Re:The Face Behind Bitcoin?
by Yorn on Thursday March 06, 2014 @12:58PM
(#7355369)
Speaking as a sometimes paranoid libertarian with a reasonable amount of Bitcoin, myself, I can say the two things preventing me from cashing out of any portion of it is the likelihood I would be identified and the fact that any sales of it I have to pay taxes on. I purchased a house this year that I could have afforded several times over in Bitcoin, but instead took out a loan just like anyone else.
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I don't understand this. the amount you'd pay in capital gains is probably less than what you're going to pay out in interest, notwithstanding the mortgage interest deduction to your taxes (in which the government subsidizes you at the expense of other taxpayers).
I mean, perhaps you ran the numbers and it works out better financially, but I get the impression from your post that you don't want to pay any taxes on it on principle, which seems economically irrational.
My accountant did not think it qualified as capital gains. I guess the IRS has a specific designation for what can be considered for that.
> [...] the two things preventing me from cashing out of any portion of it is the likelihood I would be identified and the fact that any sales of it I have to pay taxes on.
Do you think this will change?
If not, then your unspent bitcoins are worth exactly $0 (ie. if you don't spend them they might as well be worth nothing). Or are you waiting for something?
Granted, I don't know who you are, and how important it is for you not to be identified (by whom?).