decided to double down after humming about it, then seeing your chart. Looking at the previous wave of 7$ to $240 leaves me wondering what the next wave will be.. Id say moving from Eos to egld will be a pretty sound move in the long run. I had got into egld at 7.. but sold at 9! I still can't believe it.. I got back in and am looking to cherry pick this beast now.
Great charts, info, and input.
Ryzen7
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@joshbarker,
All I can say is " Crypto Bull Run makes crazier "
If you just hold it, then, you got 18x to 20x gains.
Please explore log scale chart. you see something interesting.
nay i know what do you think about US crypto tax effect on ahead bullrun?
Ryzen7
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@santana2331,
I haven't read yet the propose tax law. Maybe I add that on my reading list to have my own viewpoint. As long as the Tax Law is not great burden to crypto industry, I think that will fine. But if the Tax Law is too strict, I think that will discourage most of the investor. On the side of the Exchanges and Blockchain Companies, the effect of that law maybe different. If they have full disclosure and transparency to investor, that is good. But If they found out to be scheming of something not right or against any existing laws, that would be a problem for sure in the industry. Make sure if you HODL something not only the fundamentals, market sentiment and technical analysis you should focus but also full compliance of those companies to the existing laws of government. Yeah, I know for sure the most of the government want a portion of our portfolio to be paid on them as a citizen of a country. Aside from the money, the government needs to protect the interest of unsuspecting investors against Companies scheming of something not right. So, there is a good side and bad side on any propose laws and more proven it's effect if the law is now implemented nationwide or even globally.
Ryzen7
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@santana2331,
I know read in the news on what's really concerning by the Crypto Community. It's is on the matter on how cryptocurrency will be taxed by IRS.
Yeah, the Crypto Community has a valid contention on that in my viewpoint.
I think, the makers of these laws no experience on transacting cryptocurrencies.
I think, they haven't explore more on what is crypto is all about.
They just simply rely on data given on senate deliberation.
I think, the Crypto Community must give more data to justify their point.
On the Government side, They look cryptocurrencies to be taxed like Stock and Real Properties.
For example, if you bought 1 Bitcoin at $ 4,000.00 and sell at $ 64,000.00, then you have a taxable gain of $ 60,000.00 subject to tax. In that simple example fine.
But the next examples are debatable.
For example, you buy 1 Bitcoin at $ 10,000.00 as time passes by the value of 1 Bitcoin is now at $ 500,000.00, then you bought a LAMBO for $ 500,000.00. The question is: Is the $ 490,000.00 gain is subject to tax? . On Government side, It's a Yes. So, the taxpayer has a tax liability without even knowing it. I think better that you convert it first to Dollars before buying a car, net of taxes. Just use the proceeds to buy a car, net of taxes.
Another example, you bought ALT Coin with your BTC after several weeks ALT Coin price skyrocketed, then you decide to buy a decent PC Desktop for $ 5,000.00 with your ALT Coin as payment method. Question: How to tax this one? In my opinion, this is really problematic. I think the IRS will have a statistics of market price to do this one based on the US Dollar value of each coin. But still the same the taxpayer does not know that he has tax liability on this transaction.
Another Example, this is for Miners in Proof of Work and Validators for Proof of Stake. Now, your mining earnings in crypto is now subject to tax based on its US Dollar Value. The Government treat this companies as way of making business not as Central Bank on a specific blockchain. So, rewards is subject to tax. The Miner and Validator can deduct the electricity cost, deprecation on the equipment, wages and other expenses on their Income Statement to be the basis of determining the tax liability. But what if the already tax mining earnings one day it's price increase further. Is it subject to tax? Unfortunately, Yes. So, you pay tax twice. What burden indeed.
Another Example, this is for Cloud Hosting, Cloud Mining and Staking ( I mean, you rent their equipment). Now, the mining earnings is now subject to tax. Your deductions is rent, electricity fee and other administrative cost related to your contract to determine the taxable gains. But what if the already tax mining earnings one day it's price increase further. Is it subject to tax? Unfortunately, Yes. So, you pay tax twice. What burden indeed. In short, your just like a real miners and validators making business in the viewpoint of Government.
More liability. Huhu.
Ryzen7
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So, Just manage your finance properly to avoid something unexpected.
Ryzen7
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@santana2331, In the next Technical Analysis. I will discuss further about US Crypto Tax Effect. Thanks for bringing this topic. It's really an important matter. My messages above is my initial understanding on the subject matter. I will explore dipper on to this topic as I am affected too even I'm not a US Citizen. Thanks a lot.
HHSPN
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@Ryzen7, Valid points. It's more of a burden to exchanges and miners if laws are not written properly, for investors it's more book keeping if taxes like capital gains at each transaction. I like the fact that identity should be tracked so there are no events like 600million stolen coins from Poly network. Events like that can really put a dent in defi tech. The fact that the transaction was verified and a ledger kept on who made the request and if the coins token was valid is all there. I think anonymity of the owners is making it more easy to steal. In my limited understanding... if the last token is tied to a user, and another user is requesting to transact that token then it can be flagged if the user info is required and not anonymous.
Great charts, info, and input.