Anyone else here use/mine Bitcoin?
And/or other cryptocurrencies? I started a couple of months ago, mining dogecoin and litecoin. Unfortunately, I don't have very powerful mining hardware.
Bitcoin at the moment is under-valued and I took advantage, and purchased some for the very first time a few weeks ago. It should be a good investment.
Now I'm using a site to mine altcoins on the cloud. The site mines the most profitable altcoins, exchanges them for bitcoins, and pays out to you every 10 minutes. You exchange BTC for mining power (KHs), or you can exchange KH for BTC. You could also re-invest BTC back into buying more KH, so theoritcally your payout is a little more with each re-investment. There's a quick return on investment, between 160-200 days, after that its all profit. I've been using the site for weeks and it all works fine.
http://scrypt.cc?ref=baa8i
No electricity costs, no hardware to manage. It's pretty simple.
Anyone else in on bitcoin?
Just in time for tax day (April 15 in the United States), the Internal Revenue Service has issued six pages of guidelines (PDF) detailing how it considers the legality of Bitcoin and other “virtual currencies.”
Specifically, the document, which was published on Tuesday, designates that Bitcoin will be treated for tax purposes as a property and not as a currency.
That would make it roughly analogous to a stock, bond, or piece of real estate whose value fluctuates over time and would be subject to a capital gains tax when that property (Bitcoin, or another similar altcoin) were to be sold at a profit or loss.
The IRS also notes that “a taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in US dollars, as of the date that the virtual currency was received.”
Further, the agency adds, a person who mines bitcoins should include that as part of their gross income “at the fair market value of the virtual currency as of the date of receipt.”
Last year, a federal judge in the United States declared Bitcoin a currency as pertaining to an ongoing lawsuit, and not for tax purposes. More recently, two financial watchdogs issued warnings about Bitcoin, noting that it is “not legal tender.”
How do they plan on finding out if you're mining it and how much you own? I guess if you're a business that advertises the fact that you take bitcoin that's one thing, but individuals is another thing.
How's that investment working out?
The bull case for Bitcoin is often expressed as an estimate of the future value of all Bitcoin in circulation once it reaches its potential. The most widely known estimate of its intrinsic value is $400 billion, made November 2013, by the Winklevoss twins Cameron and Tyler at the "New York Times" Dealbook Conference. At that valuation, Bitcoin would be worth 70 times its current value of $5.7 billion. That’s based on an April 8, 2014 price of $453 per coin for the 12,620,475 bitcoins in circulation. Clearly, there’s a long way to go to reach $400 billion.
So, how did the Winklevoss twins come up with their $400 billion estimate, which Tyler Winklevoss says is just “a starting point” for what it may ultimately be worth? The $400 billion estimate, he explains in an interview, is not its value as an alternative currency. Instead, it is based entirely on the ability of the digital currency to provide near zero cost transactions across the world, from the least developed to the most developed nation, from the tiniest micropayment to the largest, while its encryption and tracking of all existing coins eliminates the cost of fraud from the transaction.
“If you think of what Bitcoin’s benefit is in terms of payments, it’s a transaction free, borderless global payments system,” Tyler says. “It’s just like someone sending an email to Hong Kong. It happens instantly and free.” In this way, the digital currency is superior over all current payments systems, he contends. “ It replaces the intermediaries and the third party referees, it replaces all the costs associated with them with elegant math, and as a result, it reduces those costs,” Tyler explains. “As a result, its intrinsic value is that it takes all those costs out of the legacy system we’ve known for so long.”
Didn't I tell you guys it would bounce back? And it did. Panickers.
And if you're wrong, a lot of other people who bought into this will be out of potentially a lot of money.