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Comment Not all contributions / sacrifice are equivalent (Score 4, Informative) 121

Does patriotism today only count if you're in the military? The way we glorify military service over all types of contribution / sacrifice for the national interest is pretty amazing these days. It's like the movies have brainwashed us into believing that soldiers are the only national heroes around.

Not all contributions / sacrifice are equivalent. There *is* something different about putting one's own life on the line. And the reason military service is considered in such high regard today is that for many years of very recent history putting on the uniform included a high probability of a combat deployment.

That said, even in a time of peace there is some risk. Military personnel die in training. Plus there is the ever present chance that a war will occur. One of my high school teachers joined the Marines during peacetime and a couple of years later found himself fighting on Guadalcanal, short on ammo, short on food, short on support from the Navy, and ordered to hold his position at all costs.

Many people find themselves in terrible dangerous situations and rise to the occasion, but soldiers, police, fireman, etc volunteer for such risks knowingly. Volunteering to go into harms way is a little different from accidentally finding ones self in harms way. Are these people exclusively in uniform, no, for example there were civilians that safely made it out of the world trade center but went back in to help others. That is another example of volunteering to go into harms way.

Comment Re:Fair Use (Score 3, Insightful) 102

Once it's digital, there is no 1:1 ratio. A simple Ctrl+C + Ctrl+V and suddenly it's a 2:1 ratio.

The GP's point stands. That first digital copy does seem like fair use and a hypothetical second copy does not change this.

Besides, note in the summary "can only be accessed on dedicated terminals in the library itself". The app dedicated to accessing the database and displaying the book can simply not implement copy/paste. You won't be connecting your laptop to the library network and accessing the database.

That said, its likely the digitized text will get out somehow.

Comment Re:Taxed when you spend, not just when you sell (Score 1) 134

And somewhere in that chain both customer and merchant "know" the real dollar value they are talking about. For taxing purposes, the customers will need to know.

Of course, that was my point a couple posts up. :-) One needs to know the basis and the value at the time of trade. I was only objecting to the notion that the customer is selling the coins and using fiat currency. It seems more of a barter and of course one needs to know the value of the object being bartered for tax purposes.

I wanted to point out that the sale takes place at the exchange to emphasize the conveniences and lack of risk in such systems. The merchant prices and does all their accounting in fiat, just as they always have. They merely transmit a fiat amount to the exchange. The exchange does the conversion and transmits back to the merchant an equivalent bitcoin amount and a bitcoin payment address. This address is the merchants. The exchange receives the coins and credits the merchant's account with the exact fiat amount originally specified. There is no risk to the merchant of price fluctuations.

Its the simplicity and lack of risk in such systems that makes bitcoin acceptance more and more common.

Comment Bitcoin replacing PayPal ... (Score 1) 134

Well...since Apple just announced Apple Pay, I guess they felt the need to get themselves into the headlines somehow. IMHO, this is probably more about their competition than it is about Bitcoin.

What this is about is Bitcoin replacing PayPal, at least as a transaction processor, a transfer mechanism. As it is PayPal is basically doomed.

What PayPal is doing is trying to switch to a new business model. Become a bitcoin exchange converting USD/EUR/etc to and from Bitcoin, and also become an online Bitcoin wallet. However as an exchange or online wallet PayPal will be one of many. They won't be the 800-lb gorilla they once were.

Comment Re:Taxed when you spend, not just when you sell (Score 1) 134

You would spend any coins that you bought at a higher price first (report a loss for a tax deduction).

Not necessarily. If they are aged enough to be long term one may want to hold on to them. Spending long term assets may be something that you want to occur as an exceptional case, a manual selection, not a default automatic policy. Timing the loss is sometimes a strategic decision.

Plus if they are approaching an age where they will convert from short to long term assets one may want to hold on to them.

Then you'd spend coins that are already old enough to be taxed as an investment (lower rate), ...

Again, possibly best to be a manual selection not an automatic default. For example it would be regrettable to see a long term gain offset a short term loss. Better to use a short term gain to offset a short term loss.

... and then you'd spend recently bought coins (newest to oldest) that are taxed as speculation (higher rate). Nobody in their right mind would spend the new coins first, unless something that can offset the gains is about to expire.

There are no one-size-fits-all rules as to when to spend a particular asset. There are always external and strategic circumstances to consider.

Comment LIFO a good default policy ? (Score 2) 134

FIFO or LIFO is to simple when dealing with taxable transactions. The sell priority goes Losses > Long-term gains > Short-term gains.

Its not really that simple either. For example LIFO (last in first out) has the advantage that it helps accumulate long term gains. So applying LIFO within the current short term gains helps a particular coin age and move from the short term to long term. Also one might want to be selective about when long term gains are spent. Again, LIFO is useful in this respect in that it prefers to spend short term.

In short LIFO may be a good default policy, maximizing and preserving the long term gains. A policy that can be overridden on that special day when one wants to cash in the long term gains.

Comment Re:Taxed when you spend, not just when you sell (Score 1) 134

That's because the act of spending a BitCoin is really the act of selling it for "real" money and then spending the real money. Everything I've seen seems to be treating them very much the same way stocks are treated for taxing purposes.

In common scenarios the merchant uses a bitcoin exchange as an intermediary, as a payment processor. The customer never sees or touches a fiat currency (dollars, euros, etc), they only see bitcoins. The merchant never sees or touches a bitcoin, they only see fiat currency. Its only the exchange, a third party, that sells the bitcoins for fiat. The exchange accepts bitcoins from the customer and sends fiat to the merchant.

Comment Re:Can someone clarify the state of BitCoin? (Score 1) 134

Yes, but:

You buy 0.1 BTC at $500/BTC. Later you buy 0.2 BTC at $550/BTC. Later you buy 0.2 BTC at $560/BTC. Your client will say you have 0.5 BTC, but internally there actually are 3 separate accounts that it'll handle transparently. If you pay 0.3 BTC to somebody, it'll have to issue payments from at least two of them.

So, you wait a month, now it's $570/BTC, and sell 0.05 BTC.

My understanding is that it's perfectly possible that your client will decide to source bitcoins from all 3 accounts in some random quantities that add to 0.05. So how much have you gained? Hard to tell, since the standard client won't directly tell you what accounts it used, and doesn't know how much you bought each part of your balance for, it doesn't do banking at all.

Software could automatically apply a LIFO or FIFO scheme to the coins and calculate their basis when coins are spent or sold. See http://yro.slashdot.org/commen....

Comment Taxed when you spend, not just when you sell (Score 2) 134

Tax-wise it seems tricky. It seems (you're nuts if you take advice from a random stranger on this) that it's considered an asset, and if bitcoin gains in value you have to pay tax on that

Like most assets, don't you (in the US) just pay tax on it when you sell it and realize a profit? Just like stock? That doesn't seem tricky at all.

If I understand things correctly, the tricky part is that you realize a taxable gain when you spend your bitcoins. Not merely when you sell them. Buy a coffee, remember to calculate and report your gain.

A recent IRS advisory said virtual currency is to be treated as an assent not a currency. So lets say you receive some bitcoins. At some future date you spend these bitcoins. Since these bitcoins are an asset you have to account for their gain or loss in value for the days you held them an declare a loss or gain on your taxes. In short spending bitcoins has the paperwork overhead of selling stocks, its not like spending dollars at all.

Ex. You buy one coin at $500 and another at $600. Coins are priced at $800 at the time of a future purchase. You buy something for $1,200, 1.5 coins. Using FIFO (first in first out) your basis for the outgoing 1.5 coins is $500 + $300 = $800, and the basis for the returning 0.5 coins is still $300. You experienced a gain of $400 on the 1.5 coins at the time of the sale and that $400 would seem to be taxable income.

Using LIFO (last in first out) your basis for the 1.5 outgoing is $600 + $250 = $850. You experienced a gain of $350.

Apologies if I botched the math, hopefully the point gets across.

A possible advantage of LIFO is that you are spending "newer" coins first. Letting your "older" coins continue to age. If you hold these "older" coins for a year or more then they may have an advantage of being taxed at a lower rate when spent or sold.

And of course you can use any scheme to determine which coins are being used in a transaction, you are not limited to LIFO/FIFO. They are just convenient examples.

Comment Re:Oh good. (Score 1) 99

though I doubt it'll ever support my platform of choice

Really? What platform would you be referring too, I'm genuinely curious.

My understanding is that LLVM is skipping various "legacy" platforms. 16-bit x86 came to mind but when I googled it I found that Intel is actually working on 16-bit x86 support. Some boot loaders and emulators apparently use 16-bit code.

I was going to make a snarky Z80 comment but when reading the 16-bit Intel thread I found another potential snarker discovered that a Z80 backend for LLVM exists.

Where the LLVM devs may have no interest it seems the legacy communities or other parties may step in.

While there is no technical reason not to use LLVM I expect it won't be very popular with the GNU Hurd users.

Comment Re:60 feet... means what? (Score 1) 68

The meteor crater impact (160 foot object) is believed to have killed everything within about 2 miles, killed half of everything out to about 8 miles, ...
https://solarsystem.nasa.gov/s...

I believe that in general water impacts are considered more dangerous. Unlike air, water will transmit the energy over greater distances and the tsunami can do more damage than an impact itself.

Comment Sometimes the old ways are best ... (Score 2) 448

Thermite grenades, small amounts of ordinary plastic explosives, even pistols for electronics ... sometimes the old ways are best.

Forget the James Bond movie gizmos, that only works in Hollywood.

My Dad spent some time in armored cavalry as both a blacksmith/welder and as a driver. I'm going to have to ask him how much damage he could do with a mechanic's ball been hammer and a couple of minutes.

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