Post
Topic
Board Mining speculation
Re: Not worth mining any longer for anyone not already in. Am I wrong?
by
DyslexicZombei
on 04/08/2013, 09:03:16 UTC
Something to consider about BTC earned via dividends or mined versus earning an income that's immediately taxed.

- Let's say you spent $100 on the latest e-doodad at the Nile e-superstore. To have spent that $100, unless you're Mitt Romney or in his type of position, you're getting taxed at anywhere from 25-40% if you're like most people. So to have purchased that $100 worth of electronics you had to have labored to earn $125-140 depending on your tax situation.

- Now say you mined a Bitcoin or got paid in BTC dividends. Who knows how long it took but you have a Bitcoin. If you were to purchase something with that coin, currently valued at about a $100, you've essentially purchased something that would have really cost you $125-140 pre-tax.

Of course, purchasing something with that coin has an intrinsic opportunity cost that offsets the tax advantages: you've decided that whatever you've decided to purchase with that BTC at that moment is worth more than that particular BTC's future value - regardless of one's position on the viability of the longevity of cryptocurrencies like Bitcoin.