Sold of My Entire Bullion Collection In Order To Purchase BitCoins

I'm so glad you'll grant me there is a difference.

 

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It was Asia, more specifically Japan, South Korea, China and to a lesser extent Vietnam that were/are accounting for like 80 percent of trades.

It's not entirely a coincidence their geographic location to their psychopathic neighbor. Has VERY little if anything to do with hatred of the government. The US just flat out doesn't matter in the cyrptomarket at this point

 

Suppose I bought $1000 in bitcoin in 2008 for 10 cents a coin...I now own 10,000 bit coins. They are worth appx. $ 186 million dollars now. I Just spent the whole wad at Ampex on gold eagle coins...appx. 140,378 coins. Do I now owe the IRS capital gains on my earned income?

 

Good question, complicated by the fact that you've just crashed the price of bitcoin, hard.

Probably mostly hypothetical, though, because (a) I don't think it's possible to move that much bitcoin in one transaction, and (b) I don't think APMEX has that much inventory...

 

If you believe bitcoin is a scam, you’re not talking about a pyramid scheme. You’d be talking about a “pump and dump” operation that mirrors what the penny stock con men run.

 

Aside from these hypothetical figures, My question is when does the IRS get involved?

 

You owe the IRS capital gains just as you would if you bought and sold stock.

If you actually mined a bitcoin, the IRS expects that to be added to your gross income.

 

That makes perfect sense...so when a bitcoin is withdrawn from an account I would expect to receive a 1099 or one 1099 per year per account. I don't know the current value of all bitcoin, but I would doubt my mere 186 million dollars would tip the boat and cause much chaos. There have already been many such withdrawals without that much impact. It would take a panic selloff, as in past stock market crashes, to cause the meltdown. At the present time, the Fed. does not recognize crypto currencies as legitimate currency, so as long as you don't withdraw bits, you haven't gained any capitol and therefore don't owe the IRS a dime. Eventually it will be showtime as anyone with a bitcoin account will withdraw substantial funds and then become liable for income tax. provided they actually made any money. I doubt though if any substantial losses occur, the IRS will honor them...remember crypto does not exist as far as the Govt. is concerned.

 

I would assume that bitcoin is like stock as far as the IRS is concerned — you don’t owe tax on your gains until you actually convert the gain from paper to cash.

You make a interesting point: I think you can bet your bottom dollar the IRS will be want tax on any gain — but I wouldn’t doubt that the government won’t recognize a loss. They can play it both ways.

 

Thank's for the reply...Have a very Merry X-mas!

 

At absolutely EVERY transaction! There is NO "like in kind" going on here.

 

Not that I am disputing that, but how on earth would you ever know that? Please don't tell me IP addresses .

 

That's what the exchanges have been reporting. It honestly wouldn't surprise me if the other Korea was largely responsible for some it.

 

That's an interesting thought...what a clever way to fund a nuclear arsenal, promote terrorism, or even drug money laundering. The whole crypto thing just plain feels creepy to me...I'll pass on this one and stick with more conventional investment strategies. By the way...I recently got an E-mail from my internet security team which warns of rampant bitcoin account hacking. So far several accounts have been emptied to the tune of tens of millions. He warned that this trend is a growing one and that the attacks are on the rise. Once a crypto account is emptied, there's no way to recover anything...lost in space. Happy Holidays and a prosperous New Year!

 

We do know for sure that NK has been aggressively targeting the exchanges and wiping some of them out. They brought down a big one in South Korea last week. That’s really the biggest question with it all. They’ll all be worthless if the exchanges can’t fend that off

 

On the move again.
1 Bitcoin equals
15091.91 US Dollar

 

1 Bitcoin equals
15668.00 US Dollar

 

Thought some of you would find this interesting:

https://www.cnbc.com/2017/12/27/bitcoin-trade-65000-and-22000-according-to-analyst-nick-colas.html

 

That seems like a reasonable prediction. Not much reason to think the wild ride won’t continue aside from another one stealing all the attention away

 

Slight dippage
1 Bitcoin equals
15195.47 US Dollar