Bitcoin / Bitcoins / Crypto Currency

As an alternative to exponential power consumption, hard drive mass panic buying with Chia.

One of my clients called me in a panic the weekend before last because he had spent $50k on NVMEs and wanted advice on how to set them up for Chia.

The thing is, the way the Proof of Space mechanism is configured for Chia means that people really are likely wasting their money. The alg has been designed in such a way as to discourage panic buying. A lot of people are about to realise they've wasted their money.

My guy has sent all his kit back after realising that it wouldn't be practical to or profitable.

Quite disappointed that the people writing the storage arms race articles haven't spent the time to read about how it works and why it won't be sustainable to throw hardware at it.

You know anyone leasing bandwidth through NKN?

Sorry nope, had to Google what NKN is.

Was reading about this last night, potentially to send SSD through the roof the same way graphics cards have become like gold dust.

I can't believe I am writing this but Doge is really going to go to $1 isn't it? Incredible

Except that SSD isn't needed for Chia farming, only for the plotting part of setup. A lot of people have rushed out and bought SSDs that they don't need and that won't earn them any money.

In fact, they'll die pretty quickly if they try to use SSD for Chia farming.

i found out i have a few thousand doge from 2013 that i forgot about so i hope it gets that high!

Interesting, I dont think ill be rushing out to buy anything. Infact when my eth rig stops working ill be not doing another one.

Decent would have been better if it was BTC.

Tomorrow is being marketed as Doge Day and is 4/20 so they are trying to get it to 0.69, I would keep an eye on it as will probably drop like a stone if it hits that but then make another run at $1 at some point, would make it 3rd highest market cap crypto lol insane pumpamentals

tell me about it, haha

@greentricky i need my wallet to hurry and sync. Currently at 60% and that's taken me a few days... going to be very upset if I can't even sell my dogecoin when it peaks

I’ve held off on it for so long because it’s a total shitcoin... but I can’t help but try and make a few quid from it.

The idea that they’ll be able to double it seems insane but it did pump 250% the other day.

Interesting to see how it goes.

Ark and Square have just put out a whitepaper arguing Bitcoin could drive the transition to green energy, I know the topic has come up multiple times in this thread
https://assets.ctfassets.net/2d5q1td6cyxq/2D2BnksJjavw4a6SUvAPwZ/c42a9e3a520b0cc3b230cda3b43eead5/BCEI_WhitePaper.pdf

https://twitter.com/sqcrypto/status/1384901045134974978

Thanks for that. That is incredibly timely and relevant for a project I am working on at the moment.

Well, it's a change from "Bitcoin will magically create a perfect society so don't worry about the cost now." Also, for once, acknowledges that more would need to be done to provide the incentives for it to actually happen.

Turns out Americans really hate the prospect of paying CGT

Why do you say that?

My anecdata confirms what you said...seems to be the cultural norm to avoid paying tax on crypto profits. I think I read that less than ten Americans declared bitcoin profits over $1m in 2018.

Seems crazy really, it's quite an easy way to go to prison in the US

Biden announced plans yesterday to introduce 43% CGT on those earning over $1m a year and a big market sell off followed.
He won't even get it through the Senate so isn't a real threat anyway.

And I agree, avoiding paying taxes seems to go hand in hand with the ideology of many in crypto, they are going to have a nasty shock in a few years time when the IRS or HMRC come knocking on the door with a large bill to pay. Unless you managed to completely avoid ever interacting with a KYC exchange it seems inevitable in a few years they will be able to run transaction histories through software and map out peoples history, I expect one of the Big 4 will become a major player in doing this and will probably do it for free in exchange for a slice of any successful penalties recovered.

My anecdata confirms what you said...seems to be the cultural norm to avoid paying tax on crypto profits.

Strikes me as hardly surprising tbh, because

voiding paying taxes seems to go hand in hand with the ideology of many in crypto

And also, if you are 'smart' enough to engage in crypto trading you probably think you are 'smart' enough to engage in and succeed at tax avoidance / minimisation / system gaming

You're probably right. Worth pointing out that there is a 4 year and 6 year statute of limitations (as long as you're not committing direct fraud) on tax issues in the UK though. The exchange picture doesn't take losses and maintenance costs into account either so there is still a lot of auditing involved to get the full picture of somebodys crypto tax position.

HMRC are currently woefully unprepared to audit crypto people. A friend of mine was asked for receipts for his trading activities last year and when he submitted > 500k transactions in a CSV file they basically told him they believed him.

I wonder how it will pan out with international exchanges? I can see people like Bittrex (Nevada domiciled) wanting to comply with UK government demands but what about Huobi, Binance and others?

Binance have a poor track record of complying with european nations. The main reason they are based in Malta now is because they were thrown out of Jersey or so a well placed birdie tells me.

HMRC are currently woefully unprepared to audit crypto people. A friend of mine was asked for receipts for his trading activities last year and when he submitted > 500k transactions in a CSV file they basically told him they believed him.

I imagine that kind of shit will be outsourced before long. There are plenty of accountants who'd be happy to deal with that for hefty fees.

there is a 4 year and 6 year statute of limitations (as long as you're not committing direct fraud)

I think this is overstating it. There's a 20 year discovery window for HMRC to assess tax affairs due to deliberate action, use of a hallmarked tax avoidance scheme or (and this is the one that I think could get lots of people) failure to notify liability.

Those rules are pretty complex but I'd be very nervous about thinking undeclared income or gains are in the clear after 4 or 6 years, and if you suspect you have undeclared income or gains then the period is probably extended anyway as your failure to pay tax is arguable more than just careless, it's deliberate.