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Discussion in 'The Duck Hunters Forum' started by buck_master_2001, May 19, 2017.
Bitcoin is viewed as property by tax law (IRS). Thus if you give property(bitcoin) to buy something, you have created a taxable event. Bitcoin uses block chain technology, so the transaction is recorded. So if you get something(cash) say $15,000 for your bitcoin you paid $1,000 for you have a taxable gain of $14,000. Is it real easy for IRS to track at this point, not really but failing to report it on your income tax return could have repercussions.
Interesting. Don't most FX brokerage firms that one trades Bitcoin on already have to report 1099-Bs to the IRS like most brokerage houses do? Especially US based ones? If so - make sure that you have everything down on your 8949!
Tom & Tony had an interesting take on Bitcoin: Bitcoin has shown the strongest correlation to equities in recent years.
With Bitcoin’s recent rise in price and entrance into the futures market (/BTC), this cryptocurrency has become the market du jour. This market’s increasing relevance among both financial and nonfinancial types has caused great debate concerning what a cryptocurrency actually means relative to all of our traditional markets.
In today’s Market Measures segment, we put some research and historical trading behind attempting to categorize the cryptocurrency Bitcoin. Is it a currency? Commodity? Stock market?
Compared daily price change of Bitcoin since its inception (2013) to several markets
Currencies (US Dollar, Euro, Yen, Aussie Dollar)
Commodities (Gold and Silver)
Equities (S&P 500, Tech Sector, Nvidia)
We found that even though Bitcoin is referred to as a cryptoCURRENCY, it has not historically traded similarly to any of the traditional currency markets we looked at in this study. Also, Bitcoin has not moved with any sustained relationship like the commodities Gold and Silver.
Interestingly, Bitcoin has shown the strongest correlation to equities in recent years.
At the moment, cryptocurrencies look like a beast of their own with no real relationship to any other market we trade. However, these relationships change and we will look for the cryptocurrency market to start moving more like some of the markets we have noted above. Check out the segment above for greater detail concerning Bitcoin and where it stands in the trading world.
IMO, the reason Bitcoin has such a correlation to equities is it's similar to equities foundationally, in that the only guarantee (price and value) is there is no guarantee. Precious metals will always have bullion value and the USD has the aforementioned hard asset underpinnings. Bitcoin has transactional volume going for it in a somewhat similar fashion to equities (more buyers than sellers usually increases the price) with the caveat that lower transactional volume (as we've observed lately) doesn't cause a levelling effect, instead it causes a sharp decline. In other words, with Bitcoin it's run as fast as you can and don't dare stop.
More woe: https://www.bloomberg.com/news/arti...ange-kraken-goes-dark-and-user-anxiety-surges
Have you shorted Bitcoin? Why not if you haven't?
Talked to a commodity broker last week and discussed bitcoin, and shorting it. He got all excited and started to explain it really fast, and all I caught was a few chunks, but basically it was going to be hard to find anyone willing to short it and with the options , I think he said you would need around 1.8 million to play with it. Not for me.... I'll stick with tulips. A much safer investment.
Its sad that all people want to talk about is the price of BTC rather than what it could achieve as a technology. But if you want to talk price, BTC is currently trading at about 14k. It could drop to about 1k right now and would still be outperforming almost every traditional investment over the past 365 days.
^^^ come back and tell us when it has outperformed the S&P 500 Index for the past 30 years. It's called the difference between investment in your future versus short term speculation. Hint: our injun casinos have better food so at least you'll have a full belly to go along with those empty pockets as you walk out the door.