[Ipg-smz] Ohio accepts bitcoin to pay taxes (Techcrunch)

Wed Nov 28 16:27:10 UTC 2018

Cryptocurrencies price reflects the value they create by leveraging
blockchains. Ripple, for example, has lowered the costs of international
transactions for banks. It is starting to replace SWIFT.

https://www.forbes.com/sites/billybambrough/2018/11/13/ripple-xrp-price-surges-on-major-japanese-bank-adoption/#59a365e46b2b

On Wed, Nov 28, 2018 at 7:16 AM Ken Hess <kenneth.hess at gmail.com> wrote:

> That's what puzzles me about cryptocurrencies in general. How do they get
> priced? And how valuable are they really when you have to evaluate them in
> dollars? I just don't get why anyone would need to go to the trouble of
> purchasing bitcoins, then buying something, and then the person who
> receives the bitcoins has to exchange them for actual money. Just use
> money. For illegal transactions, bitcoin makes some very limited sense,
> although cash is generally more anonymous. I just don't get it. If you
> think of cryptocurrencies as stocks, they have no intrinsic value, no
> backing with a product, no backing with intellectual property, or backing
> with anything tangible. I just simply don't get it. Plus, these days
> everyone wants to start their own cryptocurrency and have it go nuts so
> that they can be rich. The problem is no one really wants to mess with all
> the exchanges you have to do. Makes no sense.
>
> Bitcoin is like all other scams. You have people who buy in and then try
> to "pump and dump". The other funny issue is that the higher the price
> goes, the fewer people who will be able to buy in so...
>
> Thanks,
>
> Ken
>
> Kenneth Hess
> (918) 919-0411
> Twitter: @kenhess
> Skype: kenneth_hess
> kenhess.com <http://www.kenhess.com/> - frugalnetworker.com
> Filmmaker - Podcaster - Reviewer - System Administrator - Writer
>
>
> On Wed, Nov 28, 2018 at 9:04 AM Dana Blankenhorn <
> danablankenhorn at gmail.com> wrote:
>
>> When, where by who is the price set? All good questions.
>>
>> On Tue, Nov 27, 2018, 11:55 PM Richard Santalesa <
>> rsantalesa at smartedgelaw.com> wrote:
>>
>>> ROFL
>>>
>>>
>>>
>>> *From:* Ipg-smz [mailto:ipg-smz-bounces at netpress.org] *On Behalf Of *Ken
>>> Hess
>>> *Sent:* Tuesday, November 27, 2018 5:27 PM
>>> *To:* ipg-smz at netpress.org
>>> *Subject:* Re: [Ipg-smz] Ohio accepts bitcoin to pay taxes (Techcrunch)
>>>
>>>
>>>
>>> Can I pay in "scrap" gold? Don't you love those jewelry places that tell
>>> you to bring in your scrap gold? Seriously. Scrap gold.
>>>
>>>
>>>
>>> That's like spare change.
>>>
>>>
>>>
>>> "Hello, sir, how are you? Do you have any spare change?"
>>>
>>>
>>>
>>> "No, but I do have some scrap gold."
>>>
>>>
>>>
>>> Oy.
>>>
>>>
>>>
>>>
>>> Thanks,
>>>
>>>
>>>
>>> Ken
>>>
>>>
>>>
>>> Kenneth Hess
>>> (918) 919-0411
>>> Twitter: @kenhess
>>>
>>> Skype: kenneth_hess
>>>
>>> kenhess.com <http://www.kenhess.com/> - frugalnetworker.com
>>>
>>> Filmmaker - Podcaster - Reviewer - System Administrator - Writer
>>>
>>>
>>>
>>>
>>>
>>> On Tue, Nov 27, 2018 at 3:49 PM Sharon Fisher <slfisher at gmail.com>
>>> wrote:
>>>
>>> Some states allow you to pay in gold.
>>>
>>> On Tue, Nov 27, 2018, 11:18 AM Tom Henderson <thenderson at extremelabs.com>
>>> wrote:
>>>
>>> BTC, in and of themselves, are not "taxable events". If you minted them,
>>> you have a basis and may have a capital gain in their manufacture.
>>>
>>> If you bought high and sold higher, there's a taxable gain. If you
>>> bought high and sold low, you have a loss.
>>>
>>> If you bought BTC at $5K and sold that segment for $5K, there is no loss
>>> or gain, and there is no theory of tax that applies, except those
>>> surrounding intangible property taxes, which are usually transient (taxed
>>> once per annum or period).
>>>
>>> So, paying in BTC for taxes due doesn't create another taxable event,
>>> e.g. no double taxation.
>>>
>>> Is Ohio smart or stupid for taking BTC? Smart. Three reasons: 1) it outs
>>> BTC holders who may or may not have an unreported possible gain; 2) allows
>>> those that bought high, which includes many people, a way of paying
>>> potentially without an offsetting loss, which would lower Ohio's capital
>>> gain income; and 3) getting paid today offsets inflation. All taxing
>>> authorities want to offset inflation, which they can't control.
>>>
>>> Tom
>>>
>>>
>>>
>>> On 11/27/18 6:12 AM, Liam Kelly wrote:
>>>
>>> The second degree of irony (of which I'm still parsing through) is that
>>> in the US all Bitcoin transactions are taxable events.
>>>
>>>
>>>
>>> So does that mean that paying taxes in BTC would also engender yet
>>> another taxable event?
>>>
>>>
>>>
>>> Outside of the infinite feedback loop of paying your crypto taxes, I
>>> think Ohio has done this more in regards of optimism/adoption ("bullish")
>>> and hoping to attract small businesses.
>>>
>>>
>>>
>>> The Midwest, in general, indeed seems pretty curious to attract crypto
>>> talent. There are more than a few politicians from the region announcing
>>> their crypto support.
>>>
>>>
>>>
>>> Final note: Bitcoin will eventually get absorbed by the state or die. I
>>> feel pretty confident about that despite holding a bit of this magic
>>> Internet money...
>>>
>>>
>>>
>>> Tom Geller <tom at tomgeller.com> schrieb am Di. 27. Nov. 2018 um 18:25:
>>>
>>> This strikes me as strange because of something taught to me in an
>>> economics class 15 years ago: Taxes are one of the only pinchpoints where
>>> government can insist on payment in dollars.
>>>
>>>
>>>
>>> Even if the rest of society starts trading in chicken feet, by insisting
>>> on dollars the government ensures that they continue to have value. (No
>>> dollars? We're putting you in jail.) When the Hungarian pengő bills became
>>> near-worthless in 1945, what replaced them? Tax certificates ("adópengő").
>>>
>>>
>>>
>>> Perhaps I was mistaught, or that economic model is no longer valid. Or
>>> perhaps the state is sticking it to the federal government. (In the latter
>>> case, I'd expect some lawsuits and public statements.) In either case, I
>>> don't get it.
>>>
>>>
>>> ---
>>> Tom Geller  *  Writer & Video/journalist  *  http://tomgeller.com
>>>        Rotterdam, The Netherlands, +31 (0)6 87071468
>>>             Oberlin, Ohio  *  +1-415-317-1805
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> --
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>>>
>>>
>>>
>>> --
>>>
>>> Tom Henderson
>>>
>>> ExtremeLabs, Inc.
>>>
>>> +1 317 250 4646
>>>
>>> Twitter: @extremelabs
>>>
>>> Skype: extremelabsinc
>>>
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>> --
>> Dana Blankenhorn
>> http://www.danablankenhorn.com
>> http://investorplace.com/author/danablankenhorn/#.WJzBOzsrLIV
>>
> --
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