive, unless otherwise stated, and so should be applied to past and future crypto transactions. If you have not followed these rules then you should consult with your tax professional and may need to file an amendment.
---

Edit:
According to BitcoinTaxesMe:
I clarified a couple of the not mentioned ones with the IRS verbally yesterday. This isn't official guidance, but some insight into what the IRS is thinking:
"For instance, with hard forks and airdrops, if you have the private keys but no software, does that count as control?"
If you the software exists and you don't install it, but could have, it's income, even if installation presents a security risk.
"Airdrop and forks generally have no markets when they are created, so is there a zero FMV? And should you take the value only when you exercise control?"
There's no income recognized until you both have control and there's a way to sell it. So there's no way to take a zero basis, as soon as a market appears it triggers the 2nd prong.
I personally think both of these are insane.
submitted by Sal-BitcoinTax to BitcoinMarkets [link] [comments]

Crypto-Currency: A Guide to Common Tax Situations

STATUS: Majority of questions have been answered. If yours got missed, please feel free to post it again.
Introduction
All,
Based on the rapid increase in popularity and price of bitcoin and other crypto currencies (particularly over the past year), I expect that lots of people have questions about how crypto currency will impact their taxes. This thread attempts to address several common issues. I'm posting similar versions of it here, in several major crypto subs, and eventually in the weekly "tax help" threads personalfinance runs.
I'd like to thank the /personalfinance mod team and the /tax community for their help with this thread and especially for reading earlier versions and offering several valuable suggestions/corrections.
This thread is NOT an endorsement of crypto currency as an investing strategy. There is a time and a place to debate the appropriateness of crypto as part of a diversified portfolio - but that time is not now and that place is not here. If you are interested in the general consensus of this sub on investing, I would urge you to consult the wiki while keeping in mind the general flowchart outlining basic steps to get your finances in order.
Finally, please note that this thread attempts to provide information about your tax obligations as defined by United States law (and interpreted by the IRS under the direction of the Treasury Department). I understand that a certain portion of the crypto community tends to view crypto as "tax free" due to the (actual and perceived) difficulty for the IRS to "know" about the transactions involved. I will not discuss unlawfully concealing crypto gains here nor will I suggest illegal tax avoidance activities.
The Basics
This section is best for people that don't understand much about taxes. It covers some very basic tax principles. It also assumes that all you did during the year was buy/sell a single crypto currency.
Fundamentally, the IRS treats crypto not as money, but as an asset (investment). While there are a few specific "twists" when it comes to crypto, when in doubt replace the word "crypto" with the word "stock" and you will get a pretty good idea how you should report and pay tax on crypto.
The first thing you should know is that the majority of this discussion applies to the taxes you are currently working on (2017 taxes). The tax bill that just passed applies to 2018 taxes (with a few very tiny exceptions), which most people will file in early 2019.
In general, you don't have to report or pay taxes on crypto currency holdings until you "cash out" all or part of your holdings. For now, I'm going to assume that you cash out by selling them for USD; however, other forms of cashing out will be covered later.
When you sell crypto, you report the difference between your basis (purchase price) and proceeds (sale price) on Schedule D. Your purchase price is commonly referred to as your basis; while the two terms don't mean exactly the same thing, they are pretty close to one another (in particular, there are three two ways to calculate your basis - your average cost, a first-in, first-out method, and a "specific identification" method. See more about these here and here). EDIT - you may not use average cost method with crypto - see here. If you sell at a gain, this gain increases your tax liability; if you sell at a loss, this loss decreases your tax liability (in most cases). If you sell multiple times during the year, you report each transaction separately (bad news if you trade often) but get to lump all your gains/losses together when determining how the trades impact your income.
One important thing to remember is that there are two different types of gains/losses from investments - short term gains (if you held an asset for one year or less) and long term gains (over one year; i.e. one year and one day). Short term gains are taxed at your marginal income rate (basically, just like if you had earned that money at a job) while long term gains are taxed at lower rates.
For most people, long term capital gains are taxed at 15%. However, if you are in the 10% or 15% tax bracket, congrats - your gains (up to the maximum amount of "unused space" in your bracket) are tax free! If you are in the 25%, 28%, 33%, or 35% bracket, long term gains are taxed at 15%. If you are in the 39.6% bracket, long term gains are taxed at 20%. Additionally, there is an "extra" 3.8% tax that applies to gains for those above $200,000/$250,000 (single/married). The exact computation of this tax is a little complicated, but if you are close to the $200,000 level, just know that it exists.
Finally, you should know that I'm assuming that you should treat your crypto gains/losses as investment gains/losses. I'm sure some people will try and argue that they are really "day traders" of crypto and trade as a full time job. While this is possible, the vast majority of people don't qualify for this status and you should really think several times before deciding you want to try that approach on the IRS.
"Cashing Out" - Trading Crypto for Goods/Services
I realize that not everyone that "cashes out" of crypto does so by selling it for USD. In fact, I understand that some in the crypto community view the necessity of cashing out itself as a type of myth. In this section, I discuss what happens if you trade your crypto for basically anything that isn't cash (minor sidenote - see next section for a special discussion on trading crypto for crypto; i.e. buying altcoins with crypto).
The IRS views trading crypto for something of value as a type of bartering that must be included in income. From the IRS's perspective, it doesn't matter if you sold crypto for cash and bought a car with that cash or if you just traded crypto directly for the car - in both cases, the IRS views you as having sold your crypto. This approach isn't unique to crypto - it works the same way if you trade stock for something.
This means that if you do trade your crypto for "stuff", you have to report every exchange as a sale of your crypto and calculate the gain/loss on that sale, just as if you had sold the crypto for cash.
Finally, there is one important exception to this rule. If you give your crypto away to charity (one recognized by the IRS; like a 501(c)(3) organization), the IRS doesn't make you report/pay any capital gains on the transaction. Additionally, you still get to deduct the value of your donation on the date it was made. Now, from a "selfish" point of view, you will always end up with more money if you sell the crypto, pay the tax, and keep the rest. But, if you are going to make a donation anyway, especially a large one, giving crypto where you have a big unrealized/untaxed gain is a very efficient way of doing so.
"Alt Coins" - Buying Crypto with Crypto
The previous section discusses what happens when you trade crypto for stuff. However, one thing that surprises many people is that trading crypto for crypto is also a taxable event, just like trading crypto for a car. Whether you agree with this position or not, it makes a lot of sense once you realize that the IRS doesn't view crypto as money, but instead as an asset. So to the IRS, trading bitcoin for ripple isn't like trading dollars for euros, but it is instead like trading shares of Apple stock for shares of Tesla stock.
Practically, what this means is that if you trade one crypto for another crypto (say BTC for XRP just to illustrate the point), the IRS views you as doing the following:
  • Selling for cash the amount of BTC you actually traded for XRP.
  • Owing capital gains/losses on the BTC based on its selling price (the fair market value at the moment of the exchange) and your purchase price (basis).
  • Buying a new investment (XRP) with a cost basis equal to the amount the BTC was worth when you exchanged them.
This means that if you "time" your trade wrong and the value of XRP goes down after you make the exchange, you still owe tax on your BTC gain even though you subsequently lost money. The one good piece of news in this is that when/if you sell your XRP (or change it back to BTC), you will get a capital loss for the value that XRP dropped.
There is one final point worth discussing in this section - the so called "like kind exchange" rules (aka section 1031 exchange). At a high level, these rules say that you can "swap" property with someone else without having to pay taxes on the exchange as long as you get property in return that is "like kind". Typically, these rules are used in real estate transactions. However, they can also apply to other types of transactions as well.
While the idea is simple (and makes it sound like crypto for crypto should qualify), the exact rules/details of this exception are very fact specific. Most experts (including myself, but certainly not calling myself an expert) believe that a crypto for crypto swap is not a like kind exchange. The recently passed tax bill also explicitly clarifies this issue - starting in 2018, only real estate qualifies for like kind exchange treatment. So, basically, the vast majority of evidence suggests that you can't use this "loophole" for 2017; however, there is a small minority view/some small amount of belief that this treatment would work for 2017 taxes and it is worth noting that I'm unaware of any court cases directly testing this approach.
Dealing with "Forks"
Perhaps another unpleasant surprise for crypto holders is that "forks" to create a new crypto also very likely generate a taxable event. The IRS has long (since at least the 1960s) held that "found" money is a taxable event. This approach has been litigated in court and courts have consistently upheld this position; it even has its own cool nerdy tax name - the "treasure trove" doctrine.
Practically, what this means is that if you owned BTC and it "forked" to create BCH, then the fair market value of the BCH you received is considered a "treasure trove" that must be reported as income (ordinary income - no capital gain rates). This is true whether or not you sold your BCH; if you got BCH from a fork, that is a taxable event (note - I'll continue using BTC forking to BCH in this section as an example, but the logic applies to all forks).
While everything I've discussed up to this point is pretty clearly established tax law, forks are really where things get messy with taxes. Thus, the remainder of this section contains more speculation than elsewhere in this post - the truth is that while the idea is simple (fork = free money = taxable), the details are messy and other kinds of tax treatment might apply to forks.
One basic practical problem with forks is that the new currency doesn't necessarily start trading immediately. Thus, you may have received BCH before there was a clear price or market for it. Basically, you owe tax on the value of BCH when you received it, but it isn't completely clear what that value was. There are several ways you can handle this; I'll list them in order from most accurate to least accurate (but note that this is just my personal view and there is ongoing disagreement on this issue with little/no authoritative guidance).
  • Use a futures market to determine the value of the BCH - if reliable sources published realistic estimates of what BCH will trade for in the future once trading begins, use this estimate as the value of your BCH. Pros/cons - futures markets are, in theory, pretty accurate. However, if they are volatile/subject to manipulation, they may provide an incorrect estimate of the true value of BCH. It would suck to use the first futures value published only to have that value plummet shortly thereafter, leaving you to pay ordinary income tax but only have an unrealized capital loss.
  • Wait until an exchange starts trading BCH; use the actual ("spot" price) as the value. Pros/cons - spot prices certainly reflect what you could have sold BCH for; however, it is possible that the true value of the coin was highelower when you received it as compared to when it started trading on the exchange. Thus this method seems less accurate to me than a futures based approach, but it is still certainly fairly reasonable.
  • Assume that the value is $0. This is my least preferred option, but there is still a case to be made for it. If you receive something that you didn't want, can't access, can't sell, and might fail, does it have any value? I believe the answer is yes (maybe not value it perfectly, but value it somewhat accurately), but if you honestly think the answer is no, then the correct tax answer would be to report $0 in income from the fork. The IRS would be most likely to disagree with this approach, especially since it results in the least amount of income reported for the current year (and the most favorable rates going forward). Accordingly, if you go this route, make extra sure you understand what it entails.
Note, once you've decided what to report as taxable income, this amount also becomes your cost basis in the new crypto (BCH). Thus, when you ultimately sell your BCH (or trade it for something else as described above), you calculate your gain/loss based on what you included in taxable income from the fork.
Finally, there is one more approach to dealing with forks worth mentioning. A fork "feels" a lot like a dividend - because you held BTC, you get BCH. In a stock world, if I get a cash dividend because I own the stock, that money is not treated as a "treasure trove" and subject to ordinary income rates - in most cases, it is a qualified dividend and subject to capital gain rates; in some cases, some types of stock dividends are completely non taxable. This article discusses this idea in slightly more detail and generally concludes that forks should not be treated as a dividend. Still, I would note that I'm unaware of any court cases directly testing this theory.
Ultimately, this post is supposed to be practical, so let me make sure to leave you with two key thoughts about the taxation of forks. First, I believe that the majority of evidence suggests that forks should be treated as a "treasure trove" and reported as ordinary income based on their value at creation and that this is certainly the "safest" option. Second, out of everything discussed in this post, I also believe that the correct taxation of forks is the murkiest and most "up for debate" area. If you are interested in a more detailed discussion of forks, see this thread for a previous version of this post discussing it at even more length and the comments for a discussion of this with the tax community.
Mining Crypto
Successfully mining crypto coins is a taxable event. Depending on the amount of effort you put into mining, it is either considered a hobby or a self-employment (business) activity. The IRS provides the following list of questions to help decide the correct classification:
  • The manner in which the taxpayer carries on the activity.
  • The expertise of the taxpayer or his advisors.
  • The time and effort expended by the taxpayer in carrying on the activity.
  • Expectation that assets used in activity may appreciate in value.
  • The success of the taxpayer in carrying on other similar or dissimilar activities.
  • The taxpayer’s history of income or losses with respect to the activity.
  • The amount of occasional profits, if any, which are earned.
If this still sounds complicated, that's because the distinction is subject to some amount of interpretation. As a rule of thumb, randomly mining crypto on an old computer is probably a hobby; mining full time on a custom rig is probably a business.
In either event, you must include in income the fair market value of any coins you successfully mine. These are ordinary income and your basis in these coins is their fair market value on the date they were mined. If your mining is a hobby, they go on line 21 (other income) and any expenses directly associated with mining go on schedule A (miscellaneous subject to 2% of AGI limitation). If your mining is a business, income and expenses go on schedule C.
Both approaches have pros and cons - hobby income isn't subject to the 15.3% self-employment tax, only normal income tax, but you get fewer deductions against your income and the deductions you get are less valuable. Business income has more deductions available, but you have to pay payroll (self-employment) tax of about 15.3% in addition to normal income tax.
What if I didn't keep good records? Do I really have to report every transaction?
One nice thing about the IRS treating crypto as an asset is that we can look at how the IRS treats people that "day trade" stock and often don't keep great records/have lots of transactions. While you need to be as accurate as possible, it is ok to estimate a little bit if you don't have exact records (especially concerning your cost basis). You need to put in some effort (research historical prices, etc...) and be reasonable, but the IRS would much rather you do a little bit of reasonable estimation as opposed to just not reporting anything. Sure, they might decide to audit you/disagree with some specifics, but you earn yourself a lot of credit if you can show that you honestly did the best you reasonably could and are making efforts to improve going forward.
However, concerning reporting every transaction - yes, sorry, it is clear that you have to do this, even if you made hundreds or thousands of them. Stock traders have had to go through this for many decades, and there is absolutely no reason to believe that the IRS would accept anything less from the crypto community. If you have the records or have any reasonable way of obtaining records/estimating them, you must report every transaction.
What if I don't trust you?
Well, first let me say that I can't believe you made it all the way down here to this section. Thanks for giving me an honest hearing. I would strongly encourage you to go read other well-written, honest guides. I'll link to some I like (both more technical IRS type guides and more crypto community driven guides). While a certain portion of the crypto community seems to view one of the benefits of crypto as avoiding all government regulation (including taxes), I've been pleasantly surprised to find that many crypto forums contain well reasoned, accurate tax guides. While I may not agree with 100% of their conclusions, that likely reflects true uncertainty around tax law that is fundamentally complex rather than an attempt on either end to help individuals unlawfully avoid taxes.
IRS guides
Non-IRS guides
submitted by Mrme487 to personalfinance [link] [comments]

Summary of the new IRS guidance

Link: https://bitcoin.tax/blog/irs-crypto-tax-faq/
The IRS has issued their long-awaited guidance on the tax treatment for cryptocurrencies. You can read their FAQ On Virtual Currency Transactions on the IRS website.
This is the first official guidance since the original 2014-21 notice in April 2014.

tl:dr;


Generally, this is the same as the advice and common practice used by taxpayers and accountants. Although, the exception here is the clarification of the specific identification rule. We'll talk about that below.

IRS Cryptocurrency Tax FAQ

We have gone into more detail for some of the main points in their FAQ.

Hard forks and airdrops

Despite peculiar wording by the IRS, they have confirmed that receipt of crypto from an airdrop or fork is to be treated as income, and so subject to income tax.
ordinary income equal to the fair market value of the new cryptocurrency when it is received, which is when the transaction is recorded on the distributed ledger, provided you have dominion and control over the cryptocurrency so that you can transfer, sell, exchange, or otherwise dispose of the cryptocurrency
However, these drops typically have no market (perhaps a futures market) until they have existed for a period of time, so establishing a value could be difficult. It is possible that the value could be zero right at that exact moment it is recorded on the distributed ledger.
In order to receive income, you must have dominion and control over these new crypto. This effectively means you must be able to manage it; typically you would have the private keys or it is immediately available in a custodial wallet or online account, e.g. Coinbase.
If the crypto doesn't appear in your wallet, or you don't get control of it until a later date, then that later date is used to calculated the USD income value.
This had been a common question among crypto traders: if BTC was forked off into a new "BTC" coin, which you might not even have been aware of, do you still have income? The answer is no. Unless, you subsequently get access to those new coins, in which case you do have income on the date you receive control.
When you have income for an airdrop or fork, this also sets the cost basis (value and date) for any subsequent capital gains calculations.
Bitcoin.Tax already looks up any current value, if known, for forks or airdrop symbols when they are added to the Income tab, otherwise a zero basis is used.

Fair Market Value (FMV)

FMV is used to give something a value, i.e. what it's worth. If you list a bike for sale, you might research the prices for which other people are selling. Those prices give a FMV. But it you sell your bike and someone buys it for $100, then the bike's FMV was $100.
With crypto, sometimes we need to know FMV because we are not trading directly for dollars.
For example, if you sell 1 BTC for 150 LTC, you are disposing of the 1 BTC at FMV. You need to know the USD value in order to know the proceeds and to calculate any capital gains or losses.
So, first, if this was traded on an exchange, we use the spot price on the exchange at that time. This is true even if the transaction was off-chain.
However, where no FMV exists, such as a peer-to-peer transaction, then you have to get the value from elsewhere.
So, secondly, use the FMV of the service or product you are exchanging. With the above bike example, say buying it with crypto, the FMV would be that of the bike itself (the price it would have sold for USD).
Lastly, when no value can be obtained, then use a service that provides a consistent worldwide indices value (the IRS are calling this an "explorer" but that is a confusing term as blockchain explorers may not provide a USD value). If you do not use an "explorer" value, you can use an "accurate representation of the cryptocurrency's market value". Much like with fiat, this means using an establish and consistent source.
Bitcoin.Tax already uses the exchange price data wherever possible, but otherwise combines crypto pricing for multiple worldwide sources to calculate a FMV.

FIFO and Specific Identification

Advice from most tax preparers and accountants has been to err on the side of caution and go with First-In First-Out (FIFO). Basically, if you bought 1 BTC for $9,000 and later another for $10,000, when you come to sell 1 BTC (or partial) you would use the cost of the first 1 BTC that you had acquired.
This is the default IRS cost basis method and would not be challenged.
Some taxpayers had filed using specific identification, where FIFO was not used and instead the "lot" that was sold was chosen from their wallets. Summary strategies could also be employed, such as Last-In Last-Out (LIFO), where the basis of the most recently acquired crypto is used instead.
These other strategies, such as last-in first-out, closest-cost or lowest-cost, often try to minimize the gains per transaction and defer them until later.
This is the biggest change in the new IRS guidance and confirms that specific identification can be used. However, you must be able to document this, which the IRS describes as:
You may identify a specific unit of virtual currency either by documenting the specific unit’s unique digital identifier such as a private key, public key, and address, or by records showing the transaction information for all units of a specific virtual currency, such as Bitcoin, held in a single account, wallet, or address. This information must show (1) the date and time each unit was acquired, (2) your basis and the fair market value of each unit at the time it was acquired, (3) the date and time each unit was sold, exchanged, or otherwise disposed of, and (4) the fair market value of each unit when sold, exchanged, or disposed of, and the amount of money or the value of property received for each unit.
There is no guidance if any extra information should be reported, but it is generally the same information that is added to the 8949 form where capital gains are reported.
Bitcoin.Tax already provides automatic calculations using multiple specific identification strategies so you can choose your cost basis lots. Navigate to the Calculate tab and you can see the values for each crypto you have traded.

Gifts and Donations

Similar to gifts of stocks or property, the rules regarding cost basis have remained unchanged. Received gifts are not immediate income but you do still recognize an capital gains income when you later come to sell, exchange or dispose of the cryptocurrency.
You can use the original basis (with documentation) from the giver in order to make use of long-term gains. However, your received basis becomes the lesser of the giver's cost basis and the FMV of the gift on the date you received it. This is to prevent from gifting losses. Also, if you do not have documentation showing the gift cost basis, then your basis is zero, i.e. you must declare 100% as capital gains.
Donations to registered charities do not recognize income, gains or losses. The value of your charitable donation is the FMV on the date of the gift if you have held the crypto for more than a year. For a year or less, it is lesser of the crypto's cost basis or its FMV on the day of the gift.
Bitcoin.Tax reports already splits out the basis for any gifts or donations that you make, which can be given to the recipient to provide them with the information they will require.

What was not mentioned

There are still some key questions and ambiguities that tax professionals have been looking for clarification. For instance, with hard forks and airdrops, if you have the private keys but no software, does that count as control?
Airdrop and forks generally have no markets when they are created, so is there a zero FMV? And should you take the value only when you exercise control?
Can specific identification be used at will or must it be done consistently?
Were 1031 "like-kind" exchanges ever a valid approach before 2018?

Guidance is retroactive

Finally, be aware that IRS guidance is always retroactive, unless otherwise stated, and so should be applied to past and future crypto transactions. If you have not followed these rules then you should consult with your tax professional and may need to file an amendment.
submitted by Sal-BitcoinTax to bitcointaxes [link] [comments]

Analyzing the new 2019 Crypto Tax Guidelines (Podcast & Summary)

Hey all - I typically post my podcast episodes on our personal subreddit, and on this subreddit. Here's my interview with Tyson Cross. Disclaimer, I work for BitcoinTaxes. The summary is a bit longer than usual, but there were a lot of parts that I thought were important to highlight from this episode.
---
The IRS has recently released new tax guidance for cryptocurrency trading – the first official guidance released in over 5 years, since March 2014. Tyson Cross, a tax attorney who specializes in cryptocurrency taxation, joins me on The BitcoinTaxes Podcast to analyze this new guidance.
In addition to analyzing the new guidelines (and Tyson providing his expertise) we answered some questions from Reddit users as well (starting @ 44:50).
Link to the podcast episode page
Link to the podcast audio
Summary/Highlights:
Two Components – Revenue Ruling & FAQ (1:08):
The revenue ruling creates some problems. The FAQ, for the most part, is not too problematic. But – I’d say on the net whole, both maybe create more questions than they answer, unfortunately.

The Revenue Ruling – Airdrops & Forks (2:28):
Revenue Ruling 2019-24 is what the IRS released and specifically it addresses this issue of hard forks and airdrops, which until now has really gone unanswered. There’s been a lot of debate in the tax community about whether hard forks and airdrops are taxable events…whether they satisfy these kinds of requirements that we have from existing law for treating something as a taxable event. The big two are: do you have an ascension to wealth – meaning is the thing you received valuable? Number two, do you have dominion and control over it – meaning are you free to treat it as your own? If those two things are met, then generally speaking, you have taxable income.
The problem is applying those two standards to hard forks or airdrops is actually pretty difficult. The revenue ruling here attempts to make that application – but the problem is that the facts they use are problematic…and don’t seem to really adequately describe a hard fork or an airdrop. This revenue ruling is broken down into two situations where the IRS lays out the facts and then applies the law and reaches a conclusion about whether or not these events are taxable.
They say situation one is not a taxable event because the taxpayer did not receive additional units of virtual currency. But in situation two, the IRS says that it was a taxable event because the taxpayer not only received units of virtual currency from the followup airdrop, but also had dominion and control, because the taxpayer could immediately sell them if he or she wanted to. Situation one is not taxable. Situation two is taxable. So where do most hard forks like the BTC/BCH hard fork fit in? Strictly speaking, if you really took those revenue ruling at face value using the plain language, it doesn’t fit into either one because the BTC/BCH hard fork wasn’t followed by an airdrop.
This revenue ruling, like many issues that have come up with cryptocurrency, puts taxpayers in a really hard spot where they are left yet again guessing what the IRS wants them to do. If you don’t want to have any problems with the IRS in the future, I would tell you to go ahead and report every hard fork and every airdrop as a taxable event.

The IRS FAQ on Virtual Currency Transactions – Specific Identification Methods (22:30):
One of the big questions that’s been floating around the virtual currency space now for years is what methods do you use to calculate your cost basis? FIFO (First In First Out) is the default approach for shares of stock – so, kind of unsurprisingly, the IRS said in the FAQ Question #38 that FIFO is the default method also for virtual currency.
What was maybe a little bit surprising is that the IRS also says in Question #37 that you can use specific identification for virtual currency. This was actually a little surprising to me because the requirements for using specific identification for shares of stock is actually a little burdensome. In Question #37, the IRS sets what I would consider a pretty low bar to use specific identification for cryptocurrency transactions.
Specific identification would mean that instead of just assuming you’re selling your first Bitcoin, the oldest Bitcoin in your wallet, you can actually look at all of your holdings and pick which one you’re selling when you do a sale. So you could pick the one with the highest cost basis if you wanted (HCFO), or you could pick the newest one in your wallet (LIFO). So this opens up a lot of possibilities for taxpayers to be a little more strategic about how their gains are reported. Using specific identification, taxpayers can maybe choose the cost basis method that causes them to have the lowest amount of capital gains.
Most people listening should be relatively happy to hear that specific identification is possible. The question is what do you have to do to be allowed to use it? Question #37 says that you have to have records showing the transaction information for all units of the specific virtual currency held in a single account wallet or address. The question goes on to say that the information must show four things: the date and time each unit was acquired, your cost basis and the fair market value of each unit at the time it was acquired, the time and date each unit was sold or otherwise disposed of, and the fair market value of each unit when it was sold or disposed of. Well those are four things that we pretty much have already, every time we do a transaction with virtual currency – if you trade on coin on a Poloniex, when you download your transaction report, it’s going to show all four of those things every time.

Unchanged Guidelines & Unanswered Questions (29:43):
I would say most things weren’t changed by this guidance. And that’s one of the things that’s maybe a little disappointing about the updated FAQ and the Revenue Ruling. A lot of it we already knew, especially in the FAQ – it kind of just flushes out some of the smaller points. But generally, the basic principles that we’ve been operating under for the last five years are all still in place.
We know that basically any transaction conducted with virtual currency is a taxable event and it’s generally capital gains and reported on Schedule D of your tax return. That part of it is still the same – nothing changed. The FAQ also addresses things like mining. We’ve known for a while that you have ordinary income based on the value of that coin at the time that it is mined. That logic would apply to staking rewards and other similar receipts of virtual currency. Also if you get paid in virtual currency, you know that’s taxable. Whether you’re an employee, or you’re a business selling goods or services, those are all taxable events.
There are still some big unanswered questions that we have and hopefully we get some guidance on that soon. I think the big thing they missed, and it’s really disappointing, was the issue about foreign account reporting.We’ve been asking this question now for five years or longer, about whether accounts held at foreign cryptocurrency exchanges are subject to reporting on FBAR or under FATCA on Form 8938. The question is, does an account at a foreign cryptocurrency exchange fall within the definitions used for the FBAR and Form 8938? And the answer is that we don’t know.

Retroactive Guidelines (34:20):
Most IRS rulings are retroactive unless otherwise stated. The Revenue Ruling and FAQ do not identify an exception to that. So I would say that these are retroactive.
Should you go back and amend past years? That’s a tough question to answer. I’d say talk to your tax preparer or advisor and see what they think. A lot of that depends on how much income it was, how much the rest of your income was on your tax return, how much time is left on the statute of limitations. It’s not an easy question to apply generally. But certainly you should look into it because the IRS will be following this revenue ruling retroactively.

Questions from the Community @ 44:50:
Tyson answers questions from social media, Reddit, and from BitcoinTaxes users.

Important Links:
IRS FAQ
Rev. Rul. 2019-24 (PDF)
BitcoinTaxes Summary
submitted by Sal-BitcoinTax to BitcoinMarkets [link] [comments]

Bitcoin Witness: use the worlds most secure, immutable, and decentralised public database to attest to the integrity of your files

About me

I have only ever done basic web development before but over the last 4-6 months i have been spending my time learning javascript, vuejs and a few blockchain technologies. I have finally finished the first release of Bitcoin Witness. I am aware that similar services already exist but my focus has been on simplifying the user experience and also making it scalable and free for anyone to use. Below provides more info on the app. I would love your feedback on the app and ideas / suggestions for me to take into the roadmap.

About Bitcoin Witness

https://bitcoinwitness.com is a free service that allows you to take any file and have its fingerprint witnessed in a bitcoin transaction. The service then allows you to download a proof file that can be used as verifiable evidence that your files fingerprint matches the fingerprint witnessed in the bitcoin transaction. The verification can be done using open source software even if our website does not exist in the future.

Protecting your data

We do not store your files data, in fact your files data is never even sent to our servers. Instead, your file is analysed locally in the browser to generate a SHA256 hash which is your files fingerprint.
The only data we do store is the file name, the fingerprint (hash), and the proof file generated by the app. This is so you can access and download proofs in the future. Anyone can retrieve the proof by presenting the original file at any time.
As you witness files, their fingerprint is also stored in your local cache so that you can easily retrieve the proof files when you load bitcoin witness on that device. It is recommend you download the proof once they are available to remove any reliance on our service.

How it works

Bitcoin Witness uses the Chainpoint protocol for many of its operations. Chainpoint is a layer two decentralised network that runs atop of (and supports the scaling of) bitcoin. Currently there are ~6500 community run Chainpoint nodes. Chainpoint nodes receive hashes and aggregate them together in a Merkle tree. The root of this tree is then included in a bitcoin transaction.
Your files fingerprint becomes part of a tree that is initially secured and witnessed in a Chainpoint calendar block (a decentralised database maintained by Chainpoint nodes) before being witnessed in a bitcoin transaction (the most secure decentralised database in the world).

Steps performed to witness your file

The end to end process for witnessing your file and retrieving a downloadable proof takes around ~90 minutes. This is because we wait for 6 bitcoin block confirmations before the proof file is made available.
The steps to witness files is as follows:
1. Generate the files fingerprint
When you select a file it is processed locally in the browser using the SHA256 algorithm to generate its fingerprint. We call it a fingerprint because if the same file is processed using this algorithm in the future, it will always result in the same hash value (fingerprint). If any modifications are made to your file it will result in a completely different hash value.
2. Combine the files fingerprint with entropy from NIST
The National Institute of Standards and Technology (NIST) randomness beacon generates full entropy bit strings and posts them in blocks every minute. The published values include a cryptographic link to all previous values to prevent retroactive changes.
Your files fingerprint is hashed with this random value to prove that the file was witnessed after that random value was generated.
3. Witness the file in the Chainpoint calendar
Chainpoint nodes aggregate your hash with other hashes in the network to create a Merkle tree and generate partial proof.
After ~ 12 seconds we retrieve a proof which includes the NIST value, timestamp information and the other hashes in the tree required to verify your files fingerprint in the anchor hash of a Chainpoint Calendar Block.
4. Witness the file in the bitcoin blockchain
The anchoring hash of the calendar block is then sent in the OP_RETURN of a Bitcoin transaction. As a result, this value is included in the raw transaction body, allowing the transaction ID and the Merkle path from that transaction to the Bitcoin block’s Merkle root to be calculated.
After 6 confirmations (~60 minutes) the final proof file is made available which contains all the Merkle path information required to verify your proof.

Steps to verify a file was witnessed by Bitcoin

The easiest way to verify a file has been witnessed is to visit https://bitcoinwitness.com and upload the proof file or the original file. Bitcoin Witness performs the verification processes and returns the relevant information about when the file was witnessed.
With that said, the benefit of the service is that even if the bitcoin witness app does not exist in the future. People must still be able to verify the files integrity (don’t trust us, trust bitcoin).
There are 2 steps to verify that your file was witnessed. The steps seek to verify that both your original file, and the downloaded proof file, have not been modified since the time of the bitcoin transaction / block. These steps are outlined below and can be performed using open source software.
1. Verify your file has not been modified
Generate a Sha256 hash of your file and check that the hash value generated matches the “hash” value in the proof file you are about to verify.
There are plenty of free online tools available that allow you to generate a hash of your file. And you can check the “hash” value in the proof file by opening it in a text editor.
2. Verify the proof file has not been modified
Re-run the operations set out in the proof file and then validate that the hash value produced at the end of the operations matches the Merkle root value in the bitcoin block.
The Chainpoint Parse library is open source software that can be used to re-run the operations in the proof file. The result can be verified to match the bitcoin Merkle root using any block explorer.

Future Vision and Roadmap

Today marks the release of the first version of the bitcoin witness app which can be found at https://bitcoinwitness.com. The immediate focus is on some additional features some users have already suggested
The broader vision and road map for bitcoin witness is to remove the need to trust organisations and each other with our data and instead trust bitcoin. We want to enable a world where people can make claims about data and that bitcoin’s immutable ledger can be used to verify that claim. The current version allows people to claim “This data has not been modified since that point in time”. An example of a future claim might be; “I was in possession of this data at that point in time”

Support us and get involved

This has been a fun learning experience. Would love it if you could all test out the app and give me feedback on the app, the user experience, any roadmap items I should think about. I welcome any comments here or join our telegram
For regular updates you can follow our twitter.
submitted by gaskills to Bitcoin [link] [comments]

US Tax Guide for ETH and other cryptocurrencies

Introduction:  
Greetings, fellow ethtraders! Happy New Year! In the next few months, taxpayers across the US will be filing their 2017 tax returns. As an Enrolled Agent and a ETH/cryptocurrency investor and enthusiast, I wanted to write up a brief guide on how your investments in ETH and other cryptocurrencies are taxed in the US.
 
 
1. Are ETH/cryptocurrency realized gains taxable?
Yes. The IRS treats virtual currency (such as cryptocurrency) as property. That means if you sell ETH, BTC, or any other cryptocurrency that has appreciated in value, you have realized a capital gain and must pay taxes on this income. If you held the position for one year or less, it is a short-term capital gain which is taxed at your ordinary income tax rate. If you held the position for more than one year, it is a long-term capital gain which is taxed at your long-term capital gains tax rate. In most cases, this is 15%, but could also be 0% or 20% depending on your specific ordinary income tax bracket.
 
2. If I sell my ETH for USD on Coinbase but do not transfer the USD from Coinbase to my bank account, am I still taxed?
Yes. The only thing that matters is that you sold the ETH, which creates a taxable transaction. Whether you transfer the USD to your bank account or not does not matter.
 
3. If I use my ETH to buy OMG or another cryptocurrency, is this a taxable transaction?
Most likely yes. See #4 below for a more detailed explanation. If assuming crypto to crypto trades are not able to be like-kind exchanged, then continue on to the next paragraph here.
This is actually two different transactions. The first transaction is selling your ETH for USD. The second transaction is buying the OMG with your USD. You must manually calculate these amounts. For example, I buy 1 ETH for $600 on Coinbase. Later on, the price of 1 ETH rises to $700. I transfer that 1 ETH to Bittrex and use it to buy 37 OMG. I have to report a capital gain of $100 because of this transaction. My total cost basis for the 37 OMG I purchased is $700.
 
4. If I use my ETH to buy OMG or other cryptocurrency, could that be considered a tax-free like-kind exchange?
Probably not. The new tax law says that like-kind exchanges only pertain to real estate transactions. This was done with Section 13303, which replaced “property” with “real property” for all of Section 1031 (page 72 near the bottom). My personal interpretation:
In 2018 and going forward, cryptocurrencies can definitely not be like-kind exchanged.
In 2017 and before, it is a very gray area. I personally am not taking the position that they can be like-kind exchanged, because if the IRS went after a taxpayer who did this, the IRS would probably win and the taxpayer would owe taxes, interest, and probably penalties on every single little gain made from trading one cryptocurrency for another.
Here is a great interpretation of why trading cryptocurrency for cryptocurrency is probably not a like-kind transaction.
In my opinion, the biggest factor is that like-kind exchanges must be reported on Form 8824 and not just ignored. Therefore, if a taxpayer is claiming like-kind exchanges on crypto to crypto exchanges, he or she would have to fill out a Form 8824 for each individual transaction of crypto to crypto, which would be absolutely cumbersome if there are hundreds or thousands of such trades.
Here is another article about like-kind exchanges.
Here is the American Institute of CPAs' letter to the IRS, dated June 10, 2016, asking them to release guidance on whether crypto to crypto can be like-kind exchanged or not. The IRS has not responded to the letter.
 
5. How do I calculate the realized capital gain or loss on the sale of my cryptocurrency?
The realized gain or loss is your total proceeds from the sale minus what you purchased those positions for (your cost basis). For example, you bought 1 ETH for $300 in June of 2017. In December of 2017, you sold that 1 ETH for $800. Your realized gain would be $800 - $300 = $500. Since you held it for one year or less, the $500 would be a short-term capital gain taxed at your ordinary income tax rate.
 
6. Which ETH's cost basis do I use if I have multiple purchases?
The cost basis reporting method is up to you. For example, I buy my first ETH at $300, a second ETH at $530, and a third ETH at $400. Later on, I sell one ETH for $800. I can use:
FIFO (first in first out) - cost basis would the first ETH, $300, which would result in a gain of $500.
LIFO (last in first out) - cost basis would be the third ETH, $400, which would result in a gain of $400.
Average cost - cost basis would be the average of the three ETH, $410, which would result in a gain of $390.
Specific identification - I can just choose which coin's cost basis to use. For example, I can choose the second ETH's cost basis, $530, which would result in the lowest capital gains possible of $270.
 
7. If I end up with a net capital loss, can I claim this on my tax return?
Capital gains and capital losses are netted on your tax return. If the net result of this is a capital loss, you may offset it against ordinary income on your tax return, but only at a maximum of $3,000 per year. The remaining losses are carried forward until you use them up.
 
8. What is the tax rate on my capital gains?
If long-term, the tax rate is 0%, 15%, or 20%, depending on your ordinary income tax bracket. If short-term, the tax bracket you’ll be in will depend on your total income and deductions. The ordinary income tax brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017 and 10%, 12%, 22%, 24%, 32%, 35%, and 37% in 2018 and going forward.
Here are the 2017 and 2018 ordinary income tax brackets.
Here are the 2017 and 2018 long-term capital gains tax brackets.
Here is a detailed article on how the calculation of long-term capital gains tax work and how you can take advantage of the 0% long-term capital gains rate, if applicable.
 
9. If I mine ETH or any other cryptocurrency, is this taxable?
Yes. IRS Notice 2014-21 states that mining cryptocurrency is taxable. For example, if you mined $7,000 worth of ETH in 2017, you must report $7,000 of income on your 2017 tax return. For many taxpayers, this will be reported on your Schedule C, and you will most likely owe self-employment taxes on this income as well. The $7,000 becomes the cost basis in your ETH position.
 
10. How do I calculate income for the cryptocurrency I mined?
This is the approach I would take. Say I mined 1 ETH on December 31, 2017. I would look up the daily historical prices for ETH and average the high and low prices for ETH on December 31, 2017, which is ($760.35 + $710.12) / 2 = $735.24. I would report $735.24 of income on my tax return. This would also be the cost basis of the 1 ETH I mined.
 
11. Can I deduct mining expenses on my tax return?
If you are reporting the income from mining on Schedule C, then you can deduct expenses on Schedule C as well. You can deduct the portion of your electricity costs allocated to mining, and then you depreciate the cost of your mining rig over time (probably over five years). Section 179 also allows for the full deduction of the cost of certain equipment in year 1, so you could choose to do that if you wanted to instead.
 
12. If I receive ETH or other cryptocurrency as a payment for my business, is this taxable?
Yes. Similar to mining, your income would be what the value of the coins you received was. This would also be your cost basis in the coins.
 
13. If I received Bitcoin Cash as a result of the hard fork on August 1, 2017, is this taxable?
Most likely yes. For example, if you owned 1 Bitcoin and received 1 Bitcoin Cash on August 1, 2017 as a result of the hard fork, your income would be the value of 1 Bitcoin Cash on that date. Bitcoin.tax uses a value of $277. This value would also be your cost basis in the position. Any other hard forks would probably be treated similarly. Airdrops may be treated similarly as well, in the IRS' view.
Here are a couple more good articles about reporting the Bitcoin Cash fork as taxable ordinary income. The second one goes into depth and cites a US Supreme Court decision as precedent: one, two
 
14. If I use ETH, BTC, or other cryptocurrency to purchase goods or services, is this a taxable transaction?
Yes. It would be treated as selling your cryptocurrency for USD, and then using that USD to purchase those goods or services. This is because the IRS treats cryptocurrency as property and not currency.
 
15. Are cryptocurrencies subject to the wash sale rule?
Probably not. Section 1091 only applies to stock or securities. Cryptocurrencies are not classified as stocks or securities. Therefore, you could sell your ETH at a loss, repurchase it immediately, and still realize this loss on your tax return, whereas you cannot do the same with a stock. Please see this link for more information.
 
16. What if I hold cryptocurrency on an exchange based outside of the US?
There are two separate foreign account reporting requirements: FBAR and FATCA.
A FBAR must be filed if you held more than $10,000 on an exchange based outside of the US at any point during the tax year.
A Form 8938 (FATCA) must be filed if you held more than $75,000 on an exchange based outside of the US at any point during the tax year, or more than $50,000 on the last day of the tax year.
The penalties are severe for not filing these two forms if you are required to. Please see the second half of this post for more information on foreign account reporting.
 
17. What are the tax implications of gifting cryptocurrency?
Small gifts of cryptocurrency do not have a tax implication for the gift giver or for the recipient. The recipient would retain the gift giver's old cost basis, so it could be a good idea for the gift giver to provide records of the original cost basis to the recipient as well (or else the recipient would have to assume a cost basis of $0 if the recipient ever sells the cryptocurrency).
Large gifts of cryptocurrency could start having gift and estate tax implications on the giver if the value exceeds more than $14,000 (in 2017) or $15,000 (in 2018) per year per recipient.
Here's a good article on Investopedia on this issue.
An important exception applies if the gift giver gives cryptocurrency that has a cost basis that is higher than the market value at the time of the gift. Please see the middle of this post for more information on that.
 
18. Where can I learn even more about cryptocurrency taxation?
Unchained Podcast: The Tax Rules That Have Crypto Users Aghast
IRS Notice 2014-21
Great reddit post from tax attorney Tyson Cross from 2014
 
19. Are there any websites that you recommend in helping me with all of this?
Yes - I have used bitcoin.tax and highly recommend it. You can import directly from an exchange to the website using API, and/or export a .csv/excel file from the exchange and import it into the website. The exchanges I successfully imported from were Coinbase, GDAX, Bittrex, and Binance. The result is a .csv or other file that you can import into your tax software.
I have also heard good things about cointracking.info but have not personally used it myself.
 
20. Taxation is theft!
I can't help you there.
 
 
That is the summary I have for now. There have been a lot of excellent cryptocurrency tax guides on reddit, such as this one, this one, and this one, but I wanted to post my short summary guide on ethtrader which hopefully answers some of the questions you all may have about US taxation of ETH and other cryptocurrencies. Please let me know if you have any more questions, and I’d be happy to answer them to the best of my ability. Thank you!
Regarding edits: I have made many edits to my post since I originally posted it. Please refresh to see the latest edits to my guide. Thank you.
 
Disclaimer:
The information contained within this post is provided for informational purposes only and is not intended to substitute for obtaining tax, accounting, or financial advice from a professional.
Any U.S. federal tax advice contained in this post is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.
Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an advisor-client relationship. Internet users are advised not to act upon this information without seeking the service of a tax professional.
submitted by Nubboi to ethtrader [link] [comments]

Your Guide to Monero, and Why It Has Great Potential

/////Your Guide to Monero, and Why It Has Great Potential/////

Marketing.
It's a dirty word for most members of the Monero community.
It is also one of the most divisive words in the Monero community. Yet, the lack of marketing is one of the most frustrating things for many newcomers.
This is what makes this an unusual post from a member of the Monero community.
This post is an unabashed and unsolicited analyzation of why I believe Monero to have great potential.
Below I have attempted to outline different reasons why Monero has great potential, beginning with upcoming developments and use cases, to broader economic motives, speculation, and key issues for it to overcome.
I encourage you to discuss and criticise my musings, commenting below if you feel necessary to do so.

///Upcoming Developments///

Bulletproofs - A Reduction in Transaction Sizes and Fees
Since the introduction of Ring Confidential Transactions (Ring CT), transaction amounts have been hidden in Monero, albeit at the cost of increased transaction fees and sizes. In order to mitigate this issue, Bulletproofs will soon be added to reduce both fees and transaction size by 80% to 90%. This is great news for those transacting smaller USD amounts as people commonly complained Monero's fees were too high! Not any longer though! More information can be found here. Bulletproofs are already working on the Monero testnet, and developers were aiming to introduce them in March 2018, however it could be delayed in order to ensure everything is tried and tested.
Multisig
Multisig has recently been merged! Mulitsig, also called multisignature, is the requirement for a transaction to have two or more signatures before it can be executed. Multisig transactions and addresses are indistinguishable from normal transactions and addresses in Monero, and provide more security than single-signature transactions. It is believed this will lead to additional marketplaces and exchanges to supporting Monero.
Kovri
Kovri is an implementation of the Invisible Internet Project (I2P) network. Kovri uses both garlic encryption and garlic routing to create a private, protected overlay-network across the internet. This overlay-network provides users with the ability to effectively hide their geographical location and internet IP address. The good news is Kovri is under heavy development and will be available soon. Unlike other coins' false privacy claims, Kovri is a game changer as it will further elevate Monero as the king of privacy.
Mobile Wallets
There is already a working Android Wallet called Monerujo available in the Google Play Store. X Wallet is an IOS mobile wallet. One of the X Wallet developers recently announced they are very, very close to being listed in the Apple App Store, however are having some issues with getting it approved. The official Monero IOS and Android wallets, along with the MyMonero IOS and Android wallets, are also almost ready to be released, and can be expected very soon.
Hardware Wallets
Hardware wallets are currently being developed and nearing completion. Because Monero is based on the CryptoNote protocol, it means it requires unique development in order to allow hardware wallet integration. The Ledger Nano S will be adding Monero support by the end of Q1 2018. There is a recent update here too. Even better, for the first time ever in cryptocurrency history, the Monero community banded together to fund the development of an exclusive Monero Hardware Wallet, and will be available in Q2 2018, costing only about $20! In addition, the CEO of Trezor has offered a 10BTC bounty to whoever can provide the software to allow Monero integration. Someone can be seen to already be working on that here.
TAILS Operating System Integration
Monero is in the progress of being packaged in order for it to be integrated into TAILS and ready to use upon install. TAILS is the operating system popularised by Edward Snowden and is commonly used by those requiring privacy such as journalists wanting to protect themselves and sources, human-right defenders organizing in repressive contexts, citizens facing national emergencies, domestic violence survivors escaping from their abusers, and consequently, darknet market users.
In the meantime, for those users who wish to use TAILS with Monero, u/Electric_sheep01 has provided Sheep's Noob guide to Monero GUI in Tails 3.2, which is a step-by-step guide with screenshots explaining how to setup Monero in TAILS, and is very easy to follow.
Mandatory Hardforks
Unlike other coins, Monero receives a protocol upgrade every 6 months in March and September. Think of it as a Consensus Protocol Update. Monero's hard forks ensure quality development takes place, while preventing political or ideological issues from hindering progress. When a hardfork occurs, you simply download and use the new daemon version, and your existing wallet files and copy of the blockchain remain compatible. This reddit post provides more information.
Dynamic fees
Many cryptocurrencies have an arbitrary block size limit. Although Monero has a limit, it is adaptive based on the past 100 blocks. Similarly, fees change based on transaction volume. As more transactions are processed on the Monero network, the block size limit slowly increases and the fees slowly decrease. The opposite effect also holds true. This means that the more transactions that take place, the cheaper the fees!
Tail Emission and Inflation
There will be around 18.4 million Monero mined at the end of May 2022. However, tail emission will kick in after that which is 0.6 XMR, so it has no fixed limit. Gundamlancer explains that Monero's "main emission curve will issue about 18.4 million coins to be mined in approximately 8 years. (more precisely 18.132 Million coins by ca. end of May 2022) After that, a constant "tail emission" of 0.6 XMR per 2-minutes block (modified from initially equivalent 0.3 XMR per 1-minute block) will create a sub-1% perpetual inflatio starting with 0.87% yearly inflation around May 2022) to prevent the lack of incentives for miners once a currency is not mineable anymore.
Monero Research Lab
Monero has a group of anonymous/pseudo-anonymous university academics actively researching, developing, and publishing academic papers in order to improve Monero. See here and here. The Monero Research Lab are acquainted with other members of cryptocurrency academic community to ensure when new research or technology is uncovered, it can be reviewed and decided upon whether it would be beneficial to Monero. This ensures Monero will always remain a leading cryptocurrency. A recent end of 2017 update from a MRL researcher can be found here.

///Monero's Technology - Rising Above The Rest///

Monero Has Already Proven Itself To Be Private, Secure, Untraceable, and Trustless
Monero is the only private, untraceable, trustless, secure and fungible cryptocurrency. Bitcoin and other cryptocurrencies are TRACEABLE through the use of blockchain analytics, and has lead to the prosecution of numerous individuals, such as the alleged Alphabay administrator Alexandre Cazes. In the Forfeiture Complaint which detailed the asset seizure of Alexandre Cazes, the anonymity capabilities of Monero were self-demonstrated by the following statement of the officials after the AlphaBay shutdown: "In total, from CAZES' wallets and computer agents took control of approximately $8,800,000 in Bitcoin, Ethereum, Monero and Zcash, broken down as follows: 1,605.0503851 Bitcoin, 8,309.271639 Ethereum, 3,691.98 Zcash, and an unknown amount of Monero".
Privacy CANNOT BE OPTIONAL and must be at a PROTOCOL LEVEL. With Monero, privacy is mandatory, so that everyone gets the benefits of privacy without any transactions standing out as suspicious. This is the reason Darknet Market places are moving to Monero, and will never use Verge, Zcash, Dash, Pivx, Sumo, Spectre, Hush or any other coins that lack good privacy. Peter Todd (who was involved in the Zcash trusted setup ceremony) recently reiterated his concerns of optional privacy after Jeffrey Quesnelle published his recent paper stating 31.5% of Zcash transactions may be traceable, and that only ~1% of the transactions are pure privacy transactions (i.e., z -> z transactions). When the attempted private transactions stand out like a sore thumb there is no privacy, hence why privacy cannot be optional. In addition, in order for a cryptocurrency to truly be private, it must not be controlled by a centralised body, such as a company or organisation, because it opens it up to government control and restrictions. This is no joke, but Zcash is supported by DARPA and the Israeli government!.
Monero provides a stark contrast compared to other supposed privacy coins, in that Monero does not have a rich list! With all other coins, you can view wallet balances on the blockexplorers. You can view Monero's non-existent rich list here to see for yourself.
I will reiterate here that Monero is TRUSTLESS. You don't need to rely on anyone else to protect your privacy, or worry about others colluding to learn more about you. No one can censor your transaction or decide to intervene. Monero is immutable, unlike Zcash, in which the lead developer Zooko publicly tweeted the possibility of providing a backdoor for authorities to trace transactions. To Zcash's demise, Zooko famously tweeted:
" And by the way, I think we can successfully make Zcash too traceable for criminals like WannaCry, but still completely private & fungible. …"
Ethereum's track record of immutability is also poor. Ethereum was supposed to be an immutable blockchain ledger, however after the DAO hack this proved to not be the case. A 2016 article on Saintly Law summarised the problematic nature of Ethereum's leadership and blockchain intervention:
" Many ethereum and blockchain advocates believe that the intervention was the wrong move to make in this situation. Smart contracts are meant to be self-executing, immutable and free from disturbance by organisations and intermediaries. Yet the building block of all smart contracts, the code, is inherently imperfect. This means that the technology is vulnerable to the same malicious hackers that are targeting businesses and governments. It is also clear that the large scale intervention after the DAO hack could not and would not likely be taken in smaller transactions, as they greatly undermine the viability of the cryptocurrency and the technology."
Monero provides Fungibility and Privacy in a Cashless World
As outlined on GetMonero.org, fungibility is the property of a currency whereby two units can be substituted in place of one another. Fungibility means that two units of a currency can be mutually substituted and the substituted currency is equal to another unit of the same size. For example, two $10 bills can be exchanged and they are functionally identical to any other $10 bill in circulation (although $10 bills have unique ID numbers and are therefore not completely fungible). Gold is probably a closer example of true fungibility, where any 1 oz. of gold of the same grade is worth the same as another 1 oz. of gold. Monero is fungible due to the nature of the currency which provides no way to link transactions together nor trace the history of any particular XMR. 1 XMR is functionally identical to any other 1 XMR. Fungibility is an advantage Monero has over Bitcoin and almost every other cryptocurrency, due to the privacy inherent in the Monero blockchain and the permanently traceable nature of the Bitcoin blockchain. With Bitcoin, any BTC can be tracked by anyone back to its creation coinbase transaction. Therefore, if a coin has been used for an illegal purpose in the past, this history will be contained in the blockchain in perpetuity.
A great example of Bitcoin's lack of fungibility was reposted by u/ViolentlyPeaceful:
"Imagine you sell cupcakes and receive Bitcoin as payment. It turns out that someone who owned that Bitcoin before you was involved in criminal activity. Now you are worried that you have become a suspect in a criminal case, because the movement of funds to you is a matter of public record. You are also worried that certain Bitcoins that you thought you owned will be considered ‘tainted’ and that others will refuse to accept them as payment."
This lack of fungibility means that certain businesses will be obligated to avoid accepting BTC that have been previously used for purposes which are illegal, or simply run afoul of their Terms of Service. Currently some large Bitcoin companies are blocking, suspending, or closing accounts that have received Bitcoin used in online gambling or other purposes deemed unsavory by said companies. Monero has been built specifically to address the problem of traceability and non-fungibility inherent in other cryptocurrencies. By having completely private transactions Monero is truly fungible and there can be no blacklisting of certain XMR, while at the same time providing all the benefits of a secure, decentralized, permanent blockchain.
The world is moving cashless. Fact. The ramifications of this are enormous as we move into a cashless world in which transactions will be tracked and there is a potential for data to be used by third parties for adverse purposes. While most new cryptocurrency investors speculate upon vaporware ICO tokens in the hope of generating wealth, Monero provides salvation for those in which financial privacy is paramount. Too often people equate Monero's features with criminal endeavors. Privacy is not a crime, and is necessary for good money. Transparency in Monero is possible OFF-CHAIN, which offers greater transparency and flexibility. For example, a Monero user may share their Private View Key with their accountant for tax purposes.
Monero aims to be adopted by more than just those with nefarious use cases. For example, if you lived in an oppressive religious regime and wanted to buy a certain item, using Monero would allow you to exchange value privately and across borders if needed. Another example is that if everybody can see how much cryptocurrency you have in your wallet, then a certain service might decide to charge you more, and bad actors could even use knowledge of your wallet balance to target you for extortion purposes. For example, a Russian cryptocurrency blogger was recently beaten and robbed of $425k. This is why FUNGIBILITY IS ESSENTIAL. To summarise this in a nutshell:
"A lack of fungibility means that when sending or receiving funds, if the other person personally knows you during a transaction, or can get any sort of information on you, or if you provide a residential address for shipping etc. – you could quite potentially have them use this against you for personal gain"
For those that wish to seek more information about why Monero is a superior form of money, read The Merits of Monero: Why Monero Vs Bitcoin over on the Monero.how website.
Monero's Humble Origins
Something that still rings true today despite the great influx of money into cryptocurrencies was outlined in Nick Tomaino's early 2016 opinion piece. The author claimed that "one of the most interesting aspects of Monero is that the project has gained traction without a crowd sale pre-launch, without VC funding and any company or well-known investors and without a pre-mine. Like Bitcoin in the early days, Monero has been a purely grassroots movement that was bootstrapped by the creator and adopted organically without any institutional buy-in. The creator and most of the core developers serve the community pseudonymously and the project was launched on a message board (similar to the way Bitcoin was launched on an email newsletter)."
The Organic Growth of the Monero Community
The Monero community over at monero is exponentially growing. You can view the Monero reddit metrics here and see that the Monero subreddit currently gains more than 10,000 (yes, ten thousand!) new subscribers every 10 days! Compare this to most of the other coins out there, and it proves to be one of the only projects with real organic growth. In addition to this, the community subreddits are specifically divided to ensure the main subreddit remains unbiased, tech focused, with no shilling or hype. All trading talk is designated to xmrtrader, and all memes at moonero.
Forum Funding System
While most contributors have gratefully volunteered their time to the project, Monero also has a Forum Funding System in which money is donated by community members to ensure it attracts and retains the brightest minds and most skilled developers. Unlike ICOs and other cryptocurrencies, Monero never had a premine, and does not have a developer tax. If ANYONE requires funding for a Monero related project, then they can simply request funding from the community, and if the community sees it as beneficial, they will donate. Types of projects range from Monero funding for local meet ups, to paying developers for their work.
Monero For Goods, Services, and Market Places
There is a growing number of online goods and services that you can now pay for with Monero. Globee is a service that allows online merchants to accept payments through credit cards and a host of cryptocurrencies, while being settled in Bitcoin, Monero or fiat currency. Merchants can reach a wider variety of customers, while not needing to invest in additional hardware to run cryptocurrency wallets or accept the current instability of the cryptocurrency market. Globee uses all of the open source API's that BitPay does making integrations much easier!
Project Coral Reef is a service which allows you to shop and pay for popular music band products and services using Monero.
Linux, Veracrypt, and a whole array of VPNs now accept Monero.
There is a new Monero only marketplace called Annularis currently being developed which has been created for those who value financial privacy and economic freedom, and there are rumours Open Bazaar is likely to support Monero once Multisig is implemented.
In addition, Monero is also supported by The Living Room of Satoshi so you can pay bills or credit cards directly using Monero.
Monero can be found on a growing number of cryptocurrency exchange services such as Bittrex, Poloniex, Cryptopia, Shapeshift, Changelly, Bitfinex, Kraken, Bisq, Tux, and many others.
For those wishing to purchase Monero anonymously, there are services such as LocalMonero.co and Moneroforcash.com.
With XMR.TO you can pay Bitcoin addresses directly with Monero. There are no other fees than the miner ones. All user records are purged after 48 hours. XMR.TO has also been added as an embedded feature into the Monerujo android wallet.
Coinhive Browser-Based Mining
Unlike Bitcoin, Monero can be mined using CPUs and GPUs. Not only does this encourage decentralisation, it also opens the door to browser based mining. Enter side of stage, Coinhive browser-based mining. As described by Hon Lau on the Symnatec Blog Browser-based mining, as its name suggests, is a method of cryptocurrency mining that happens inside a browser and is implemented using Javascript. Coinhive is marketed as an alternative to browser ad revenue. The motivation behind this is simple: users pay for the content indirectly by coin mining when they visit the site and website owners don't have to bother users with sites laden with ads, trackers, and all the associated paraphern. This is great, provided that the websites are transparent with site visitors and notify users of the mining that will be taking place, or better still, offer users a way to opt in, although this hasn't always been the case thus far.
Skepticism Sunday
The main Monero subreddit has weekly Skepticism Sundays which was created with the purpose of installing "a culture of being scientific, skeptical, and rational". This is used to have open, critical discussions about monero as a technology, it's economics, and so on.

///Speculation///

Major Investors And Crypto Figureheads Are Interested
Ari Paul is the co-founder and CIO of BlockTower Capital. He was previously a portfolio manager for the University of Chicago's $8 billion endowment, and a derivatives market maker and proprietary trader for Susquehanna International Group. Paul was interviewed on CNBC on the 26th of December and when asked what was his favourite coin was, he stated "One that has real fundamental value besides from Bitcoin is Monero" and said it has "very strong engineering". In addition, when he was asked if that was the one used by criminals, he replied "Everything is used by criminals including the US dollar and the Euro". Paul later supported these claims on Twitter, recommending only Bitcoin and Monero as long-term investments.
There are reports that "Roger Ver, earlier known as 'Bitcoin Jesus' for his evangelical support of the Bitcoin during its early years, said his investment in Monero is 'substantial' and his biggest in any virtual currency since Bitcoin.
Charlie Lee, the creator of Litecoin, has publicly stated his appreciation of Monero. In a September 2017 tweet directed to Edward Snowden explaining why Monero is superior to Zcash, Charlie Lee tweeted:
All private transactions, More tested privacy tech, No tax on miners to pay investors, No high inflation... better investment.
John McAfee, arguably cryptocurrency's most controversial character at the moment, has publicly supported Monero numerous times over the last twelve months(before he started shilling ICOs), and has even claimed it will overtake Bitcoin.
Playboy instagram celebrity Dan Bilzerian is a Monero investor, with 15% of his portfolio made up of Monero.
Finally, while he may not be considered a major investor or figurehead, Erik Finman, a young early Bitcoin investor and multimillionaire, recently appeared in a CNBC Crypto video interview, explaining why he isn't entirely sold on Bitcoin anymore, and expresses his interest in Monero, stating:
"Monero is a really good one. Monero is an incredible currency, it's completely private."
There is a common belief that most of the money in cryptocurrency is still chasing the quick pump and dumps, however as the market matures, more money will flow into legitimate projects such as Monero. Monero's organic growth in price is evidence smart money is aware of Monero and gradually filtering in.
The Bitcoin Flaw
A relatively unknown blogger named CryptoIzzy posted three poignant pieces regarding Monero and its place in the world. The Bitcoin Flaw: Monero Rising provides an intellectual comparison of Monero to other cryptocurrencies, and Valuing Cryptocurrencies: An Approach outlines methods of valuing different coins.
CryptoIzzy's most recent blog published only yesterday titled Monero Valuation - Update and Refocus is a highly recommended read. It touches on why Monero is much more than just a coin for the Darknet Markets, and provides a calculated future price of Monero.
CryptoIzzy also published The Power of Money: A Case for Bitcoin, which is an exploration of our monetary system, and the impact decentralised cryptocurrencies such as Bitcoin and Monero will have on the world. In the epilogue the author also provides a positive and detailed future valuation based on empirical evidence. CryptoIzzy predicts Monero to easily progress well into the four figure range.
Monero Has a Relatively Small Marketcap
Recently we have witnessed many newcomers to cryptocurrency neglecting to take into account coins' marketcap and circulating supply, blindly throwing money at coins under $5 with inflated marketcaps and large circulating supplies, and then believing it's possible for them to reach $100 because someone posted about it on Facebook or Reddit.
Compared to other cryptocurrencies, Monero still has a low marketcap, which means there is great potential for the price to multiply. At the time of writing, according to CoinMarketCap, Monero's marketcap is only a little over $5 billion, with a circulating supply of 15.6 million Monero, at a price of $322 per coin.
For this reason, I would argue that this is evidence Monero is grossly undervalued. Just a few billion dollars of new money invested in Monero can cause significant price increases. Monero's marketcap only needs to increase to ~$16 billion and the price will triple to over $1000. If Monero's marketcap simply reached ~$35 billion (just over half of Ripple's $55 billion marketcap), Monero's price will increase 600% to over $2000 per coin.
Another way of looking at this is Monero's marketcap only requires ~$30 billion of new investor money to see the price per Monero reach $2000, while for Ethereum to reach $2000, Ethereum's marketcap requires a whopping ~$100 billion of new investor money.
Technical Analysis
There are numerous Monero technical analysts, however none more eerily on point than the crowd-pleasing Ero23. Ero23's charts and analysis can be found on Trading View. Ero23 gained notoriety for his long-term Bitcoin bull chart published in February, which is still in play today. Head over to his Trading View page to see his chart: Monero's dwindling supply. $10k in 2019 scenario, in which Ero23 predicts Monero to reach $10,000 in 2019. There is also this chart which appears to be freakishly accurate and is tracking along perfectly today.
Coinbase Rumours
Over the past 12 months there have been ongoing rumours that Monero will be one of the next cryptocurrencies to be added to Coinbase. In January 2017, Monero Core team member Riccardo 'Fluffypony' Spagni presented a talk at Coinbase HQ. In addition, in November 2017 GDAX announced the GDAX Digit Asset Framework outlining specific parameters cryptocurrencies must meet in order to be added to the exchange. There is speculation that when Monero has numerous mobile and hardware wallets available, and multisig is working, then it will be added. This would enable public accessibility to Monero to increase dramatically as Coinbase had in excess of 13 million users as of December, and is only going to grow as demand for cryptocurrencies increases. Many users argue that due to KYC/AML regulations, Coinbase will never be able to add Monero, however the Kraken exchange already operates in the US and has XMfiat pairs, so this is unlikely to be the reason Coinbase is yet to implement XMfiat trading.
Monero Is Not an ICO Scam
It is likely most of the ICOs which newcomers invest in, hoping to get rich quick, won't even be in the Top 100 cryptocurrencies next year. A large portion are most likely to be pumps and dumps, and we have already seen numerous instances of ICO exit scams. Once an ICO raises millions of dollars, the developers or CEO of the company have little incentive to bother rolling out their product or service when they can just cash out and leave. The majority of people who create a company to provide a service or product, do so in order to generate wealth. Unless these developers and CEOs are committed and believed in their product or service, it's likely that the funds raised during the ICO will far exceed any revenue generated from real world use cases.
Monero is a Working Currency, Today
Monero is a working currency, here today.
The majority of so called cryptocurrencies that exist today are not true currencies, and do not aim to be. They are a token of exchange. They are like a share in a start-up company hoping to use blockchain technology to succeed in business. A crypto-assest is a more accurate name for coins such as Ethereum, Neo, Cardano, Vechain, etc.
Monero isn't just a vaporware ICO token that promises to provide a blockchain service in the future. It is not a platform for apps. It is not a pump and dump coin.
Monero is the only coin with all the necessary properties to be called true money.
Monero is private internet money.
Some even describe Monero as an online Swiss Bank Account or Bitcoin 2.0, and it is here to continue on from Bitcoin's legacy.
Monero is alleviating the public from the grips of banks, and protests the monetary system forced upon us.
Monero only achieved this because it is the heart and soul, and blood, sweat, and tears of the contributors to this project. Monero supporters are passionate, and Monero has gotten to where it is today thanks to its contributors and users.

///Key Issues for Monero to Overcome///

Scalability
While Bulletproofs are soon to be implemented in order to improve Monero's transaction sizes and fees, scalability is an issue for Monero that is continuously being assessed by Monero's researchers and developers to find the most appropriate solution. Ricardo 'Fluffypony' Spagni recently appeared on CNBC's Crypto Trader, and when asked whether Monero is scalable as it stands today, Spagni stated that presently, Monero's on-chain scaling is horrible and transactions are larger than Bitcoin's (because of Monero's privacy features), so side-chain scaling may be more efficient. Spagni elaborated that the Monero team is, and will always be, looking for solutions to an array of different on-chain and off-chain scaling options, such as developing a Mimblewimble side-chain, exploring the possibility of Lightning Network so atomic swaps can be performed, and Tumblebit.
In a post on the Monero subreddit from roughly a month ago, monero moderator u/dEBRUYNE_1 supports Spagni's statements. dEBRUYNE_1 clarifies the issue of scalability:
"In Bitcoin, the main chain is constrained and fees are ludicrous. This results in users being pushed to second layer stuff (e.g. sidechains, lightning network). Users do not have optionality in Bitcoin. In Monero, the goal is to make the main-chain accessible to everyone by keeping fees reasonable. We want users to have optionality, i.e., let them choose whether they'd like to use the main chain or second layer stuff. We don't want to take that optionality away from them."
When the Spagni CNBC video was recently linked to the Monero subreddit, it was met with lengthy debate and discussion from both users and developers. u/ferretinjapan summarised the issue explaining:
"Monero has all the mechanisms it needs to find the balance between transaction load, and offsetting the costs of miner infrastructure/profits, while making sure the network is useful for users. But like the interviewer said, the question is directed at "right now", and Fluffys right to a certain extent, Monero's transactions are huge, and compromises in blockchain security will help facilitate less burdensome transactional activity in the future. But to compare Monero to Bitcoin's transaction sizes is somewhat silly as Bitcoin is nowhere near as useful as monero, and utility will facilitate infrastructure building that may eventually utterly dwarf Bitcoin. And to equate scaling based on a node being run on a desktop being the only option for what classifies as "scalable" is also an incredibly narrow interpretation of the network being able to scale, or not. Given the extremely narrow definition of scaling people love to (incorrectly) use, I consider that a pretty crap question to put to Fluffy in the first place, but... ¯_(ツ)_/¯"
u/xmrusher also contributed to the discussion, comparing Bitcoin to Monero using this analogous description:
"While John is much heavier than Henry, he's still able to run faster, because, unlike Henry, he didn't chop off his own legs just so the local wheelchair manufacturer can make money. While Morono has much larger transactions then Bitcoin, it still scales better, because, unlike Bitcoin, it hasn't limited itself to a cripplingly tiny blocksize just to allow Blockstream to make money."
Setting up a wallet can still be time consuming
It's time consuming and can be somewhat difficult for new cryptocurrency users to set up their own wallet using the GUI wallet or the Command Line Wallet. In order to strengthen and further decentralize the Monero network, users are encouraged to run a full node for their wallet, however this can be an issue because it can take up to 24-48 hours for some users depending on their hard-drive and internet speeds. To mitigate this issue, users can run a remote node, meaning they can remotely connect their wallet to another node in order to perform transactions, and in the meantime continue to sync the daemon so in the future they can then use their own node.
For users that do run into wallet setup issues, or any other problems for that matter, there is an extremely helpful troubleshooting thread on the Monero subreddit which can be found here. And not only that, unlike some other cryptocurrency subreddits, if you ask a question, there is always a friendly community member who will happily assist you. Monero.how is a fantastic resource too!
Despite still being difficult to use, the user-base and price may increase dramatically once it is easier to use. In addition, others believe that when hardware wallets are available more users will shift to Monero.

///Conclusion///

I actually still feel a little shameful for promoting Monero here, but feel a sense of duty to do so.
Monero is transitioning into an unstoppable altruistic beast. This year offers the implementation of many great developments, accompanied by the likelihood of a dramatic increase in price.
I request you discuss this post, point out any errors I have made, or any information I may have neglected to include. Also, if you believe in the Monero project, I encourage you to join your local Facebook or Reddit cryptocurrency group and spread the word of Monero. You could even link this post there to bring awareness to new cryptocurrency users and investors.
I will leave you with an old on-going joke within the Monero community - Don't buy Monero - unless you have a use case for it of course :-) Just think to yourself though - Do I have a use case for Monero in our unpredictable Huxleyan society? Hint: The answer is ?
Edit: Added in the Tail Emission section, and noted Dan Bilzerian as a Monero investor. Also added information regarding the XMR.TO payment service. Added info about hardfork
submitted by johnfoss69 to CryptoCurrency [link] [comments]

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