I see the downtrend has virtually halted. It could go sideways for a bit, which subsequently means that hopefully next year (or sooner) will be overdrive mode for everyone, or at least as more news-worthy breakthroughs occur, primarily to do with better ETFs for (direct-to) crypto allowing retirement etc. money to flood in.
This is why it is best to borrow against your assets, if you can, with places such as Celsius.network or AAVE. When you borrow you are not causing a taxable event.
Is this true in UK tax law?
I doubt it, certainly no expert, but if you borrow crypto in the UK and it appreciates in value creating profit, I feel sure you’d be taxed as cap gains in uk.
Afaik, yes. You’re not selling assets if they are used as collateral. However, most debts have to be paid back at some point and you can’t borrow exponentially.
You’re only taxed on the gains though. It’s essentially a tax on profit.
Isn’t that true of any cap gain though?
The idea usually is you are borrowing stable coins or cash, so what you borrow doesn’t really appreciate. You just need some form of incoming cash flow to service your loan, along with maintaining the required collateralization ratio on your loan.
Sounds like a nightmare to me, not keen on borrowing , but each to their own
It can/could be if the asset you borrow against is dropping in fiat value. If you over leveraged by borrowing the maximum value of from your collateral and fiat price drops, then you would need to either pay into or add more of your asset to the account to keep a healthy Loan To Value (LTV) ratio. Otherwise your position gets liquidated to cover the loan.
If you are careful and conservative in using your appreciating asset as collateral then it makes a lot of sense, especially from a tax perspective.
I believe in the UK if you are actively trading rather than hodling long term (which if you short you would be) you pay income tax on profits not capital gains on asset sales so I think it would not apply in the UK.
My accountant disagrees.
If you already have an income ( which my acc advises ), it shows you don’t need that income from trading to live of.
I actually phoned hmrc a few years ago, they told me in no uncertain terms as I was trading for myself and not for others I was not considered a trader but a personal investor.
Each case is examined individually, and I believe alot of it comes down to how you express what your doing.
Yeah, it’s basically whether it is a job or not. If it is a job, your income from it is taxed. If it is not, it is treated as capital gains. There are definitely shades of grey between the two that HMRC may exploit though.
Hihihi today I got a student to buy over 50 MAID
We gonna get listed!!!
If every forum member can get 100 people each to buy a small amount in MAID, we could hit our 1M mark. Bittrex withdraw fee would give a 10 MAID haircut, so… It would also help to launch MAID on for instance Algorand, for cheap transaction fees and more flexibility.
I hope internet friends count because as I get older my circle is starting to be whittled down.
Definitely a worthy goal. I’ve gotten a few people on board but I am a little reluctant to get new people without something more tangible for them. Otherwise I get concerned we may have more of the same of people feeling trapped and concerned the price isn’t appreciating enough. Not enough focus on the token, etc etc
As soon as we have a test net running for two weeks straight I’m getting a SN tattoo (second to @Dimitar shakes fist) and I’ll hit the road as an evangelist.
36 posts were merged into an existing topic: NRS Brainstorming Megathread
Hey fellow MAID’ers. Apologies as I am cheating a bit by asking this vice doing my own research. Can someone point me via link, or explain to me, how one would convert their current sack-o-MaidSafeCoins to SafeCoin Tokens (or whatever Safe Token entity is chosen), given that the coins are currently kept in a wallet? Asking for a friend…
I think I can explain this one.
There isn’t any.
Not until there is a stable network. Hope for 2022, but could take longer. All hail 2023, the final frontier.
There’s been a history of incorrect predictions as to when the network will be stable. There is always a fluctuation between having public test-networks and developers tweaking code themselves outside of those test-networks. You will want to keep an eye out for a time where there is nothing but constant public test-nets; this is the time where any of them could become the stable network. However, I do think that there is a difference between “Maxwell” and “Fleming” and such releases—with the “Fleming” release being the current goal. Thus maybe there will be: many test-nets, and then Maxwell will be worked on, and then many more test-nets, then finally the stable network.