Transaction - Bitcoin.com Wiki

Vortex on TwitterReminder: The "Cash" part of the phrase peer to peer electronic cash in #bitcoin's white paper written by Satoshi was in fact referring to settlement finality, not speed of transaction. Remember this was published on a cypherpunk mailing list, not the blog of a silicon valley co.

Vortex on TwitterReminder: The submitted by arruah to btc [link] [comments]

Possible regulatory schemes for ensuring bitcoin taxation

Let me start this with two disclaimers: I am not a tax expert. This is conjecture, and there may be complex nuiances in tax law that I am not considering. All I know is that bitcoins, wheather you classify them as a currency or commodity, are subject to some kind of appreciation/capital gains tax. Furthermore, I am not a fan of taxes. I hate taxes just as much as the rest of you, and would love for bitcoin to be tax free forever.
However, I know that banks and other financial institutions are very hesitant to touch bitcoin with a 10 meter pole, and I want bitcoin to suceed. For this to happen, bitcoin needs to be brought into compliance with various capital gains tax laws in many countries all around the world. So I think understanding these scenarios and deleberately selecting among them is in the best interest of the bitcoin community.
There are two main scenarios that I want to consider, and which one we pick will affect either the fungiability of bitcoin or the ease of using it in commerce.
Both scenarios are the result of a short list of mandates involving bitcoin. Under scenario #1:
  1. Require bitcoin exchanges to collect TaxID or other information on customers.
  2. Require bitcoin exchanges to report all bitcoin purchases/sales to the government.
  3. Require merchants accpeting bitcoin to declare all sales to the government, including links to specific transactions in the blockchain and the dollar amount of goods sold.
  4. Require the government to process these reports, determine tax obligation, and send them to taxpayers.
Under Scenario #2: Same as above, but require all merchants accepting bitcoin to collect similar TaxID on all customers.
Here is an example under scenario #1:
1: A user buys bitcoin at a bitcoin exchange. The bitcoin exchange sends a report to the government, detailing the SSN or TaxID of taxpayer, total dollars paid, and total bitcoin recieved, and bitcoin transaction reference.
2: A user spends the bitcoin on goods and services. The bitcoin accepting merchant sends a report to the government, including the value of goods sold, bitcoins renderd, and bitcoin transaction reference.
3: IRS determines the identity of the taxpayer from previous transactions linking back to an exchange.
4: IRS calculates the gain or loss due to bitcoin appreciation/ depreciation and calculates tax liability.
5: IRS sends report to taxpayer.
Under this system, capital gains/appreciation taxes are guaranteed by the cooperation between the bitcoin exchange, bitcoin accepting merchant, and the IRS (or other tax authority) regardless of what the user does. It is simple for the user, imposes minimal costs for all businesses, and guarantees compliance with tax law. However, it will alter the fungiability of bitcoin: under this system: a bitcoin is no longer equal to a bitcoin, because the IRS is now watching it and whoever spends it at a store will have to pay taxes on the basis of all gains from since it was bought. A coin bought while the price was high will be worth more than a coin bought when the price was low, because they will produce different obligations upon spending them in a store. Is this a future that we can accept? I don't know.
On the other hand, scenario #2 has problems of its own. Lets follow the money:
1: User buys bitcoins at exchange, exchange reports sale to IRS
2: User buys goods or services from a merchant with bitcoins, but must provide taxID to the merchant.
3: Merchant reports the transaction and taxID to government (this could be an automated electronically).
4: IRS compiles all bitcoiin transaction for the user, calculates tax obligation, sends report to taxpayer.
So now the bitcoins are fungiable, equal in the eyes of the law, but now users must provide sensitive information to merchants. If customers provide fraudulent information to merchants, then they could escape taxation and even impose liabilities on people who have never heard of bitcoin. Merchants would need to collect identifying information on customers and verify their identity, which would defeat the whole purpose.
In conclusion, like I said in the beginning, for bitcoin to be wideley used, it needs the cooperation of banks and regulations that gurantee the status of bitcoin transactions, profits, and tax liabilities, both in terms of money and who is responsible for keeping what records. As I have shown, to guarantee tax payments on bitcoin gains, either merchants would have to verify the identities of users, or the fungibility of bitcoin would have to be compromised.
What do you all think?
submitted by Skyler827 to Bitcoin [link] [comments]

Lets stop referring to Bitcoin-BTC/Segwitcoin as a crypto currency. It can no longer be a currency because of AXA/BlockStream's policy of high fees and unreliable transactions.

submitted by cryptorebel to btc [link] [comments]

Remember when Sean Spicer tweeted something that looked like a password? It was actually a reference to a Bitcoin transaction for $1.13. One of the addresses involved got over $22,000 dollars on March 3.

submitted by RamonaLittle to Intelligence [link] [comments]

Possible regultory schemes involving taxtion of bitcoin appreciation.

Let me start this with two disclaimers: I am not a tax expert. This is conjecture, and there may be complex nuiances in tax law that I am not considering. Furthermore, I am not a fan of taxes. I hate taxes just as much as the rest of you, and would love for bitcoin to be tax free forever. However, I know that banks and other financial institutions are very hesitant to touch bitcoin with a 10 meter pole, and I want bitcoin to suceed. For this to happen, bitcoin needs to be brought into compliance with various tax laws in many countries all around the world. So I think understanding these scenarios and deleberately selecting among them is in the best interest of the bitcoin community.
There are two main scenarios that I want to consider, and which one we pick will affect either the fungiability of bitcoin or the ease of using it in commerce.
Both scenarios are the result of a short list of mandates involving bitcoin. Under scenario #1:
  1. Require bitcoin exchanges to collect TaxID or other information on taxpayers
  2. Require bitcoin exchanges to report all bitcoin purchases/sales to the government.
  3. Require merchants accpeting bitcoin to declare all sales to the government, including links to specific transactions in the blockchain and the dollar amount of goods sold.
  4. Require the government to process these reports, determine tax obligation, and send them to taxpayers.
Under Scenario #2: Same as above, but require all merchants accepting bitcoin to collect similar TaxID on all customers.
Here is an example under scenario #1:
1: A user buys bitcoin at a bitcoin exchange. The bitcoin exchange sends a report to the government, detailing the SSN or TaxID of taxpayer, total dollars paid, and total bitcoin recieved, and bitcoin transaction reference.
2: A user spends the bitcoin on goods and services. The bitcoin accepting merchant sends a report to the government, including the value of goods sold, bitcoins renderd, and bitcoin transaction reference.
3: IRS determines the identity of the taxpayer from previous transactions linking back to an exchange.
4: IRS calculates the gain or loss due to bitcoin appreciation/ depreciation and calculates tax liability.
5: IRS sends report to taxpayer.
Under this system, taxation is guaranteed by the cooperation between the bitcoin exchange, bitcoin accepting merchant, and the IRS (or other tax authority) regardless of what the user does. It is simple for the user, imposes minimal costs for all businesses, and guarantees compliance with tax law. However, it will alter the fungiability of bitcoin: under this system: a bitcoin is no longer equal to a bitcoin, because the IRS is now watching it and whoever spends it at a store will have to pay taxes on the basis of all gains from since it was bought. A coin bought while the price was high will be worth more than a coin bought when the price was low, because they will produce different obligations upon spending them in a store. Is this a future that we can accept? I don't know.
On the other hand, scenario #2 has problems of its own. Lets follow the money:
1: User buys bitcoins at exchange, exchange reports sale to IRS
2: User buys goods or services from a merchant with bitcoins, but must provide taxID to the merchant.
3: Merchant reports the transaction and taxID to government (this could be an automated electronically).
4: IRS compiles all bitcoiin transaction for the user, calculates tax obligation, sends report to taxpayer.
So now the bitcoins are fungiable, equal in the eyes of the law, but now users must provide sensitive information to merchants. If customers provide fraudulent information to merchants, then they could escape taxation and even impose liabilities on people who have never heard of bitcoin. Merchants would need to collect identifying information on customers and verify their identity, which would defeat the whole purpose.
In conclusion, like I said in the beginning, for bitcoin to be wideley used, it needs the cooperation of banks and regulations that gurantee the status of bitcoin transactions, profits, and tax liabilities, both in terms of money and who is responsible for keeping what records. As I have shown, to guarantee tax payments, either merchants would have to verify the identities of users, or the fungibility of bitcoin would have to be compromised.
What do you all think?
submitted by Skyler827 to BitcoinSerious [link] [comments]

01-04 20:23 - '**Bitcoin scalability problem** / The bitcoin scalability problem refers to the discussion concerning the limits on the amount of transactions the bitcoin network can process. It is related to the fact that records (known as...' by /u/WikiTextBot removed from /r/Bitcoin within 0-5min

'''
Bitcoin scalability problem
The bitcoin scalability problem refers to the discussion concerning the limits on the amount of transactions the bitcoin network can process. It is related to the fact that records (known as blocks) in the bitcoin blockchain are limited in size and frequency.Bitcoin's blocks contain the transactions on the bitcoin network. The on chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the block size limit. These jointly constrain the network's throughput.
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Explain why it is computationally infeasible for anyone to generate a Bitcoin transaction that reference its own output as an input. /r/Bitcoin

Explain why it is computationally infeasible for anyone to generate a Bitcoin transaction that reference its own output as an input. /Bitcoin submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Why it is computationally infeasible for anyone to generate a Bitcoin transaction that references its own output as an input?


submitted by knowme_or_hateme to BitcoinBeginners [link] [comments]

Using references in order to compress the byte size of transactions /r/Bitcoin

Using references in order to compress the byte size of transactions /Bitcoin submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

“Consensus” refers to two distinct issues in Bitcoin: • which set of transaction and block validation rules are Bi… https://t.co/I3wBvZ893L - Crypto Insider Info - Whales's

Posted at: August 24, 2018 at 05:26PM
By:
“Consensus” refers to two distinct issues in Bitcoin: • which set of transaction and block validation rules are Bi… https://t.co/I3wBvZ893L
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submitted by cryptotradingbot to cryptobots [link] [comments]

Lets stop referring to Bitcoin-BTC/Segwitcoin as a crypto currency. It can no longer be a currency because of AXA/BlockStream's policy of high fees and unreliable transactions. /r/btc

Lets stop referring to Bitcoin-BTC/Segwitcoin as a crypto currency. It can no longer be a currency because of AXA/BlockStream's policy of high fees and unreliable transactions. /btc submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

How much to pay as a fee for a transaction to move Bitcoin? Does this reference site work?

Trying to get the greenaddress wallet to work. Seeing an error saying the fee is to low for a transfer. It was set to 'normal' transaction in the config.
This site: np//bitcoinfees.earn.com/#fees would suggest that the fee per kb should be about btc 0.0000033/kb for a quick throughput. So... why does GreenAddress say it is too low?
What are the average BTC/kBvalues for GreenAddress normal transactions?
submitted by FutureTravel to Bitcoin [link] [comments]

Bitcoin transaction instant? "Nothing ever happens instantly without tearing a hole in space-time. When you instantly hit the steering wheel column in a car crash it happens in a fraction of a second but we always refer to such events as instant." HUH?

Bitcoin transaction instant? submitted by AussieCryptoCurrency to Buttcoin [link] [comments]

Does ethereum have an equivalent of bitcoin's compact blocks/xthin where propagated blocks do not include the transactions because the nodes already have them, instead they just reference them, shrinking the block by an order of magnitude or two?

If not, is this on the roadmap?
Seems like very low hanging fruit in the scaling wars....I only learnt about it yesterday and am wondering why all crypto doesn't do this by default!
submitted by PumpkinFeet to ethereum [link] [comments]

How much to pay as a fee for a transaction to move Bitcoin? Does this reference site work? /r/Bitcoin

How much to pay as a fee for a transaction to move Bitcoin? Does this reference site work? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

When I have a reference transaction ID at Kraken, is it possible to see what kind of transaction happened there? /r/Bitcoin

When I have a reference transaction ID at Kraken, is it possible to see what kind of transaction happened there? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Is it possible to cancel a transaction erroneously forcing a double spend? Would anyone give me some explanation or reference? /r/Bitcoin

Is it possible to cancel a transaction erroneously forcing a double spend? Would anyone give me some explanation or reference? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

REFER PEOPLE TO OUR SITE AND EARN #BITCOINS FOR EVERY SUCCESSFUL TRANSACTION! https://www.spicepay.com @SpicePay #btc #blockchain

REFER PEOPLE TO OUR SITE AND EARN #BITCOINS FOR EVERY SUCCESSFUL TRANSACTION! https://www.spicepay.com @SpicePay #btc #blockchain submitted by spicepayuser to 16bitcoin [link] [comments]

What would be the security implications of slicing the blockchain after every N blocks by creating a "reference block" containing all the transactions that are still present in the UTXO pool? /r/Bitcoin

What would be the security implications of slicing the blockchain after every N blocks by creating a submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Can transactions in bitcoin refer in a compact way to old outputs or is everything very verbose?

Just curious, say we have 1 MB to work with as the blockchain. At the outer limits of this, a simple bitcoin transaction could be a set of inputs, a set of outputs, and some crypto to prove you have the keys to the inputs that you're moving around.
If we literally have to specify every address and the amounts and every output address and those amounts, then sign the thing, then the transactions are going to be pretty large by necessity.
But if we had a "code book" to look up addresses in, like ... the address mentioned as the 5th output in block #2011, plus the address mentioned as the 3rd output in block 4014, move this much bitcoin to this all new address: ___ , and send the rest (minus the fee) to the 6th output of block #3303, and then the fee explicitly is 0.002 bitcoin. And sign it, and done.
Wouldn't that save a lot of space? Does bitcoin do something like that or is there a BIP for saving space like that?
Thanks
submitted by walloon5 to Bitcoin [link] [comments]

A BIP proposal for conveniently referring to confirmed transactions | Clark Moody | Jul 14 2017 /r/bitcoin_devlist

A BIP proposal for conveniently referring to confirmed transactions | Clark Moody | Jul 14 2017 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Can transactions in bitcoin refer in a compact way to old outputs or is everything very verbose? /r/Bitcoin

Can transactions in bitcoin refer in a compact way to old outputs or is everything very verbose? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

How To Check Any Bitcoin Wallet Balance And Bitcoin Transactions  Bitcoin Book Give Away How To Check Someone Bitcoin Wallet Balance And Bitcoin Transactions  2020 Broadcasting Bitcoin transaction data on DVB-T Bitcoin up $1,000 in 30 minutes - Bitcoin Today [June 2nd 2020] Blockchain tutorial 27: Bitcoin raw transaction and transaction id

Bitcoin Transaction Fees is a fee which's included with any transfer of bitcoins from one address to another. Transaction relaying . The reference implementation's rules for relaying transactions across the peer-to-peer network are very similar to the rules for sending transactions, as a value of 0.00001 BTC is used to determine whether or The Bitcoin Cash Protocol has evolved since its inception by Satoshi Nakamoto in 2009. These evolutions have taken form in live network protocol changes, hard forks, and soft forks. The greater Bitcoin community has attempted to document the protocol many times since the creation of the network. Bitcoin transaction fees (sometimes referred to as mining fees) allow users to prioritize their transaction Each Bitcoin you own, at its core, is just a reference to past transactions that were sent to you, adding up to the amount you own. These references are known as inputs. Raw Transaction Format¶. Bitcoin transactions are broadcast between peers in a serialized byte format, called raw format.It is this form of a transaction which is SHA256(SHA256()) hashed to create the TXID and, ultimately, the merkle root of a block containing the transaction—making the transaction format part of the consensus rules. We investigate arbitrage at four decentralized bitcoin exchanges that contribute to calculation of the index serving as the underlying price for the C…

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How To Check Any Bitcoin Wallet Balance And Bitcoin Transactions Bitcoin Book Give Away

Watch as Paypal and Bitcoin battle it out in 2019 for the highest total transaction volume in USD. Venmo and other top proof of work coins are also included for reference. How to find the transaction ID in your Blockchain.info Bitcoin wallet - Duration: ... Reference number kya hai ? Full Information about Reference Number. Assembly Summer 2014 seminar presentation. Joel Lehtonen from Koodilehto is talking about their new upcoming experiment: two months when bitcoin transaction data is broadcast nationwide in Finland ... This is part 27 of the Blockchain tutorial. This tutorial explains: - What Bitcoin raw transaction is. - Shows an example of a raw transaction using the very first transaction on the Genesis block. Bitcoin just like a type of payment for products and services has observed growth,[13] and merchants add a motivation to just accept digital currency because cost is beneath the 2-3% typically ...

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