Cryptocurrencies

What cryptocurrencies do you use/own?

  • Bitcoin (XBT)

    Votes: 30 27.8%

  • Ether (ETH)

    Votes: 16 14.8%

  • Litecoin (LTC)

    Votes: 15 13.9%

  • Peercoin (PPC)

    Votes: 0 0.0%

  • Dash (DASH)

    Votes: 3 2.8%

  • Dogecoin (XDG)

    Votes: 4 3.7%

  • Blackcoin (BLK)

    Votes: 0 0.0%

  • Zcash (ZEC)

    Votes: 3 2.8%

  • Other

    Votes: 14 13.0%

  • None

    Votes: 69 63.9%
  • Total voters
    108
I'm curious what everyone is going to do for taxes in relation to Bitcoins. Here is what I plan on doing:

I'm going to treat Bitcoin like you would say, Bonds or other forms of investment that can't be taxed until they are cashed. Because in Bitcoin form, they could evaporate at any moment, technically. If I convert Bitcoin into Fiat currency, I have to record that and be taxed because it is income.

I also intend to write off all the expenses from the GPU's and PSU's etc.

I still have to inquire so I get a better idea, there was a report a few years ago that the CRA does consider Bitcoins taxable, but there are different situations, whether you essentially barter with them or if they are a form of investment. For me it's investment.
 
What about mining Burst?

It uses hard drive capacity or Proof of Capacity for mining. I've got a ton of drives laying around from 250GB to 1TB in size. It would basically cost $0 to try this. I've been surfing the net tonight trying to figure it out, but coming up short.
 
NviGate Systems said:
I'm curious what everyone is going to do for taxes in relation to Bitcoins. Here is what I plan on doing:

I'm going to treat Bitcoin like you would say, Bonds or other forms of investment that can't be taxed until they are cashed. Because in Bitcoin form, they could evaporate at any moment, technically. If I convert Bitcoin into Fiat currency, I have to record that and be taxed because it is income.
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I think you'd have to study your local tax laws but in most countries I think that's the case (you don't need to pay any tax until you convert to fiat). The reason appears to be because it's largely unregulated right now. Whether that will change in the near future remains to be seen but the wheels of bureaucracy move much more slowly the wheels of progress so it's going to be interesting to watch the laws trying to keep up. Also, the difficulty monitoring cryptocurrency holdings and transactions will make enforcing any direct taxation near impossible.

This is the UK government's present stance:
https://www.gov.uk/government/publi...ief-9-2014-bitcoin-and-other-cryptocurrencies
http://sterlingcoin.org/uk-tax-rulings/

Arguably, due to the uncertain/risky nature of investing in cryptocurrencies, you could consider it as gambling. In the UK gambling winnings aren't taxable.

Also, there's a growing number of places you can spend cryptocurrencies directly or by using them to buy gift vouchers for Amazon, etc.

timeshifter said:
What about mining Burst?

It uses hard drive capacity or Proof of Capacity for mining. I've got a ton of drives laying around from 250GB to 1TB in size. It would basically cost $0 to try this. I've been surfing the net tonight trying to figure it out, but coming up short.
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I love the innovation of cryptocurrencies and the different 'Proof of ..' concepts. I think Proof of Work (ie mining) is still the best method however, despite its challenges. And I think all cryptocurrencies should have a mix that includes at least some degree of PoW. While not necessarily the best solution for the environment, having to expend large amounts of energy (and money) to make a cryptocurrency, it does give it some inherent value. Which is more than can be said about most fiat currencies, which usually aren't tied to anything of value and cost little to produce.
 
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Stumbled over a newbie limitation today - I had borrowed a card to test the impact on mining performance - let's just say it did not go well. Couldn't get the thing recognized, and when I finally did, it would kill one of the other cards. After too much troubleshooting and some googling, I came across this in the fine-print section of my motherboard manual:

• 3 x PCIe 3.0 x16 slots (support x16/x4/x1 modes)
• 3 x PCIe 3.0 x1 slots
* The PCI_E4 slot will be unavailable when an M.2 PCIe SSD module has been installed in the M.2_2 slot.
** The PCI_E2/ PCI_E5 slot will be unavailable when an expansion card has been installed in the PCI_E3/ PCI_E6 slot.

Well, there you go. Sure, we'll put 6 slots on there, but you can only use 4 at a time. I'll leave the obvious question of what use multiple ports are if they are hobbled like this to the designers. Suffice it to say that the phrase caveat emptor applies here - when you're planning on using a product outside of it's design parameters, you should definitely read the fine print before purchasing. :rolleyes:
 
That's one reason I ended up using small form factor and thin clients. I don't have to worry about cards not playing nice with each other and each system draws small power so it either equals or is less than the idle power draw of a conventional system. Plus in my case there was no way I was spending hundreds of dollars on new mb, ram and CPU.

Don't get me wrong, I've wasted money on stuff I haven't used so that affects my roi. But I was looking for a cheap solution that would avoid things I discovered early on.

There are loads of gotchas. I think for those that really want to mine, ThreadRipper is the way to go. It has so many pci-e lanes and the CPU itself can mine. I also heard there are pci-e expansion boards for some chipsets, not cheap though.
 
@HCHTech I get the M.2 slot conflict it is a same but different port while the other port issue sounds like it is just we won't let you use all PCI ports at once which makes no sense. I am guessing on the E2/E5 and E3/E6 is perhaps a PCI x16 slot and x1 slot that share a path basically. Reading this it sounds like if you are using an M.2 you lose 1 and then you are left with 3 out of the remaining 5 slots being usable. I do agree that why put in the slots when you can't use them all.

I should check my systems main board I was contemplating something with all the PCI x16 slots...
 
Yeah - I'm not using an M.2 slot - both are empty. I can get 4 cards running, which is the max for this board (MSI Z270 Tomahawk Arctic). Just like the note says, I just can't use 2&3 at the same time or 5&6 and the same time. The Z270-A Pro board, which is $20 cheaper (!) does not have this limitation. Live & learn. To their credit, MSI has a technote on their site where they lay out how to get 6 cards running and they do list the boards where this will work. Of course I didn't find this until I was having trouble.
 
Galdorf said:
Bitcoin is going up again sitting at $6499 CAD and climbing.
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Ethereum has been on a steady climb this week too.

Interestingly, many of the altcoins are rising in value again. Often when BTC climbs altcoins fall (and vice versa), suggesting shifting investments. Everything rising suggests a lot of new money is pouring into cryptocurrencies again. Total market cap is presently around 172 billion USD.
 
Moltuae said:
Total market cap is presently around 172 billion USD.
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And it almost reached 180 billion before the news of China banning ICOs caused the cryptocurrency roller-coaster to come crashing down to 130 billion yesterday! :eek:

Seems to be recovering this morning though; we're back to 145 billion and climbing presently. Interestingly, these 'crypro-sales' seem to be beneficial in the long-term. They test 'support' levels, which instils confidence, and they bring new investment; such events are of course the best time to buy for anyone considering starting or adding to their cryptocurrency portfolio.


Being something of an amateur physicist/scientist myself, I found this quite an interesting read ...

Cryptocurrencies from the viewpoint of a physicist
Link: https://medium.com/viberate-blog/cryptocurrencies-from-the-viewpoint-of-a-physicists-e8da521def29
Let’s start with a disclaimer: I’m just a stupid nuclear physicist. I understand quantum mechanics and special relativity, alright, but these are easy pieces compared to the black art of finance and money.
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And quantum mechanics tells us that for a really, really small fraction of time, energy may be created out of nothing and then goes back to nothing — these are called vacuum fluctuations. But all these “complications” can still be explained within the frame of energy conservation and are nothing compared to trillions of dollars just disappearing forever after a stock crash; or trillions of dollars magically appearing from FED’s “money printing presses”.
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I am a complete noob when it comes to crypto but a buddy of mine invested 20 grand in a few ASIC miners and has seen profits that double my income. Just the few 100 dollars I have invested in Litecoin over the last 2 months has nearly doubled. Anytime I discuss crypto I get nothing but negative reactions which has helped me to understand why everyone is not just getting while the getting is good. I find them fascinating and at the least an interesting hobby.
 
ComputerRepairTech said:
Is something like that worth doing? doesnt one of those s9 units still provide superior mining? I don't know much about mining.
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The Antminer S9 from Bitmain is made for Bitcoin mining. It can't do anything else. As far as I can tell you can't order one right now and when you can you have to wait months typically. A lot of people don't like the company and their practices. They're extremely loud. At some point they'll no longer be usable as we've seen with past models, they can't keep up and mine efficiently enough to outpace the cost of electricity.

What I'm interested in is GPU mining. Uses all off-the-shelf parts like PCs with Nvidia or AMD graphics cards. If and when it becomes unprofitable to mine, or if you decide to get out of it, all the parts can be sold. You can't mine Bitcoin on a GPU these days, but there are 100s of other currencies.
 
ComputerRepairTech said:
Is something like that worth doing? doesnt one of those s9 units still provide superior mining? I don't know much about mining.
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Those miners are nice, especially as bitcoin climbs. I've been eyeballing them. Believe me, they are very lucrative-looking right now. $14986.67USD a year minus electricity costs based on current rates (Which would only affect me for 5 months a year since it would just displace my heating needs.) This is for the L3+ (Litecoins) which is $2280USD. But still need to add a PSU; $300-ish. $2580USD. Shipping, duties, etc. Closing on $3000. And a November 20th delivery date if you order now.

L3+:
Cost: $2280+$300+duties/etc
Current year profit: $14986.67
Ship Date: Nov 20th
​
S9:
Cost: $1288+$300+duties/etc
Current year profit: $6838.94
Ship Date: Nov 30th
​
(Can't find good numbers on the D3 quickly)

Still sounds great, but here's the thing; Market tanks and stays down before you can recoup your costs? There is no resellability of a dedicated unit like this. You're hooped. You could likely repurpose the PSU on something else. Also, as difficulty goes up, it will continue to curve off. The numbers above are based on today's price and difficulties. Video cards are the same; However, if the difficulty curves naturally, or a new card comes out increasing the difficulty, you can sell the video card, likely for a substantial portion of the original value. Buy a 1080ti for $800, and in 6 months you'll still likely sell it for $500-$600 after you paid the card off. There's a good chance that you might only see a portion of the above numbers in a year due to difficulty, even if those coins keep climbing.

Some other issues:
  • 180-day Warranty, which you are responsible for getting it back to BitMain safely. Also, if heatsinks are loose from shipping, you have to ship it back or void warranty. And according to lots of forums posts saying their repairs are unbelievably slow.
    • And to add, if you have the thought to buy one from a third party, 0 warranty with BitMain. They void it. 'Reseller's responsibility'
  • Third party closed firmware with rumored kill-switches. BitMain allegedly bricked a large lump of these that came into Canada to a 'partner'
  • Rate of bricking failure for firmware updates apparently high, again according to a lot of forum posts.
Believe me, I've really thought of getting one, but having cash tied up for 2-3 months is a little nerve-wracking. I've thought of buying third party, but even from a reputable source, there is a risk of getting one with a corrupted/hacked firmware. And when you end up paying as much as 3x as what BitMain charges.

Sure, you average about $4.25/day with a 1080ti right now, $1550 a year, there is FAR less risk involved. At its peak, I was close to $8/day. But I know if the market falls out and shows no sign of recovery for months, I still could sell the 1080Ti.
 
timeshifter said:
Coolest idea for building a mining rig I think I've seen to date:

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That is pretty neat.

The only problems I see with that design are: There's nowhere for additional cooling fans and the cards on the right are blowing hot air onto the cards on the left (although those twin-fan cards don't blow as much out of the exhaust as the single-fan cards do). Also, due to the PSU position, the power cable route to the bottom cards will be much longer than it is to the top cards, to the extent that it's unlikely the supplied power cables will reach without the use of extension cables.
 
I haven't heard anything about China banning Bitcoin mining but certainly the China ban (or tightening restrictions) on cryptocurrency exchanges is having a dramatic effect. Which is to be expected, since people are understandably rushing to withdraw their funds out of Chinese exchanges before they close.

As negative as such a dramatic price fall seems on the face of it, for the most part this sell-off is all very positive for Bitcoin and other cryptocurrencies. Events like this are nothing new and usually the price recovers quickly once most of those who sold migrate to other platforms and begin to buy again. Dips like this also bring in a lot of fresh investment as existing cryptocurrency holders take advantage of the 'sales' to buy more and those new to cryptocurrencies, who felt that the prices were previous too high to make a quick profit, begin to buy in. There's also the possibility that, if many Chinese investors are deterred from re-investing, one positive outcome is that it could reduce China's dominance in cryptocurrencies, resulting in a more even/fair distribution. Yet another positive effect is that this highlights the need to develop more blockchain-based decentralised/distributed exchanges, which are immune from such governmental restrictions and control.

Looking at the present price chart, it looks like buy-back may already be starting, with the price leaping upwards by $500 in the last couple of hours. This could be the last chance to bag a bargain.

Bitcoin Price Approaches $3,000 As Industry Shows Relief At China Exit
Link: https://cointelegraph.com/news/bitcoin-price-approaches-3000-as-industry-shows-relief-at-china-exit

China Drama Causes Big Migration of Bitcoin Traders, Businesses
Link: https://cointelegraph.com/news/china-drama-causes-big-migration-of-bitcoin-traders-businesses



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Diggs said:
Hmmm.... Rumblings in the cryptocurrency markets again but this time it's pretty severe. With China banning bitcoin mining there was bound to be turbulence.

https://arstechnica.com/tech-policy/2017/09/bitcoin-and-ethereum-are-cratering/
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It's to be seen, but I suspect there is market manipulation again in play right now, creating a panicked downswing, same as before hardfork. Lot of people made HUGE cash there... I have a strong feeling its not much different. It is a ban on ICOs (Which, TBH, I feel that they may be right in doing so...) and now a ban on exchanges. China LOVES to track and control everything, and there was little they could do in their exchanges. And ICOs.... Well, every one I've looked into, has SCREAMED scam sooo hard.

That said, I think this has only created a temporary panic. It is evident by the Chinese exchanges being FAR lower than all others; Of course its going to happen, because all the big guys are going to want liquid assets before it becomes more difficult to get cash. The glory of bitcoin, however, is there will always be a way to deal with this.
 
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