Bitcoin... Who Knew ! 🤔😳🙄

[80watts]

The thing I'm looking at are people who got in at 100.00, and now its 60,000.00. That is still alot of tax money on a 100 dollar investment.

New advances in computing technology, like quatum computing will put all types of codes and encrypted emails at risk of being broken in real time. The enigma machine (Germany) of WW2 was broken by 1943. It wasn't declassifed until the 1980s. Current encryption devices are sold on the market place as unbreakable. Most of them use dual prime numbers (very large prime numbers). But are limited by the lenght of the encryption code. Most modern computers are dual or quad core; meaning a dual or 4 separate calculating spots in 1 computer. Most books on code breaking start with the simple stuff from history, but none go into linear alegbra matrix solutions for code breaking. A quatum computer will eventually look like its guessing the answear using bits and qbits... thats 1's and 0's ......
Banks will go to nuclear war before they allow any type of code breaking to read their files....

 

[80watts]

As a guy who owns about one eighth of a bitcoin since 2017: people promoting this stuff are promoting a pump and dump scheme.

Bitcoin has absolutely zero intrinsic value, thus explains its volatility that we've been seeing lately.

The Canadian dollar has value because the government imposes fees and penalties in Canadian dollar, and there are bound to be people who would need to get their hands on the Canadian dollar. The only way new money is issued in Canada is by having someone borrow money, and be required to pay it back at a later date, with interest. Ultimately, there is value in the Canadian dollar because there is someone somewhere who is desperately in need of it.

Bitcoin doesn't at all act like that. Sure, perhaps one day, certain institutions may begin accepting bitcoin as a form of payment, but given its rigidity in new money issuance, you'd likely not get this stability that you typically see in most fiat currency.

Gotta cash out on the BTC, and start putting that stuff on the S&P 500. Get rich, Warren Buffet style.

Warren baby invested in monopolies, that is why his company made so much money. Simple business and ususally had the people he bought from ran the companies....pretty smart guy.

 

[johnnydepth]

The thing I'm looking at are people who got in at 100.00, and now its 60,000.00. That is still alot of tax money on a 100 dollar investment.
/QUOTE]

It's a lot of tax money but it's still a lot of profit. It's potentially a shit load of profit.

 

[masterpoonhunter]

Regarding capital gains:
Closely held corporations have a nice capital gains benefit for shareholders.
CHC invests in (capital building stock).
Stock does well and its time to sell.
CHC divests - declares the capital gain.
The 50% that is not taxable is put into a specific account (accounting term not a bank) called ie shareholders capital gain account.
CHC pays tax on the taxable part.
The non taxable 50% is then paid to the shareholders tax free.

 

[appleomac]

The 50% that is not taxable is put into a specific account (accounting term not a bank) called ie shareholders capital gain account.
CHC pays tax on the taxable part.
The non taxable 50% is then paid to the shareholders tax free.

It's called a Capital Dividend Account.

 

[bacardi2017]

???? I'm all for paying taxes accordingly, but what do you mean small amount? Not sure if that was sarcasm.

You dont pay capital gains on all the profit, only a certain percentage on the first 100 grand, i believe its 20 %, but cant remember exactly what my son told me

 

[AMG-GTR]

For most people the capital gains tax is generally small compared to the gain.

$100,000 purchase
$1,000,000 sale
$900,000 profit

Assuming a 30% tax bracket, half the $900,000 is taxed at 0% and the other half of $450,000 is taxed at 30% (or to make it easier for quick math, half the tax rate applied to the total gain.

In this case it’s $135,000 - or if you have any carry-over capital losses, you can apply those to this amount to reduce that number further.

While it’s a decent chunk of tax, it’s small in the grand scheme of what taxes are for high income earners. Of course there are ways to reduce taxes further but it’s a more involved and ongoing process that doesn’t make sense for most people.

The CDA account wouldn’t be applied in this case. The CDA is a notional account (not tangible) used for shareholders of a Canadian business. It’s typically used/applied when a business owner is transferring funds and is used to essentially offset taxes.

As for Bitcoin being hacked....
As for Bitcoin being hacked....

I wouldn’t say never because anything in theory is possible but it would be a very very tall order to even make an attempt on such an exploit. Anyone saying it’s going to get hacked is again, misinformed about how data extraction/exploitation works.

Large transactions or wallets are going to be the target, and the blockchain is the most difficult part of the process to break. Nobody spends a million dollars to steal $50.

Anyone looking to essentially steal Bitcoin or hijack the system will attempt it in 100 different ways but it won’t be the blockchain piece.

As for the value of bitcoin, the value doesn’t make sense but lots of things don’t make sense and can still make money. Arguably our paper money (which is now just a digital representation) isn’t worth anything unless we all agree.

Meme stocks are an example of inflated value. Diamonds are worthless and yet people continue to pay millions for them. If enough people believe in the value of something, then it becomes true. Lots of historical examples of this. Remember last year when toilet-paper became as valuable as a currency?

The crazy gains of Bitcoin are likely over though. It could still keep going up, maybe double or triple or more. Anything is possible but to call it an investment is a bit hilarious at this point.

 

[johnnydepth]

For anyone that wants to play around with it.

https://wowa.ca/calculators/capital-gain-tax

 

[UhOh]

Easy to do and a waste of time looking back after the fact and saying what you should have done. Given the chance again you’d ignore Bitcoin again.

And complaining about paying taxes on large capital gains while paying taxes every pay period is kinda lame. If you don’t want to pay taxes go live off the grid in a cabin in the woods.

 

[OneLuckyGuy]

Took empties back to the Return-It bottle return. Received a slip for the amount of the refund and when I went to cash it out the new machine offered cash or Bitcoin. Unbelievable. Who would have thunk it?