Why Tax FUD actually benefits the Cause of Crypto HODL’ers

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62 in tax

Today is tax day, Apr 17, 2018 and @anonymint wrote an interesting post on how taxes destroy us all. There’s certainly a lot of fear going around about how to be in compliance with the tax rules. This is especially the case with the IRS in the USA which seems to have generated the most fear from their own population.

The reality is that most of you have it backwards. I look forward to my next audit by the IRS because that’s when they will get a lecture from a software developer on the futility for many to be in compliance with the rules. The rules have finally reached such an antiquated state, that to be in compliance is simply impossible. Below you will get a demonstration as to why.

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You don’t have to be belligerent or tuck your tail for IRS employees. They will know that you aren’t the source of their problems. While I can’t guarantee that you won’t have an encounter with a stupid IRS employee who doesn’t understand the technology, you should know that millions of people are now explaining the problem and that word is quickly going to the top to many governments around the world.

I already had this discussion with my tax accountant and explained all the details of how the Steem reward system works. While she said that for now just worry about any Steem that leaves the platform, the rules say that some of it is income and some of it is investment. There is a real problem, when you’ve invested a significant amount, in finding which part of the payout was ROI (capital gains) and which part of it is income. How can you isolate the two? Actually to be totally blunt, you can’t. When she understood that, she said that there will be new regulations about cryptocurrencies coming in the future. We knew this was coming so relax.

The IRS is about to face a hard reality and it actually works to the advantage of all lovers of freedom and voluntarism. The vast number of transactions on the Steem blockchain alone are enough to force non compliance of most people except for the dead accounts on this platform. What about those bots that do 100K + transactions per day? Do you think that every one of those transactions has been separated out as to what part was capital gains and what part is income? Of course not. Will they go to jail because they didn’t understand the law? That wouldn’t be practical and would further sink their ship of state very quickly. Here’s why…

The Needs of the Many Outweigh the needs of the Few

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We all know that there’s strength in numbers, right? I don’t just mean in terms of the number of people who will be affected by these regulations, but there’s also strength in the numbers of transactions. This will force an attempt to rewrite the rules. Why? Because an audit will not even catch a millionth of a percentile of the total transaction pool. It's far too inefficient.

The IRS of course will be most interested in collecting as much tax as it can from the top earners in crypto which is why it will motivate them to rewrite the rules. This will also cause them to look for the highest value transfers. If you’re one of these people, you can afford to hire a tax attorney.

The rest of us small fry will most likely not be bothered with an audit because it creates more problems for the IRS than it’s worth. They have very limited personnel, so only 1% of you can expect to be audited. They currently have much bigger problems to contend with and need to generate as much wealth from as few audits as possible or they go under.

What the IRS will do when it understands the Math...

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Here’s how a typical post breaks down. I decided to stop using upvote bots a few weeks ago because the math wasn’t working in my favor, but just to illustrate, I will pick a post from a few months ago which shows the payout using upvote bots, for example…

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In the above post, the total payout was $82.55, but this wasn’t in USD and not all of it goes to the author. About 75% goes to the author and 25% goes to curators. If you were a curator, then you also got part of that reward. This is probably why often times when you break it down the 3/4 ratio of reward isn’t quite exact. This happens when you upvote your own posts.

So the method goes like this. Of that $63.76 in Steem/SBD, you have to find how much of it you were paid in Steem, how much of that was paid as SBD, and of course how much of that was powered up (but the ratio will stay the same as for unvested Steem).

For the SBD portion, you take 1/2 of the $63.76 which is $31.88. Since SBD is supposed to stay pegged to the USD (but it doesn’t even come close often times), you have to find out how much that $31.88 is worth at the exact moment it was paid out in USD. If that was 2.94, then you would have $93.73 USD.

The next part is to take the other half which will be $31.88 in Steem, which of course will not be paid as 31.88, but as a fraction of the price of Steem at the time of payout in USD averaging over the 7 days of the payout period of the post. So if Steem was $4.00 at the time, you would get 7.97 Steem, but you can take the $31.88 directly. Add this to $93.73 and you get $125.61.

Then you subtract the amount of SBD that you contributed to make the post more popular. This would mean you have a deduction similar to profit / loss from business on your Schedule C. In the above example, assuming that this was $60 SBD, you would then figure how much of this was in USD at the time you paid the upvote bot. Assume that the SBD was $2.08, that would be a deduction of $124.80.

This calculation of the value you came out about 0.81 cents ahead which is a typical calculation result for us minnows using upvote bots (this is one of the reasons why I stopped using bots because you typically break even or even have a loss). However, if you invested a couple thousand dollars in Steem the way I did when I first started, your payouts are bigger because you invested. Does this mean that this is income, interest on investment, or capital gains?

Now take all of those automatic upvotes, every single click that generated a blockchain transaction, multiply this about 100 times a day (100,000 times a day if you're a bot owner) and you will be done with the calculation for one tax day in a 365 day tax year. Since there’s no software to bail you out of this situation, you have to do this by hand, or you go to jail. Millions of people will be facing this absurdity. You aren’t alone. Sometimes the appearance of something insurmountable isn't really, as this dog demonstrates...

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Obviously when faced with doing the impossible, what do you think will realistically happen? Will they cart off tens of thousands of violators to jail, confiscate their bank savings (why do you still have a bank account anyway?), will officers of the law beat you up? If they do any of these things, the result will be this as stated by @anonymint:

The IRS has a big problem and they had better get their heads out of their arses and quickly.

Essentially the law is becoming inconsistent with itself. That is that hallmark of the collapse of the rule of law and collapse of Western civilization which is actually well underway. So as you noted, we the people can become collateral damage within a society that becomes dysfunctional where insanity rules.

This is the time to be educating everyone on the virtues of voluntarism. It's also important to understand the opportunity that this gives those of you hodling crypto. You will in the future be in an extremely powerful bargaining position. As the ship of state sinks, and you have only your cryptocurrency left with no bank accounts, do you really think the state is going to want to spend the $60K / year to incarcerate you as a tax evader while this happens? Not a chance.

What really happens in these situations

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Many times before, as the nations currency collapses (which the USD is likely to do because of the insane debt to GDP ratio), the enforcers of the law are themselves compromised by the inability to do their jobs with the established state currency.

This means that they will be taking bribes in cryptocurrencies. You will begin to dictate terms because they will soon be out of money. If they kill you, then they never have the chance to decrypt your holdings. If they harm you, then they risk losing out on a bargain that can help both you and them because of the structure of bitcoin transactions and multiple wallet addresses.

When chaos erupts, you can become government. Will you pay if tortured? Perhaps, if you're a lousy negotiator. But because crypto holdings aren't at all easy to trace once they leave the KYC (Know Your Customer) environment of exchanges, they have to guess part of the time which addresses belong to you and which don't. Chainanalysis is just a fancy name for tracking KYC info and labeling as many points as possible in the chain of addresses which will of course be far from complete.

While much has been made of the fact blockchain is public information, they still have to guess after it leaves the exchanges. If you never reuse bitcoin addresses they can't usually confirm an address doesn't belong to you until another point in the KYC apparatus surfaces (such as your ordering something in crypto and giving your name and home address for delivery or sending funds back to an exchange).

Another way they can link identities is if your wallet aggregates funds from several addresses to create a spendable UTXO (Unspent Transaction Output) for the larger transactions (this is going to become increasingly difficult when Lightning Network becomes fully usable) which you can mitigate by sending transactions smaller than the smallest in your pool of transactions. This requires more transactions to complete an order, but such a technique enhances privacy.

And if they're stupid enough to insist that the first transaction / address jump was your selling off, then the IRS just let you off the hook in a big way if you sent it at $5,000 USD and it appreciated to $100K afterwards. Explain that to them and they will back off because of greed (and because the rules say you'd be taxed twice which would put the IRS in violation of their own rules).

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As this situation unfolds, the tech giants like Amazon will have to take over as a form of interim government to keep things running. These corporations like Apple, btw, haven't been paying hardly any taxes at all. Good for them, but it will still be their "karma" to pay for the infrastructure to keep their own business models operating, or they will indeed lose everything.

A long time ago I had a significant insight at Carousel Mall in Syracuse, NY, circa 1995. I was browsing around the mall and noticed probably at least three different branches of police, the mall police, the state police and the Brinks security guards. My insight was that their operations had nothing to do with "protect and serve" the public, but were entirely geared toward the private interests of corporations. Guess who will be funding the police when this all goes down? You guessed it, corporations. They will become their own government when this happens and will keep things running. Carousel Mall could become Mad Max, Beyond Thunderdome.

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Civilization will begin to localize into pockets of walled off communities and agorism will become a central means for survival (at least for a while).

So my advice to you is to stay armed and hodl on, and seek professional tax advice knowing that the situation changes daily. No need to panic for those of us hodling crypto, but it soon will be time for government to panic. If you're prepared, you can put yourself in the catbirds seat and actually be leading government employees by the hand into the uncharted territory of voluntarism. Many of them are somewhat aware of what's happening and secretly hope the top psychopaths will face justice for what they've done.

*** Disclaimer - This article isn't tax advice, but my understanding of the situation as explained to me by my tax accountant. Proceed at your own risk.


Donations (public bitcoin address):
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63
  ·  last month

I like @zoidsoft’s idealism but I feel I would be remiss if I didn’t present the counter-argument. I wrote the following in a discussion with him at my other blog to which he is referring to:

You’re making the assumption that strength-through-numbers will overcome. That’s the American “can do” attitude which I admire. Yet there are signs that the Western countries are devolving into police states. I would be remiss if I didn’t play devil’s advocate and present the other side which is a potentially darker outcome.

I think you might be far too optimistic and I think it would wiser for users to move to replacement systems that don’t have the flaws in Steem which cause users to incriminate themselves. However, whether it is plausible for such as systems to come into existence and be as compelling is not known at this time.

You presume that the IRS has to actually conduct an audit in order to assign a tax due. In totalitarianism they simply declare what you owe and you have no recourse whatsoever. They can justify it as a necessary efficiency because there are so many people snubbing compliance.

Our masters have always been willing to put boots on the throats of millions in order to maintain control over the power vacuum of democracy. They did 9/11. Do you really think they will allow a million nerds with crypto tokens stop them?

Never has it been the case that we-the-people can self-organize. We-the-people are always falling to divide-and-conquer. We even see this happening on Steem, where I have documented the corruption and intentionally flawed design that enables whales to rape the system.

You are encouraging everyone to not worry (while also giving a caveat that some may fall through the cracks) because you know some workers within the IRS. But the underlings don’t make the decisions about how this is all going to come down on humanity. On one hand, I like spreading encouragement. OTOH, I think it’s prudent to be frank with readers as to the range of possibilities.

The SJWs, leftists, and socialists which dominate the politics of the West don’t want to allow taxation to stop because that is one of their weapons against those who they want to control and that is the bargain they’ve made with the devil so as to receive their funding. For example, George Soros funds a $billion into leftist agendas which means bribessalaries into pockets of leftists.

Because really if they allow us to succeed, and they have their government print dollars instead of maintaining control over all of us, then their dollars become as worthless as they are. IOW, more than half of the population seems to be invested In T̶h̶e̶f̶t̶ ̶a̶n̶d̶ ̶M̶a̶s̶s̶a̶c̶r̶e̶s̶ᵀʳᵃⁿˢᵖᵃʳᵉⁿᶜʸ We Trust.

As when the economy turns down hard as the West is going to be totally destroyed by it’s bankrupted pension and unfunded liabilities to boomers, whilst shiny and lean Asia steamrolls the West, then people get angry and bitter. And then it is very easy for the-powers-that-be to turn that into chaos, war, and the collapse of rule-of-law and sanity. IOW, when everyone is going down, the people are much less able to embrace some sort of sane solution that doesn’t unfairly obliterate a million people. When the people are bitter and destroyed by economic devastation, it’s time for war and megadeath. This pattern seems to repeat throughout human history.

If totalitarianism takes hold as it did with Germany’s devolution into the socialist Wiemar Republic that ended up as Hitler’s police state, then the government may not care at all if they have to throw millions into jail (concentration camps). That is the dark outcome. I am not saying it will happen, but given how crazy the politics is getting in the U.S.A., I think it is possible the society could become sufficiently polarized to do very evil things to each other. This is why I blog so much about how we the people shouldn’t allow ourselves to be divided by political ideology. We end up destroying each other and handing all the power to the bastards who foist these enslavement mechanisms on us such as the completely unnecessary income tax. I think basically humans are too stupid to stop falling for this manipulation. I write very detailed blogs explaining the power vacuum and only a very few people are interested enough to upvote them.

It’s already the case that the IRS can cancel your passport (and other nasties) if they unilaterally decide you owe them more than $50,000 in past due taxes.

Also the FBAR reporting requirements may somehow be deemed to apply to our wallets and we suddenly have massive fines and jail time.

And then there’s 20 year prison for those Americans who are accepting funds that are not AML/KYC compliant and the fact the no one on Steem knows where all their rewards are coming from. One can argue they come only from the blockchain as minted supply, but the upvoting is what causes the rewards to be targeted and the former interpretation opens a huge hole for money laundering.

The powers-that-be are moving us into a world where no money can move without being AML/KYC compliant. That was ostensibly one of the main reasons they perpetrated 9/11 as the Patriot Act quickly followed as a result. And I think they full well intend to destroy any groups which oppose them. And I don’t think they will hesitate to do more megadeath and concentration camps in order to reach their goals.

They created Hitler to get their Zionist state. Now they are preparing to make their next be move on enslaving humanity. They create as much war as necessary to pound humanity’s flesh and will into submission.

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You presume that the IRS has to actually conduct an audit in order to assign a tax due.

Not at all. This happened to me once when I was running my business in Maryland and then moved to Nevada in late 2007. They sent me an unannounced tax bill of $3200 for the year 2006 (for which I paid taxes in NYS). Fortunately I drove all the way down from Seattle to Las Vegas to check my POB and then submitted a dispute using my NYS 2006 tax return just in time for it to not become automatically due.

And then there’s 20 year prison for those Americans who are accepting funds that are not AML/KYC compliant and the fact the no one on Steem knows where all their rewards are coming from. One can argue they come only from the blockchain as minted supply, but the upvoting is what causes the rewards to be targeted and the former interpretation opens a huge hole for money laundering.

I'm expecting things to get ugly which is why I say to stay armed near the bottom. At the same time, I know there are many in government at high levels who are involved in crypto as well which will cause a lot of opposition to the IRS and fascist elements.

But when the IRS starts seizing bank accounts (that's their preferred method of payment) as this starts to go down, how many do you think will still have bank accounts? The pensioners (I'm one of them) and those slaves forced to accept payment in USD. The rest of us are already starting to switch to crypto.

I believe that there will be a civil war at the congressional level that will create indecision as most of this transpires. My family is somewhat politically connected and I can probably get Senator Barclay's ear if I really had to (we live on Manwaring Rd - that is also my last name). Senator Barclay owns a long stretch of land on the Salmon River just west of Pulaski not far from our 70 acre homestead.

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Eliminating our bank accounts may not protect us.

JFK’s assassination was a coup d'état. I expect the Congress will have their hands tied while the real power behind the curtain already has the authority to send a drone to kill us per the recent legislation that enables them to declare even a U.S. Citizen as an enemy combatant and waive all due process.

Legislation has already been proposed to force us to declare all our crypto assets when ever we cross a border or a checkpoint.

I don’t believe we have any chance anymore in the USA. We lost control of the country as Eisenhower warned and the founder of the Birch Society predicted in 1958. The writing has been on the wall for a long-time. We’re far along now.

I am optimistic though that I just don’t think the global elite are insane enough to take us into full scale nuclear winter. I don’t know if war could spin out of their control though. But even just a limited nuclear war between India and Pakistan would starve the entire world.

I believe the situation is much worse than most people believe. Most people are really unaware.

do you really think the state is going to want to spend the $60K / year to incarcerate you as a tax evader while this happens?

Again playing the role of devil’s advocate, I submit that when the universal health care became too expensive in Nazi Germany, they came up with a propaganda that the weak and misfits should be purged from the society. Most people don’t study history and thus they are destined to repeat the same mistakes. The majority clamor for universal health care and think people who talk about Nazis are crazy.

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authority to send a drone to kill us per the recent legislation that enables them to declare even a U.S. Citizen as an enemy combatant and waive all due process.

This would prove extremely expensive and there aren't nearly enough drones to take out all of the dissidents in the USA. But I'm aware of this law NDAA section 1021 signed by Obama in late 2012. Chris Hedges sued and lost after winning a judgement in federal court. An emergency stay went in immediately after which suggests that they were already using the law and didn't want to be in contempt of court.

I don’t believe we have any chance anymore in the USA. We lost control of the country as Eisenhower warned and the founder of the Birch Society predicted in 1958. The writing has been on the wall for a long-time. We’re far along now.... I am optimistic though that I just don’t think the global elite are insane enough to take us into full scale nuclear winter.

I have reason to believe that this will all come to a head in the early 2020's. Better stay locked and loaded. All my neighbors are. If UN troops start marching through, they will be shot, mark my words. This area is extremely hostile to the globalist left. My family in the military will not obey either if this happens.

Legislation has already been proposed to force us to declare all our crypto assets when ever we cross a border or a checkpoint.

Yes. And it is absurd because it's impossible to carry bitcoin across borders. What you carry is cryptographically signed keys, but the bitcoin is on a global ledger in cyberspace and never leaves or enters any nation state.

I remember writing about this issue on my blog a few months back. If they ever make carrying cryptographically signed keys illegal (assuming they realize their legal mistake), then some of us will have to undergo a lobotomy!

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When I write posts such as this, the eyes of most people roll and they think, “another extremist doomsday bunker mentality crab”. People are not interested. They are preoccupied with their McFat and Superbowl parties.

The-powers-that-be are currently trying to maintain some apparency of the rule of law, whilst violating the rule of law in every way that they can with their kangaroo courts and such.

But I think they’re willing to take us into total chaos with abrogation of rule of law if they think they can divide-and-conquer the people. Even they could do some limited nuclear war to incite most of the people to demand that government have more control not less control. The problem we have is that most of the people are fooled. Thus…

This would prove extremely expensive and there aren't nearly enough drones to take out all of the dissidents in the USA.

It distills down to this. Can the Americans who understand what is at stake win a war with these bastards?

Apparently the Bundy standoff was some degree of success against the Feds. I haven’t really followed it. I saw something about someone being shot by the Feds in another state. And then a news headline about the patriarch winning a court judgment but I didn’t read the details.

I don’t think expense is their problem. $trillions in black budgets that disappear from the US Treasury. The documentation and accountants for the $2.7 trillion Rumsfeld said was missing from the budget, was irrevocably destroyed with their bombing of the Pentagon (and there is amble evidence that the plane flew over the Pentagon and never hit it). I saw recently some news about another $1.7 trillion that is unaccounted for now.

If Trump had any real control he would have eliminated the income tax, fired the Federal Reserve, and ordered the U.S. Treasury to print all the dollars they need to balance the budget and pay off all the debt. Thus I surmise he is just a pawn of the elite who are behind the curtain because we can see for example his proclamation of Jerusalem as the capital of Israel and his escalation of war in Syria based on some false-flag chemical attack.

We’re living in a very corrupt world. And we dissidentspatriots are only united by the decentralized ledger. This is why I am being very clever about what we can do with a decentralized ledger to minimize their ability to use the law against us. Because they can first use the law to break down the leaders of any resistance. They go after the key people first, because normally the next layer of dissidents aren’t as skilled or dedicated.

I don’t think we are strong enough. But I am willing to see if these other dissidentspatriots start to talk to me. Mostly what I see thus far is nobody cares for example about what really happened at 9/11. When I write about the power vacuum of democracy, very few people make any comments. I thus must presume that most people are fooled or preoccupied.

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I don’t think we are strong enough. But I am willing to see if these other dissidentspatriots start to talk to me. Mostly what I see thus far is nobody cares for example about what really happened at 9/11. When I write about the power vacuum of democracy, very few people make any comments. I thus must presume that most people are fooled or preoccupied.

I haven't studied all the complexities of 911, but knew from day one that it stunk. I didn't have to research it to know that it was an inside job. I've read some of William Binney's work years ago. The few facts that I did know (the trillions missing days before from the pentagon budget) and suddenly the same amount of gold magically disappears from the basement of WTC7 was more than enough to know the official story was total BS. Bush 43 was under investigation by the FBI, but once 911 happened, that whole case evaporated.

I've been reading your blog and I think we see the world in about the same way. I have no doubt that these psychopaths will try to keep us enslaved with everything they've got. I do however doubt their ability to succeed long term, we could be in for a digital panopticon if we allow centralized crypto such as Ripple to gain a significant foothold for a generation or so, but it won't be permanent (nothing ever is), because centralized IT is fatally flawed and will eventually collapse. They are also at war within their own ranks because of their own psychopathic tendencies which provides a little bit of decentralization at the top.

I've written in my blog that I think that the world achieves freedom because of the 3rd world. Those of us in western developed nations have no real incentive to change. We've become the British empire and in a few years time the world will have it's 1776 moment against us. But the tech underlying bitcoin will have to become easy enough to use so that Andreas Antonopoulos's mom can swipe her finger to complete a transaction.

As for not being strong enough, that's why I'm hoping DAC's can make up the difference causing natural disintegration of the old legal structures. The less their laws reflect the realities of life, the less perceived credibility they have, and the more people will be forced to ignore them.

Back in the mid 90's I used to use PGP (integrated into Eudora), but later versions didn't support it and it's been obvious since then that authority has been doing everything it can to create a world wide surveillance state for the sake of control. They get around the illegalities of spying on their own populations by outsourcing their spying. For instance the British spy on us, and we spy on the British, that way it's technically "legal".

Once I released my last project in 2016 (Delphic Oracle XPF), I started looking at cryptography again. This brought me finally to take bitcoin seriously (which was about the 3rd time I'd been admonished to buy). William Stickevers told me about this (the 2nd time) back in 2015 when bitcoin was around $200, but I got sidetracked by my cross platform implementation in FMX. The first time I heard of bitcoin was around 2010 when I was looking at payment processors.

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63
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But the tech underlying bitcoin will have to become easy enough to use so that Andreas Antonopoulos's mom can swipe her finger to complete a transaction.

Bitcoin was designed to become entirely centralized but that control will be obfuscated by the anonymity of mining. That causes me to believe that the very elite we think we are fighting are perhaps the ones who designed Bitcoin.

Steem and any form of proof-of-stake are also centralized by the power-law distribution of wealth.

Our plight may be natural and preordained by natural laws such as the inability to form a fungible consensus that remains decentralized (although I have a new consensus algorithm design which I hope may overcome this but I am not certain).

I do however doubt their ability to succeed long term […] I've written in my blog that I think that the world achieves freedom because of the 3rd world.

I hope so but I live in the Philippines and I observe the people are embracing socialism. They want the government to provide more and more services and universal medical care. They are not at all concerned about rising taxation. And they do not at all identify with the problems in the devolution of the West. They are fighting to get their piece of happiness in the harsh economic conditions their grandparents and parents fought.

The global elite are much too smart to make such a fundamental error. If we’re to disintermediate them, it will require cleverness they didn’t anticipate.

Once I released my last project in 2016 (Delphic Oracle XPF), I started looking at cryptography again. This brought me finally to take bitcoin seriously (which was about the 3rd time I'd been admonished to buy).

In 2008 and 2009, I was manufacturing silver 1 oz rounds and selling them to Risto Pietilä for his silver business in Finland. I was more wealthy than him holding at one time 18,000 oz of silver (some rough estimate may not be entirely accurate). I even publicly predicted silver would go from $22 to $48 several months before it did.

I had become aware of Bitcoin sometime in 2009 or 2010 afair. I was also working on a similar concept before Bitcoin was announced and even publicly wrote about it (it is on gold-eagle.com but I don’t have time to dig up the link right now).

So when Risto approached me in 2010 or 2011 suggesting that we both sell silver and buy BTC at roughly $3, I was ignoring him because in the interim time my health had started to decline (swollen feet like papayas, low energy, feeling weak, etc). I nearly died of an acute peptic ulcer that suddenly burst in May 2012. People routinely die in the Philippines from conditions that are rarely fatal in the U.S.A. such as burst appendix. After that incident, my health went into a tailspin and I was acting as if I was in flight-or-fight mode so I made a very poor investment decision and lost $75,000 making a short bet on China (following some promoter named Graham Summers that I discovered on ZeroHedge).

So when Risto approached me in January 2013 and said he was going to sell $100,000 of silver and buy BTC at $10, I told him to do it and that it looked like it was about to explode upwards in price. He urged me to do the same, but I told him that my kids had been yanked from the Philippines and suddenly my expenses had increased because of that and that I had lost $75,000 and that my health was declining and I didn’t even have medical insurance. So I told him I was not going to risk the $100,000 or so I still had in savings.

So Risto went on to become a $10 millionaire within a year. He’s the guy who bought a castle in Estonia with $1 million in BTC. And I became more and more ill and depleted my savings which was all that remained from my CoolPage.com software business which had generated more than $million in revenues but had died by that juncture.

I didn’t discover I had Tuberculosis (confirmed in my left lung and on a gold standard blood test) until I managed to get funding to go to Singapore for testing in January 2017. Steem actually provided $6000 in funding for me in 2016. I had no coughing or symptoms of pulmonary TB. Actually it was never confirmed if the TB was in my gut, I just assume it was also there, because of my symptoms. By that time, my liver and spleen had MRI-confirmed cysts all over them and these don’t seem to heal quickly or possibly they never heal and it only gets worse. I am battling this now. I completed the 6 months of highly liver toxic antibiotics as of June 2017. Slowly trying to grind my health back with exercise and eating for example a lot of spinach, but the liver and spleen cysts may or may not go away. The effect of these cysts is to remove all the energy that the human body and brain need to function normally. I often feel like I am totally exhausted (as in no energy to bend over to take shoes off) and drunk/discombobulated/delirium/asleep-while-awake. Surgery for removing cysts can be fatal or the outcome can be worse than the cysts. And the surgery is often not successful in preventing the cysts from coming back. Thus it isn’t advised to do surgery unless the symptoms are dire.

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Bitcoin was designed to become entirely centralized but that control will be obfuscated by the anonymity of mining. That causes me to believe that the very elite we think we are fighting are perhaps the ones who designed Bitcoin.

That link doesn't work. I'm aware of the issue of mining centralization. Some say that Moore's law will cause centralization to reach an impasse. But one of the nice things about open source code such as bitcoin and LN is that if anything nefarious is happening, they will be outed. I've looked at some of the code on github and didn't see anything obvious. Of course there can be code obfuscation - @ivanli talks about this but there are ways to audit the code with a testnet to actually see what it does.

There are certainly global elite who are very smart, but there's infighting and jockeying for position by the top psychopaths. This acts as a form of decentralization on its own as they undermine each other's plans in hopes of becoming world emperor.

Sorry about your health problems. I'm in a similar situation, with afib and diabetes. I used to be a power lifter 20 years ago and weighed in at 328 lbs (at 6'4") and eventually with my family history, I developed insulin resistance in early 2016. A friend I used to train with died of a stroke Dec 2, 2017. He was also a Vietnam war vet. That's him below...

Screen Shot 2018-04-18 at 9.12.01 PM.png

One of the reasons why I'm so fearless in confronting authority is because I sense there are more days behind me than ahead of me. So I choose to look on the bright side of things now after having thoroughly scrutinized the dark side of life since 1983. That's me below as I appeared in 2003...

Screen Shot 2018-04-18 at 9.12.33 PM.png

47
  ·  last month

I was also wondering to what extend video game tokens factor into this. It is a natural idea for some games to make video game items transferable on a relatively low security blockchain. To which extend is video game gold then taxable? Steem can be seen as nothing but a social network game where we swap crypto tokens. Its not our fault that people would potentially pay us money to get them. I thing this argument becomes difficult for steem as they created SBD, but you start to see that the law is not consistent. The only way to save it somehow would be to make it taxable only once it gets converted into usd.

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63
  ·  last month

You can find some discussion by searching Google for “WoW gold taxation”. Essentially it was thought that they aren’t taxable because it is against the EULA to exchange them outside the game. However, many people think that a strict interpretation would find them taxable. And it is possible to exchange WoW gold for real assets while violating the EULA.

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47
  ·  last month

so you could become a tax criminal by just playing computer games :)
Alternatively lets make a coin that says it is forbidden to exchange it for fiat :)

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63
  ·  last month

Alternatively lets make a coin that says it is forbidden to exchange it for fiat :)

That was the original idea for the project I am working on (a replacement for Steem) as a way to also prevent the tokens from being securities, but it also required we prevent the tokens being exchanged for any fungible asset including other tokens such as Bitcoin. But I couldn’t reconcile the centralized entity needed to enforce the EULA with the necessary decentralization. So I thought of a better idea since then.

66
  ·  last month

Thanks :)
Heaps of insights I hadn't thought through here.
Appreciate the wisdom and clarity.

54
  ·  last month

So much yes!! I am excited about this space primarily because it is the fasted moving version of 'starting communities from scratch and watching our ideas and theories about human organization not work out and start from scratch again" that humans have (at least in this time line) experimented with, it is a great time for everyone to get in and get their hands dirty with these bigger questions without having to rise up through the hell pits of political power lol. Also , I did actually LOL at "Why do you still have a bank account?"... I ask myself that everyday. For me, I am not a programer or particularly comp literate person and my saftey net for not being a snack for the less scrupulous crypto-ites is the slower physical adoption, but philosophicallly I'm all in ;)

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62
  ·  last month

You can get a Trezor or Ledger hardware wallet which will make security a simple matter.

54
  ·  last month

Maybe the days of absurd tax laws will come to an end and the government will remove head from ass...

haha yeah right.

54
  ·  last month

This post deserves much more than $1.50..great content, keep it up.

58
  ·  last month

Want to help the IRS? Here's how

Edit; this is sacrasm of course

48
  ·  last month

I want the taxes to be fair. And not so big: 60% of the salary we have taxes.

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63
  ·  last month

Did you read my blog which @zoidsoft is referring to?

I explained that governments don’t need to tax. They could print the money that they need to spend.

The tax racket is some sort of oppression of the human race.

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62
  ·  last month

Good ideas don't need force.

45
  ·  last month

All rich people consider their money. And they want justice. Therefore, they are looking for ways - how to pay less taxes. And many states do little for their people.

47
  ·  last month

Now many states are developing laws on taxation of all crypto-currency transactions. And it's not fair-people work, they work, and the state takes their money.

53
  ·  last month

Valuable information.i like Bitcoin.
Thanks for sharing this news.

44
  ·  last month

Thanks for sharing cryptocurrency news.
I appreciate your information.
Upvote done

48
  ·  last month

Good article.
I love Bitcoin. thanks for sharing cryptocurrency news

39
  ·  last month

@zoidsoft I always look forward to your posts. They're super interesting and show your deep understanding on the subject matter and much more. I just stumbled on your profile today!

This article is a great example of my admiration for your knowledge, where you displayed your prowess on crypto and the impending tax, the steemit incentive structure and real issues of life in general.