You know Alpha that is a very good point. After thinking this over does a state have to accept your check or can they refuse it for payment? I think they can refuse it.
https://www.credit.com/personal-finance/paying-by-check/
Andy
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In related news, one organization really did accept cryptocurrency payments: Wikipedia, which has accepted crypo donations since 2014. Early this year, long time Wikipedia editor Molly White presented a case why Wikipedia should dump crypto payments. Her proposal was accepted, and this spring Wikipedia Foundation voted overwhelmingly to stop accepting crypto payments.
In a nutshell, Wikipedia didn’t want to be associated with the sleaze and fraud that dominates the cryptospace and almost no one was paying with crypto anyway.
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Gosh Syke that should be a new topic. That is to important to be lost in this thread. I didn’t even know anybody donated to Wikipedia. Learned something new.
Andy
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Was that directed at me? Recently, I did say that the price of crypto–like commodities–is set by supply and demand. You strongly objected to that statement, but never explained why it is so controversial.
I don’t remember that, mind providing me a link? I think you might have misunderstood what I was saying. I do remember you trying to state that all Crypto’s were the same and I explained to you that Ethereum was not the same as Bitcoin.
Andy
You do realize there is less and less supply of BTC and Eth. I know you do.
Digital scarcity, who’da thunk it?
Indeed and that was part of my whole point. Scarcity does not guarantee demand. For example, despite supply growing barely at all, BTC’s price has declined by 65% this year, and ETH had declined by a bit more than that. NFT prices are down about 87%.
Since the supply barely grew, the drop in prices must be due to a decrease in demand.
Again, I’m baffled why that observation is so controversial. It seems both straightforward and neutral to me. Interestingly, I was told Bitcoin is not a commodity like I suggested. Now it back to being a commodity.
Eth was $970 or so at its bottom. Now it is $1200 almost. Dont know where it will go in 2023 but in 2019 it was up and down as in nowhere for the year.
Dont count BTC and Eth out for 2024.
Crypto is where the money goes as a last investment. Meaning when things are booming Cryptos are gravy. When there are losses in the general markets people do not have time for Cryptos.
I think we are pretty much in agreement. Don’t get me wrong, I’m not making any kind of price prediction. I have no idea what the price of BTC, ETH or any other crypto will be in one month or five years. But I’m very confident that if more people want to own crypto, the price will go up. If fewer people want to own crypto, the price will go down.
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People do not want to own equities right now.
If equities get a cold Crypto gets the flu?
Actually there is a limited supply of Btc but an infinite supply of Ethereum. Which is why they say BTC is like gold but Ethereum is used to power the Ethereum platform.
Andy
It depends on your history with checks and banks–and if the state generally accepts them as payment. If you bounce a lot of checks, then the state could require an ACH transfer or some other type of generally-accepted third-party secure payment (bank check maybe?) because you have a history of bouncing checks, etc. The state could refuse cash (from everyone) for their safety, security, and ease of processing. Or you could work (with no compensation) for the state counting the pennies, nickels, dimes, etc submitted as tax payments by other taxpayers…
Now for reality:
"When asked how it would work, Polis said Colorado is looking for crypto companies to act as a transactional intermediary, to accept and convert cryptocurrency payments on behalf of the state.
For now, payments can only be made through the PayPal Cryptocurrencies Hub."
So Colorado is actually requiring payments in US $. The fun part is the federal IRS will get involved as well. Crypto-currencies are deemed to NOT be “money”, so there may well be federal AND state tax consequences as a result.
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It is not that simple and admittedly I do not know what to make of Triple Halving.
I have never claimed, stated, or insinuated that all cryptos are the same. So I don’t know how to provide a link to something I never said.
According to the search function, I have mentioned beanie babies exactly one time on this forum. And that was in the context of supply and demand. Specifically, I stated that even though beanie babies are scarce, the price still dropped.
I have no idea why you find that statement to be so controversial.
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It is not controversial and it does not matter who said it or which high flier became yesterday’s news…BTC and Eth are a different two animals. The word on this board has often been more or less they will go away ie the beanie babies. That is not true.
Thanks for bringing that up Jerry. So if you bought crypto at a higher price, the state of Colorado will allow you to pay your taxes with Crypto. Then, since there isn’t a wash sale rule for crypto, you can buy back the crypto the next day. Also since you sold it off at a lower price you can use the loss on your federal taxes to reduce your taxes.
Andy
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Ahh so you didn’t say that crypto, like commodities, is set by supply and demand. But in your mind you conflated that with Beanie babies? Maybe you should have just stated the former.
I find it funny when anyone starts comparing something to beanie babies. It’s a weak argument and never allows anyone to understand anything about what they are discussing. If I would have believed you I never would have understood the difference between Bitcoin and Ethereum. I would have never read about the Ethereum platform and all the other project being built on it. I never would have realize that Colorado was allowing crypto for the paying of taxes. Because if crypto was like beanie babies I never would have looked further into it since beanie babies do not interest me.
Andy
Right Leap1 especially with the burning of the Ethereum. It does cut down on the supply but Ethereum does not have a maximum amount of coins that can be mined. That number is unlimited.
Andy
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Price (in US $) offered to YOU by the exchange (in this instance, Paypal) is your selling price (plus whatever fees are tacked on). Your BASIS in that crypto is what you will have to document to the federal IRS in order to claim a gain/loss on your taxes.