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?
My understanding is that there is no consensus expert opinion on this.
Buy, sell, send and receive Bitcoin Cash on Coinbase
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Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#82So 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?
IANAA but I imagine it is like a stock split.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#83I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!
Coinbase prohibited employees from trading BCH in the weeks leading up to this according to their twitter.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#84So 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?
The biggest concern in my head is not the prices of cryptos, but how much of a headache it will be to calculate taxes at year-end
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#85Does 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 worst-case theory, by way of speculation not accusation. Being down whenever there is a lot of movement lets them beat all of their customers. When there is a crash, they can sell before their customers can. When there is a boom, they can buy before before their customers can. And because such a big portion of the market trades through them, this is more than trivial gains.
I have no way of knowing if this is what's happening, but it seems to be worthy of discussion, given how many people are placing trust in them. They don't really have an adequate explanation for the constant downtime, and I think they owe one to their customers.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#86So 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?
IANAA but I imagine it is like a stock split.
I don't agree with the stock split comparisons.
Bitcoin Cash is not something that existed inside Bitcoin and was then spun out. It's more like a new company was formed and it's cap table was initialized as a copy of another pre-existing company.
I think there just isn't any precedent for the concept of "forking" and how the internal revenue code applies to it.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#87Earlier quoted context omitted.
This was announced on Aug 3rd: https://blog.coinbase.com/update-on-bitcoin-cash-8a67a7e8dbd... At that time the price was just under $500 so the public had plenty of time to get in. Also note that the price could very well drop as Coinbase customers sell their "free" BCH.
Yeah, but the exact timing was not announced, and it was known to some insiders. Knowledge of that timing would be worth a very large amount of money.
Outsiders: Bought at $500, sold at $3,500, 600% gain in five months.
Insiders: Bought at $2,500, sold at $3,500, 40% gain in a few hours.
So yeah, insiders could do great on an annualized basis if they could do a bunch of insider trades in a row.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#88I suspect they have some fixing to do yet... common prices listed on indexes are ~$3,539.82 USD at the moment. Coinbase UI has the UI pegged at $8,499.03 .. with console errors, and ssl to be distrusted errors.
This would all be fun and games, but I suspect the SEC will want an explanation and I'm not so sure Coinbase has a good one. I wouldn't be surprised if they are shutdown tomorrow before sunrise.
The USDA will want to have a word with them as well. However, neither has any regulatory authority over Coinbase.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#89Does 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…
The word for this is called front running.
Re: Buy, sell, send and receive Bitcoin Cash on Coinbase
#90I wonder how much money Coinbase employees, friends and family made by insider trading on this announcement. Gotta love unregulated markets!
is it illegal to use insider info on unregulated commodities? i don't believe so...
If you find yourself asking "Is it illegal to do something not explicitly barred by the law but something that seems dishonest?" then you should be prepared for consequences.
Prosecutors, judges, attorneys and even jurors aren't stupid. There are remarkably broad statutes out there, fraud or theft or something could reasonably be brought to bear upon you.