Cryptocurrencies.. whos in it?

[heff0018]

Hi all, interesting concept this. When I started reading this thread I had no idea what you were talking about but with a bit of research I think I have finally worked out the value generated by data mining. I can’t offer any input on data mining techniques but I can clear up some of your tax queries.

There is no difference between that tax treatment of crypto currencies and data mining compared to other investments and activities. If you are investing in crypto currencies then there will be capital gain or loss when you sell the currency and if you hold the currency longer than 12 months then you can apply a 50% discount to any capital gain. I.e currency cost $1,000, you sold for $2,000 12 months later. Apply 50% discount and you are assessed on a net capital gain of $500 which is added to your assessable income and taxed at your marginal tax rate.

The CGT personal asset exemption only applies if the cost of the currency is less than $10,000 and you use the currency for day to day transactions rather than as an investment.

Regarding the data mining activity, unless you are just doing this for a bit of fun (hobby) as some have stated then the ATO would most likely look at this as a business activity. Therefore capital gains do not apply and you would be assessed on the net income of the business activity. The purchase cost of the equipment under $20,000 could be written off as an immediate tax deduction under the current depreciation rules and the business portion of your electricity costs and other expenses deducted.

There is no GST on capital gains/losses. GST is generally charged on business transactions within Australia but you do not need to register for GST if your business turnover is less than $75,000.

I am not sure what the ATO audit activity is regarding crypto currency but my guess is that it would be quite low.

[Tazzi]

Good to hear about the above. Seems to be a topic thats not well covered anywhere.

[immortality]

Must be an accountant in da house.

[heff0018]

Must be an accountant in da house.

Yep, tax accountant. ATO website is shite.

[psyolent]

ATO is shite.
fixed for yoo heff

[The1]

Antus is spot on. Its something that should be done for a bit of fun and interest at first. I only did it because the equipment was sitting there idle doing sweet f'all.

The whole converting situation was annoying at first, its one of those things that I had to try out a few different options. Currently I send the coins to a market place like cryptopia, convert it to one of the bigger coins, then send it to somewhere like coinspot to convert to aussie dollars. Its all a learning curve from start to finish which Iv been doing for a bit of fun in off times.

Vlad, yeah, those vega cards are sold out worldwide unless paying an unreal amount. People praise them pretty highly.

Do you find large pools good, or going solo pays out bigger when you find a block?

[Tazzi]

Do you find large pools good, or going solo pays out bigger when you find a block?

Moderate size pools are good. They tend to have the smallest fee.. or even no fee for a long time. Payouts are regular and you get a bonus for finding a block (Which is basically completely random and luck based).

Mining solo would be the best option as you get the full block reward (Which is significant).. but.. you need to have a fairly big rig setup before going solo.. otherwise you basically make nothing.

Using zencash as the example. The average 1080TI will get about 800sol/second (Sol = Hash) at a power usage of 200w.
To generate one block in one day.. I would need at least 50 of those cards (40,000sol/s) using 10,000w, which is about $50aud in electricity every day. This still varies based on a bit of luck, but the reward for one block is 11zen (Off the top of my head?), which is about $550aud, plus the mining income from the day.

If you were mining in a pool, it would be around $450 per day profit ($500 minus electricity). The pool mining is the safe bet, the solo mining would be the risk/reward kinda bet, you may find a block in the first hour.. or after 3days.. who knows.

[Tazzi]

Actually, I think there was a youtube vid of someone with a hundred 1080tis doing solo mining. He said it wasnt worth it until around the 80 card mark as he didnt always find a block each day.

[vlad01]

fuck that would be one expensive setup lol.

For those that don't know a 1080 Ti is about 1200 bucks each, then you need all the special mother boards with a crap ton of PCIe slots and bit ass expensive PSUs and some ram and cheap CPU but lots of them for sure.

100k setup I reckon so you wouldn't even break even until 7 months or so.

[Tazzi]

fuck that would be one expensive setup lol.

For those that don't know a 1080 Ti is about 1200 bucks each, then you need all the special mother boards with a crap ton of PCIe slots and bit ass expensive PSUs and some ram and cheap CPU but lots of them for sure.

100k setup I reckon so you wouldn't even break even until 7 months or so.

Id say $100k would be about right!

But yeah, 100x 1080tis is unreal.

The guy said each motherboard had 10GPUs.
So thats 10 sets of motherboard,ram,cpu, risers, thumbdrive and power supplies!

But I guess that cost becomes insignificant when connecting 10x $1000ish graphics cards