Mt. Gox Files for Bankruptcy Protection

Post by danmaz74 » Fri, Feb 28, 2014, 1:01 PM UTC

gnaritas wrote: post #77

theklub wrote: post #53

Earlier quoted context omitted.

Unfortunately I get the feeling more and more everyday that this really is just a ponzi scheme built on really cool new technology. I mean honestly most people who buy bitcoin aren't looking to spend it or use it because of convenience, they are looking to hold it in the hopes that the price continues to go up and on the way encouraging everyone they know to buy in to drive up the price.

> I mean honestly most people who buy bitcoin aren't looking to spend it or use it because of convenience, they are looking to hold it in the hopes that the price continues to go up and on the way encouraging everyone they know to buy in to drive up the price. Even if that's true, that doesn't make it a Ponzi scheme. A Ponzi scheme is an investment in a phony entity run by a fraudster (the Ponzi) who's promising guar…

Post by antocv » Fri, Feb 28, 2014, 1:01 PM UTC

Post by patio11 » Fri, Feb 28, 2014, 1:05 PM UTC

steven2012 wrote: post #84

mtgoxloser wrote: post #65

Earlier quoted context omitted.

Losses can only be taken on your initial investment amount if you have Bitcoins in MtGox. This means that if you invested $10k a year back, and your Bitcoins are now worth $1000k, you can only take $10k in losses. Luckily I have realized my gains which means I can deduct $3k every year in losses with infinite rollover.

I believe your understanding if the situation is flawed, if you are a US citizen. The $3000 per year applies to capital losses. You did not suffer a capital loss. You suffered a loss due to bank insolvency. If you realized your gains in 2013, you actually owe taxes on $500,000 for your 2013 taxes, which is roughly $250k. I believe your losses due to bank insolvency will apply to your income for 2014. But you may be o…

Post by mtgoxloser » Fri, Feb 28, 2014, 1:07 PM UTC

steven2012 wrote: post #84

mtgoxloser wrote: post #65

Earlier quoted context omitted.

Losses can only be taken on your initial investment amount if you have Bitcoins in MtGox. This means that if you invested $10k a year back, and your Bitcoins are now worth $1000k, you can only take $10k in losses. Luckily I have realized my gains which means I can deduct $3k every year in losses with infinite rollover.

I believe your understanding if the situation is flawed, if you are a US citizen. The $3000 per year applies to capital losses. You did not suffer a capital loss. You suffered a loss due to bank insolvency. If you realized your gains in 2013, you actually owe taxes on $500,000 for your 2013 taxes, which is roughly $250k. I believe your losses due to bank insolvency will apply to your income for 2014. But you may be o…

Post by vidarh » Fri, Feb 28, 2014, 1:10 PM UTC

ck2 wrote: post #25

mertd wrote: post #16

Earlier quoted context omitted.

Isn't it more like walking down the same bad street every night with other people's cash in their hands, getting mugged repeatedly, not telling anyone and still taking more money?

This is a very good point. But they were also dumb enough not to realize they were getting mugged, or so they claim. Maybe I should have used "pick-pocketed" instead of mugged as an example. I am not trying to give them an excuse but we don't seem to have enough anger against the criminals that caused this.