Americans didn’t file cryptocurrency transaction to tax authorities

Less than 100 people out of 250,000 reported such transactions in federal tax files
16 February 2018   484

The Internal Revenue Service considers cryptocurrency as a property. With that position any gains and losses in cryptocurrency should be treated as capital gains and losses. Credit score startup Qualtrics did a survey last month and the results are as follows: 57% of approximately 2,000 Americans polled have made some gain out of cryptocurrency. The study also concluded that nearly half of that percentage understood how the cryptocurrency would affect their taxes.

In 2017 cryptocurrency market surged enormosly in price. Yet it is still unclear how many Americans hold the cryptocurrency. And the legislation for the virtual currency is still building up. According to the earlier article, from January 1, 2018 all cryptocurrency trading will become taxable due to a new US tax code signed by D.Trump.

On top of that, on February 10, 2018 IRS has set up a special team of criminal agents to investigate possible tax evasion cases, according to the recent news. And that is 2 months prior the tax filing deadline. However, Americans with complex tax situations do tend to file closer to the deadline.

Given the popularity of bitcoin and cryptocurrencies in 2017, we’d expect more people to be reporting.


Jagjit Chawla

General manager for Credit Karma Tax

HashFlare Users to Face Withdrawal Issues

Looks like Bitcoin cloud mining is not super profitable
18 July 2018   98

Users of HashFlare mining pool can't withdraw their funds, while their contracts are threatened with a temporary ban. Even lower restrictions on withdrawal of funds in the amount of 0.03 BTC caused problems for users, but the service raised the threshold to 0.05 BTC and 0.1 ETH . This is reported by Cryptovest.

In addition, financial pyramids are often promoted under the guise of mining contracts for cloud mining. For last few months, there was a big jump in mining difficulty of many cryptocurrencies, so, old contacts had become unprofitable.

As reported, the reason for the locked funds dates back further - at the beginning of June, so much hashing power was flowing into the Bitcoin network that contracts saw all the mined coins go toward their maintenance fee.

Currently, more and more users who have purchased contracts at earlier stages are facing the fact that they can not withdraw their funds. One of them managed to return the money spent through the bank card operator after filing a corresponding complaint.

To anybody that purchased a Hashflare cloud mining contract with a credit card, it might be possible to get a refund with that credit card as one of my followers tipped me. He bought his contracts at the end of 2017.

bccponzi at Twitter

The hash rate of bitcoin increased from 13 EHash / s at the beginning of the year to more than 40 EHash / s in recent months. The difficulty of mining in the present conditions depends on the circumstances of the specific miner. The cost of bitcoin mining for some of them is $ 4,400, while others spend about $ 5,800. However, in 2018, cloudy mining is called an even more dubious occupation than before, especially when it comes to mining bitcoin.