Bitcoin and Taxes

How do you guys deal with taxes when you have bitcoin or other cryptocurrency on the exchanges?

I think all of the major exchanges like coinbase, binance, bittrex, etc are all based in the US now and could be risky to not report the trading activity.

Taxation is theft, and bitcoin is “anonymous”
Whats the worry?

Well, it’s not totally anonymous, but you don’t have to register your name to create a wallet. It’s best to avoid the exchanges if you can. Particularly if you are doing a lot of stuff in crypto. It’s not so much the taxes (taxation is theft though), but the risk of being audited and the insanity of the system you should be concerned about. Anybody with $20k or more in purchases should be more concerned. They’re probably not going to audit you simply for having crypto. They are however making a list of people who have crypto. I think that there are far too many people for them to audit and the IRS appears to only even be getting the names (at least in the one case we have to look at) of those who have purchased more than $20k (and during a certain time period). What you shouldn’t do is let them scare you away from using cryptocurrencies. Instead don’t purchase crypto through an exchange. Create wallets and don’t connect them to an exchange where you’ve provided a name let alone a social security number.

What scares me about using crypto is when I see the Central Banks preparing their own cryptos. I don’t want ANYTHING they offer (i gotta believe you understand why). And I highly doubt they will allow competing cryptos. (remember gold and silver)

I believe that right now they allowing bitcoin (&alt coins) to exist, simply so we can build their digital economy (our electronic control grid) for them.

Personally, I think the anarchists/libertarians/or anyone else who wants to be FREE, should be supporting BLOCKCHAIN (or similar technology), NOT Cryptocurrencies

A must watch if your into cryptos.

Dear Hermano “Penguin”! This reply is simply to thank you for all the thoughtful posts I’ve found from you. Every time I’m checking any chat, your posts give me a lot of ideas to understand the bigger picture and complement my thoughts.

Thanks for spreading your wise opinion. Talking about cryptos, there’s one crypto project I’m studying, its name is PI Network. I’m not 100% sure about the whole project, but I like certain philosophy of this project so far. Please, let me know if you have any insight about this project so I can complement my research.

Again Thanks a lot for your knowledge!

Dear Hermano!

I like your radicalism. I think that the big changes that our society needs could only come from different (almost oposite) ways to see things.

At the same time, I know that “big changes” don’t occur from one day to another. There must be a process to go from “one point” to “another”.

Cryptocurrencies and Blockhain seem to be one part of those seeds that need to be planted and nurture to harvest the fruits of finantial freedom from centralized institutions.

I can feel that the big change is coming as smoothly as time passes and as unstopable as Future will arrive…

Decentralized, honest, free market, open, blockchain (hash graph,etc.), Yes.

Cryptocurrencies, NO.

They are the scam to get us to build THEIR electronic control grid (the digital economy) future for US. Greed is easily exploitable.

I like your radicalism. I think that the big changes that our society needs could only come from different (almost oposite) ways to see things.

Fully agree, which is why I cringe when I see central banks talking about implementing cryptos.

At the same time, I know that “big changes” don’t occur from one day to another. There must be a process to go from “one point” to “another”.

What if that process is being steered?

If we are going to make big changes. How about a future with NO currencies?

I got to believe that if you want to be a truly FREE individual, that you would not be willing to bind yourself to something like a cellphone just to live in the “world”.