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Showing 20 of 26 results by JuicyFruity
It's difficult trying to mine bitcoin if you haven't got tools to do it. When you can afford them you're up against teams of miners running mining devices in huge farms using lots of electricity. Is it worth bitcoin mining now ?
I'd say as long as you're sure you've bought bitcoin at a time that's acceptable for you then there's no way you can say you're too late. Cryptocurrency isn't limited to bitcoin so you've got lots of other opportunities. You aren't too late.
I read this beautiful article about Am I too late to Bitcoin? it is a bit long, I will try to quote parts of it from time to time and we can discuss ideas with it below.
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According to data analyst Willy Wu, there are an estimated 135 million Bitcoin users worldwide. This is less than 2% of the global population. To put that into perspective, PayPal has 361 million user accounts, Facebook has 2.8 billion monthly active users, and the internet in total has an estimated 4.7 billion users.
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Thirty years ago almost no one was on the internet. Twenty years ago only 6% of the world used the internet. Ten years ago a third of the world was online, and today that number has nearly doubled to just under two thirds.
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“Its too slow, no one is using it, its too confusing.” – Internet critics, 1997
“Its too slow, no one is using it, its too confusing.” – Bitcoin critics, 2021
“Its too slow, no one is using it, its too confusing.” – Bitcoin critics, 2021
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With central banks suppressing interest rates and pumping out more currency than ever before, holding cash has become a losing strategy. This is why many people since the 70’s have been saving their wealth in gold, and why today many companies (MSTR, SQ, TSLA) are deciding to adopt Bitcoin as a treasury reserve asset. When you hold a fiat currency like USD or EUR, you put your faith in central banks and government not to debase the currency. Oh, by the way debasing the currency is literally part of the stated mandates of the Fed and European Central Bank
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How many dollars are in circulation? How many euros? Nobody knows exactly. But what we do know is that the total supply is increasing faster than ever before. Bitcoin, on the other hand, has a fixed total supply. Only 21 million coins will ever exist, meaning bitcoin has a 0% terminal inflation rate
All so many years after bitcoin was created it's still early days compared to fiat. As years go on it's use will be wide spread but you'll always find people who won't be using cryptocurrency but even they would've had some knowledge about pros and cons. It's all about familiarising yourself with cryptocurrency but even that's not enough to prepare some people for possible negative consequences related to the volatile nature of bitcoin or any cryptocurrency.
When you create something new and different from Fiat, then it is quite expected that something will turn out with new properties and, therefore, both with new pros and cons. Accordingly, before working with such a new tool, you should familiarize yourself with its properties, if a person does not do this, then he himself is to blame for the possible negative consequences.
For doing business in bitcoins, this is a minus, here no one will argue among those who did real business (they are all interested in a stable means of payment). But you must not forget that the "intrinsic" volatile value of bitcoin lies precisely in the fact that it is completely independent of fiat.
What you're saying is it's volatile because it's independent of fiat. You're right bitcoin is but that's not a good sign for some people taking their first steps buying cryptocurrency because they're going to be unprepared for worst case losses.When you create something new and different from Fiat, then it is quite expected that something will turn out with new properties and, therefore, both with new pros and cons. Accordingly, before working with such a new tool, you should familiarize yourself with its properties, if a person does not do this, then he himself is to blame for the possible negative consequences.
It's almost like receiving money for free but you're still going to be chased by the tax department if they found out so it's better to report all your gains and losses.
Since you are pretty knowledgeable with UK taxing laws I think a lot of people here wants a clear answer regarding taxes on Hard forked coins or even if you have one. Since this is a big issue in the US if their hard-forked coins is taxable or not and what kind of taxes would even be considered for it. So I am also interested to see on what is the translation of the UK taxing authority when it comes to Hard forked coins in your country because currently US right now is still undecided about this topic.
Any new crypto assets that are produced from a fork are classed as a separate crypto asset and will go into their own new pool and thus will be subject to capital gains tax separately. For doing business in bitcoins, this is a minus, here no one will argue among those who did real business (they are all interested in a stable means of payment). But you must not forget that the "intrinsic" volatile value of bitcoin lies precisely in the fact that it is completely independent of fiat.
What you're saying is it's volatile because it's independent of fiat. You're right bitcoin is but that's not a good sign for some people taking their first steps buying cryptocurrency because they're going to be unprepared for worst case losses.Volatility is destructive to price stability and general business usage, its a discouragement often stated but also BTC itself has advantages over plain cash and the costs to handling that. I've always thought Bitcoin will fail if it ever fails to handle the needs of the smallest entities in the economy, whales is a fine thing but they dont support an economy despite their size its often the revenue which matters in a business for economies of scale and other considerations.
Bitcoin is sustainable is probably most easily considered by how easily anyone can use it for the most normal amounts, I was bearish in late 2017 for this reason but its not been as bad since that peak and some of the backlog was deliberate. Prices rising constantly is a form of volatility and imbalance, also why I dont think we keep gaining without some pullback.
That's the worry because similar to others I'm believing volatility=discouragement. Investors are making huge profits because of volatile cryptocurrency price so it's working to be encouragement for some investors and discouragement for some.Bitcoin is sustainable is probably most easily considered by how easily anyone can use it for the most normal amounts, I was bearish in late 2017 for this reason but its not been as bad since that peak and some of the backlog was deliberate. Prices rising constantly is a form of volatility and imbalance, also why I dont think we keep gaining without some pullback.
Billions of people are going about their daily businesses today just like they've been doing since 2009. How many people haven't heard of bitcoin in 2021? They're all living their lives just as before bitcoin was created so for them it's clear they're already living in a world without bitcoin.
Have you ever thought what would the world be without Bitcoin? Imagine if the cryptocurrency was never invented and we'd still be living with Fiat (paper money and credit/debit cards). People would be subject to banks' desires without a chance for freedom. A cashless society would be only a dream, without innovations in the FinTech space. Gold would still be an option, but not everyone will be able to access it. The unbanked people will be forced to deal with banks in order to participate in the mainstream economy. A lot of challenges and hurdles would arise without a decentralized form of currency for the enjoyment of all.
What do you think the world will be today without Bitcoin? Your input will be greatly appreciated. Thank you.
What do you think the world will be today without Bitcoin? Your input will be greatly appreciated. Thank you.
You're talking about forked coins but the principle is the same, if you're trading or selling forked coins you've got to declare it to HMRC so they've got a clear picture of all your profits and losses in 12 months of cryptocurrency trading.
I'm no authority on UK taxation laws I've only been reading up on them lately. I'm advising people living in the UK to get advice from accountants and legal professionals before they get to their self assessment date.
I'm no authority on UK taxation laws I've only been reading up on them lately. I'm advising people living in the UK to get advice from accountants and legal professionals before they get to their self assessment date.
Since you are pretty knowledgeable with UK taxing laws I think a lot of people here wants a clear answer regarding taxes on Hard forked coins or even if you have one. Since this is a big issue in the US if their hard-forked coins is taxable or not and what kind of taxes would even be considered for it. So I am also interested to see on what is the translation of the UK taxing authority when it comes to Hard forked coins in your country because currently US right now is still undecided about this topic.
I'd say report all of your cryptocurrency gains and losses when you file your yearly self assessment that way you've covered everything.
If you're going for a shared accounting pool system I found that's the easiest. If you're going for the bread and breakfast rule or the same day rule then taxes are worked out differently. Did you speak to any accountants about what's the best option for you?
So this means, no matter what value my gains are (under capital gains), I will still need to report it?
If you're going for a shared accounting pool system I found that's the easiest. If you're going for the bread and breakfast rule or the same day rule then taxes are worked out differently. Did you speak to any accountants about what's the best option for you?
You've made mistakes in your example. If you're starting trading cryptocurrency in January 2021 then any income you've made from the first trade until 5th April 2021 is something you've got to make a note of and declare to HMRC whether it shows profits or losses.
Remember for year end April 2021 (which is April 6th 2020-April 5th 2021) you've got to file your self assessment by January 31st 2022.
Remember for year end April 2021 (which is April 6th 2020-April 5th 2021) you've got to file your self assessment by January 31st 2022.
So this means, no matter what value my gains are (under capital gains), I will still need to report it?
If you've got so much understanding about bitcoin and cryptocurrency you've probably been selling and buying at optimum timing or you're just making assumptions. It's hard to take your words seriously.
Sell your coins while you can, price is almost certain to correct downwards by at least 50% over next few months.
It isn't the end of bitcoin or cryptocurrency it's another sign proving cryptocurrency is here to stay.
My original calculations were a little off and I did not expect fake news to push bitcoin's last bull run as high as ~$58k. The power of fake news is powerful. So there it is, the highest price bitcoin will ever see -- $58k. The next decade will be the story of the unwinding of bitcoin and all the chaos that will unfold as that process plays out. Congrats to anyone who sold at $58k, and good luck to the rest. I hope everyone is able to find an exit soon enough not to lose everything. Cheers, everyone. It's been a fun experiment, but this is the official, confirmed end.
https://media4.giphy.com/media/3o6EhVqAY0JNGNLlU4/giphy.gif?cid=ecf05e472tjqo4u7xh4t1yv8vwpz1si5uiah7f4vxf73em3k&rid=giphy.gif
https://media4.giphy.com/media/3o6EhVqAY0JNGNLlU4/giphy.gif?cid=ecf05e472tjqo4u7xh4t1yv8vwpz1si5uiah7f4vxf73em3k&rid=giphy.gif
It's common sense to avoid jumping on the bitcoin train when prices are very high because many novice and small investors have choices to make about cashing out. It's going to leave other small investors holding out with problems.
it seems that sellers have a faster hand versus the news spread because instead of the price heading upward the price rather go in opposite direction . the moment readers read the news they will think that it was a hoax because the what is stated in the news are not match to the price that they see .
It's difficult to work out if it's going to stay stable at $48k - $50k
why ? but i think it was easy because it was already at that point and we are motivated to push it more further but you could also be right because there would be buyers that are struggling to participate at that rate .thank you for the reply!
so for example - I started in January 2021. and by April 6th 2021 if my Capital gains isn't above 12.3k. Then I do not need to pay taxes nor fill a form. And this RESETS? (ignoring the past transactions)
From April 5th 2021 it be essentially a new year and I got the refreshed allowance of 12.3k for April 5th 2021 - April 6th 2022?
but yet I will need to hand in the assessment form before January 31st 2022?? but that would ignore jan 2022 - april 2022?? slightly confused, but appreciate any help given.
Or would my first next assessment form will be given after April 6th 2022 and prior to January 31st 2023?
thank you for your time!
so for example - I started in January 2021. and by April 6th 2021 if my Capital gains isn't above 12.3k. Then I do not need to pay taxes nor fill a form. And this RESETS? (ignoring the past transactions)
From April 5th 2021 it be essentially a new year and I got the refreshed allowance of 12.3k for April 5th 2021 - April 6th 2022?
but yet I will need to hand in the assessment form before January 31st 2022?? but that would ignore jan 2022 - april 2022?? slightly confused, but appreciate any help given.
Or would my first next assessment form will be given after April 6th 2022 and prior to January 31st 2023?
thank you for your time!
You've made mistakes in your example. If you're starting trading cryptocurrency in January 2021 then any income you've made from the first trade until 5th April 2021 is something you've got to make a note of and declare to HMRC whether it shows profits or losses. Remember for year end April 2021 (which is April 6th 2020-April 5th 2021) you've got to file your self assessment by January 31st 2022.
⭐ Merited by vapourminer (1)
Bitcoin's price is never stable - volatility is one of its main properties.
I'm not sure, but now the situation is similar to a trend change - the rise after the fall is less than the depth of the fall. Several such waves have already passed and if this continues, it will turn out that we are in a bear market.
I would've thought bitcoin having price volatility as a property was a drawback meaning negative. It isn't a plus issue no matter how it's presented.I'm not sure, but now the situation is similar to a trend change - the rise after the fall is less than the depth of the fall. Several such waves have already passed and if this continues, it will turn out that we are in a bear market.
It wasn't a surprise because bitcoin was close to $50k price for a couple of weeks but will it be stable there ?
During the next week will the price be heading downward because of sellers making profits or is it going upward when the next price to generate media interest will be $75k ?
It's difficult to work out if it's going to stay stable at $48k - $50k
I just want to ask you, what is your plan for Bitcoin, is that for long term investment or just for daily trade, If for the long term, is not truly affected if you buy it now, yesterday or tomorrow. But if you prepare for daily trade, you should try to find dip price. Bitcoin is volatile, up and down is normal.During the next week will the price be heading downward because of sellers making profits or is it going upward when the next price to generate media interest will be $75k ?
It's difficult to work out if it's going to stay stable at $48k - $50k
What you've said means bitcoin never had stable prices anytime since it was created and that isn't really accurate. It's always been stable and it's always been volatile that's the way it works with cryptocurrency.
It's never been in stable stage, events FUDS and bad news can get it out in it's stable stage, we just have to accept that the market is always volatile, so we have to follow what the market is giving to us, and always have to get an update where the market is leading so we can get appropriate action.
The price of Bitcoin is going to down and I think it will be continuing some more days. But after some days, price will be starting to rise again. It is not on stable stage.
It's never been in stable stage, events FUDS and bad news can get it out in it's stable stage, we just have to accept that the market is always volatile, so we have to follow what the market is giving to us, and always have to get an update where the market is leading so we can get appropriate action.
I'm thinking it's got to be hard for people watching their bitcoin investment change $2k +- every couple of days. It's worrying times when there's some people want to sell but they're waiting for the right moment to click. Some people new to cryptocurrency trading are having heart in mouth moments.
⭐ Merited by Mbitr (1)
Nice summary and very succinct, but bear in mind what you’ve made an assumption that Capital Gains Tax will be applied to “ trading crypto assets “. This is not as clear cut as you have made out. There is a very grey area whether Income Tax or Capital Gains tax will be applied to your losses or gains.
Quote - “ only in exceptional circumstances would HMRC expect individuals to buy and sell crypto assets with such frequency, level of organisation and sophistication that the activity amounts to a financial trade in itself”
These factors are extremely ambiguous and are constantly under review with HMRC. How do we define frequency of trades? 10/day, 10/week , 10/month . Many crypto traders may do this as a business and if at any point the HMRC decides that the “frequency” level is high enough then Income Tax will apply.
I’m only pointing this out and I’d like to hear your thoughts/ views . As I said you’ve done a great job and I’m sure HMRC are being deliberately ambiguous with this .
I'm going to update my post. I'll add images and extra info about HMRC.Quote - “ only in exceptional circumstances would HMRC expect individuals to buy and sell crypto assets with such frequency, level of organisation and sophistication that the activity amounts to a financial trade in itself”
These factors are extremely ambiguous and are constantly under review with HMRC. How do we define frequency of trades? 10/day, 10/week , 10/month . Many crypto traders may do this as a business and if at any point the HMRC decides that the “frequency” level is high enough then Income Tax will apply.
I’m only pointing this out and I’d like to hear your thoughts/ views . As I said you’ve done a great job and I’m sure HMRC are being deliberately ambiguous with this .
Hi,
Thank you so much for an in-depth information regarding tax. I really want to fully understand as this is new to me and don't want to make a mistake.
For the tax year - What is defined by? do i pick the dates or it's simply from 1st Jan to 31 dec? or april to april?
It's HMRC who define the tax year. They're from April 6th - April 5th. Don't forget self assessment tax return deadlines are January 31stThank you so much for an in-depth information regarding tax. I really want to fully understand as this is new to me and don't want to make a mistake.
For the tax year - What is defined by? do i pick the dates or it's simply from 1st Jan to 31 dec? or april to april?
What's crazy about taxation in the UK is the amount of tax paid on cryptocurrency.
Paying no tax, keeping your passport and remaining a UK citizen is doable but living less days living in the UK is the compromise. It's got to be a price or trade off worth paying.
Check out these links that gives helpful info
Tax if you leave the UK to live abroad
Statutory Residence Test
Paying no tax, keeping your passport and remaining a UK citizen is doable but living less days living in the UK is the compromise. It's got to be a price or trade off worth paying.
Check out these links that gives helpful info
Tax if you leave the UK to live abroad
Statutory Residence Test
It's funny you mentioned less volatility because even with those big investors bitcoin tumbled to $46k today. Volatility isn't going to stop being a problem because of big investors.
I keep reading in the media that the price is becoming less volatile as more big investors come on board.
I'm not sure of the dynamics of how that works though....
I'm not sure of the dynamics of how that works though....
You've stated correctly bitcoin will continue to rise I'm sure but it's dropped from $58k to $53k in hours. For a while it looked like it's heading up at $60k but it didn't make it. It's borderline stable for a few days then drops too much so it can't be thought of stable just yet.
Others will follow Elon Musk I'm sure they'll be buying bitcoin and $75k isn't far away.
Others will follow Elon Musk I'm sure they'll be buying bitcoin and $75k isn't far away.
It's just a matter of time whether Bitcoin will continue to rise or not nobody knows what will happen in the future. But please remember that Bitcoin did manage to be stable at $34k to $38k last week and now it's a bit different because there's a bigger player joining in the bandwagon after Elon Musk bought $1.5B worth of Bitcoin.
We never know if some bigger names start to participate then buy some Bitcoin and that's for sure will start a new push of the price to hit a new ATH. But if there's no new big institution/bigger investors then we should slowly expect a slowly decline of price over time. But I don't know what price is the support would be.
We never know if some bigger names start to participate then buy some Bitcoin and that's for sure will start a new push of the price to hit a new ATH. But if there's no new big institution/bigger investors then we should slowly expect a slowly decline of price over time. But I don't know what price is the support would be.