Actually I plan to HODL and then move to a tax free jurisdiction before cashing out. I'll be avoiding taxes, but I'll be doing it legally at least.

Agreed. But if you you do any business with the big US facing exchanges for any reasonable amount, they will be handing over your info to the IRS.

Actually that's not how it works, you need to purchase the Bitcoin when you're overseas, if you opened the position In US you owe taxes to US regardless of how long you live overseas. ( 10 years not on real estate)

Cite, please.


Edit: Of course if you are a US citizen you owe taxes on worldwide income. But living overseas does have some tax advantages. The question I have is your position that it matters where you purchase an asset.

However, some big cautions are in order. First, forget about easily avoiding U.S. tax on the appreciation in your assets before you move. If you move with appreciated stock, bitcoin or other property, and then sell, all that pre-move appreciation is still subject to U.S. tax. Only your post-move appreciation will be subject to the special tax rules in Puerto Rico. In fact, to escape U.S. tax on all of the pre-move appreciation, you generally must wait a full ten years after you move. That is hardly a quick fix. What about selling your U.S. real estate? That will always be U.S. source income. That means it is fully taxed in the U.S., even if you move to Puerto Rico and wait ten years before selling.


You guys are easy targets. Lots of people going to be financially ruined if IRS comes after you.

While we are on the topic of taxes, what exactly are the tax rules?

I have my coins in cold storage and haven't sold. Do I owe capital gains taxes for 2020 or no because I haven't sold?

I agree.

My lean would be that as long as the rate at which coins are being lost is decreasing, then this will not have much impact on people's perception.

It's much more likely and reasonable to lose something that has little value (ie coins when they weren't worth much).

I think as bitcoin becomes more adopted, people will get more comfortable with the storage procedures/options.

Only owe taxes when you realize gains or swap the token into another one.

BTC talking

Lots of chatter in the thread today, my suspicion is that is " Return to Normal "

The diameters of that chart is hilarious, this is more accurate

Let us know when you cover that short. GBTC is back to buying on the daily. Good luck!

glad someone knew the reference

Oh ya, don't forget Biden is about to announce tonight how he's going to pump trillions of dollars out.

Good luck with that short!

Those are the things you should be thinking about. Not, "hey this looks like some BS chart I found on the internet. Ima short it!"

You can't underestimate how much dems winning both senate seats in GA and therefore control of all 3 branches helps the price of BTC.

totally unrelated: When people talk about a 51% take over would that require 51% of all BTC that is mined or 51% of all active BTC. I assume the answer is all that have been mined, but want to make sure.

That is not how it works, it's not proof of stake.

If you have 51% of the hashrate you can decide which tx's get included in the block, you can censor certain tx, you can even only mine empty blocks. All of that comes at a cost obviously, and censored tx's will increase their fees which incentivizes more miners to plugin to reap these higher fees. So as long as there is enough demand for blockspace by censured transactions and they are willing to bid up the price it's pretty hard to maintain a >51% hashrate.

Also you can't go back in time with 51% and reorg the entire chain, you need an enormous amount of miners/energy to do that.

The reason the above has not happened is because miners are hugely incentivized to mine on the longest chain and reap all the rewards. There is no economic incentive to censor transactions unless a certain nation state feels threatened enough and is afraid Bitcoin will take away power of fiat. This is definitely possible to happen imo. There is no incentive for the US/USD to give their enormous power as a reserve currency away without a fight.

https://twitter.com/ofnumbers/status...844910080?s=19

Actually thats not how it works. If he is a US citizen it doesn't matter if he moves to the moon he still owes taxes as the US taxes its subjects based on citizenship not residency. The rest of the nations on the planet barring Eritrea has a residence based tax system. Only way around this is renouncing your US citizenship while the rest of us can freely move to a tax haven and enjoy our billions.

I hope ya'll know that the rainbow chart is an actual joke! lol

don't believe me-- see Eric Wall's feed

lol I'm dying

Bears it took me a long ass time to admit I was wrong. So I have a question for you that I'd assume is something we can verify and confirm.

How many years does BTC have to be in this growth cycle for this to be a worthwhile investment? How many ETFs and exchanges and growth is the point where you say "ok obviously this was worth buying".

Surely we can identify some kind of point?

Here in Canada I can look at something like Nortel. Was listed publicly in 1973, went to 0 in 2013. Took 40 years, but that seems like a rather arbitrary length of time to decide if something could have been a viable investment.

We're in the 12th year BTC? Would 20 years be an appreciable length of time? I'd have to assume 8 more years of the current adoption in finance and this thing will be pretty established.

If the answer to this is just that Bernie Madoff scammed people for decades, obviously don't bother replying. I don't know how single case of fraud helps us arrive at some kind of verifiable answer to the question "was bitcoin a worthwhile investment".

That doesn't work either. There is an "exit tax".

came to post same.

Puerto Ricans are US citizens. They don't pay cap gains. This is why a lot of crypto americans have moved to Puerto Rico. But still meant to pay exit tax before hand.

Thanks for explaining that to me. Good stuff.

By the way, you are greatly overvaluing the benefit of the USD being the reserve currency. Most people don't own USD because it is the reserve currency. It is the reserve currency because most people like owning it.

You are also likely overweighting that odds that BTC has of becoming the reserve currency in the next 100 years.