One of Bitcoin’s long term fans and Reddit regular came good on his bet if Bitcoin dropped below $1000 in January, he would eat his hat – he did. At least he was good to his word – something that we can only hope those remaining exchanges, following Mt Gox are – afterall, there is only their word, as the product continues to be unregulated! Is that something you would want to invest in?
Talk of the Town
Bitcoin has been the talk of the town for those into all things new and shiny. Has the promise of untold riches and accidental millionaires fairground ride come to a grinding halt?
Last week saw the US Internal Revenue Service (IRS) – the federal tax collector, arrive at the decision that Bitcoin was property, not a currency, and therefore liable for capital gains. This by no means legitimises the cyber “currency”, merely ups the ante on those who hold Bitcoins to file them on their tax return, or risk submitting a false tax return. Bare in mind, tax evasion and submitting a fraudulent return is a federal offence (remember Al Capone – his reward was a panoramic view of San Francisco bay, from his suite at Alcatraz!)
So how has the price of Bitcoin been, over the past while. As can be seen from the chart below, price action has pretty miserable for a while now.
Current prices for Bitcoin have been further belted, since Mt Gox, the Tokyo based exchange collapsed. Last week’s IRS ruling only adds further pain. Surely there has to be an easier way – and let’s face it – safer way to make money than playing cyber Russian roulette! Currently $480 – from over $1000 a while back!
Something like Sonray
Looking at a current story on Reuters, “Two years before Mt. Gox filed for bankruptcy, a half dozen employees at the Tokyo-based bitcoin exchange challenged CEO Mark Karpeles over whether client money was being used to cover costs”. This may sound a little like Sonray, to some of you…