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Tether (USDT) price falling to $0.95

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Re: Tether (USDT) price falling to $0.95

#61

Post by JumpCrisscross »

teilo wrote: post #58
JumpCrisscross wrote: post #51

Earlier quoted context omitted.

> By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains This is blatant, willful and permanently-documented tax evasion, an amusing combination of illegality and stupidity.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them. This is really no different than selling and buying stocks in an IRA account.

> You have not realized any gains until you have converted your crypto into real assets

You transacted into (what you believed was) a proxy for cash. That's obviously selling.

Every tax jurisdiction has rules about this because every tax jurisdiction has idiots who thought they'd found a clever workaround. (I think the first American one involved a guy in the 19th century selling property for the key to a lockbox full of cash.)

Re: Tether (USDT) price falling to $0.95

#62

Post by ceejayoz »

teilo wrote: post #58
JumpCrisscross wrote: post #51

Earlier quoted context omitted.

> By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains This is blatant, willful and permanently-documented tax evasion, an amusing combination of illegality and stupidity.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them. This is really no different than selling and buying stocks in an IRA account.

> This is really no different than selling and buying stocks in an IRA account.

This is an insane assertion. One of the main points of an IRA is that the trades within it aren't taxable events. Trades made outside an IRA are taxable events.

Re: Tether (USDT) price falling to $0.95

#63

Post by jungturk »

teilo wrote: post #58
JumpCrisscross wrote: post #51

Earlier quoted context omitted.

> By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains This is blatant, willful and permanently-documented tax evasion, an amusing combination of illegality and stupidity.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them. This is really no different than selling and buying stocks in an IRA account.

Crypto-crypto trades no longer enjoy the like-kind exchange tax treatment you're describing (in the US, as of 12/31/2017). The recent tax law narrowed that benefit to real estate only.

https://www.coindesk.com/owe-irs-crypto-crypto-trades/

Re: Tether (USDT) price falling to $0.95

#64

Post by freeone3000 »

rtkwe wrote: post #57
toast0 wrote: post #53

Earlier quoted context omitted.

Your country may not automatically get tax records, but I'm pretty sure both exchanges would be taxable transactions under US tax rules.

Only have a cursory understanding of capital gains but shouldn't the exchange out of Tether back into $Crypto have zero gains if it's working as intended since there's no change in value of your holding?

Capital gains tax on securities (like tether) is assessed on the difference between what you paid for the security and what you sold the security for. You can denominate it in whatever you like (tether, bitcoin, gold, sheep, whatever), but it's assessed in USD at time of sale.

Essentially, you're being taxed on the income you got from holding that security, not for trading, it's just assessed when you trade.

Re: Tether (USDT) price falling to $0.95

#65

Post by granaldo »

zamadatix wrote: post #34
jpatokal wrote: post #19

I built this site in February this year in anticipation: http://www.untether.space/ The spread between Bitcoin priced in Tether and Bitcoin priced in USD has been holding steady at For the curious, source at https://github.com/jpatokal/untether and also submitted as a Show HN at https://news.ycombinator.com/item?id=18219034 .

$2,000,000,000+ worth issued without proof of backing? What value did Tether add that people were willing to deal with it as a middleman to dollars? Side note: The graph could use some TLC. The colors are indistinguishable and there are no static historical charts on the page, just the graph since my visit.

The USDT pairs list here https://www.coingecko.com/en/coins/tether/trading_exchanges#... can be intrigue

Re: Tether (USDT) price falling to $0.95

#66

Post by teilo »

ceejayoz wrote: post #62
teilo wrote: post #58

Earlier quoted context omitted.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them. This is really no different than selling and buying stocks in an IRA account.

> This is really no different than selling and buying stocks in an IRA account. This is an insane assertion. One of the main points of an IRA is that the trades within it aren't taxable events. Trades made outside an IRA are taxable events.

I understand the difference. All I meant is that in an IRA the trades are not taxed but the withdrawals are.

But I see the point here regarding a cash proxy.

Full disclosure: I have zero exposure to crypto. Not my cup of tea.

Re: Tether (USDT) price falling to $0.95

#67

Post by teilo »

jungturk wrote: post #63
teilo wrote: post #58

Earlier quoted context omitted.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them. This is really no different than selling and buying stocks in an IRA account.

Crypto-crypto trades no longer enjoy the like-kind exchange tax treatment you're describing (in the US, as of 12/31/2017). The recent tax law narrowed that benefit to real estate only. https://www.coindesk.com/owe-irs-crypto-crypto-trades/

I stand corrected.

Re: Tether (USDT) price falling to $0.95

#68

Post by gamblor956 »

tomjen3 wrote: post #56
toast0 wrote: post #53

Earlier quoted context omitted.

Your country may not automatically get tax records, but I'm pretty sure both exchanges would be taxable transactions under US tax rules.

Maybe, but whoes to say these people are under the US Tax system?

These same rules generally apply in so major countries.

Re: Tether (USDT) price falling to $0.95

#69

Post by ndonnellan »

jpatokal wrote: post #19

I built this site in February this year in anticipation: http://www.untether.space/ The spread between Bitcoin priced in Tether and Bitcoin priced in USD has been holding steady at For the curious, source at https://github.com/jpatokal/untether and also submitted as a Show HN at https://news.ycombinator.com/item?id=18219034 .

Currently showing me $NaN (NaN%). Looks like your weightedAvg function doesn't work because the tetherPrices array is empty.

Re: Tether (USDT) price falling to $0.95

#70

Post by yholio »

There doesn't seem to be any particular new development, just a string of unsubstantiated rumors and hoaxes: https://blokt.com/news/too-much-fud-bitcoin-pumps-tether-dum...

That's not to say that Tether does not have major credibility issues and dubious liquidity, just that no new publicly available information would justify the movement. On the other hand, when a bank run is in progress, it's irrelevant if it was started by a rumor because the rumor becomes a self fulfilling truth, especially in the face of shaky financials.

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