Hello,
Until recently I had only vaguely heard of Bitcoin but during the course of starting up a new business we came across a web developer who requested to be paid in Bitcoin, thus marking my nose first dive into all things Bitcoin. I'm still incredibly new with all of it and at first it was more than a little overwhelming but I'm learning more and more and plan to continue doing so.
On to my first point, I was wondering if anyone had a strategy for buying Bitcoin... it seems to be a bit volatile to me so come on guys, what's the secret? Money is a little tight and I'm finding the fluctuations either cause quite a thrill or a sinking depression. Any advice?
Lastly, we're considering accepting Bitcoin in our new business. It's a largely online venture and it seems to be a good option for Bitcoin but I'm not sure if my excitement is getting the better of me, are there any intricacies or major complications for businesses and Bitcoin? Especially come tax time or maybe something else altogether I'm not thinking of?
Thanks for taking the time,
Grant
"
No sooner you're up, you're down again" - Mick Jagger
Who cares about 'volatility'? If you lose 10% today, you'll gain 10% tomorrow. Do you think Warran Buffet cries about losing $300 million some days? No!, the very next day he makes $300 million again.
Don't watch the ticker. In the long run, if bitcoin doesn't fail, you'll have more gains than losses. That is all you need to know.
As for taxes, bitcoin is identical to dollars. Tax is on
income,
capital gains, et cetera. Tax is not on 'dollar', 'bitcoin', 'euro'. Whatever
income you have - it is taxed. Even if this
income is denominated in dollars, bitcoin, rice cakes, or whatever. You've got to pay your
income tax on all
income - no matter the denomination. The denomination (e.g. bitcoin) doesn't relieve you from paying tax on
income. Pay your income tax, and hope you get to pay more next year.