In these people's cases, they gave you BTC and they are getting a return in BTC - at no point did they convert the BTC to Fiat nor are they getting a return in Fiat. So, to have paid 1.6 BTC and have only 0.00950615 BTC in returns is a loss.
This is not true. You are giving bad advice. If you get paid in Bitcoin, it is taxable at the usd rate you received Bitcoin. That’s how it works. Any movement from the price after that up until it is converted to fiat is reported as capital gains or losses. Claiming you don’t owe taxes on income in Bitcoin until it is converted to fiat is just plain wrong.
I really think you guys need to make your own thread to fill with misinformation rather than bury actual useful information in this thread with this never ending nonsense. I’m trying to help further this organization’s growth, not teach basic finance and accounting.
I totally agree that when you get paid in BTC it is taxable at that Fiat rate at the time of payment (I even stated that is how I handle my mining revenue). Are the seat holders actually paid yet? Can they convert the BTC they have earned right now?
Also - I believe when most of them bought seats - BTC was not taxable. I know it was not taxable when I was mining in 2010 or 2011. 2018 was the first year I had to pay taxes on any crypto earnings.
I am not attempting to spread any misinformation. I just don't see this as being an advantageous investment for any one involved. It would have been a better investment to simply hodl their BTC and to never have bought a seat. That one individual would then have 1.6 BTC now instead of 0.00950615 BTC. For someone simply hodl'ing from way back then, they would not owe any taxes until they cashed it out.
I see that you are in disagreement though and feel that collecting that much BTC back then and having only a small fraction of it now is still somehow a gain. I will refrain from asking any more questions or posting any more comments.