As Chinese Yuan falls Bitcoin rallies...
S&P YTD +17%
BitCoin YTD +185%
Good point C&D!!But when you look at the chart on the Yuan it looks like last night and this mornings drop is panic like selling.Along with Chinese Govern
ment intervention.It should hold just under .14 cents against the US Dollar.This is a huge one day drop from .14975 to .14190 looks unsustainable.BOL a few more tidbits below;
Also remember the IRS has begun sending letters to a very small group of people(around 10k).This may affect Bitcoin's rise once enforcement ramps up.
The IRS has begun sending letters to more than 10,000 taxpayers asking them to assert that they’ve paid all the taxes on their cryptocurrency gains, or to contact the IRS about making it right. In a release about the letters, the IRS warned that “[t]axpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties.”
Bitcoin technically allows its holders to be anonymous and thus avoid taxes if they wish. But most people have bought Bitcoin through exchanges, which generally ask users for identifying information and documents before allowing them to open accounts. For instance, the IRS won a court case to access account data from Coinbase, a large U.S. exchange that makes customers verify their identities. The IRS did not respond to a question about whether that’s how it got the addresses of the people it is contacting about taxes.
Paying taxes on Bitcoin and similar digital coins is not so straightforward. The IRS has classified them as property, but the people who hold them often treat them like investments or currencies.