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Cryptocurrencies and the economy

I finally put my life saving into Bitcoin last Tuesday. I haven't checked lately, but I bet I've made some real dough since then. I may retire soon.
 
Dr. Keith said:
I finally put my life saving into Bitcoin last Tuesday. I haven't checked lately, but I bet I've made some real dough since then. I may retire soon.
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You know there aren't many times in life when you get the opportunity to go back and correct a past mistake. I'm certainly thankful for this opportunity.
 
US Treasury May Require Reporting Of Crypto Transfers Over $10K To The IRS

As central banks explore digital currencies, governments are rallying
for increased oversight of mercurial crypto assets. A major part of the
regulatory quagmire over digital money concerns taxes. This year, the
IRS has been strengthening its ability to track tax payers who own
cryptocurrencies by probing digital currency exchanges and threatening
to seize the assets of tax evaders. In the latest sign of a looming regulatory
crack down on crypto, the Treasury Department has said it will require any
transfer worth $10,000 or more to be reported to the IRS.
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Okay. Maybe this is becoming a thing.
 
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psionl0 said:
A little misleading.

Crypto exchanges can certainly be forced to report crypto purchases of over $10K but wallet to wallet transfers are by definition unreportable (unless the authorities know who owns a wallet).
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Sure, but speculative transactions are a big part of Bitcoin. That means people want the ability to cash out, and putting in reporting requirements helps ensure people gambling on bitcoin get taxed on significant winnings.
 
SuburbanTurkey said:
Sure, but speculative transactions are a big part of Bitcoin. That means people want the ability to cash out, and putting in reporting requirements helps ensure people gambling on bitcoin get taxed on significant winnings.
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Speculating with cryptos via exchanges leaves a trail that the tax man can follow if you are being audited. However, it is the USD and not the crypto that is leaving the trail. That is why the headline is misleading.
 
psionl0 said:
Speculating with cryptos via exchanges leaves a trail that the tax man can follow if you are being audited. However, it is the USD and not the crypto that is leaving the trail. That is why the headline is misleading.
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I don't see how the headline is inaccurate. It may be difficult for wallet to wallet transactions to be traced, but that doesn't mean the IRS can't require that these transactions be reported.

Catching people that don't report their own transactions may be tricky, but that's another matter.
 
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SuburbanTurkey said:
It may be difficult for wallet to wallet transactions to be traced, but that doesn't mean the IRS can't require that these transactions be reported.
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You can't see that these two statements are contradictory? Who is required to report wallet to wallet transactions?

It reminds me of the 1979 story of a council in WA that passed a law prohibiting Skylab from crashing in their district. (Skylab complied).
 
psionl0 said:
You can't see that these two statements are contradictory? Who is required to report wallet to wallet transactions?

It reminds me of the 1979 story of a council in WA that passed a law prohibiting Skylab from crashing in their district. (Skylab complied).
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I suppose the people that own the wallets, assuming they are US citizens, would be obligated to report.
 
psionl0 said:
The article didn't say that. It said that the IRS is "probing digital currency exchanges" which means that it is tracking the USD.
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In the US the IRS can require that a taxpayer report on transfers even if those transfers are not reported by the other party. Failing to report can be a crime.

So, if you and I exchange $12,000 worth of Bitcoin for $12,000 worth of Dogecoin I could be be required to report that transaction to the IRS. Even though it is secret and even though you are under no obligation to report it.

I’m not at all sure how they would discover this transaction, but I imagine auditors are developing the tools to make that possible once they are deep in someone’s life.

This isn’t the rule yet, but I’d be surprised if it isn’t the rule soon. Just like moving currency in and out of the country.
 
Every key stroke is recorded.
It would need far less power tracking than mining cryptos I imagine.
 
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