Meltdown: Bitcoin crashes to $576

[Manmaster]

Never sure whether you're joking or not, but just in case you're serious (or others take you seriously) - it's quite the opposite, actually.

 

Taxation actually means that BTC cannot be considered currency. Currencies themselves are untaxable. Only transfers of currency (e.g. income, purchases, the returns from liquidation of an asset, bequest and inheritance, etc.) are taxable. Note the distinction. If tomorrow, the IRS (in the US) finds you "suddenly" have a 100 million dollars in some new account, they *cannot* tax you on that amount willy-nilly. But what they can do is to investigate how you came by that money - and if it's through legal means, you're screwed because that means you didn't declare it for income tax and you'll be hauled up on tax evasion charges. If it's illegally procured, you're screwed even worse because that means you'll be referred to the FBI for further investigation and prosecution. But barring all this, the IRS can't touch that money.

 

Basically, the upshot of all this is that BTC is being legally viewed as something less than currency.

 

The closest thing to what BTC is being viewed as is probably gambling earnings. The way it works in the US is that the proceeds of gambling are taxable, and should be declared as income. Even lottery winnings are taxable in the US (they're not in Singapore and the UK and some other places). Legal gambling is not a problem, but even the winnings from illegal games are taxable. If you declare it, and nobody died in that illegal Blackjack game, I doubt they'll even look further unless the FBI has got an itch it can't scratch. But if you make a loss with gambling, good luck trying to deduct it. For legal gambling, it won't happen most of the time. For illegal, not a chance in hell.

 

So, if you get paid in BTC, or your BTC appreciates and you want to cash out in USD - huat ah, and you have to pay tax to the US gahmen. But if your BTC depreciates until you lose the shirt off your back, good luck with that - you can't deduct crap. And if your BTC gets stolen, misappropriated or "lost" (...cough MtGox...cough), I don't think any federal or police agency is going to be trying too hard to help you recover your "money". Would the police help an illegal gambler recover his winning purse if it got snatched when he stepped out of the gambling den?

 

The hassle of keeping track of capital gains will put off investors. Imagine one day IRAS will come after you for tax evasion when you accidentally miss out on a profit.

 

Anyway, the death knell is near. China had stopped all bitcoin operators and they could only operate out of china. Many countries also are starting to ban or impose strict restrictions on bitcoins.

[BL_TQ]

haha...singapore has what....2 or 3 of the machines? others r closing n we r opening..lol...anyway, it seem too much like monopoly paper money that by now, I think it is too risky...perhaps those who went in early earned big bucks...but not those who went in recently or now....

[Manmaster]

haha...singapore has what....2 or 3 of the machines? others r closing n we r opening..lol...anyway, it seem too much like monopoly paper money that by now, I think it is too risky...perhaps those who went in early earned big bucks...but not those who went in recently or now....

 

Trust me, these vending machines will become white elephants in the future. MAS said it wouldn't regulate digital currency previously but u-turned on its words later.

 

MAS is watching how US treats virtual currency and will follow suit.

[BL_TQ]

lol....hahaha...ya lor....then that thing become a deco in that mall......I m just surprised that we have it when other countries r coming strong on it....

[Manmaster]

lol....hahaha...ya lor....then that thing become a deco in that mall......I m just surprised that we have it when other countries r coming strong on it....

 

China will ban bitcoins ultimately as it won't allow anything to affect its monetary policies. Bitcoins will remain at low prices when china does that. How come I'm so sure about it? Well, tencent was the first company to introduced its own digital currency in 2009 and china banned its own china made digital currency. Why would china accept a foreign made digital currency when it didn't allow its own china made digital currency to flourish? China also banned digital credit cards by tencent and alibaba.

 

Taiwan also banned the so called bitcoins' ATMs as ATMs are supposed to be set up by banks. Therefore, by calling a vending machine an ATM, bitcoins operator had failed to get passed Taiwan's monetary authority.

[Duckduck]

lol....hahaha...ya lor....then that thing become a deco in that mall......I m just surprised that we have it when other countries r coming strong on it....

 

coz theres not enuff pple here using to launder $$$. our garmen v predictable, only when trouble is real then theyll react, which is usually too late. Thats y their market regulators, not market makers, altho helicopter ben may argue otherwise lol

[Throttle2]

haha...singapore has what....2 or 3 of the machines? others r closing n we r opening..lol...anyway, it seem too much like monopoly paper money that by now, I think it is too risky...perhaps those who went in early earned big bucks...but not those who went in recently or now....

Er like properties?

 

Wahahahahahaha

 

coz theres not enuff pple here using to launder $$$. our garmen v predictable, only when trouble is real then theyll react, which is usually too late. Thats y their market regulators, not market makers, altho helicopter ben may argue otherwise lol

So you mean we are followers but act like trend setters??? Hhmmmm. Heh

[BL_TQ]

 

China will ban bitcoins ultimately as it won't allow anything to affect its monetary policies. Bitcoins will remain at low prices when china does that. How come I'm so sure about it? Well, tencent was the first company to introduced its own digital currency in 2009 and china banned its own china made digital currency. Why would china accept a foreign made digital currency when it didn't allow its own china made digital currency to flourish? China also banned digital credit cards by tencent and alibaba.

 

Taiwan also banned the so called bitcoins' ATMs as ATMs are supposed to be set up by banks. Therefore, by calling a vending machine an ATM, bitcoins operator had failed to get passed Taiwan's monetary authority.

 

interesting...I didn't know that China banned its own...I will assume that they will ban slected foreign investors.....anyway, I wil not touch bitcoin...just hoping that e public will not get misled.....some of the ppl may tot that since e machines r in SG means it is safe to use/invest....haiz

[Duckduck]

So you mean we are followers but act like trend setters??? Hhmmmm. Heh

 

dun get wat u mean?

[Manmaster]

 

interesting...I didn't know that China banned its own...I will assume that they will ban slected foreign investors.....anyway, I wil not touch bitcoin...just hoping that e public will not get misled.....some of the ppl may tot that since e machines r in SG means it is safe to use/invest....haiz

 

There is a rumour in china now that china is planning to ban bitcoins after forcing all bitcoins operators offshore. All bitcoins operators' accounts in china must be closed by 15 April.

 

When more and more countries start to ban, regulate and tax bitcoins, Bitcoins are nearing its end. That's why I said the programmers are trying or struggling to use blockchain technology from bitcoins as gateway payment system. Whether this new gateway payment system will replace the existing system is a BIG question mark as it will depend on how the existing payment system operators react to blockchain technology.

Edited April 14, 2014 by Manmaster

[Duckduck]

 

There is a rumour in china now that china is planning to ban bitcoins after forcing all bitcoins operators offshore. All bitcoins operators' accounts in china must be closed by 15 April.

 

When more and more countries start to ban, regulate and tax bitcoins, Bitcoins are nearing its end. That's why I said the programmers are trying or struggling to use blockchain technology from bitcoins as gateway payment system. Whether this new gateway payment system will replace the existing system is a BIG question mark as it will depend on how the existing payment system operators react to blockchain technology.

 

personally i dont trust any currency which isnt sovereign backed. If no garmen is backing it, how "real" is it? Ever since the "loss" of bitcoins at mtgox, it just shows crypto currency isnt solid enuff at the moment. in fact any engineer will tell u anything which is programmed always has a hack risk, thats where garmens step in guarantee that asset. Eg. if S$ gets attacked by speculators etc, MAS already say they back it up. If bitcoin crashes, nobody is there to back it up.

 

thats y its only useful for $ launderers n criminals due to its high risk currently. Id wait for a next gen crypto currency which is at least sovereign backed to even consider using it for transactions.

[Manmaster]

 

personally i dont trust any currency which isnt sovereign backed. If no garmen is backing it, how "real" is it? Ever since the "loss" of bitcoins at mtgox, it just shows crypto currency isnt solid enuff at the moment. in fact any engineer will tell u anything which is programmed always has a hack risk, thats where garmens step in guarantee that asset. Eg. if S$ gets attacked by speculators etc, MAS already say they back it up. If bitcoin crashes, nobody is there to back it up.

 

thats y its only useful for $ launderers n criminals due to its high risk currently. Id wait for a next gen crypto currency which is at least sovereign backed to even consider using it for transactions.

Very good!

 

The govt will not come up with another currency to undermine its existing currency.

 

Bitcoins inventors will u tell u how good is the technology or how advance it is but currency is not created by technology. Currency is also not created by demand and supply. I've stated very clearly on my previous posts.

 

When bitcoins went to china, they told the world how great bitcoins would be but they won't tell u china banned QQ coins (by tencent) in 2009. When tencent invented QQ coins, it was declared as a commodity, not a currency but china still banned it.

 

The moment the idea of digital currency was mooted, its fate was sealed. Programmers won't analyse it from economics and political viewpoints and that's their failure. Like any scam, the early birds are big winners and they have to get out of it early.

[BL_TQ]

 

There is a rumour in china now that china is planning to ban bitcoins after forcing all bitcoins operators offshore. All bitcoins operators' accounts in china must be closed by 15 April.

 

When more and more countries start to ban, regulate and tax bitcoins, Bitcoins are nearing its end. That's why I said the programmers are trying or struggling to use blockchain technology from bitcoins as gateway payment system. Whether this new gateway payment system will replace the existing system is a BIG question mark as it will depend on how the existing payment system operators react to blockchain technology.

 

wow...this is very informative...thanks for the details! close by 15 april....wow tmr...interesting....the blockchain technology is something still kinda new...but perhaps not so to those in the technology arena

[Manmaster]

 

wow...this is very informative...thanks for the details! close by 15 april....wow tmr...interesting....the blockchain technology is something still kinda new...but perhaps not so to those in the technology arena

 

U're welcome.

 

Just like many people didn't know about blockchain technology, many people also didn't know about QQ coins. Most people thought bitcoin was the first digital currency in China.

[BL_TQ]

 

U're welcome.

 

Just like many people didn't know about blockchain technology, many people also didn't know about QQ coins. Most people thought bitcoin was the first digital currency in China.

 

lol....I m one of those ignorant ones...lol.....I m glad to come here....really gained a lot of knowledge reading thru the various posts.....in fact, I m so clueless that I tot bitcoin is e first digital currency worldwide...perhaps in e past, there r others...just that they r not so widely-talked about in the media....now is e media age....something old/not so recent technology suddenly became hot stuff aft all the news reporting...lol

[Manmaster]

 

lol....I m one of those ignorant ones...lol.....I m glad to come here....really gained a lot of knowledge reading thru the various posts.....in fact, I m so clueless that I tot bitcoin is e first digital currency worldwide...perhaps in e past, there r others...just that they r not so widely-talked about in the media....now is e media age....something old/not so recent technology suddenly became hot stuff aft all the news reporting...lol

 

Don't worry, you are not alone. Many venture capitalists (VCs) got burnt by investing in bitcoins startups. Those bitcoins operators in china can't function properly now as they have to close their bank accounts. They will close down once China declares bitcoins as illegal currency just like QQ coins.

 

Even my friend brought up VCs backing bitcoins startups in her argument to support bitcoins viability, I told her that those VCs were just punting and would eventually lose money if they didn't get out fast enough.....China action had vindicated me....hee hee.

[Jman888]

$524m loss claim in HK bitcoin scandal

11/02/2015 HONG KONG

Hong Kong's central bank has warned people against investing in virtual currencies amid local media reports that a bitcoin exchange may have run off with US$387 million (S$524 million) in client funds - making it potentially the biggest bitcoin scandal after last year's bankruptcy at Tokyo-based Mt.Gox.

The South China Morning Post reported on Monday that clients of Hong Kong-based MyCoin had approached a local lawmaker alleging the company absconded with their money.

An assistant for Legislative Council member Leung Yiu Chung told Reuters that Mr Leung had received more than 15 complaints from MyCoin clients regarding the alleged fraud, and these would be passed on to the police today.

The Hong Kong Monetary Authority (HKMA) said in a statement late on Monday that the case "may involve fraud or pyramid schemes", adding: "Given the highly speculative nature of the bitcoin, we have all along urged the public to exercise extra caution when considering making transactions or investments with bitcoin."

Calls to MyCoin in Hong Kong could not be connected. Calls to the company's China customer service line were not answered.

Bitcoins are created through a "mining" process where a computer's resources are used to perform millions of calculations.

Advocates say the virtual currency is revolutionary as it is not controlled by a central bank and has potential as an alternative means of online payment.

But the rise of bitcoin, which is unregulated in many countries including Hong Kong, has stoked concerns it can be used as a vehicle to launder money and finance extremist groups.

Mt.Gox, once the world's largest bitcoin exchange, filed for bankruptcy a year ago after it claimed to have lost around US$500 million worth of customer bitcoins in a hacking attack.

On its website, MyCoin claims to be a "leading global bitcoin trading platform and application service provider", with a China-based research and development team.

MyCoin promised clients a HK$1 million (S$175,000) return over a four-month period based on a HK$400,000 investment that would produce 90 bitcoins on maturity, the South China Morning Post reported, adding MyCoin claimed to have 3,000 customers each investing an average of HK$1 million.

The price of a bitcoin has slumped from a late-2013 high of above US$1,000 to around US$220, according to CoinDesk's price index.

REUTERS

 

 

 

[Wt_know]

after Mt Gox collapse still got people play Bitcoin ...

it's unbelievable how gullible > naive > stupid > crazy people can be when it comes to get-rich-quick scheme

 

HK$1M return on HK$400K investment ... that's 150% return in 4 months ...

that's a fking 450% ROI per annum

 

MyCoin promised clients a HK$1 million (S$175,000) return over a four-month period based on a HK$400,000 investment that would produce 90 bitcoins on maturity, the South China Morning Post reported, adding MyCoin claimed to have 3,000 customers each investing an average of HK$1 million.

 

Edited February 11, 2015 by Wt_know