Cryptocurrency

[TheGreenBastard]

i have 500 eth and i convert to 10000 zen then zen shoots up 22% i then convert to dogecoin

how do i calculate the CGT in that scenario

theres no boe exchange rate to reference

On trade (conversion) CGT is taxed at point of sale rate of the value of your 500 ETH, against the purchase amount.

The purchase amount of your Zen is the same as the sale price of the ETH; CGT is then once again calculated on your point of trade to DOGE.

Two CGT events. CGT is deferred on the DOGE holdings until another trade event (fiat or other asset).

[VirtualMonkey]

Has anyone paid for the pro feature on coindera? It allows for active alerts which will tell you if a price changes by more than a %age in a certain time frame. Thought this could be very useful for catching pumps early

[ChimpMaster]

Have you guys considered mining?

I'm in touch with a guy who supplies rigs ready to go. Mining BTC or equivalent but paying out in BTC. Using Nicehash.

Example cost is £8k for a 7 card (1080ti) right and it mines ~£1200 worth of coins (paid in BTC) each month. Might not seem like the best use of £8k but if we expect the market to keep going up then it'll provide a consistent and growing income stream.

My thinking is to buy something like that and let it churn away, and all coins mined will be kept or re-invested into other coins.

Thoughts?

[VirtualMonkey]

On trade (conversion) CGT is taxed at point of sale rate of the value of your 500 ETH, against the purchase amount.

The purchase amount of your Zen is the same as the sale price of the ETH; CGT is then once again calculated on your point of trade to DOGE.

Two CGT events. CGT is deferred on the DOGE holdings until another trade event (fiat or other asset).

Have asked my accountant for clarification on this;
At what time does the CGT become payable?
I could invest say £10 and buy bitcoin. Then I trade the bitcoin for another coin and back again then trade that bitcoin for a third type of coin, etc.
Is it charged every time a transaction is made or just when you ‘cash out’?
If it’s cash out then what would define the cash out? Presumably transfer to FIAT currency in my bank account

[VirtualMonkey]

Have you guys considered mining?

I'm in touch with a guy who supplies rigs ready to go. Mining BTC or equivalent but paying out in BTC. Using Nicehash.

Example cost is £8k for a 7 card (1080ti) right and it mines ~£1200 worth of coins (paid in BTC) each month. Might not seem like the best use of £8k but if we expect the market to keep going up then it'll provide a consistent and growing income stream.

My thinking is to buy something like that and let it churn away, and all coins mined will be kept or re-invested into other coins.

Thoughts?

Also crossed my mind again the other day. Was going to ask the same question...and is BTC the best option to mine. I know it's been brought up loads of times on this thread but it's a big a*** thread now...

[Lance]

Have you guys considered mining?

I'm in touch with a guy who supplies rigs ready to go. Mining BTC or equivalent but paying out in BTC. Using Nicehash.

Example cost is £8k for a 7 card (1080ti) right and it mines ~£1200 worth of coins (paid in BTC) each month. Might not seem like the best use of £8k but if we expect the market to keep going up then it'll provide a consistent and growing income stream.

My thinking is to buy something like that and let it churn away, and all coins mined will be kept or re-invested into other coins.

Thoughts?

The number of coins it mines in an amount of time decreases as the difficulty increases. So it’s only good for a few weeks or a month or two.
And last I heard ASICS beat GPUs for mining.
What does the electricity cost for that rig?

[ChimpMaster]

The number of coins it mines in an amount of time decreases as the difficulty increases. So it’s only good for a few weeks or a month or two.
And last I heard ASICS beat GPUs for mining.
What does the electricity cost for that rig?

£70/month.

You can mine what you like, as I understand it. Already on my home PC (single 960 GPU) I had a go at mining Sia, SmartCash and BTC. Just for laughs of course. Made around $30 in a few days

So I guess you would mine whatever is most profitable.

[scooterscot]

i have 500 eth and i convert to 10000 zen then zen shoots up 22% i then convert to dogecoin

how do i calculate the CGT in that scenario

theres no boe exchange rate to reference

Exactly this. My accountant more or less said as much. According to him all that matters is when the investment is returned to FIAT.

[TheGreenBastard]

Have asked my accountant for clarification on this;
At what time does the CGT become payable?
I could invest say £10 and buy bitcoin. Then I trade the bitcoin for another coin and back again then trade that bitcoin for a third type of coin, etc.
Is it charged every time a transaction is made or just when you ‘cash out’?
If it’s cash out then what would define the cash out? Presumably transfer to FIAT currency in my bank account

BTC to ETH would be liable for CGT. If you later sold your ETH for fiat/another asset that even too would be deemed in scope for CGT on point of sale.

Exactly this. My accountant more or less said as much. According to him all that matters is when the investment is returned to FIAT.

I'm afraid I think he's wrong, even in German jurisdiction.

https://www.toytowngermany.com/forum...to-currencies/

I hope you guys have lots of lube for when the authorities come knocking

[Lance]

£70/month.

You can mine what you like, as I understand it. Already on my home PC (single 960 GPU) I had a go at mining Sia, SmartCash and BTC. Just for laughs of course. Made around $30 in a few days

So I guess you would mine whatever is most profitable.

£70 a month seems OK on the face of it.

However..... When I last looked at mining Bitcoins (in 2014) you needed an ASIC based dedicated hardware as the difficulty was such that you’d get nowhere without one.
https://www.buybitcoinworldwide.com/mining/hardware/
The key to mining is the number of hashes you can do. It’s a brute force encryption crack really.
The ASIC manufactures would make the latest one, ‘burn it in’ for 3 months in their DC, and sell it. The difficulty is then greater, you’ve bought their old one and they’;re mining with the next gen ASIC.

I’m very dubious about stacking multiple GPUs as GPUs aren;t good at mining Bitcoins.
Other coins are more easily mined with GPUs, so that may work.

Whats’ changed since 2014? Bitcoins are worth £12k not £500. Mining is more difficult. On that basis I’d be very careful about the sums. You need to know what the difficulty is now (ie. how’s many hashes we re needed for the last few blocks), how may many GH/s the GPU rig can do, how many coins you’ll get for each block you mine. And also remember that if you’re slow, and someone mines the block you’re mining before you do, it’s their block not yours, so you start again on the next block with your slow miner....

Other coins I can’t comment on.