RE: Our Bitcoins Will Be Taken/Frozen By the Miners; Involuntary INCOME Tax on Frozen Bitcoin!
The newest revelation about SegWit lineage tokens being eventually frozen comes from a recent post by the user who had created the Long-term advance notice thread...
Is there any way to wash the taint of segwit from existing legacy addresses? Typically running bitcoin through an exchange will originate from a bech address before handing you your "1..." intended UTXO and a change address with a "3" back to the exchange.
Perhaps spending them to a Monero wallet about 2 weeks before the halving is the way to go? Then retire to some far away island devoid of capital controls...
11/28/2019:
Thus I expect legacy Bitcoin to skyrocket after the initial reaction dip at the inception of the SegWit donations redeeming, and BSV’s rise will accelerate as legacy mining pools figure out they need a non-congested, secure altcoin to pay out mining shares.
I've never touched the BSV fork and have no idea about how to claim it. I'm sure I have some somewhere because I've had BTC since Feb 2017. My tax accountant knows about all of this and told me that new rules are being proposed by some republican congressmen about how to handle this new reality with a $600 transaction limit that you've probably heard of.
Here's a list of proposed blockchain legislation...
In particular, you might want to look at this bill as referenced from above on how forks will be treated:
https://www.congress.gov/bill/116th-congress/house-bill/3650/text?r=2&s=1
There's a Monero conversion option inside your Trezor model T, but I don't know if this is a DEX or not. I still prefer the earlier version of the Trezor though.
My tax accountant is also unsure about how to deal with Steem. I explained to her that bots can easily cause 100K transactions per day which without automation it is impossible to figure the tax. Also for anyone who is on EOS, hundreds of airdrops each of which are practically worthless and dangerous to attempt to claim (most are scams) which can be taxable but take several hours of work each to research.
I've been working through IvanOnTech's blockchain coding academy in an attempt to get a handle on this for my Dapp idea for updating time zones in my astrology software (time zones have consensus problems believe it or not, but probably doesn't need strong decentralization). Unfortunately EOS is becoming a train wreck (maybe claim it as a deduction for my software business).
I downloaded Bisq several months ago to have a look around but never used it. There's quite a lot of offers, but this is more expensive than Coinbase (usually) unless you find a F2F offer which can cause you to travel several hundred miles. Seems like there's always someone willing to do trades with you in Vegas and Dallas. The other one I noted is Raleigh, but you have no idea of who you're dealing with.
I got into bitcoin because I realized that the US government has stolen my pension for the Iraq war (for which they now tax for again to make up for the theft) and got bitcoin as pension insurance if they default. If the dollar stays strong, then bitcoin will probably not go as high, but if the dollar collapses then very likely bitcoin will go parabolic. I don't think the USD will collapse as quickly as Jeff Berwick seems to think. At the earliest, fall of 2022 we could see significant hyperinflation if the Euro has already collapsed (which will do so first).
Then the scenario that Andreas Antonopoulos talks about will probably play out (as it did in 1984 Russia and many other places)...
The above scenario may not happen prevalently inside of the USA if Trump gets that Mexican border wall (meant to keep tax slaves in, not illegals out) and Amazon seizes the means of all production.
The exchange will mostly likely give you back Bitcoins which are also tainted with SegWit lineage. That tainting is quite ubiquitous now in the circulating Bitcoin stock.
The only way is to get someone with Bitcoins that did not circulate much, to trade them to you. Or to mine your own. But you literally can’t mine your own, because the pools are also going to pay out in tainted Bitcoins at least until all pools adjust after the SegWit donations redeeming begins but then they will not likely be able to pay out small mining shares in Bitcoin because the blocks will be too congested. I had some links in my blog about this which go into more detail about virgin Bitcoin. I actually did research the pools looking for one that currently (before the SegWit donations taking begins) never comingled tainted with virgin Bitcoins for payouts, but could not find any. And I think there is a technical reason why they can’t offer it, e.g. PPS requires the miners to have a huge stock of capital for payouts during lean times due to variance. Thus pools may be further consolidated after the SegWit donations redeeming begins.
That is denied access to the international banking system. Thus the equivalent of just burying your Bitcoin in the ground. Not a solution.
The only solution I can see is selling when the selling is good (i.e. before halving and/or later when donations taking slows down but the FATF has not yet ordered freezing all tainted Bitcoins yet). But then you have to make sure your PoSoF (proof-of-source-of-funds) is in order and also that you are not subject to capital controls. This is going to be a delicate balancing act. Timing is important.
BitBay Crypto Exchange to Delist Monero Due to Money Laundering Concerns
Another Crypto Exchange is Dropping Privacy Coin Monero Over Compliance Risk
Also still hoping to be able to buy a perfected anonymous altcoin (perhaps even via a DEX after the halving) that has a future as a unit-of-account and medium-of-exchange outside the mainstream banking system (i.e. a dark/black crypto cash economy), and/or buy mining equipment to mine such an altcoin.
I don’t trust Monero’s anonymity. Perhaps I should contemplate using Monera as a bridge to the next better altcoin. Yet I’m also concerned that the cryptocosm (other than legacy Bitcoin) will plummet in value. Bitcoin dominance may go close to 100%. So I would rather buy low than buy high and later sell low (Monero’s value may never recover relative to some nascent altcoin’s appreciation). Some new anonymous altcoin that is more perfected and undervalued.
Any other ideas? I probably already thought of all the possibilities.