@ms71 said:
So if you buy bitcoin then spend it in increments, wouldn't each transaction technically trigger a tax liability based on price paid and price realized for the bitcoin in each transaction?
That's a great question and one that I've wondered about. I mean it is easy enough to account for using your average cost basis, but if you have $50,000 in bitcoin and spend it $25 at a time, it's going to be a lot of accounting. LOL.
Yes you trigger a taxable event whenever transact for goods/services and need to account for it. Theres easy ways to do it across multiple wallets even but I digress, part of the amazing blockchain. Places like PP or RH are good stepping stones for people to dip their toe in(and will handle reporting) but ultimately you want to hold at least one wallet and expect the methods to simplify over time as well.
@AUandAG said:
It's my opinion that Crypto ETFs are like many companies that will go under when they can't produce the crypto on demand. I'm wary of someone holding my money with a promise that they have the goods to sell when I go to cash in. Haven't some of the precious metals dealers bitten the dust as this business model is a scam?
How do you know they have the goods to hold for you?
bob
Actually you can verify it. You're merely highlighting your lack of knowledge about the blockchain. For example, the volume of paypal btc since inception has been interesting to observe as well as whale movements, greyscale buys, etc. I find it hilarious you can look up a bitcoin scammer and see how much they've scammed. Doesn't matter if you don't understand the blockchain, its still permeating society significantly. Huge improvements in speed, security, transparency, savings, etc.
There's many ways to skin a cat and besides btc or eth, I hold investments helping this financial innovation occurring and have profited greatly.
@TurtleCat said:
I’ve thought about dabbling with bitcoin but what keeps me from it is the impending doom for it in the back of my head once the government decides to outlaw any virtual currency but its own. Whether that happens or not, who knows? But it is risky. Plus you have to pay taxes on it anyway...
You "have to" pay taxes on any capital gain unless the capital asset is held or traded in a ROTH IRA until eligible for tax free withdrawal at a certain age.
Any tax deferred retirement account let’s you delay paying taxes until you take withdrawals.
@ErrorsOnCoins said:
Wow, thanks guys for all the info so far
I love PayPal and have a high cash balance there as it is getting very hard to find quality error coin inventory right now. I have been transferring the money out and then into a brokerage account to buy stocks but wanted to try some crypto as I have none and for diversification.
I think I should buy in slowly and perhaps constantly.
Probably should get my feet wet and check it out.
I have also had the fund RIOT on my watchlist for a while now but it keeps going straight up. Maybe on a pull back.
With PP I ran into a 20K weekly buy limit and a cumulative 50K annual buy limit per PP account. Selling a crypto and buying again counts against those limits. The only limits I have seen with RH are a week long deposit process and a $50K daily limit on cash transfers out of the account. The cash transfers out took only two days. As I said earlier there are no daytrading restrictions on cryptos like you have on equitites. Since crytpos are outside of the SEC rules you can buy and sell as many time as you like. While RH fess are low to none, you do lose on the spread between the actual buy/sell price and the one RH pegs you to. You have to trade a few times to get the hang of that one.
I did see that PP offers this service. I would think that all of these PP transactions have to be reported to the IRS. And that you would need an accountant as well at tax time. It wouldn’t be any different than using something like American-trade and having to report your earnings. Let me know if I’m wrong on this info.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Use CoinbasePro. You own the crypto in CB and you can either let them hold it or send it to a thumb drive and take it off the web. Read the fine print for RH. There you are merely betting on the prices of crypto and not actually buying crypto. RH crypto is a separate entity from RH for a reason.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
It could, but then again Bill Gates and Microsoft survived the horrors that were Windows ME and Windows Vista.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
It could, but then again Bill Gates and Microsoft survived the horrors that were Windows ME and Windows Vista.
Are you serious? Would you rather bet on a company that acknowledges quality issues (and fixes them) or one that doesn't? Furthermore, people will put up with minor niggles when you're offering a product that is unique and years ahead of the competition. From your second linked article:
But that doesn’t seem to have stopped the desirability of owning a Tesla. Even the UK Tesla Model S owner mentioned above claims to remain very happy with his purchase. Tesla did have his car back, all fixed, in a couple of days, and this was during the coronavirus lockdown in England.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
I think that's an inexact parallel.
Cars were here to stay but the Edsel is long gone.
It is certainly possible that blockchain survives as a means of validating stock transfers or US dollar transactions but the cryptocurrencies disappear.
There is a new Osprey bitcoin ETF in Canada symbol OBTC over the counter Toronto market. Had a lot of first time trades, but hard to know the actual NAV vs the trust price. Another the Purpose Bitcoin ETF is called BTCC.
There is another one just approved the Evolve bitcoin ETF symbol EBIT. Looks like there will be a lot of these soon.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
I think that's an inexact parallel.
Cars were here to stay but the Edsel is long gone.
It is certainly possible that blockchain survives as a means of validating stock transfers or US dollar transactions but the cryptocurrencies disappear.
The Edsel came along decades after the car became ubiquitous and, as importantly, was a POS. It didn't pioneer anything.
While it's possible that Tesla stumbles fatally in the future, as long as Musk runs the company I have no doubt they will continue to innovate and expand faster than their competitors.
I have more faith in Tesla thriving into the future than I do in Bitcoin doing so, but I believe my analogy was more apt than not. YMMV.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
I think that's an inexact parallel.
Cars were here to stay but the Edsel is long gone.
It is certainly possible that blockchain survives as a means of validating stock transfers or US dollar transactions but the cryptocurrencies disappear.
The Edsel came along decades after the car became ubiquitous and, as importantly, was a POS.
@Sandman70gt said:
The crypto currency is not a currency at all, it is the investment in that technology.
No, crytocurrency IS currency. If you want (instead) to invest in the hardware and software that supports the currencies, there are stocks and other vehicles with which to do so.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
I think that's an inexact parallel.
Cars were here to stay but the Edsel is long gone.
It is certainly possible that blockchain survives as a means of validating stock transfers or US dollar transactions but the cryptocurrencies disappear.
The Edsel came along decades after the car became ubiquitous and, as importantly, was a POS.
NOOOOOOOOO. Don't. Open a account with coinbase or gemini. You actually have control of the BTC and can move it. I would recommend staking it to earn interest.
Comments
Yes you trigger a taxable event whenever transact for goods/services and need to account for it. Theres easy ways to do it across multiple wallets even but I digress, part of the amazing blockchain. Places like PP or RH are good stepping stones for people to dip their toe in(and will handle reporting) but ultimately you want to hold at least one wallet and expect the methods to simplify over time as well.
Actually you can verify it. You're merely highlighting your lack of knowledge about the blockchain. For example, the volume of paypal btc since inception has been interesting to observe as well as whale movements, greyscale buys, etc. I find it hilarious you can look up a bitcoin scammer and see how much they've scammed. Doesn't matter if you don't understand the blockchain, its still permeating society significantly. Huge improvements in speed, security, transparency, savings, etc.
There's many ways to skin a cat and besides btc or eth, I hold investments helping this financial innovation occurring and have profited greatly.
Bitcoin’s market capitalization is nearing $1 trillion
Currently right now BTC is $968,105,000,000. Crazy
Bst transactions with: dimeman, oih82w8, mercurydimeguy, dunerlaw, Lakesammman, 2ltdjorn, MattTheRiley, dpvilla, drddm, CommemKing, Relaxn, Yorkshireman, Cucamongacoin, jtlee321, greencopper, coin22lover, coinfolio, lindedad, spummybum, Leeroybrown, flackthat, BryceM, Surfinxhi, VanHalen, astrorat, robkool, Wingsrule, PennyGuy, al410, Ilikecolor, Southcounty, Namvet69, Commemdude, oreville, Leebone, Rob41281, clarkbar04, cactusjack55, Collectorcoins, sniocsu, coin finder
Crypto currencies aren't for athiests.
Any tax deferred retirement account let’s you delay paying taxes until you take withdrawals.
I did see that PP offers this service. I would think that all of these PP transactions have to be reported to the IRS. And that you would need an accountant as well at tax time. It wouldn’t be any different than using something like American-trade and having to report your earnings. Let me know if I’m wrong on this info.
No, it means cornbread IS bread, just as cryptocurrency IS currency.
Not what was asked, but I'd put my money on the latter. Although I think Bitcoin will go the way of the dodo long term, I think blockchain technology is here to stay and will be adopted by real banks transacting in real currency.
Not to be contradictory here but --
Use CoinbasePro. You own the crypto in CB and you can either let them hold it or send it to a thumb drive and take it off the web. Read the fine print for RH. There you are merely betting on the prices of crypto and not actually buying crypto. RH crypto is a separate entity from RH for a reason.
Your argument is like saying electric cars are here to say, but Tesla will go the way of the dodo. Nonsense, IOW.
It could, but then again Bill Gates and Microsoft survived the horrors that were Windows ME and Windows Vista.
Elon Musk admits Tesla has quality problems
https://www.cnn.com/2021/02/03/business/elon-musk-tesla-quality-problems/index.html
Can Tesla Be Beaten… By Its Own Quality Control?
https://www.forbes.com/sites/jamesmorris/2020/06/27/can-tesla-be-beaten-by-its-own-quality-control/?sh=63fdcab75da7
Are you serious? Would you rather bet on a company that acknowledges quality issues (and fixes them) or one that doesn't? Furthermore, people will put up with minor niggles when you're offering a product that is unique and years ahead of the competition. From your second linked article:
But that doesn’t seem to have stopped the desirability of owning a Tesla. Even the UK Tesla Model S owner mentioned above claims to remain very happy with his purchase. Tesla did have his car back, all fixed, in a couple of days, and this was during the coronavirus lockdown in England.
But we're getting OT here in any case.
I think that's an inexact parallel.
Cars were here to stay but the Edsel is long gone.
It is certainly possible that blockchain survives as a means of validating stock transfers or US dollar transactions but the cryptocurrencies disappear.
There is a new Osprey bitcoin ETF in Canada symbol OBTC over the counter Toronto market. Had a lot of first time trades, but hard to know the actual NAV vs the trust price. Another the Purpose Bitcoin ETF is called BTCC.
There is another one just approved the Evolve bitcoin ETF symbol EBIT. Looks like there will be a lot of these soon.
My US Mint Commemorative Medal Set
I lost my very small fraction of a bitcoin I bought a year ago, no idea where I put the password papers haha! Im dumb I know, well...
The Edsel came along decades after the car became ubiquitous and, as importantly, was a POS. It didn't pioneer anything.
While it's possible that Tesla stumbles fatally in the future, as long as Musk runs the company I have no doubt they will continue to innovate and expand faster than their competitors.
I have more faith in Tesla thriving into the future than I do in Bitcoin doing so, but I believe my analogy was more apt than not. YMMV.
Kind of like Tesla and Bitcoin.
Haters gonna hate, I guess...
Any update @ErrorsOnCoins ?
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
Naw I went kayak fishing instead a couple days ago and then spent yesterday on the beach collecting sea glass with my wife.
The weather in San Diego really warmed up so we had to take some time off to enjoy it.
Keep me posted if you do not mind.
Post pics of your catch, before and after preparing, they always make me hungry.
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
We went out for Halibut....
My friend caught...
5-foot leopard shark (released)
Sculpin (poisonous but tasty fish) (released)
Mantis shrimp (Google it) kept to eat.
I caught ...
A large edible octopus (released)
A heavy-duty newer conical lobster hoop net with bait cage off the bottom worth over $50
Mantis Shrimp looks like a lobster
sounds like you had fun
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
Back to bitcoin, may nibble today ???
Do it! Even if it is only a couple bucks... I throw a little in it whenever there is a decent drop.
My chart shows to wait until 45k ish.
NOOOOOOOOO. Don't. Open a account with coinbase or gemini. You actually have control of the BTC and can move it. I would recommend staking it to earn interest.
I just pulled the trigger near 45K
Bought $500 Bitcoin
and $500 Ethereum
I'm already up $11
Super easy on PayPal
Why is the buy price higher than the quote on the screen before the buy screen?