Quote from: jeliman on April 15, 2014, 07:45:41 AM

Quote from: godislove on April 14, 2014, 08:20:00 PM

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So if you want to know why bitcoin is falling, it's because large bitcoin holders are using FIFO instead of average method for their taxes. Give it another month and it might be about $800, and still people will keep posting these threads, not understanding the tax consequences.

so basically you are saying, that there are few people with a cristall ball, who know exactly, where the price will be at a given time and than they sell and buy to avoid(optimize) taxing....

The taxing issue is very new and mostly for US citizens who, according to some are not the major holders (unlike China, Japan) so I doubt it is about taxes now.

It is still the echo of the bloody Gox and the chineese uncertainty, as many said before.

No, I just gave an example where a lot of people were buying and selling last year, especially if they had a lot of bitcoin, and that they now owe a lot of tax if they use FIFO instead of weighted average trade, and therefore may need to sell BTC to pay taxes. If they had the same crystal ball as me, then they would not be selling before April 15. Sure, Gox and China has an effect, but those effects were strong as it happened, and yet uncharacteristically the price is staying low, and dropping lower even as Gox became old-news (more than a week). It's been 7 weeks since Gox imploded and the low from that was $500...then it rose to $700 before the official confirmation of China's position. This latest news did not even seem like news to me. It seemed like everyone was expecting it.

It dropped to $350 just 5 days before checks to IRS are in the mail and is now rising up to $500, 5 days later as it is now too late to be cashing out and trying to get money in the bank before the IRS cashes your checks. Big dummies. They shouldn't be using FIFO and not need to sell bitcoin to pay taxes. Admit it. I know some of you reading this have done just that, and now you have to watch it go back up to $800 in a month, double what you used to pay taxes, so instead of 28% tax rate you actually paid 56% tax rate. Long-term trend for bitcoin is $800 as of today.