Chat archive · 2018-06

So please add the Opt out. It is not required to collect.

Hi Steve. A question if I may. Why is it that so many miners are stuck mining Litecoin, while there may be 5 other coins of more value ontop of it? Thanks bud.

With no miners on them.

Way I understand the algorythm, is that it goes to a REST API to figure out who is most profitable in trading at some of the exchanges. The next batch of miners are assigned to it, the last batch finishes. Eventually all miners move to the new batch.

It’s follow the leader.

So if you were mining LiteCoin, it continues to mine until you are done. Then it switches you.

Of course that is only my observation; but I am a programmer so I think I am accurate.

doodapunisha wrote: Hi Steve. A question if I may. Why is it that so many miners are stuck mining Litecoin, while there may be 5 other coins of more value ontop of it? Thanks bud.

Blocks would be found too quickly and the miners who were mining that coin would have too many work restarts, decreasing profitability

Hobo01 wrote: If I were a contractor, you would charge 0.0% pool fees and pay me in US Dollars on a regular schedule regardless of gain or lose.

A mining pool works by us paying you a fee to use your miners to find blocks

Those forms don’t make a statement as to whether or not you have to pay taxes; that depends on all sorts of things

We just have to send them to you by law; what you do with them is your responsibility

@Steve ok so if you pay me a fee why am I paying a pool fee?

This is a service is not?

From my perspective, you offer a service, the service is to share a pool with other miners, and for use of that pool and it’s resources your charging a 4.99% pool fee.

What are you paying me? I don’t see any payments.

Also no offense to anyone on the internet. I don’t like giving EIN information or SSN to anyone. Considering all the hackers in the world.

So the questions are valid... What "FEE" are you paying me?

I looked through my earnings wallet. And I don’t see any "payments" I see things I mined, which I paid you 4.99% fee for. I see no payments from ProHashing.

I tend to agree that we are paying Prohashing a fee to utilize it’s service of maintaining servers that connect our miners to the blockchain to mine. So I guess we should send you 1099 forms?

I just did the numbers I processed about $143 in 2 days and I received $127 the 4.99% transaction fee should be about $7.16 instead it’s 5 dollars off.

Actually it’s $16.00 off give or take a dollar.

so that is really a 15% pool fee at least for those 2 days.

This looks like triple taxation really to me.

This is 6/23 Equihash Hushcoin 12.5 0.00000373 852,982,896 $5.5036 Mature 6:34:38 PM 331331 X11 iCash 180.20918369 0 563 $0.0534 Mature 3:48:34 PM 526088 Scrypt BitBlock 6 0 20,673,284 $0.0659 Mature 6/23/2018 2:26:11 PM 1102382 Equihash Hushcoin 12.5 0 516,917,674 $5.3902 Mature 6/23/2018 1:56:34 PM 331222 Equihash Hushcoin 12.5 0.0001 756,775,408 $5.4026 Mature 6/23/2018 5:20:34 AM 331019 Equihash Hushcoin 12.5 0 276,773,236 $5.4452 Mature 6/23/2018 4:24:51 AM 331000 Scrypt BitBlock 6 0 80,490,063 $0.0648 Mature 6/23/2018 1:06:22 AM 1095129 This is 6/22 Equihash Hushcoin 12.5 0 890,874,067 $5.4823 Mature 6/22/2018 10:18:49 PM 330853 Equihash Hushcoin 12.5 0.00010328 308,579,416 $5.3924 Mature 6/22/2018 8:20:41 PM 330810 Scrypt Vaperscoin 7500 1 187,547,476 $0.5196 Immature 6/22/2018 8:14:08 PM 330403 Scrypt Leafcoin 3500 0 3,718,640,922 $0.0377 Mature 6/22/2018 8:05:40 PM 2060176 Scrypt Leafcoin 3500 0 2,496,522,818 $0.0375 Mature 6/22/2018 7:59:41 PM 2060167 Scrypt LitecoinPlus 1.75 0 77,457,819 $0.2331 Mature 6/22/2018 4:21:23 PM 1597151 Equihash Hushcoin 12.5 0 330,778,148 $6.1843 Mature 6/22/2018 8:42:57 AM 330532 Equihash Hushcoin 12.5 0 262,107,265 $6.1978 Mature 6/22/2018 6:57:47 AM 330482 Equihash Hushcoin 12.5 0.00002345 462,502,683 $6.2127 Mature 6/22/2018 5:30:50 AM 330453 Equihash Hushcoin 12.5 0.0001 2,309,492,965 $6.2850 Mature 6/22/2018 4:56:22 AM 330438 X11 Futurocoin 6.65905632 0 12,495,082 $70.5021 Mature 6/22/2018 3:41:27 AM 193819

You do the math.

So the lost money is in transaction fees to send.

So... What exactly did you pay me? From my perspective, you didn’t pay me shit~! Rather you took money to use your service.

So what did you do ProHashing? All I can see, is that you provided a service that I paid for.

If you are in the USA, Steve. I would seriously suggest that you look up the law. Because right now, I am hearing nothing but tax fraud. DO NOT CLAIM anyone as a contractor unless you have a contract and DO NOT CLAIM you paid them, when you didn’t have the resources... That is the definition of PONZI, so give the option to opt out or I’ll call it in because I have a real business... https://en.wikipedia.org/wiki/Ponzi_scheme

No in the USA. Crypto is property not currency.

It is not stock, it is not money. It is a unit asset.

The valuation of which is undetermined, and can be traded. It is not regulated by the SEC and it is not regulated by the government. It is subject to capital gains after conversion.

And they didn’t pay me anything. That is my whole arguement. I PAID THEM.

It is NOT money. The IRS says it is not.

Neither is the USD. It is a debt note. Money has VALUE. Debt notes are promises of value. The only legal ponzi scheme in existance.

Things like gold coins are money. Things like printed paper are not.

The idea is sound, the "payments" are not.

They are dangerously close to fraud. If not already there. I am hoping my interpetation is wrong.

If what they say is literal, I’ll use other pools. Because I don’t want to lose my investment or my business.

I have no agreement with them and I don’t want to be tied to criminal behavior.

So unless ProHashing is paying me USD, I am 100% NOT a contractor. Because to be legal in payment, it must be in USD not Crypto - Crypto is not a recognized media.

Coinbase had to add the option of the USD wallet, to be legally allowed to do that.

As it stands crypto is a commodity. NOT FIAT! It’s like saying hey, I’ll pay you in gold. But then saying I gave that guy $500 USD.

It’s simply not true. You gave an evaluation of $500 as a commodity. It’s a trade. Until the gold IS USD it isn’t USD.

I can make a deal as a business man, I’ll trade you a porche for 1 years service. I didn’t say what porche. But it could be the very first porche ever made making it more valuable then all the other porches.

The deal itself is not taxed, the possesion of the property could be. But only, if the valuation is made. And that needs to be assesed.

So, after the deal you go to another guy or guys and they say this porche is a piece of crap it’s worth $1 USD

Get it?

It’s esoteric by design, and only having value to those that use it.

It’s not until it’s converted into USD that it has value, and can only be assesed at that time. Until then it is nothing more than a trade.

The United States of America, or any country that does not recognize it’s currency value and it as a currency has no rights to asses.

Only the individuals who are using it do. Which is why it’s crypto, it’s disruptive designed specifically for that reason.

@Hobo01 :  you are correct that the USG considers crypto property. however ,where you are wrong is that they also consider mining income. as such you are required to report income on your taxes.

@Hobo01 :  Notice 2014-21 stipulates what I have said. please see Q8 in the FAQ https://www.irs.gov/pub/irs-drop/n-14-21.pdf

if applicable, Q’s 9 and 10 also may apply to your situation.

see Publication 525, Taxable and Nontaxable Income, for more information on taxable income.

No Foxx. Your wrong. I receive no payments

I have only property. I have traded my electricity to get property. end of story. Everything is accounted for; My device does the work. Not the pool.

lol. take it up with GUS. I am just giving you their publications on the matter. do what the information you wish.

and you are receiving something of value for the work your machinery does.

fyi, bartering is taxable.

Again not arguing value

Arguing PAYMENT.

but as i say, i only give the information, you do with it as you wish.

ProHashing paid me nothing.

I paid them to use the service.

yes, they did pay you something

What did they pay?

they paid you in crypto

No

That is a result of my miner

okay

They paid nothing

have a good day

That was my property.

A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the “mining” activity is not underta ken by the taxpayer as an employee, the net earnings from self-employment (generally, gross in come derived from carrying on a trade or business less allowable deductions) resulting from those activities constitute self- employment income and are subject to the self-employment tax.

Again you cherry pick what you want

I AM NOT AN EMPLOYEE OF PROHASHING!

By your own words. I would be if I agreed to this, a contactor.

Meaning nothing is needed from ProHashing.

I am simply me. Which is my arguement. You have no ties to paying me anything.

readeing comprehension helps greatly when trying to understand something you are reading. what that is saying is that if you are not an employee, then most likely you are self-employed and thus you are subject to self-employment taxes. again arry on with your bad self and have a good day. ciao.

No dude.

Your acting unlawfully, and asking me to

I am not a fucking Contractor. I am not a fucking Employee.

ProHashing is a service.

PERIOD.

I am self-employeed

I do account for my earnings

but you ProHashing are not a company getting contractors.

This is a fraud.