Cryptocurrency Mining

garp said:
It will be interesting to see how SARS handles this in future, since their current policy is that cryptocurrencies are neither an asset nor a currency. In terms of cashing out on Luno, the tricky part would be whether it's considered income or a gain. If you just held bitcoins and they increased in rand value, at most you should be liable for CGT only.
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It is a tough one to figure out, if you are mining you are providing a service, so that would be income tax if you cash out? But what if you take your mining profits from whichever wallet you are using which SARS has no idea about and invest into other Crypto? Would that be CGT?
 
Oh those who bought 1050s and 1060s must be kicking themselves now. I recall crypto and others selling 1050 rigs pushing it hard. I wonder if they where upfront about it or just in it for the quick buck.
 
dj2381 said:
It is a tough one to figure out, if you are mining you are providing a service, so that would be income tax if you cash out? But what if you take your mining profits from whichever wallet you are using which SARS has no idea about and invest into other Crypto? Would that be CGT?
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If you were actually earning bitcoins through trading/mining/services then you would ultimately cash out more than you ever bought on Luno so I doubt SARS would take it as CGT. But if you just bought a qty of bitcoin, sat on it while it appreciated (even if transferred to a private wallet) and then later transfer back the same qty and sell it for a gain then that should just be personal CGT. SARS treatment is supposedly based on intention - if your intention is to invest in an asset then it should be CGT, if your intention is to earn an income then it's income tax (or company tax if done as a business). Guess we won't really know until there are some test cases.
 
garp said:
If you were actually earning bitcoins through trading/mining/services then you would ultimately cash out more than you ever bought on Luno so I doubt SARS would take it as CGT. But if you just bought a qty of bitcoin, sat on it while it appreciated (even if transferred to a private wallet) and then later transfer back the same qty and sell it for a gain then that should just be personal CGT. SARS treatment is supposedly based on intention - if your intention is to invest in an asset then it should be CGT, if your intention is to earn an income then it's income tax (or company tax if done as a business). Guess we won't really know until there are some test cases.
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It will be similar to the US and UK I assume, or at least the framework will be similar.
 
Thor187 said:
https://en.bitcoin.it/wiki/Tax_compliance
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Some interesting points and many unanswered questions. Safest still seems to be to keep it in a wallet with no SA connections.

I'm sure SARS will come knocking on Luno's door eventually. The rate at which the state coffers are being emptied the king will demand that they find more inventive ways to increase the tax revenue.
 
100 odd asus gtx 1060 strix cards was just unloaded at frontosa. All going to wootware if you looking to buy.
 
But this method is not possible if using Nicehash correct? Because they automatically convert and transfer ZAR to our Lumo accounts correct?

Thor187 said:
That's it.

Use Luno only as the "gate". Just exchange what you you need nothing more.
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stretty said:
But this method is not possible if using Nicehash correct? Because they automatically convert and transfer ZAR to our Lumo accounts correct?
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No.

They send BTC.

So get a Wallet like blockchain.info or mycelium or Jaxx

Then to luno you only send what you need.
 
Thor187 said:
Oh those who bought 1050s and 1060s must be kicking themselves now. I recall crypto and others selling 1050 rigs pushing it hard. I wonder if they where upfront about it or just in it for the quick buck.
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Gtx Gaming said:
100 odd asus gtx 1060 strix cards was just unloaded at frontosa. All going to wootware if you looking to buy.
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Is a 1060 worth it still?
 
Yoh it's not a good sight on the markets, I'm just gonna close my eyes for now.
 
Me personally? I have stopped mining. I think a lot of folks are still hitting ETH hard and pretty much ignoring the other altcoins. But that surge in difficulty...whoa.

In a way this might be a good thing as the GPU market might slowly start to normalise again and people actually looking for GPU's to game with can find some without encountering stock shortages or insane prices
 
wabbit16 said:
Me personally? I have stopped mining. I think a lot of folks are still hitting ETH hard and pretty much ignoring the other altcoins. But that surge in difficulty...whoa.

In a way this might be a good thing as the GPU market might slowly start to normalise again and people actually looking for GPU's to game with can find some without encountering stock shortages or insane prices
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Zcash, HUSH, LBRY, Monero, Siacoin, etc. etc. etc. Long list, many viable coins to be mined, some churning out more than Ethereum. Currently, the best strategy in my opinion is to hold on to the coins.

Those with L3+ miners, LTC is not only holding strong above $45, but ventured over and above $50. The ROI these miners achieved, happy times.

Many may say bubble, but there are too many alternatives to Ethereum and a new coin with a unique technology roadmap may capture the miners again. Besides, the used market will be stuck in insanity as people will either want to break even or to get more out on the hardware investment.

I did take notice that many are dumping to purchase assets (or tokens) on the cheap.

Consumer mining is a thing, get used to it.
 
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