is it too late to invest on mining?

[Bones]

You might as well be talking about America's historic gold rush at this point.
Investing in that gold rush NOW would actually make more sense then your poorly thought out and researched piece of idiocy.

And I have FREE electricity in effect here and it's still no where near worth ANY effort and I know this because I have mining software and try every now and again, just to see.

So no run away from your brain, put the wallet down, slap yourself, take up another hobby and do not continue with this plan , YOU will regret it.

"What do you mean? I've heard there was gold in them hills and I'm headed that way, even though it's the year 2022 now instead of it being the year 1849. I may be a bit late to the party but I'll get there!!!"

That's about what bitcoin mining is these days if considering it, long gone and dried up with whomever was going to make a fortune off of it having done so already, these same lucky ones also having established alot of manipulative control along the way too.
It's way too little, way too late to be anything now for anyone wanting to get started in it.

 

[Devon68]

it makes a profit about 4dollars/day,

For that money you might as well get some ripped clothing and sit on a busy street and beg for money.

 

[ShiBDiB]

Kinda. If you mine the coins, you have to pay as it's income even if your just holding and it's the value at which it was mined at.

It kinda makes sense that mining profits is considered income as that is exactly what it is, it might not be profit (elec. fees and whatnot) but it is income. Being taxed again on sale is shitty tho, almost feels like an oversight given you can track what amount of coins were mined and what were purchased.

 

[ir_cow]

stupid question: how does the state know that you mined a coin (whatever coin) unless you tell them? and why would you? if you convert it to fiat that's another story.

The Gov can't tell what you mined, that's the whole point of crypto to be removed from the central bank and government. Unless you can buy goods with the coins you mine (or traded for), you at some point need to turn it into cash and that is where the government starts asking questions. There are work around, but 100% not legal in the united states. Not going to comment further. I'm sure if you do enough reading, something will work out to avoid taxes.

 

[Lei]

For that money you might as well get some ripped clothing and sit on a busy street and beg for money.

I bet you earn more income that way and no tax

 

[Hofnaerrchen]

I bet you earn more income that way and no tax

Or collect bottles for the deposit - could be quite hard territory though based on how many people I see doing this already in my region.

 

[R-T-B]

I bet you earn more income that way and no tax

it's income if you beg too, if you are good enough. Would be considered "gifting."

 

[Lei]

it's income if you beg too, if you are good enough. Would be considered "gifting."

I hope everyone earns money with a job he enjoys. Not mining or begging

Today a guy in supermarket asked the seller: where's sugar?
Seller asked me to show him.
I went and took the guy to the shelf of sugar.
Then he said: can you buy me these beers?

Then he said: don't you know me? Last year we were talking about....

I got the beer for him, the seller asked: why are you paying?

I told the guy: the way you asked me is ..... aggressive. I help people randomly, but asking me directly to buy you beer?!

Near the sugar shelf he said: buy me the whole box, you have money.

I didn't really like his attitude. Astonished. Last year I just bought some ice cream for him cause he was sitting under the sun and I just offered a conversation.

Today I told him: I would have bought you beer if you wouldn't ask for it. You could say: let's have beer. I'd probably say : ok, I pay for it. But this way you're directly asking is not right.

Anyway, I just want to mention just a few years ago I weighted 52kg (114 lbs) and I was washing my hair/dishes/clothes with the same shampoo I'd found on the discount shelf. And today I didn't remember that this guy is the same guy from last year. Last year I didn't treat him ice cream because of his finances. I just got an ice cream to talk about transistors and why birds' feathers are blue and green but mammals fur is brown and blond

 

[ThrashZone]

For that money you might as well get some ripped clothing and sit on a busy street and beg for money.

Hi,
Indeed tax free as well
Just one hour at lunch daily would be more lucrative than cypto mining

 

[P4-630]

Hi,
Indeed tax free as well
Just one hour at lunch daily would be more lucrative than cypto mining

@trog100 ?

 

[R-T-B]

I hope everyone earns money with a job he enjoys. Not mining or begging

Me too.

Weird fact though, when I was mining, I genuinely enjoyed doing it. Setting up the hardware and monitoring infrastructure was fun. Not something I'd do again, but was fun in it's own weird way.

Indeed tax free as well

As I said earlier, depends how good you are at it. Almost academic, I know, but technicalities amuse me. Humor me.

 

[readthis]

I always tell people its a giant ponzi scheme. However, every 3-4 years is this cycle of a massive crash. You buy low, wait a few years and sell high. Ride the train! Its easy to make a few thousand, but also just as easy to lose that amount overnight.

The big problem here in America is since 2018 it is treated as taxable income even if you don't "cash out". It also is taxed at the value it was when you bought cytro (or mined it). So come tax time this year, those who dropped 60K on one BTC will be paying taxes for 60K value, not the 17K it is at right now.

wow that is insane!

But yes like was said. Mining is dead. There's some altcoins that still have some small value but outside of hobbyist stuff you're better off buying and staking/hodl'ing.

Tax wise there's no taxes to pay until you sell/convert. And taxes are typically cheaper if you hold longer than a year and hit the long term cap gains category. An0m is wrong in his example of paying taxes on a losing investment as you're only taxed on gains, you actually deduct loses from your taxes. It's now taxed like your typical stock investments as it should be. There's crypto ira's slowly popping up (pre crash, haven't looked into it in awhile now) that would help with taxes but limit your liquidity. There's also off shore exchanges that you can dabble in at your own risk.

WAIT, what if i am buying coins from canada, to whom shall I pay taxes to?

You might as well be talking about America's historic gold rush at this point.
Investing in that gold rush NOW would actually make more sense then your poorly thought out and researched piece of idiocy.

And I have FREE electricity in effect here and it's still no where near worth ANY effort and I know this because I have mining software and try every now and again, just to see.

So no run away from your brain, put the wallet down, slap yourself, take up another hobby and do not continue with this plan , YOU will regret it.

I agree with you, but I am still quite confused as I am very new to this, if you dont mind could you share your learning experience on mining? like what books/youtube/forums..etc have you used to get to where you are right now? so newbies like me could have some sort of guided tutorials.
and also whats the difference between mining now and investing?
also just curious about your opinion,from 1-10, how likely do u think bitcoin will appreciate 1.5-2 times its worth today?
thanks!

For that money you might as well get some ripped clothing and sit on a busy street and beg for money.

that is true if I considered mining as my main job, I am just trying to find a way to increase my passive income, and in 20 or 30 years when i am mid 40, i could live like an old man in these nursing home with plenty money, the difference is, I have the body to enjoy

The Gov can't tell what you mined, that's the whole point of crypto to be removed from the central bank and government. Unless you can buy goods with the coins you mine (or traded for), you at some point need to turn it into cash and that is where the government starts asking questions. There are work around, but 100% not legal in the united states. Not going to comment further. I'm sure if you do enough reading, something will work out to avoid taxes.

Could i have your contact info to private chat? I want to learn from you sensei.

 

[TheoneandonlyMrK]

wow that is insane!



WAIT, what if i am buying coins from canada, to whom shall I pay taxes to?


I agree with you, but I am still quite confused as I am very new to this, if you dont mind could you share your learning experience on mining? like what books/youtube/forums..etc have you used to get to where you are right now? so newbies like me could have some sort of guided tutorials.
and also whats the difference between mining now and investing?
also just curious about your opinion,from 1-10, how likely do u think bitcoin will appreciate 1.5-2 times its worth today?
thanks!


that is true if I considered mining as my main job, I am just trying to find a way to increase my passive income, and in 20 or 30 years when i am mid 40, i could live like an old man in these nursing home with plenty money, the difference is, I have the body to enjoy


Could i have your contact info to private chat? I want to learn from you sensei.

I think over three to five years the outlook on Bitcoin is promising but there's no way to Know.
I will look at adding some information later after work so check back..
But coinbase is a good place to start for information on many coins, there viability etc, coins only gain worth with utility and only gain utility with development so look at what the Dev team is trying to achieve now and in the future.

Err aim for something better than an old people's home at mid forties with money though , jusf saying .

 

[69er miner]

Hi everyone, these two days I have watched a lot of youtube and reddit forums educating myself about bitcoin and mining, and now I have decided to actually drain dimes from my wallet,
so i saw this gaming laptop MSI GP66, i7, 16gb, 65w, with RTX3070 and its own dedicated 8gb, for 1399cad on bestbuy, a youtube from june 2022 tested this laptop, it makes a profit about 4dollars/day, however the power it was working in the video was not given, I know 140w and 65w would make a difference, but how big is that difference?
I know I am carrying the risk of bitcoin or crpto price dropping, therefore here i am asking you smart guys opinions, is it a good time to purchase this laptop for mining? or should i look for other ways to get passive income?
heres few thing i have taken into consideration:
1: laptop deflation rate
2: electricity bill
3: GPU wear/tear
since i am not sure about how much difference in power would impact on my mining speed, i will just say i could earn 4CAD/day at most, therefore in order to make a return on invest, it takes at least 1400/4=350 days, the deflation of my laptop after 350 days would probably be 2/3 of its original price, therefore if i sell the website after 350 days, i will earn 1/3 of the laptop price which is 1400cad/3=433cad. if you guys disagree with my calculation, feel absolutely free to speak out your thoughts!
do you guys think its a good investment? or you have a smarter idea to invest that 1400 dollars?

Mining can be worth it but it does depend on many factors that U.K. out market relate to energy cost, hardware cost vs profits made. If you are fortunate enough to run renewable energy or have low energy costs then yes there is a break even point, and even a profit margin to be made. You have to be very diligent in your calculations but there are many great YouTube videos that explain cost vs profits. Vosk coin is an excellent channel. He’s operating at about 7 dollar profit per rig per day and looking into building a solar array in the near future.

 

[Bitboyoo]

If you have dirt cheap electricity or a renewable setup then it certainly could be

 

[xrobwx71]

You might as well be talking about America's historic gold rush at this point.
Investing in that gold rush NOW would actually make more sense then your poorly thought out and researched piece of idiocy.

And I have FREE electricity in effect here and it's still no where near worth ANY effort and I know this because I have mining software and try every now and again, just to see.

So no run away from your brain, put the wallet down, slap yourself, take up another hobby and do not continue with this plan , YOU will regret it.

Yeah, if you really want to spend money, get into computers and/or get married, have a family.

 

[Blitzy]

You could invest in mining stocks to dip your toes into mining pools so to speak

 

[Bitboyoo]

Not if you have low electricity prices and if you already use some form of renewables you could mine quite cheaply especially before the next bitcoin halving

 

[TheoneandonlyMrK]

Not if you have low electricity prices and if you already use some form of renewables you could mine quite cheaply especially before the next bitcoin halving

No sir the cost of setup is beyond ROI ranges, that makes sense.

You need a ASIC for bitcoin too they're not cheap.

My electricity is effectively free to me I don't mine though not worth the hardware costs IMHO.

 

[electrowind]

While it's true that low electricity prices and the use of renewable energy sources can make mining cryptocurrencies cheaper, it's important to consider the overall cost of setup and maintenance, including the cost of hardware, cooling, and space. Additionally, the market value of cryptocurrencies can be volatile and unpredictable, which can affect the profitability of mining.

Investing in ASICs for Bitcoin mining can be expensive, and it's important to consider the ROI before making a decision. Other cryptocurrencies may have lower hardware requirements, but again, it's important to consider the profitability and risks involved.

Overall, it's up to each individual to weigh the costs and benefits of cryptocurrency mining and decide if it's worth it for them.

 

[ZenZimZaliben]

I always tell people its a giant ponzi scheme. However, every 3-4 years is this cycle of a massive crash. You buy low, wait a few years and sell high. Ride the train! Its easy to make a few thousand, but also just as easy to lose that amount overnight.

The big problem here in America is since 2018 it is treated as taxable income even if you don't "cash out". It also is taxed at the value it was when you bought cytro (or mined it). So come tax time this year, those who dropped 60K on one BTC will be paying taxes for 60K value, not the 17K it is at right now.

Well that is not accurate at all. You do not pay any tax on crypto until you realize gains/losses. Just like trading stock, homes, or any other commodity. I don't know where you read that but it is completely wrong. And the person that bought 1 BTC for $60K and sold it for $17K would show a LOSS of $43k. Also if you bought at $300 and sold at $60k you would report $59,700 in capital gains.

 

[ir_cow]

@ZenZimZaliben got it from the Tax man in 2017 when US government made the change. Its stupid and IF was treated like stocks, that would be so much nicer.

 

[ZenZimZaliben]

@ZenZimZaliben got it from the Tax man in 2017 when US government made the change. Its stupid and IF was treated like stocks, that would be so much nicer.

Your tax man is mistaken. - "In the United States, unrealized gains on cryptocurrency and other assets are not subject to tax. You will pay taxes when you realize your gains by disposing of your cryptocurrency. Examples of disposals include selling your crypto, trading your crypto for another crypto, and using your crypto to make a purchase."

Good news for hodlers

If you’re holding crypto, there’s no immediate gain or loss, so the crypto is not taxed. Tax is only incurred when you sell the asset, and you subsequently receive either cash or units of another cryptocurrency: At this point, you have “realized” the gains, and you have a taxable event.

Understanding your crypto taxes

Not sure if you owe taxes on your crypto? Learn how using crypto this year can affect your U.S. taxes.

www.coinbase.com

 

[ir_cow]

@ZenZimZaliben . Who do you trust, the government tax people or coinbase that just wants a cut? Don't forget if you sell before 2 years its 25% taxable on the profit

It could very well have changed since the law was put in place. I haven't turned cryto into cash for a number of years now. Why even deal with US banks and US exchanges... Oh wait its illegal to hide banks and transactions from the US government when it come to taxes.

 

[ZenZimZaliben]

So you just don't want to admit that your "Tax Man" is BS and that you really have no idea how crypto is taxed?

Skip down for the interesting part - "https://www.hrblock.com/tax-center/income/investments/cryptocurrency-and-your-taxes/"


Buying crypto

There are no tax implications for buying crypto. However, for your records, you’ll want to know your purchase price to avoid paying unnecessary taxes down the line. Here’s where on-chain and off-chain transactions matter.

OR better yet. Show me a source that states Crypto is taxed on unrealized gains....