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

Wed Nov 28 16:31:21 UTC 2018

Blockchain tech has some value. I don't think we necessarily need to use it
just because it exists. Seems to be a tech trend--if something exists, no
matter how much it sucks (Java, for example), let's use it for something.

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 10:27 AM Kishore Jethanandani <
kishorejethanandani at gmail.com> wrote:

> 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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>
>
> --
> Kishore Jethanandani
> Aboutme <https://about.me/kishorejethanandani>
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