The Bitcoin Thread

[Archer]

Anyone know a tax consultant who knows how to deal with Bitcoin in SA? e.g. you cash out R500k but invested R50k (i wish), how much tax do you owe?

I would treat it as shares, and do my taxes accordingly

 

[etienne_marais]

I'm sure this last boom saw a number of bag holders trying to cash in but only to find AML/fraud systems going off and SARS slithering along asking for up to 40% in taxes.. SARS will be taking advantage of people who don't know their rights or the rules properly.

Indeed, anything that can possibly work ends up being over-regulated.

 

[ProfA]

I would treat it as shares, and do my taxes accordingly

Why? Do shares cost electricity or GPUs?

 

[Awesum]

May I ask where you bought this from? Does it include customs and insurance?

I bought it directly from the Ledger Wallet website. It includes shipping.
Will see how much the customs is when it gets here.
It's only going to ship on 27 June, till then Jaxx will suffice.

 

[Hempiz]

Anyone know a tax consultant who knows how to deal with Bitcoin in SA? e.g. you cash out R500k but invested R50k (i wish), how much tax do you owe?

Well, some ppl think that crytocurrency is gambling. So follow that route and treat it as gambling winnings. It's Tax-free

 

[hj2k_x]

Jaxx is good it's local. Not as good as a hardware wallet, but alot safer than a cloud wallet and exponentially safer than an exchange wallet.

The reviews of Jaxx on the Play Store are all pretty negative - the recent ones anyway...

 

[trolol]

I bought it directly from the Ledger Wallet website. It includes shipping.
Will see how much the customs is when it gets here.
It's only going to ship on 27 June, till then Jaxx will suffice.

Thanks for the feedback, appreciate

 

[Archer]

Why? Do shares cost electricity or GPUs?

Are you speculating on the value of an asset? Sounds like shares to me... Are you creating value with some arbitrary process? Sounds like an income to me... Now prove to SARS which one it is to minimize tax, otherwise I would expect them to simply slap you with whichever gives them the most money

 

[Archer]

The reviews of Jaxx on the Play Store are all pretty negative - the recent ones anyway...

The poor reviews are pretty much from people who don't understand why transactions are taking long to process. Hint, it's got nothing to do with Jaxx

 

[balrog]

MyCelium also looks pretty nice - local private key storage. Will use that while organising my Ledger.

So what does the South African Bitcoin "Rich List" look like?

 

[AlphaBravo]

Hi Guys,

So how does the blockchain data size work? If the blockchain grows with every transaction, eventually it will be 1000's of Gigs worth of data, and to keep it a true distributed currency it means this data sits on every computer?

I have some bitcoins, but still a noob on the mechanics of the system, toss me a bone.

 

[balrog]

Hi Guys,

So how does the blockchain data size work? If the blockchain grows with every transaction, eventually it will be 1000's of Gigs worth of data, and to keep it a true distributed currency it means this data sits on every computer?

I have some bitcoins, but still a noob on the mechanics of the system, toss me a bone.

Yes, indeed, it will keep growing. You don't need to download the whole chain if you just want to keep your Bitcoin in your wallet though. You can download wallets like Jaxx And MyCelium on your mobile, and the whole blockchain is not downloaded to your mobile, obviously. If you want to mine Bitcoin, I assume you would need to download the complete chain. Mining BTC solo these days is not really profitable though. So as a normal user, the size of the chain would not need to be an issue for you.

 

[AlphaBravo]

Yes, indeed, it will keep growing. You don't need to download the whole chain if you just want to keep your Bitcoin in your wallet though. You can download wallets like Jaxx And MyCelium on your mobile, and the whole blockchain is not downloaded to your mobile, obviously. If you want to mine Bitcoin, I assume you would need to download the complete chain. Mining BTC solo these days is not really profitable though. So as a normal user, the size of the chain would not need to be an issue for you.

Cool, I'm not interested in mining BTC. I want to find more applications for it, as this is the best way to drive up the value and adoption as a currency. To this end I joined the crowdfunding in https://thesunexchange.com/ with BTC.

 

[balrog]

Cool, I'm not interested in mining BTC. I want to find more applications for it, as this is the best way to drive up the value and adoption as a currency. To this end I joined the crowdfunding in https://thesunexchange.com/ with BTC.

Very interesting project! My concern - if the Rand devalue (which is probably our future under junk status), having an investment in Rand, that gets converted to BTC to pay you back in BTC seems like you will just be losing out all the way.

 

[AlphaBravo]

Very interesting project! My concern - if the Rand devalue (which is probably our future under junk status), having an investment in Rand, that gets converted to BTC to pay you back in BTC seems like you will just be losing out all the way.

True, but the cost of generating electricity should be inflation linked. Even with IPP's. And funnily enough the ZAR has been strengthening quite a mile the last week, fundamentals stays strong.

Regardless, I love this application of BTC, it transcends borders and is utilised exactly for what it was created for. I think this is the typical application that Ethereums would do?

 

[Thor]

South African regulation and control early warning system going haywire.

They can't so shiat, unless these oaks are selling traight to zar which would be silly.

 

[Alton Turner Blackwood]

I was thinking the other day. Since I plan on never converting my cryptcurs to ZAR...but instead buy stuff at places that sell things I want abroad and shipping it home.

I ordered something from China, and Customs held it in its dirty paws waiting for me to send them a proof of purchase or invoice. As usual I made one up and sent it to them and they released my package - seller was Bruce Lee.

They've been doing this a lot recently and I was beginning to wonder whether it isn't in fact to see whether the currency you've paid in is USD and not perhaps a cryptocurrency. Perhaps one day when more stores are accepting BTC online, customs are checking for the use of BTC. So one day when they notice you've used BTC they'll tell you to come collect, and as soon as you enter the door they POUNCE!

This is why I always send my wife to collect my packages

 

[Thor]

I was thinking the other day. Since I plan on never converting my cryptcurs to ZAR...but instead buy stuff at places that sell things I want abroad and shipping it home.

I ordered something from China, and Customs held it in its dirty paws waiting for me to send them a proof of purchase or invoice. As usual I made one up and sent it to them and they released my package - seller was Bruce Lee.

They've been doing this a lot recently and I was beginning to wonder whether it isn't in fact to see whether the currency you've paid in is USD and not perhaps a cryptocurrency. Perhaps one day when more stores are accepting BTC online, customs are checking for the use of BTC. So one day when they notice you've used BTC they'll tell you to come collect, and as soon as you enter the door they POUNCE!

This is why I always send my wife to collect my packages

What will they do? Bitcoin isn't illegal, there is fkall they can tell you other than here's your package sir.

 

[ProfA]

This is why I always send my wife to collect my packages

Havent spat out coffee all over my keyboard, screen and printer since I heard willie madisha rip off naledi pandor in parliament. Thanks man.

 

[Alton Turner Blackwood]

What will they do? Bitcoin isn't illegal, there is fkall they can tell you other than here's your package sir.

I'm still sending my wife