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Microsoft embraces blockchain technology watch

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    (Original post by ByEeek)
    I get all that. But as a casual user, how do I know which apps to trust. And why should I need to know about cold storage? I also don't wish to subscribe to a mechanism that is not only contributing directly to climate change but is also facilitating much of the world's organised crime.
    You trust open source apps which have been up and running for a good amount of time (at least 6 months) without any mishaps and even then you still have to use your common sense.

    (Original post by uberteknik)
    I'd like to know how much tax Ninja Squirrel will evade paying.

    It also smacks of someone desperately seeking to hype up the bubble for gamblers to make a killing.

    Microsoft are riding the 'me too' bubble.
    I pay all my taxes thank you When regulation comes, and it will and the governments request the account history from exchanges of their citizens, the last thing I want is to be hit with a massive fine + tax owed for trying to evade tax. Bubbles don't grow and collapse in a couple of weeks or months, they typically take on years of growth, maybe even a decade or more before collapsing so asking whether this is a bubble is not the right question.

    The right question is how much more can this bubble inflate before is pops? Well the answer to me is pretty obvious, we've not even hit $1trillion in market cap yet. It's similar to not investing in Microsoft in 1990 because it's in the dotcom bubble... Which later popped in 2000 so you missed out on 10 years of growth.

    One thing I think people don't take into account is the profile of a bubble, allow me to give you an example. The dotcom bubble was mostly centred around the U.S and it popped at $5trillion market cap while the entire united states GDP was only $10trillion. That is half of the wealth of the U.S tied up in this bubble.

    To give you a comparison, crypto is a global market, China, Korea, Europe, America, South Asia, Russia, Australia, Africa are all in on this and the crypto market cap is only at $500billion. The GDP of the world is approximately $107trillion (as of 2014) so it's probably a lot higher now but that means that the crypto bubble is only 0.5% of the world GDP, compare that to the tech bubble which was 50% of the U.S GDP and you start to realise just how tiny this market is.

    Crypto has not even reached mainstream yet lol, in fact most people in the world probably don't know much about cryptocurrency and those that do probably only know about bitcoin and don't even own any. Again compare that to the amount of people invested in the dotcom bubble and we see this market is still in its infancy.

    So is it a bubble? Yes absolutely it is. Is it close to popping? Nowhere near in my opinion. I am not trying to hype up anything, I just present facts and try to have a good debate about it.


    (Original post by Chaz254)
    Lol. Capital gains are only applied when you cash out. Until crypto is turned into GBP, no tax is payable because no gains have been realised. Also there is an allowance of around £11k for capital gains.
    Well you do have to pay taxes on crypto to crypto trades too but you're right, there is threshold before you have to start paying tax.
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    (Original post by Ninja Squirrel)
    Well you do have to pay taxes on crypto to crypto trades too but you're right, there is threshold before you have to start paying tax.
    I thought the crypto-crypto thing is only in USA.
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    (Original post by Chaz254)
    I thought the crypto-crypto thing is only in USA.
    If you trade crypto for crypto and exceed your CGT allowance then you need to declare any future profits on trades to HMRC. I've only ever made two crypto to crypto trades. One of them was within my CGT allowance and the other wasn't so I'll have to declare that on my taxes.
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    (Original post by Ninja Squirrel)
    If you trade crypto for crypto and exceed your CGT allowance then you need to declare any future profits on trades to HMRC. I've only ever made two crypto to crypto trades. One of them was within my CGT allowance and the other wasn't so I'll have to declare that on my taxes.
    But only when you cash out to fiat? Or do you have to use the fiat value when you made the exchange from crypto to crypto?

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    (Original post by Doonesbury)
    But only when you cash out to fiat? Or do you have to use the fiat value when you made the exchange from crypto to crypto?

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    Both when you cash out and when you trade.

    So if I'm over my CGT allowance and trade £1000 worth of bitcoin for ripple and then 2 weeks later sell that ripple back for £1200 worth of bitcoin then I have to pay CGT on that £200 profit in fiat.
 
 
 
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