Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

I bet more of those funds leave Kraken as BTC than fiat.

And it will happen almost immediately. Self custody lesson learned

I think a lot of what a person will do depends of how much btc they get.

I would think most people left are more then five coins.

I would think Selling 10% and keeping 90% in coin will be common.

I am also not sure about tax rules.

If you had coins in feb 2014 they were worth 650 usd they are 100x at 65,000

having 5 coins means 3250 is now 325,000. I am not sure if you could be taxed in full at a cost basis of 3250

usa law at the moment would mean 20% or 60-65k in tax.

I dont have mount gox coins. so not a worry for me.

But if I did get five coins and thought I may owe 65k in tax. I am selling 100k of 325k and paying the 65k asap.

this would give me 35k cash and 225k in btc or 3.46 btc.

So I suspect savvy USA people are going to sell at least 20% and pay capital gains on the whole 5 coins.

But what do I know.

Yes. What do you know?

You are not getting taxed anything if you do not sell any of your coins. The receipt of the coins does not cause a taxable event.

By the way if a GOX customer receives around 5 BTC, that may well would have meant that their quantity of BTC would have had been around 33 BTC at the time of the bankruptcy filing.. that is assuming around a payout of around 15% of their earlier GOX balance.

So yes the receipt of 5 BTC and 5 Bcash may well result in the selling of Bcash, and perhaps buying BTC with that money 0r maybe just completly cashing out of their Bcash.. which currently 5 BCash would be valued just under $2k.

If such a person with around 5 BTC credit from GOX, then maybe that person would have had also replaced their 33-ish BTC, so maybe such a person still holds around 33 BTC outside of GOX, so their receipt of their GOX payout increases their BTC stash from 33-ish to 38-ish. Perhaps? perhaps? That would not be a bad sized total stash, and surely they might consider their receipt of the 5 BTC as a reason to start some kind of a sustainable withdrawal system, even something aggressive like 10% would result in an ability to begin to cash out around 0.275 per month ($17,875 at current prices).. . which is around 3.3 BTC per year...and so yeah, if someone does not need to withdraw that much, he could withdraw less than that... but yeah, after around a year and a half, he would have had withdrawn all of his GOX coins if such a hyothetical might apply to any such GOX creditor.