id sell the mining eqipment as soon as its not profitable..

after all if you get a cople hundred for a 1thash now... jst wait a few months and with that same couple hundred you will probably be able to by a multiple thash unit, theres no point holding on to slow units in the hope of a hashrate drop. better to se the funds elsewhere.

as for the price...

STOP looking at crappy exchanges

there are 13million coins and yesterdays drop below $300 was done with less than 1600 coins

thats only 0.0118% of all coins.. why is anyone still stupidly valuing 13.6mill coins based on the movements of less than 1600..

even 2 years ago when mtgox was playing with 5k-10k per orderline and 150,000 a day volume. these days exchanges are only playing with a few hundred at a time and only 50k a day at most.

stop centrally valuing bitcoin based on manipulated exchanges thats gateways in and out of fiat are so jammed up with red tape now that no one wants to use them regularly

Hello,

I think we as a community need to begin educating people on how Bitcoin works. The world knows that Bitcoin exist "hooray" but only believes the negative information that is spoon fed to them by the incompetent media. From my observation most of us bitcoiners are avid bitcoin conspiracy theorist. The conspiracy theories is something that we don't need to spread...

What can we do to educate the world, so that mass adoption really speeds up?

Why do so few people on this website know the difference between your and you're ?

-B-

Why would I report gains on a cup of cofee?  I have a anonymous address.  The IRS has no way to know what im doing with my btc.

Hehe ... that is like a true war scenario I hope they do not think this way

So would I be right in suggesting if you lost money with MTGOX it is tax deductable as a loss? Surely it has to work both ways?

That's what I was thinking. Say the IRS says anything about spending btc, then the person just says they bought in at $1200 and writes off the loss on their taxes.

BTC investors should be treated the same as foreign currency investors.

the amount of taxes needed to be paid is not the point.
its not reasonable to expect people to start looking up what the exchange rate was when they received their bitcoins just so they could buy a cup of coffee without breaking the law.

Thanks this helps.  MOST hardware is mining-specific, but I do have some hardware I will have to think about.  Do you know if there is any kind of % test of time that can be applied to determine if it's deductible, or even partially so, or is it basically that ANY personal use would exclude it?  My kids logging in for a few minutes to check on homework a couple times a week on a machine that continues to mine basically 100% of the time is one example.

Not trying to split hairs, so hopefully it doesn't come across that way.  I appreciate your feedback.

Taxation by what nation? How can a nation-state tax international income that supercedes the sovereignty of the nation-state? Sorry, does not compute.

Let's say our group received this money as a donation - we didn't mine it ourselves. Let's say we can only spend it by group consensus.

An international partnership which transcends any single nation's laws! If the USA can tax the PRINTING/ GENERATION of international, worldwide money, can every other nation do the same?

So each time we mine BTC we are forced to pay income taxes to all 14 of the nations in which all of us live? Does that sound reasonable to you? No, it doesn't. Because it's highway robbery.

BITCOIN IS SOVEREIGN. LEARN IT. ACCEPT IT. LOVE IT.

Would you mind elaborating on this further, or maybe Mike or someone else with this experience could?  I would think hardware costs and/or depreciation of that hardware as well as electrical would all be reasonable?  I have a follow-up with my accountant soon and would like to have as much information in this regard as possible.

Thanks in advance.

I didn't give them "my" private key. It was never my property to begin with! The bitcoins associated with this private key were mined communally in a mining pool. Guess who the miners were?

Not sure. Think it's more than that. It's not really trackable, but if you sell the Bitcoins though an exchange they can track you that way.

Dear IRS: Bitcoin is like cash that exists, and can be spent, in two places in the world at once. Or 20 places. Or 10,000 places at once.

I have decided to share my private key with 28 of my most trusted friends. We come from 14 nations around the world.

I alone do not have the authority to spend those coins, only by a two thirds majority decision, can any coins be spent.

If Bitcoins are property, as you say, this private key and the blockchain address it accesses are now "communal property" of people all over the world

You can't tax it without United Nations authority, I guess.

IRS's Ruling is an attack on Bitcoin

this is to the benefit of the bankers at the expense of bitcoin

Bitcoiners/Cryptocoiners will  get used to not reporting and they will subvert IRS like torrents have decimated the digital media industries, most in the tech generation feel its normal to copy copyright digital media because they grew up with it
IRS ruling burdens will normalize bitcoiners into ignoring the IRS, IRS have made a huge mistake. we may find ourselves with a new generation of IRS avoiders

you will see a big shift of people keeping all their money into crypto and rarely converting to fiat to avoid the IRS... accelerating bitcoin adoption

IRS is unconstitutional anyways, the money goes to fund the vatican!

If they are going to treat it as property, how would mined coins by a company set up as a corporation be treated?  My impression is that per the IRS's position, bitcoins mined would be the same as a the creation of a product you create/produce for sale but does not sell. It becomes on the shelf inventory, and there is no taxable event until it sells. This applies to all companies that make products through a process, hard materials or digital.  If you own a software application, or a script (plugin) you developed, and sell it for $50 per copy, and make 1000 copies on CDROM, you don't owe the IRS taxes on the copies until they sell. It's all 1s and 0s, so what difference is there between using computers to create scripts or plugins or software, or bitcoins? All property right? You just have to view it from a manufacturing standpoint.  And the fact that they have ruled it is property, the manufacturing stance would in my opinion apply. Manufacturing being the creation of something tangible "property" from the use of labor, machines, raw materials, and energy resources.  So you mine the coins, put them on paper wallets as inventory to sell. But hold them... For sale at a later date, which would be taxable.  You'd have to set up an s-corp to do this, or is my thinking way off??