Hawk Tuah

ivrytwr3 said:
I read with horror in the Crypto thread here that some believe buying crypto is an 'investment'.

I was in crypto, made a chunk, but at no point did i think i was 'investing'. Pure luck and following the hype/FOMO.
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It's mad isn't it?

I've got a small amount of eth - currently about £2k worth, so not a trivial amount but not exactly cryptolambo territory. However it's all from mining, so my only "investment" is a couple hundred in electricity bills.

I'm under no illusions that it's anything but monopoly money until I cash it in and it's sitting my bank account in GBP, but then you hear about people who pour their entire life savings into it, and just think "wtf is wrong with you?!"
 
Haggisman said:
It's mad isn't it?

I've got a small amount of eth - currently about £2k worth, so not a trivial amount but not exactly cryptolambo territory. However it's all from mining, so my only "investment" is a couple hundred in electricity bills.

I'm under no illusions that it's anything but monopoly money until I cash it in and it's sitting my bank account in GBP, but then you hear about people who pour their entire life savings into it, and just think "wtf is wrong with you?!"
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People just want easy money and cannot be bothered. There are plenty of things you could put savings into. Re-educating into a better paid job being a prime example that a lot of people overlook and on the whole is quite low risk.

I haven't looked into it but because Crypto is unregulated does that mean there is little chance anyone will get any jail time whilst running off into the sunset with big bags of cash?
 
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So, not sure if this is correct, but from a HMRC and tax perspective.

If you buy and trade Crypto, tax liability occurs when you sell and trade it, at the time of trading, it's value. Even to another coin, not just to GBP. CGT applies.

If you mine it, you pay tax at the time of mining, so if you mined something when it was worth millions, now it is worth pennies, you end up owning a ton to HMRC as it counts as earnings as opposed to Capital Gains Tax)
 
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To be honest, playing a bit of devils advocate but not excusing her ignorance, listening to her advisors/partners/pimps on that video she has been totally taken in by these crypto fraudsters and made the frontperson/scapegoat for this scam. She doesn't come across as a person that would intentionally scam people.. Or have a clue how to..
 
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Raymond Lin said:
So, not sure if this is correct, but from a HMRC and tax perspective.

If you buy and trade Crypto, tax liability occurs when you sell and trade it, at the time of trading, it's value. Even to another coin, not just to GBP. CGT applies.

If you mine it, you pay tax at the time of mining, so if you mined something when it was worth millions, now it is worth pennies, you end up owning a ton to HMRC as it counts as earnings as opposed to Capital Gains Tax)
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Yep. Which makes it very tricky if you a receiving it constantly and in low volumes or are doing a lot of trading as you need to keep a lot of records. There are some dedicated crypto tax software companies that make this much easier however.

As you say though, the risk is that your tax exposure can be huge despite the asset becoming worthless. I assume there are quite a few people out there who would be utterly screwed if HMRC ever got the ability to actually link wallets to people and could see when people received crypto.

Luckily the government seems intent on putting anyone of any sort of speculation with their money and simply wants you to be a good worker bee in a salaried job taking no risks and keeping the economy stagnant so less people will have to worry about things like capital gains etc.
 
Diddums said:
Really? What makes you think that? I thought it was all hedge funds and Wall Street that bought these crypto coins.
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Here is why I think that.

My brothers friends lost money in a crypto rug pull. In the course of the conversation with my brother it was implied that the guy knew it was a rug pull but he was hoping to get his money out just before crashed.

I believe it was in a coffeezilla video he showed a discord screenshot of a group. These people had been left holding the bag and from the messages it was implied that they were trying to time the rug pull but missed there chance and had lost tons of money. I remember a comment in the video pointing out the irony of feeling sorry for them as they were in the position that they had planned to put others in.

In other videos I’ve seen it has been implied that people are gambling on these meme coins because they missed the opportunity with bitcoin prices skyrocketing and are essentially hoping to make up for it.

Back during 2020 I could understand people falling for it but in 2024 we have had soo many crypto scams that I struggle to believe that anyone who buys meme coins buys it because they genuinely thought it was a legitimate long term investment. I admit to having never having opened a crypto wallet but I reckon that when searching up instructions on how to do it, you would surely come across some article or comment about people being scammed in these rug pulls. And anyone stupid enough to ignore all those red flags probably isn’t smart enough to open a crypto wallet without help.
 
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I think @Diddums was being sarcastic there, certainly with this coin they specifically stated they're trying to bring in people new to crypto etc.. (thus the use of this eCeleb/viral video person).

Though of course new to crypto people = just more marks for their exit liquidity.
 
dowie said:
I think @Diddums was being sarcastic there, certainly with this coin they specifically stated they're trying to bring in people new to crypto etc.. (thus the use of this eCeleb/viral video person).

Though of course new to crypto people = just more marks for their exit liquidity.
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Whoops. :o

They also said it wasn’t a rug pull. I would not take anything they say seriously.
 
Raymond Lin said:
So, not sure if this is correct, but from a HMRC and tax perspective.

If you buy and trade Crypto, tax liability occurs when you sell and trade it, at the time of trading, it's value. Even to another coin, not just to GBP. CGT applies.

If you mine it, you pay tax at the time of mining, so if you mined something when it was worth millions, now it is worth pennies, you end up owning a ton to HMRC as it counts as earnings as opposed to Capital Gains Tax)
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I was careful to to keep my annual mining "income" <just> below the £1k trading allowance, so no tax due at the point of receiving it ;)

If/when I do sell it then I will probably be liable for CGT though :(
 
adidan said:
TLDR this thread.

I get the impression though that people with little knowledge of crypto lost money thinking they could get rich quick, but didn't?

Fool, money, yada yada yada.
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Yea, I don't know who drops their life savings on "we're building a community".

They probably think they're getting in early but realistically are the only ones buying it because they believe some pseudo-celebrity.
 
TFW they're asking awkward questions and she just decides to go to bed:

She sounds like a cartoon! :D

Raymond Lin said:
So, not sure if this is correct, but from a HMRC and tax perspective.

If you buy and trade Crypto, tax liability occurs when you sell and trade it, at the time of trading, it's value. Even to another coin, not just to GBP. CGT applies.

If you mine it, you pay tax at the time of mining, so if you mined something when it was worth millions, now it is worth pennies, you end up owning a ton to HMRC as it counts as earnings as opposed to Capital Gains Tax)
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That sounds about right though it would typically cost millions to mine something worth millions (margins from mining are rather low) and at that level you'd either be putting it in a ltd company or making sure you're classed as a sole trader ergo it's all trading/income related and can be offset + you'd probably locate it somewhere else in the world with cheap electricity.

There probably are some situations where that income vs CGT anomaly potentially could arise but it's likely to be re: small sums.
 
how does 500mil even end up in the coin in the first place?

What was it's claimed "worth" at launch?

IDK why people even buy these things... what do they think is going to happen with the coins? it's practically donated to a streamer in coin form..
The coins exist for 0 reasons. at least BTC etc you can hide wealth in or even spend them, also the mega corporations of the world started buying BTC int he billions, so they are a proper financial asset now for all intents and purposes.
 
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