Is Crypto dying or just dropping for the moment?

[Rhea]

When you cash in, try to deposit or spend the money, then it starts to show up; it takes a lot of extra work to spend it without the IRS noticing.

 

[Gospel]

The IRS money bagged around 37% of my earnings from Bitcoin. If anyone is money laundering it's them.

Did you report the earnings voluntarily? If not, how were they informed?

(I am NOT encouraging tax evasion; I'm just curious how IRS would detect tax evaders. Is it large infusions from Bitcoin sales into a regular bank account that would alert them to possible evasion?)

The whole process took me almost a year (mostly trying to get access to a legacy wallet and upgrade it, then sold to some firm in the UK that handles my father's money who did all the paper work for free, converted to US dollar and went through hell with my former Bank (BOA) who needed everything including the kitchen sink before accepting it. Ultimately the bank reported it and I reported. it. Sorry for the trash reply. Just woke up for no reason at 2:32 am and decided to check the forum on my phone. If I'm still interested in emotionally revisiting the details I'll share later today.

 

[Loren Pechtel]

U.S. Treasury calls for stricter cryptocurrency compliance with IRS, says they pose tax evasion risk

The Treasury Department on Thursday announced that it is taking steps to crack down on cryptocurrency markets and transactions, and said it will require any transfer worth $10,000 or more to be reported to the Internal Revenue Service.

“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury Department said in a release.

“This is why the President’s proposal includes additional resources for the IRS to address the growth of cryptoassets,” the department added. “Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on.”

The IRS money bagged around 37% of my earnings from Bitcoin. If anyone is money laundering it's them.

37%??? It's unearned, how can you have a tax rate that high?

 

[Jason Harvestdancer]

The IRS money bagged around 37% of my earnings from Bitcoin. If anyone is money laundering it's them.

37% for no real effort? Seems like a good deal.

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

 

[jonatha]

Short term capital gains are taxed as ordinary income, and the top marginal rate is 37%.

 

[barbos]

Short term capital gains are taxed as ordinary income, and the top marginal rate is 37%.

Mystery solved!

 

[Gospel]

Honestly, it may have been less than 37% but what's the difference? It was around $250,000 from bitcoin and I walked away with $157,000 ish. Feels like 50% to me. Not sure how Uncle Sam can take half my earnings and we're still not divorced.

 

[barbos]

Honestly, it may have been less than 37% but what's the difference? It was around $250,000 from bitcoin and I walked away with $157,000 ish. Feels like 50% to me. Not sure how Uncle Sam can take half my earnings and we're still not divorced.

Uncle Sam created (and supports) the whole damn system where you can "earn" (in reality speculate) $250,000

 

[Gospel]

Honestly, it may have been less than 37% but what's the difference? It was around $250,000 from bitcoin and I walked away with $157,000 ish. Feels like 50% to me. Not sure how Uncle Sam can take half my earnings and we're still not divorced.

Uncle Sam created (and supports) the whole damn system where you can "earn" (in reality speculate) $250,000

I do recall saying I'm ok with that a few posts back.

 

[Loren Pechtel]

The IRS money bagged around 37% of my earnings from Bitcoin. If anyone is money laundering it's them.

37% for no real effort? Seems like a good deal.

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Took no risk with their investment????

Haven't you seen what has happened with Bitcoin prices recently?

 

[Jarhyn]

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Took no risk with their investment????

Haven't you seen what has happened with Bitcoin prices recently?

Of course, some people wish to mock those who believe most investment IS in fact without risk by pretending that the existence of risks makes all such investments "risky"

The fact is, when you have enough money diversely invested, the probabilities favor a substantial return.

That is certainty, not risk.

 

[Harry Bosch]

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Took no risk with their investment????

Haven't you seen what has happened with Bitcoin prices recently?

He was being ironic!

 

[Harry Bosch]

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Took no risk with their investment????

Haven't you seen what has happened with Bitcoin prices recently?

Of course, some people wish to mock those who believe most investment IS in fact without risk by pretending that the existence of risks makes all such investments "risky"

The fact is, when you have enough money diversely invested, the probabilities favor a substantial return.

That is certainty, not risk.

And how many people do you know who have a well balanced enough portfolio that they have very little risk?

 

[Bomb#20]

Of course, some people wish to mock those who believe most investment IS in fact without risk by pretending that the existence of risks makes all such investments "risky"

The fact is, when you have enough money diversely invested, the probabilities favor a substantial return.

That is certainty, not risk.

And how many people do you know who have a well balanced enough portfolio that they have very little risk?

There's no such thing as a risk-free investment. It's not an issue of being well balanced enough; there's diversifiable risk and then there's undiversifiable risk. An investment contains some of each. The reason the market rewards risk takers is because risk is a type of garbage -- it's something people pay to get rid of. But you can get rid of diversifiable risk almost for free, by diversifying, so in general the expected return on an investment is proportional only to the component of its risk that's undiversifiable.

If "the probabilities favor a substantial return. That is certainty, not risk." sounds self-contradictory, that's because it is. The market doesn't pay people to bet on sure things.

 

[Bomb#20]

Honestly, it may have been less than 37% but what's the difference? It was around $250,000 from bitcoin and I walked away with $157,000 ish. Feels like 50% to me. Not sure how Uncle Sam can take half my earnings and we're still not divorced.

Must be nice, Florida Man! Try that in California and they'll soak another 11% out of you.

 

[Jimmy Higgins]

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Since when was investment risk = work?

 

[Harry Bosch]

Investors never do any actual work, and their investments are never a risk. Therefore they deserve to be taken to the cleaners over any profit.

Since when was investment risk = work?

Accessing risk is work. For example, technology startups are considered to be wildly risky. Hence, their stocks are very expensive (in order to attract investors). But some people are able to more accurately measure management's abilities and thus, reduce risk. Ivy educated stock analysts with a good track record are paid like NBA athletes.

 

[Artemus]

WIth the FBI recovering most (all?) of the pipeline ransom today the only apparent use for bitcoin appears to be less apparent. Prices have already dropped some and I expect them to drop even more.

I wish that the bigger fools who keep trading legitimate currency for bitcoin tokens would realize that all they are doing is effectively laundering money for the criminals.

 

[Swammerdami]

I wish that the bigger fools who keep trading legitimate currency for bitcoin tokens would realize that all they are doing is effectively laundering money for the criminals.

Do you think they care? If non-criminals who are long Bitcoin think that criminals are driving up the price, then they will be eager for more criminals to get involved.

 

[Jimmy Higgins]

WIth the FBI recovering most (all?) of the pipeline ransom today the only apparent use for bitcoin appears to be less apparent. Prices have already dropped some and I expect them to drop even more.

I wish that the bigger fools who keep trading legitimate currency for bitcoin tokens would realize that all they are doing is effectively laundering money for the criminals.

Bitcoin is only down 10% today, which is a cryptocurrency burp. Granted, it is down 50% since its peak.

I think the harms via the inability to use Bitcoin as currency after the Tesla reversal followed by this which implies there might be risk to using it for black market purposes should weigh on Bitcoin. Time will tell.