Archive for the ‘Investing’ Category

The IRS has now finally declared its official stance on Bitcoin: It is to be treated as a capital asset and not currency, yet will be saddled with currency regulations as well. The first and perhaps scariest bullet point is that any gain made on the value of Bitcoin now must be treated as a short-term capital gain (which could be taxed up to 35%!). So, for example, the early adopters who turned pennies into millions, upon cashing out, will owe millions in taxes. Lovely!

So, the onerous list of bullet points:

  • Bitcoin profits treated as short-term capital gains.
  • Mining of Bitcoins is treated as gross income.
  • Any payment in excess of $600 value must be reported.
  • Any payment of Bitcoins to a contractor must be reported and filed with a Form 1099-MISC.
  • Bitcoin payments may be subject to backup withholding.

You can read all the legalese ugliness here.


Thanks to LaserBob for the info.

As of writing:

Trading at a high of $1242 in the US markets, Bitcoin is only $10 short of meeting the 1-oz gold bullion spot price.

Will this be called “Bitcoin Black Friday?”

As of writing, 6888 Yuan/BTC. That’s USD$1130.

We’re exploring arbitrage opportunities as other exchanges lag at 834 and 724, respectively. More than 30% return per cycle, if you can catch it before it breaks, and have a way to move your money through China.


Mighty Bitcoin tops $600.

Posted: November 18, 2013 in Investing, News
Tags: ,

Driven by the China market, Bitcoin topped US$600 this morning. $612 at the time of writing.

ExpatBob is pleased.


Bitcoin Rampage

Posted: October 19, 2013 in Investing, News
Tags: , ,

Bitcoin is on another bull run, after Baidu, China’s equivalent of Google, started accepting payments for services in Bitcoins a few days ago. This is welcome news, as it shows large-industry posturing to accept the cryptocurrency despite the USDOJ’s crusade to stomp it out at all costs.

Over the past couple of weeks, the Chilean Peso has dropped from about 472:1 CLP/USD ratio, to nearly 505:1 as of the time of writing.

Bad news for those of us, like myself, who changed a big batch of dollars to pesos not terribly long ago. Good news for those, like myself, who continue to earn in dollars.


Exchange tip, gold prices

Posted: June 3, 2013 in Investing, News
Tags: , , , , , ,

Due to the discrepancy between the USD and CLP exchange rates and gold prices, you can now get Chilean gold coins for about CLP$420.000 for a 20,3-gram coin (USD$841), which makes its per-ounce price $1174. That’s the buy price, not spot.

Do with that what you will. Smells like buying opportunity.


NEVERMIND– I’ve been stymied by shite conversions. Disregard the whole thing. Thanks, Imperial Measurement Systems!