A Worrying Sign Emerges For Bitcoin
You've got to love Kuroda.
On Thursday, after leaving the Bank of Japan's lunatic monetary policy unchanged as expected, the world's foremost authority on the type of currency debasement that's effectively making cryptocurrency bulls' argument for them delivered his assessment of Bitcoin at the post-meeting presser. And this being Kuroda, it did not disappoint when it comes to comedic value.
"The rise [in bitcoin] is undoubtedly abnormal," he said during the media conference, adding that "Bitc
Anyone who wanted to cash out on their Bitcoin is facing a huge tax liability this year if they do so. Come January 1, 2018 at 12:00:01AM ET, the first thing I will be doing is not kissing my wife but watching the drama unfold as Bitcoin millionaires seek to cash out over coinbase.
Course, still long Bitcoin, but this will be fun to watch (till the wife slaps me).
Rudy
why is it January 1 that matters? is it just to delay paying taxes a year? or like on cnbs where they seem to have concluded that no one should sell in Dec but wait until january….or is it something in the tax code now?
Just pushing taxes a year out. This happens in plenty of markets, but Bitcoin is so thinly traded and the 2017 run-up was so steep that gains-taking is more likely, in my view, and the impact of this gains-taking will be enormous.
My personal belief is that Bitcoin is already trending down because of this. There are also no forseeable positive catalysts ahead as well.
I’m personally a great example: I bought a little bitcoin in July (roughly 1% of net worth) which has now turned into a 2.5% of net worth investment. So I’m tempted to take some gains off the table and de-risk, right?
But I could delay the impact of taxes by one year if I just wait ten more days….
And so begins the race to the bottom.
thanks for the response. if one has profits of 150, paying taxes at 25% today will put the gain back to 112.50 so you go from 250 in value today to 211.5 in cash. that 38.5 in taxes translates into a 15.4% deline…..so to be ‘ahead’ selling in january, you must be able to sell inside of a 15% price decline. if you pay more in taxes you could handle a bigger price dip. it also sounds like your outlook is for a large-ish decline.
given all the talk about delaying taxes, they always leave out the impact of price fluctuations/outlook. give me some feedback if you feel I am looking at this wrong, but ive never been as enthusiastic as others about delaying taxes in this manner…..matching losses and gains is a diff topic though.
I think you’re on point, but this is an irrational market where your rational math may not necessarily apply. Just something to keep in mind.
Or hedge with futs and screw price sensitivity
Short Bitcoin long Bitcoin Cash