Bitcoin update.

[Optimistic Nick]

Re: Bitcoin update.

Long term forecast is that the price will double, but a lot depends on Ripple's SEC case, and whether or not governments decide to create their own digital currency. At the moment, they (the digital currencies) are all too unstable, and government backing would create a currency that would do the same job, but with a lot more stability. That would in effect make Bitcoin and it's like a bit redundant, though there are still people who would prefer to steer clear of taxable government currencies..

On the tax thing: the exchanges obviously report transactions to tax authorities and in the U.K. at least it’s treated as chargeable gains. But that is if I sell it. What if I spend it? Eg if I bought a Bitcoin at $0.10 back in 2010 and go and buy a Tesla with it when it reaches $60k. Have I realised the asset? Or does it roll into the base cost of the car? If the latter, then great as I don’t think cars are subject to cgt (as everyone would be claiming capital losses if they were!)

[OurManFlint II]

Re: Bitcoin update.

Long term forecast is that the price will double, but a lot depends on Ripple's SEC case, and whether or not governments decide to create their own digital currency. At the moment, they (the digital currencies) are all too unstable, and government backing would create a currency that would do the same job, but with a lot more stability. That would in effect make Bitcoin and it's like a bit redundant, though there are still people who would prefer to steer clear of taxable government currencies..

[Rock_Flock_of_Five]

Re: Bitcoin update.

Long term forecast is that the price will double, but a lot depends on Ripple's SEC case, and whether or not governments decide to create their own digital currency. At the moment, they (the digital currencies) are all too unstable, and government backing would create a currency that would do the same job, but with a lot more stability. That would in effect make Bitcoin and it's like a bit redundant, though there are still people who would prefer to steer clear of taxable government currencies..

There will never be more than 21 million Bitcoin in circulation. However, if you take China's digital Yuan as an example, there will be an infinite amount produced - there is no comparison.
The Chinese digital Yuan (I use it as an example, as they appear to be the closest to actually rolling it out) would not do the same job as other cryptocurrencies. It won't be doing the same job as Vechain or Theta for example, they have totally different purposes.

You say "The long term forecast is that the price will double"?
Given that most cryptocurrencies are at about a third of their value of what they were only a couple of months ago, I would confidently say that most will probably double in the next bull-run.

Btw... the taxman is still going to try and come after you, even if it's a decentralised crypto you're cashing in.