BitPay and PayPal

andrewljohnson wrote: post #2

BitCoin is rocketing on this news it seems: * https://btc-e.com/ * https://www.cryptsy.com/markets/view/2 * https://www.bitstamp.net/

My instinct says it will be a spike that trends back down fairly soon, but my instinct about btc rates has frequently been wrong.

Re: BitPay and PayPal

#6

Post by bdcravens » Tue, Sep 23, 2014, 6:52 PM UTC

andrewljohnson wrote: post #2

BitCoin is rocketing on this news it seems: * https://btc-e.com/ * https://www.cryptsy.com/markets/view/2 * https://www.bitstamp.net/

Rocketed up to 450, dropped to 430 within minutes. Looking like it'll level out a little higher.

Re: BitPay and PayPal

#7

Post by rcraft » Tue, Sep 23, 2014, 6:55 PM UTC

Is paypal just ignoring the IRS' recent guidelines that bitcoin is treated as property?

From http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property...:

Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop.

“It’s challenging if you have to think about capital gains before you buy a cup of coffee,” he said.

Re: BitPay and PayPal

#8

Post by sillysaurus3 » Tue, Sep 23, 2014, 6:58 PM UTC

andrewljohnson wrote: post #2

BitCoin is rocketing on this news it seems: * https://btc-e.com/ * https://www.cryptsy.com/markets/view/2 * https://www.bitstamp.net/

Correction: Bitcoin traders were looking for an excuse to buy a lot of Bitcoin. Your eyes are deceiving you. The way it works is, they buy in order to jump the price. Then other people buy and continue the momentum upwards. Then, in a few days, they sell, and thus capitalize on everyone else's belief.

This is how it's been for almost a year now.

Ask yourself: Why use Bitcoin? What is the value proposition for consumers apart from sending money to friends? That's valuable, but it's not multi-billions of dollars worth of valuable. Examine the fundamentals before you jump into a gambler's market.

Re: BitPay and PayPal

#9

Post by natrius » Tue, Sep 23, 2014, 6:58 PM UTC

rcraft wrote: post #7

Is paypal just ignoring the IRS' recent guidelines that bitcoin is treated as property? From http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property... : Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross i…

Merchants who use BitPay and Coinbase to accept Bitcoin usually choose to let those processors convert the funds to dollars on their behalf. Neither PayPal nor the merchants will typically touch Bitcoin during a transaction.

Re: BitPay and PayPal

#10

Post by embolalia » Tue, Sep 23, 2014, 7:00 PM UTC

rcraft wrote: post #7

Is paypal just ignoring the IRS' recent guidelines that bitcoin is treated as property? From http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property... : Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross i…

Not sure where you get that they're ignoring it. TFA says nothing of taxes, and that burden falls on the buyer anyway. Unless you're saying that the IRS's guidelines mean it can't be used to buy things for some reason, which is just not true at all.