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Buy, sell, send and receive Bitcoin Cash on Coinbase

blog.coinbase.com

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Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#211

Post by crystaln »

ohhhlol wrote: post #122
colinbartlett wrote: post #77

So if I sell my newfound BCH today, which was birthed from thin air a few months ago, but originates from BTC I bought years ago, is it short term capital gains or long term?

https://bitcoin.tax/blog/how-to-tax-bitcoin-cash-bch/ What if you had no interest in BCH but you owned 1,000 BTC. Do you suddenly have a $277,000 income tax bill? Yes, as discussed by Tyson Cross, tax attorney at BitcoinTaxSolutions.com. Since you have accession to wealth then this is taxable income.

If it's viewed as an asset split, which is probably more defensible, then there are no tax liabilities incurred.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#212

Post by rvern »

hendzen wrote: post #5

I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!

Gotta love unregulated markets indeed! Insider trading makes markets more efficient by moving the market price closer to the postdisclosure price. That is good; contrary to Chesterton's fence, most market regulations with plausible-sounding reasoning justifying them do not have a good reason to exist as they outrun mainstream understanding of economics—which should not be confused with the opinions of regulators or even polls of professional economists.

From the article on insider trading in The Concise Encyclopedia of Economics:

> Who benefits from regulation of insider trading? One group of beneficiaries is market professionals—broker-dealers, securities analysts, floor traders, arbitrageurs, and institutional investors. The reason is that they are “next in line” for trading profits, as they possess an advantage over public investors in collecting and analyzing information (Haddock and Macey 1987). Regulation also, of course, benefits the regulators—that is, the SEC—by giving that agency greater power, prestige, and budget (Bainbridge 2002). However, the benefits from insider trading laws to small shareholders, the alleged primary beneficiaries, have been extensively debated.

From www.econlib.org/library/Columns/y2015/Hooperharmed.html:

> Insider trading laws are yet another example of government's desire to capture and exercise political, regulatory and legal power, gain huge monetary awards, and garner favorable PR, all for the sake of prosecuting victimless "crimes" and promoting misplaced notions of fairness. Insider trading should be embraced for its beneficial effects on market efficiency and left as a private matter for those companies interested in preventing it. Consequently, the SEC should not have a leading role in insider-trading cases, especially if the purpose is to benefit one group of insiders at the expense of another.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#213

Post by QML »

johnmarcus wrote: post #129
QML wrote: post #94

All this cryptocurrency talk has inspired me to understand the innerworkings of exchanges -- so how does a company like Coinbase scale to meet the demands of new customers? Surely they're not the first company to deal with this problem.

I don't think the problem is scale, the problem is there are multi-exchanges for the same asset. You can't trade GOOG, or TSLA on both NYSE and the NASDAQ for precisely this reason - a run up on one exchange will cause the entirety of money to shift for arbitrage. This is the real problem they are facing, imho.

Are you implying that arbitrage is the main source of trading volume on these exchanges?

And if so, how would arbitrage be a viable long-term strategy given

1. long block-times which prevent quick movement of cryptocurrencies across exchanges

2. strong AML/KYC which prevent flow of capital between countries (e.g. United States and Korea)

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#214

Post by dukeflukem »

spookthesunset wrote: post #174
maram wrote: post #154

Earlier quoted context omitted.

>Bitcoin doesn't work as a currency No cryptocurrency is working as a currency today. >Keep dreaming. its not functioning as a currency..no cryptocurrency's has a stable intrinsic value because not many people are using it as a currency YET. Everyone is trading cryptocurrencies, and it will continue like that to attract more people. the price will be stable when: 1. people outside the tech real start using it as a cu…

It's nothing like the internet or hotmail. Bitcoin is hot air. There is no "there" in cryptocurrency. It is inefficient, slow and solves no real world problem. Our existing infrastructure works just fine for 99% of all users. Lets not even forget that bitcoin is 9 years old. If it was gonna catch on, it already would have. The only way it has "caught on" is a pump & dump get rich quick scheme.

It has advantages. You can send/receive unlimited amounts of money without some third party deciding to block or reverse the transaction. It is a single currency for the world. It can't be hyperinflated.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#215

Post by saiya-jin »

throwaway12351 wrote: post #85

Does anyone else find it highly suspicious that Coinbase goes down whenever there is any major movement in prices? You can explain this as just the natural result of too much traffic, but that's not convincing. This is a business valued at over 1 billion dollars that has been operating for years. If this is still a problem, it's either unbelievable incompetence, or because they see no reason to fix it. And here is a…

I remember when FB was growing exponentially, their site was broken rather randomly for years (pics upload didn't work, feed was empty, you couldn't post comments, doubling of some feeds etc... basically most parts of their pages were down one time or another). Heck, even these days it doesn't perform 100% reliably

how many times did you have to rewrite system / big part of it because the current architecture hit the wall with some performance bottleneck? It takes time a lot of time and experience (and some luck)

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#216

Post by garmaine »

altern8tif wrote: post #196
garmaine wrote: post #193

Earlier quoted context omitted.

> There's no law banning insider trading This is incorrect.

I think he's referring to cryptocurrencies as opposed to listed securities.

Which would be incorrect. Bitcoin spot markets are protected from insider trading from the CFTC if no one else due to the influence the spot price has on derivatives markets. Moving the price 30% in one day would absolutely fall under their jurisdiction, and there are laws on the books since 2010 making such insider profits illegal.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#217

Post by schrodinger »

josephagoss wrote: post #162
ohhhlol wrote: post #122

Earlier quoted context omitted.

https://bitcoin.tax/blog/how-to-tax-bitcoin-cash-bch/ What if you had no interest in BCH but you owned 1,000 BTC. Do you suddenly have a $277,000 income tax bill? Yes, as discussed by Tyson Cross, tax attorney at BitcoinTaxSolutions.com. Since you have accession to wealth then this is taxable income.

Here is a counter point I would argue. Anyone can make a Bitcoin fork, in fact Bitcoin forks are being made every week now. Is every Bitcoin holder now liable for that? Also these forks often collapse, so when was the income gain? The same day? You'd have people owing more tax than their entire net worth. (Forks often pump in the first day/week then drop to nothing.) If this is possible then you could attack every Bi…

Wouldn’t it not count as income until you sold it for USD? In which case you wouldn’t be liable for every fork, just the ones you benefitted from.

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#218

Post by saiya-jin »

dukeflukem wrote: post #214
spookthesunset wrote: post #174

Earlier quoted context omitted.

It's nothing like the internet or hotmail. Bitcoin is hot air. There is no "there" in cryptocurrency. It is inefficient, slow and solves no real world problem. Our existing infrastructure works just fine for 99% of all users. Lets not even forget that bitcoin is 9 years old. If it was gonna catch on, it already would have. The only way it has "caught on" is a pump & dump get rich quick scheme.

It has advantages. You can send/receive unlimited amounts of money without some third party deciding to block or reverse the transaction. It is a single currency for the world. It can't be hyperinflated.

and why not ETH? or any other altcoin? I don't understand what's so special about BTC specifically these days

Re: Buy, sell, send and receive Bitcoin Cash on Coinbase

#219

Post by andruby »

throwaway12351 wrote: post #85

Does anyone else find it highly suspicious that Coinbase goes down whenever there is any major movement in prices? You can explain this as just the natural result of too much traffic, but that's not convincing. This is a business valued at over 1 billion dollars that has been operating for years. If this is still a problem, it's either unbelievable incompetence, or because they see no reason to fix it. And here is a…

They're already earning million's USD per day [0]. I doubt that they would risk that lucrative business by doing something illegal as front-running. That being said, they really should fix the performance of their platform. Yesterday they reduced their API rate limits to be able to handle the load. That's just annoying for traders.

[0] https://coinmarketcap.com/exchanges/volume/24-hour/#gdax

24h volume = $2,179,471,700 x 0.25% commission = $5,448,679.25 revenue (per day)

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