Message Board Basketball Forum - InsideHoops

Go Back   Message Board Basketball Forum - InsideHoops > InsideHoops Main Basketball Forums > Off the Court Lounge

Off the Court Lounge Basketball fans talk about everything EXCEPT basketball here

Reply
 
Thread Tools
Old 06-02-2017, 04:01 PM   #1
Orlando Magic
Very good NBA starter
 
Orlando Magic's Avatar
 
Join Date: May 2007
Posts: 8,976
Default The Bitcoin and other cryptocurrency Information Thread

Seeing as how the majority of the other threads on Bitcoin surround price and speculation on price, I thought it would be advantageous to create a thread that focused more on a Q & A / informative source describing exactly what Bitcoin and cryptocurrencies are. I'm going to straight up copy some other webpages and I will cite them, of course, and then answer any questions that people might have. I am not an authority and my understanding of the true inner workings is extremely limited in comparison to the advanced minds in the field.

If you want to read exactly what it is, from Bitcoin's creator... here is the whitepaper, written by Satoshi Nakamoto, describing Bitcoin... https://bitcoin.org/bitcoin.pdf

https://www.reddit.com/r/Bitcoin/com...s_please_read/ <-- GO TO THIS THREAD SPECIFICALLY.

For actual discussion on Bitcoin, I recommend www.bitcointalk.org which is what the founder and other early adopters have always used... Reddit tends to be filled with trolls and extremely biased perspectives and limited discussion, but that thread specifically is a wonderful source.

Most of you are familiar with one of or multiple of... Napster, eDonkey2000, Gnutella, Kazaa, or... more likely... bittorrents...

Bittorrents are essentially peer to peer sharing of files that do not involve a third party. You are downloading and uploading verified copies of authentic content... typically movies, music and other computer programs... throughout a decentralized network. I'm sending you stuff, you're sending me stuff... for the most part, all of the computers involved in this file sharing are double checking and authenticating one another so that can download one file from multiple sources at an exponentially faster rate.

So how does this relate to Bitcoin?

Bitcoin is a peer to peer, decentralized network as well. There is no third party that is required to be trusted in order to exchange information through the Bitcoin network. Everyone that is connected to it, their computers are verifying that everyone else is running the authentic version of it, and thus it is decentralized. There is no single control/choke point, if you will. eBay, Amazon, etc... are perfect versions in which users can interact with one another, but eBay and Amazon themselves are chokepoints and a third party. If eBay or Amazon goes offline, for all intents and purposes, you lose the ability to transact with other users. With Bitcoin, there is no central server/central company/central trusted third party. It is all decentralized and everyone is double checking everyone else's work for authenticity.

As far as the specifics behind the programming go, any further than that, I probably am not the right person to ask... but...

Bitcoin is essentially a trustless(meaning you don't need any third party to verify its value or mediate your exchange of it), decentralized, fixed supply version of electronic cash that is not backed by nor created by any government and is heavily encrypted to the point that nobody on Earth can currently hack it, as we lack the computing power to do so. The Bitcoin network has 100% uptime and has never crashed. It can be sent anywhere globally and nobody can stop it. It is being worked on by a large number of the top programming minds in the entire world that are constantly trying to improve the protocol and advance the technology.

There are various ways that your Bitcoins can become exposed and compromised, but that has nothing to do with the protocol itself, and is always related to human error, when you boil it down.

This technology is going to change the world eventually. It is going to subvert the power of governments and totally change how humanity interacts with one another. It will eventually get too big to stop, if it's not already.
Orlando Magic is offline   Reply With Quote
Old 06-03-2017, 07:32 PM   #2
bladefd
NBA rookie of the year
 
bladefd's Avatar
 
Join Date: Mar 2008
Posts: 6,637
Default Re: The Bitcoin and other cryptocurrency Information Thread

1) With paper wallet, is your information anonymous? Like name, address, etc?

2) let's say a $100 investment in some crypto currency becomes $2000 in 2 months. Is it easy to cash it out? Do you have to tell the US IRS where the money came from? I don't really understand how these things are taxed in USA tbh.. Would I get in trouble if I say the money came from a cryptocurrency?

3) would cryptocurrencies be taxed? Basically, do I have to file taxes on cryptocurrencies?
bladefd is offline   Reply With Quote
Old 06-03-2017, 09:16 PM   #3
Orlando Magic
Very good NBA starter
 
Orlando Magic's Avatar
 
Join Date: May 2007
Posts: 8,976
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by bladefd
1) With paper wallet, is your information anonymous? Like name, address, etc?

2) let's say a $100 investment in some crypto currency becomes $2000 in 2 months. Is it easy to cash it out? Do you have to tell the US IRS where the money came from? I don't really understand how these things are taxed in USA tbh.. Would I get in trouble if I say the money came from a cryptocurrency?

3) would cryptocurrencies be taxed? Basically, do I have to file taxes on cryptocurrencies?

1) There is no database anywhere that links a Bitcoin wallet address to your personal information outside of whatever exchange you may have used. If you use an online exchange, your information could only be exposed at said used exchange... and only if they are compromised or are forced to share your information. In other words... the government can't come after you nor will they have your personal information linked to any wallet addresses UNLESS they are able to legally force your source of Bitcoin to provide said information. That being said, there are ways around this... however...

Bitcoin is not anonymous. It CAN BE, YES, BUT YOU WILL PAY A PERMIUM FOR THAT... All transactions throughout Bitcoin history are publicly accessible and theoretically could be traced back to you... UNLESS... you pay cash. Which you can do... and the most anonymous way to do it is to buy Bitcoin from a trusted seller in a public place... using cash... which obviously carries its' own risks.

But that being said, if you were to use Bitcoin to purchase anything, obviously you have to provide your address unless you provide false information that you would somehow have access to, which still somewhat exposes you, even if minimally. The only foolproof 100% unquestionable way to never have your identity in any way possibly even put up for risk would be to... buy Bitcoin from an individual... in person... with cash... and never use them to ship anything to yourself or any of your online accounts.

2) You would have to sell them the same way you bought them, in person... cash only, to avoid taxation. Right now we are on some uncertain grounds, but Bitcoin is considered an asset in the US, and thus, if you remove your investment from it for cash in any sort of short timeframe, you are SUPPOSED to pay capital gains tax. Most people involved in Bitcoin do not, and legally there is no precedent. The IRS is trying to obtain the records of all of Coinbase's users and thusfar they have failed to establish a legal precedent to do so and have failed. The Republicans just rebuffed them the other day, regarding this matter. This could change, but it hasn't yet.

3) You are supposed to, if you convert said investments back into US dollars and said investment has realized a gain. Otherwise, no. Likewise, if you reported a loss, that could benefit you assuming you were able to exceed a standardized deduction.


All that being said, your $100 investment isn't going to become $2000 in 2 months... Bitcoin's price trend, in relation to fiat, has been fairly consistently upward, but it is extremely volatile and if you aren't in this for the long haul with a strong understanding of what this is and the risks involved, I don't suggest you put anything in it. Read more.

Last edited by Orlando Magic : 06-03-2017 at 09:25 PM.
Orlando Magic is offline   Reply With Quote
Old 06-04-2017, 12:34 AM   #4
bladefd
NBA rookie of the year
 
bladefd's Avatar
 
Join Date: Mar 2008
Posts: 6,637
Default Re: The Bitcoin and other cryptocurrency Information Thread

Just so you know, I am not interested in investing into a tiny piece of single bitcoin. I will focus on the other cryptos like ripple and digibyte. Still less than 50 cents a coin. I can get like 50 coins apiece and spread it out to 4 different cryptos. All for $100 total. Only one has to take off.. Meant to be a long term investment tbh
bladefd is offline   Reply With Quote
Old 06-04-2017, 12:42 AM   #5
bladefd
NBA rookie of the year
 
bladefd's Avatar
 
Join Date: Mar 2008
Posts: 6,637
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by Orlando Magic
3) You are supposed to, if you convert said investments back into US dollars and said investment has realized a gain. Otherwise, no. Likewise, if you reported a loss, that could benefit you assuming you were able to exceed a standardized deduction.

I own 2 ethereum on coinbase. I haven't cashed out and probably won't for a couple years. I only have to report it to irs if I cash it out, right?
bladefd is offline   Reply With Quote
Old 06-04-2017, 12:44 AM   #6
highwhey
EMPLOYED
 
highwhey's Avatar
 
Join Date: Apr 2008
Posts: 16,302
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by bladefd
Just so you know, I am not interested in investing into a tiny piece of single bitcoin. I will focus on the other cryptos like ripple and digibyte. Still less than 50 cents a coin. I can get like 50 coins apiece and spread it out to 4 different cryptos. All for $100 total. Only one has to take off.. Meant to be a long term investment tbh
nice.

need to get in the game myself
highwhey is offline   Reply With Quote
Old 06-04-2017, 12:56 AM   #7
Doomsday Dallas
Step 12
 
Doomsday Dallas's Avatar
 
Join Date: Aug 2007
Location: ?
Posts: 17,512
Default Re: The Bitcoin and other cryptocurrency Information Thread

XRP is down to .28

wanting it to get super low... and there is a good chance it may go back down.




Need to play the trifecta with XRP coming in first place


Last edited by Doomsday Dallas : 06-04-2017 at 04:51 AM.
Doomsday Dallas is offline   Reply With Quote
Old 06-04-2017, 10:52 AM   #8
Orlando Magic
Very good NBA starter
 
Orlando Magic's Avatar
 
Join Date: May 2007
Posts: 8,976
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by bladefd
I own 2 ethereum on coinbase. I haven't cashed out and probably won't for a couple years. I only have to report it to irs if I cash it out, right?

You are supposed to report it only if you cash it out AND it realized a gain, correct.
Orlando Magic is offline   Reply With Quote
Old 06-04-2017, 11:40 AM   #9
warriorfan
Itís gonna be easy!
 
warriorfan's Avatar
 
Join Date: Mar 2010
Posts: 20,717
Default Re: The Bitcoin and other cryptocurrency Information Thread

Anyone got some good eth information?

A week or two ago I bought a few of coins at 200 and it immediately tanked to 150, it's bounced back to 240 now and still raising
warriorfan is offline   Reply With Quote
Old 06-04-2017, 11:43 AM   #10
Im Still Ballin
well well well
 
Im Still Ballin's Avatar
 
Join Date: Jan 2014
Posts: 19,912
Default Re: The Bitcoin and other cryptocurrency Information Thread

It sounds like I should get involved in bitcoin!
Im Still Ballin is offline   Reply With Quote
Old 06-04-2017, 12:03 PM   #11
Orlando Magic
Very good NBA starter
 
Orlando Magic's Avatar
 
Join Date: May 2007
Posts: 8,976
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by Im Still Ballin
It sounds like I should get involved in bitcoin!

Sounds like you're a sarcastic asshole whose posts I can't stop imagining being acted out by and in the voice of Willem Dafoe.
Orlando Magic is offline   Reply With Quote
Old 06-04-2017, 12:13 PM   #12
ItsMillerTime
O LA DI PO
 
ItsMillerTime's Avatar
 
Join Date: Jun 2007
Location: Naptown
Posts: 2,182
Default Re: The Bitcoin and other cryptocurrency Information Thread

ETH @ $244

ItsMillerTime is online now   Reply With Quote
Old 06-04-2017, 05:12 PM   #13
InfiniteBaskets
Decent college freshman
 
InfiniteBaskets's Avatar
 
Join Date: Jun 2007
Posts: 2,778
Default Re: The Bitcoin and other cryptocurrency Information Thread

Used to have some bitcoin but have turned to Ether back when Ether was 86. I've been buying intermittently so the average cost is closer to 180 at this point and will continue to rise as long as ether continues to rise.

I've also tried both Golem and Auger. Cashed out Golem for Ether after making some nice gains but Auger has been lagging. Hard to tell how much more cash is going to flow into crypto. Would be extremely beneficial if we saw institutional portfolio money flow in, but the bitcoin based ETF couldn't get passed a few months ago. However since crypto is global we may see an ETF on the Asian or European markets.

Right now it appears everything is inflated. Real estate in the US is recovered and stocks PE ratios are above normal levels. The more money that flows into those with disposable income, the more we should see crypto rise simply because people need a place to park their funds. I'm personally betting on the wealth gap increasing in the next few years.

One other thing regarding taxes. Technically any time an asset is transferred for another asset, any profit is taxed at capital gains. So buying ether, selling for Bitcoin, then selling for litecoin, and then dogecoin before cashing back to USD will result in 4 diffferent taxable events. Similar to how buying gold then trading it for silver is still taxable if that gold had appreciated against silver.

However like another poster said, US isn't keeping track of every little transaction but you bet your ass if I cash out six figures from coinbase / Gemini or any reputable exchange to my bank, that bank is reporting to be IRS. Sure I can go and try to meet guys on the street 1000 times for $100 worth of sales each time but do I really want to? And am I really going to keep a bag of benjamins underneath my pillow? The one thing I'm not too sure about is if you buy bitcoin but then use an appreciated bitcoin to purchase items online.

One last thought, there is no statute of limitations on tax evasion. You can get charged with tax evasion 10 or 20 years down the road. From that perspective, the best thing you can do is buy a lot and don't touch until 5 years later. Or like me just buy a set amount in USD every paycheck and pay your taxes when the time comes. In the unlikely situation where Crypto rules the world, I'd rather be a legal low single digit millionaire than an illegal double digit one.
InfiniteBaskets is offline   Reply With Quote
Old 06-04-2017, 05:52 PM   #14
bladefd
NBA rookie of the year
 
bladefd's Avatar
 
Join Date: Mar 2008
Posts: 6,637
Default Re: The Bitcoin and other cryptocurrency Information Thread

Quote:
Originally Posted by Orlando Magic
You are supposed to report it only if you cash it out AND it realized a gain, correct.

It says..

"Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets"

I would fall inside that lowest tax bracket so now I wonder if I have to pay tax on long-term gains (more than a year).

In my state, capital gains is subjected to same terms as income tax..
"For earnings between $40,001 and $75,000, the tax rate on every dollar of income earned is 5.525%. For earnings between $75,001 and $500,000, the tax rate on every dollar of income earned is 6.37%. For earnings of $500,001 and over, the tax rate on every dollar of income earned is 8.97%."

So I don't quite know how it all works out. I think you guys should find a local accountant before you cash out anytime in near future. Better to be safe than sorry.
bladefd is offline   Reply With Quote
Old 06-04-2017, 05:59 PM   #15
bladefd
NBA rookie of the year
 
bladefd's Avatar
 
Join Date: Mar 2008
Posts: 6,637
Default Re: The Bitcoin and other cryptocurrency Information Thread

I want to set up a paper wallet. Do I have to create different ones for different coins? Or should I just wait for Ledger Nano S to release next month? Supposed to be 65$$ and I would be able to store multiple different coins

I am thinking of buying 50 coins of ripple, 50 coins of digibyte, what other coins are worthy? I was considering bytecoin and golem..

Last edited by bladefd : 06-04-2017 at 06:20 PM.
bladefd is offline   Reply With Quote
This NBA Basketball News Website Sponsored by:


Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -4. The time now is 11:33 AM.






NBA BASKETBALL FORUM KEY LINKS:

NBA Basketball

NBA Rumors

Basketball Blog

NBA Videos

Search Site

FOLLOW US
Twitter
Facebook
Instagram
YouTube
















Powered by vBulletin Version 3.5.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd. Terms of Use/Service | Privacy Policy