Investing

Bitcoin and Ether

  • Last Updated:
  • Jun 28th, 2017 7:27 am
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[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham

Bitcoin and Ether

Anyone invested in those two? Bitcoin has increase dramatically over the year.

Ether is a new type of currency and it's gaining a lot of traction. The digital currency has tripled in a matter of weeks.

Any thoughts?

It is also tax free if you make money on them too. Not considered a capital gain.
776 replies
Sr. Member
Nov 18, 2015
514 posts
294 upvotes
Unionville, ON
How do you buy those stock (Bitcoin/Ether) anyway?
I honestly haven't looked into it too much but would be interested to learn a bit more...
[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham
There isn't a listed secondary market ETF that track it. you can google the recent decision by the fed.

You have to sign up for a digital currency trading account.
[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham
This is a grey area.

If you buy USD and go shopping in the US, do you have to pay captain gains on the USD?

It's all on how you define it. The virtual currency allows you to purchase items later.

If you buy Bitcoin in CAD and then Sell the bitcoin later for CAD at a profit. I agree it is a taxable gain.
[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham
Interesting sub topic on the tax of digital currency.

http://www.cra-arc.gc.ca/nwsrm/fctshts/ ... 5-eng.html

If traded like a commodity, then it's a taxable event.
If you are a seller of a service/item and you receive digital currency, it's taxable.

What it doesn't show, is if you purchase Digital currency and later use it for items. i.e. similar to buying USD or GBP and then in turn purchase things in US or England.
I don't think this is a taxable event. Very much like you obtain foreign currency for vacation.
Jr. Member
Apr 15, 2014
171 posts
41 upvotes
Guelph, ON
Hey, posted here a few times about bitcoin but it always turns into a toxic discussion where people who dont understand the technology argue about it being a scam or pyramid scheme. its almost futile to argue with them.

I posted this back in Dec 2016 when it was at less than half its current value: bitcoin-looking-very-interesting-moment-1845499/
Anyone who invested at that point would have made between 100%-200% return on investment.

As for the current climate, I sold 66% of my bitcoins yesterday as there has been some turmoil in the community for some time now. There is a large amount of fee's that are required to use bitcoin at the moment because there are so many transactions being made and only so much memory that can be stored in each bitcoin block. One group wants to solve this one way (core, segwit) and the other wants to solve it another (BU). Neither one supports the other and it is just causing a divide in the community (i,e., see reddit /bitcoin vs /btc). There is also a ton of issues with censorship on reddit where anyone vocal about specific issues is banned/deleted.

Anyways, I dont know if its a good time to buy to be honest, but I am in no way an investment specialist. I also exchanged 25% of my btc for ether as a safety measure incase bitcoins infighting becomes so toxic that ether does overtake it.

Ether is very interesting, and the technology has already solved a bunch of the problems that bitcoin is facing right now.
Deal Fanatic
User avatar
May 9, 2009
5024 posts
866 upvotes
Montreal
atang810 wrote:
Mar 17th, 2017 9:23 am
Anyone invested in those two? Bitcoin has increase dramatically over the year.

Ether is a new type of currency and it's gaining a lot of traction. The digital currency has tripled in a matter of weeks.

Any thoughts?

It is also tax free if you make money on them too. Not considered a capital gain.
Do you mean Ethereum?
[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham
psyko514 wrote:
Mar 17th, 2017 2:27 pm
Do you mean Ethereum?
Yes. Ethereum is the platform, Ether is the digital currency.
Deal Addict
Jul 28, 2009
1310 posts
217 upvotes
I own some ETH. Just bought some a year ago for fun and left it there, looking good :)
Deal Fanatic
User avatar
May 9, 2009
5024 posts
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Montreal
atang810 wrote:
Mar 17th, 2017 3:03 pm
Yes. Ethereum is the platform, Ether is the digital currency.
Ah, cool. I had heard of Ethereum a lot but never Ether so I assumed Ethereum was the name of the currency.
Penalty Box
Dec 15, 2013
56 posts
11 upvotes
Edmonton
Hey guys, the price for Bitcoins went 20% down. I think it's a good time to buy Bitcoins right now. Which website do I go to buy it Bitcoins or ethereum?
Member
Aug 7, 2014
239 posts
61 upvotes
atang810 wrote:
Mar 17th, 2017 11:28 am
Interesting sub topic on the tax of digital currency.

http://www.cra-arc.gc.ca/nwsrm/fctshts/ ... 5-eng.html

If traded like a commodity, then it's a taxable event.
If you are a seller of a service/item and you receive digital currency, it's taxable.

What it doesn't show, is if you purchase Digital currency and later use it for items. i.e. similar to buying USD or GBP and then in turn purchase things in US or England.
I don't think this is a taxable event. Very much like you obtain foreign currency for vacation.
Whether taxable 100% as business or adventure in the nature of trade, or 50% as taxable capital gain, depends on the original intention upon purpose, frequency of transactions, etc.

When the currency is bought for personal vacation, the exchange gain or loss is negligible or to be bothered by a taxpayer or CRA.
Newbie
Mar 19, 2017
3 posts
3 upvotes
dealfinder219 wrote:
Mar 20th, 2017 11:23 am
Hey guys, the price for Bitcoins went 20% down. I think it's a good time to buy Bitcoins right now. Which website do I go to buy it Bitcoins or ethereum?
I used to buy off canadianbitcoins.com, it's probably the easiest way since they accept a lot of Canadian forms of payment, but the spread on their transactions is absolutely terrible.

I've moved to kraken.com/, which is the biggest cryptocurrency exchange out there, but because it's not Canadian, you're required to wire money to a Japanese bank to fund your account. But I can assure you that it's totally legit.

I'd personally advise for investing in Ether vs Bitcoin for all the reasons the posters above have listed. Read up a bit on what Ethereum can do - it's starting to get a lot of institutional adoption recently and is still in its very early days IMO.
[OP]
Member
Apr 9, 2012
412 posts
93 upvotes
Markham
psudolam wrote:
Mar 20th, 2017 11:47 am
Whether taxable 100% as business or adventure in the nature of trade, or 50% as taxable capital gain, depends on the original intention upon purpose, frequency of transactions, etc.

When the currency is bought for personal vacation, the exchange gain or loss is negligible or to be bothered by a taxpayer or CRA.
So suppose you bought $20k CAD of Bitcoin and then use the Bitcoin later to buy USD (gain or loss). If you haven't converted it back to CAD, how can you ever track the gain loss? And then you use the USD later to buy stocks and also use for vacation?

I can see how it's very easy to create a taxable event when it's $20kCAD bit coin and then back to CAD at like $22kCAD. But how do you track it when you have multiple transactions and never translate back to CAD?

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