BCH Watch Out, You Might Be Shooting Yourself In The Foot
Its clear as day right now that many people are piling money into bitcoin cash simply because it is about to hard fork in 2-3 days. But those of you in the USA watch out you could be shooting yourself in the foot when it becomes tax day. Also lets not bypass the thought that something could go very wrong and you could end up losing a ton of money when the sell off happens after the fork or the fork going totally wrong. Things can happen its all human code.
- A note for the below, I am not a tax adviser nor claim to be one. This is just for some information but as always please do your own research before investing and seek out professional tax advice when needed.
Taxes
Yes you have to pay taxes it is as simple as that, however where it gets confusing is the new laws and what to do in the uncharted territory of hardforks.
For tax reporting to the IRS they currently classifies bitcoin and other virtual currencies as Property. This means you are obliged to report the capital gains and losses from these hard forks. These to me seems like you have to paid captial gains as soon as you acquire the new hard forked asset tokens.
The issue however...
At what value do you claim it at?
Do you claim it as the futures trading or do you claim it as the value of bitcoin or bitcoin cash from where it is being hard forked from ?
The Age Old Pump and Dump
Yeah Bitcoin cash very well might not even fork, if all goes well the blockchain will simply be updated and claim the BCH title while the other goes unsupported and dies. I think this is where people get confused as well. Even if it does split there will be no real value anymore in the current blockchain as it is flawed and why a hard fork is needed just 3 months into the activation of the new coin. Be ready for a serious pump and then dump of BCH back into alts and bitcoin itself.
What it always comes down to is bitcoin holding strong and after 3 fork attempts all of which have failed bitcoin is stronger then ever with a value of nearly $7,000 up from $2,000 just before Bitcoin cash forked. That should go to tell you something.
*Image pulled from coindesk at - https://www.coindesk.com/coindesk-explainer-bitcoin-cash-forking-blockchain/
Hi bitcoinflood, I just read your post, after publishing a similar one on the Bitcoin Cash pump and dump currently happening. I didn't comment on the hard fork so this is a nice complement to my post. Reestemed and upvoted. Best regards!
It tells me BTC is still the king and all others are pretenders. There is no way any of these forks take out the original. There is going to be a lot of investment money entering this space and those people are not going to take the time to determine which is better, btc or bch...they will just buy bitcoin (btc). That is what the wall street people will push.
The problem is that if the big-blockers really want to take the bitcoin mantle with BCH, they have to make the 1mb chain unusable/too expensive. And they can do that by keeping the difficulty high on the 1mb chain and switching to BCH at the right time. There is not way for the 1mb chain to defend against this unless they do a POW change or implement some kind of EDA algo like BCH.
Crazy times for the bitcoin ecosystem are ahead of us. The failure of the 2x fork is just the start of a very long war.
Fork or no fork...Bitcoin is still number one, and will probably always be number one👍
All this forking nonsense is starting to piss me off. I think what has recently happened with the lead up to segwit 2x and the abandonment of it, now with the suspected bitcoincash fork. This does nothing to help public opinion of crypto currency. It makes it look like insider knowledge is running rampant
Bitcoin cash philosophy is that hard forks are a normal upgrade functionality. Its a way to upgrade software.
Bitcoin Cash is going insanely expensive these days, but it does not have a natural growth!
Out of the hundreds of millions of people in the USA, each and every year a total of less than 1000 people report their bitcoin gains and losses to the IRS. Most people just don't do it because they know that they just don't have to.
You say yes you have to pay taxes it is as simple as that.
I say No you don't have to pay taxes it is as simple as that.
Waste your hard earned money if you want to give it to the greedy evil people that want control over the earth, but 99% of us holding cryptocurrencies simply won't.
Would it be forking into two versions? Or it will remain one version? I have electron cash 2.9.2. How do I prepare for the hard fork. There is very little information about BCH on the internet. Can someone guide me a little bit here? I would be really grateful.
Resteemed and Upvoted by @resteemable
Resteemit.com By-donation Upvote & Resteem Service
Works on Any Steemit Article. Join the Trail
Fun times indeed! I love that you said, "human code."
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Valor2S from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.