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Another day, another cryptocurrency fail

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pcprogrammer:
Yes that is what I meant.

Takes a lot of accounting when you are a day trader. You have to note down the gains and losses of every transaction you make.

tszaboo:

--- Quote from: pcprogrammer on August 10, 2022, 07:50:07 am ---Yes that is what I meant.

Takes a lot of accounting when you are a day trader. You have to note down the gains and losses of every transaction you make.

--- End quote ---
Especially for cryptocurrency. In smaller cheaper chains, you can easily rack up thousands of transactions in a year, good luck keeping track of pricing of each buy and sell.
And then there are the technical issues with it.  Also, how are you supposed to know how much the value is of the token? Is it the price of it in USD? You cannot exchange it to USD, you might be able to exchange it to BUSD or USDT or other token. If at the exact transaction, 1BUSD = 0.98 USD then what? What if you keep track of it in TUSD, which is 0.028USD, but it is supposed to be 1 USD?

pcprogrammer:
I was not aiming at crypto transactions but investment transactions in general.

Selling a house that you bought to renovate and flip is also a transaction. As a company you have to keep track of everything when doing this, as a private person you might be exempt, at least in the Netherlands I think. Here in France you have "plus value". When you buy a second house and renovate it and sell it the only expenses you can deduct are those done by professionals. When you do the work yourself you can't deduct the materials used, for as far as I understood. And then you pay taxes over the difference between buy and sell price.

But for crypto the moment you sell some of the tokens I think the money received from the transaction is added to your account in a regular currency being it dollars or euros, and you can use that. Sure it becomes a huge pain in the bum, because you can then also see exchanging dollars for euros or vice versa as a transaction. So where does it end?

One way of doing it is to take balance on January 1st and then again on December 31st. If there is gain, tax that.

AndyBeez:
School essay time: Who actually decides how much crypto currency is worth in USD? Is it the exchanges, blockchain miners, hodlers, churners, programmers, hackers, day traders, trading bots, venture capitalists or social media influencers?

Reality check, investors have no influence on the crypto markets because the cypto markets fail to function as real fiscal markets do. There are no fiscal instruments such as quantitative easing or bond rates to stabilise fluctuating currency markets. Instead, it's all governed by the reflex actions of the hoard. And they can click faster than you.

Crypto trading is like sitting in the car of a roller coaster and claiming you are going upwards because of your own powers of levitation. Rides go down as well as up. Unless that car goes off the rails.


thm_w:
Saying "investors have no influence" just because crypto markets fluctuate wildly is not a valid statement.

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