I shut down my miners !

Hello Folks…

Yes, I have shut down my miners.  I did this just a little before the “halving”.  To be honest, it wasn’t so much the halving, because the price about doubled, which made the profit margin about the same as before the reward reduction, but it was more that the electricity costs were getting difficult to pay without having the offset of the cash to do so.  If the power company would have taken BitCoin… I would still be mining, but no luck.  And… I couldn’t find a reasonable way to convert the BitCoin into cash, so the only way to utilize the earned BitCoin was to buy things that at times I really didn’t need.  What I needed was to pay the electric bill !  (I still have my equipment)

Now, something I knew was coming (and stated such on this blog almost a year ago), has in fact started.  Namely the government getting into taxing BitCoins.  I received a memo from Coinbase a day or so ago which, in short, stated the feds had issued them a subpoena for the identities of their customers.   See below (click to enlarge)

coinbase_1Of course this is troublesome on 2 fronts.  One, the tax issue.  Now I suspect many are like me, in that after electricity costs, there is not a lot of profit left over to be taxed.  However I also suspect many more may have more of a worry if they have not been reporting profits from mining.  Second, I suspect that some, maybe many, have been spending their earned Bitcoins in areas perhaps they shouldn’t have been.

Without the “anonymity” of Bitcoin… there isn’t much benefit to use it.   And, don’t think that because you may live outside of the US this intrusion from the US government into Bitcoins won’t affect you, it will.  How… when it comes to governments getting money to fund their ever growing appetite for spending, all governments have that in common, therefore treaties are drafted and instituted, giving them wide latitude to share data.  Don’t ever think you can win against a government – ANY government !  You may win a couple of battles, but you will never win the war.

Pleas feel free to comment.