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2021 - What did you do today in the world of Crypto?

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OP
stompah

stompah

Deep Pain Senior Member
Joined
Apr 16, 2001
I moved some coin around. Let me tell you the pain of moving a small amount of coin around hurt.

I do enjoy the mining profits tho.
 

mackerel

Member
Joined
Mar 7, 2008
Just cashed out the rest of my ETH and blew it all on hardware. Put in an order for a 3070 gaming laptop.
 

mackerel

Member
Joined
Mar 7, 2008
Given the high price of ETH recently I put on even my less efficient GPUs (Pascal). That takes me to around 200MH/s although I might be able to get another 10% out if I spend time to tinker with the memory clocks.

I need to work out a better profitability calculator some time. Roughly I get 0.05 ETH every 7 days if I run everything, and every 10 days if I only run the more efficient GPUs (Turing, Ampere). I note it dropped a bit overnight, still high long term but ball park 10% down on yesterday. I don't think I'd have the mentality to be a day trader. BTW to my understanding in UK, personal mining income is taxed as "other income" calculated value at the time of receipt, and not allowed to apply deductions e.g. electricity or hardware costs. So I have to be profitable after taxed income. I didn't meet thresholds to be taxed in previous years, and this tax year might be the first where I get enough to be reportable. On the other side, I don't expect any other significant income so I might get away without income tax anyway, or at worst be in the lowest band which is hardly anything. Chance in value of crypto is subject to capital gains tax, but since I don't hold long term again I don't expect to be anywhere near the thresholds where I actually get taxed for that.

Does Ethereum network difficulty affect client hashing rate? It feels like mine might have gone down slightly since I started earlier in the year. Also when looking up the network difficulty, the value is much higher than the difficulty reported in client. I have no idea how that works...
 

Blaylock

"That Backfired" Senior Member
Joined
Jun 5, 2013
Location
Go Blue!
Elon Musk posted that he will no longer accept Bitcoin essentially because of an inefficient energy grid. One person's comment was enough to drop all cryptos within minutes. It just shows you the power and influence one person can have.

Pretty sure the taxes are done the same way here in the states. I pay a tax accountant every year, so I'm planning on letting him handle it. I'll provide whatever he needs, but I'm not going to stress about it. The gear I bought this year is already paid for (this is assuming the value doesn't drop much more) so the rest that I make will pay Uncle Sam and I'll keep the rest.
 

mackerel

Member
Joined
Mar 7, 2008
I saw that news but didn't make the connection. I noticed there were some dips compared to recent peaks, but overall value is still fine taking a longer average.

On taxes, I've tried to keep my tax as simple as possible where I don't have to do anything. If you have a single regular employed job, the employer handles the reporting so you don't need to do it yourself. That changed a couple years ago when I inherited a house which is generating rental income. I have to report that, and as a side effect, I have to report values and the gov tells me if I under/overpaid and correct accordingly. Crypto is in a similar category but since I'm reporting the rental income, it just means possibly some additional numbers in a different box I have to fill in now. I just need to understand how to get those cash equivalent numbers since my gov doesn't accept crypto :)
 

Blaylock

"That Backfired" Senior Member
Joined
Jun 5, 2013
Location
Go Blue!
See, that's that part I don't understand, at least here in the States.

If you buy stocks you don't need to claim anything until you sell. That's when profits or losses are determined. How is crypto any different? If I mine 2 ETH over a 1 year period and sell it on Dec 1st, the profit should be simple, whatever it sold for. The way they are doing it here, if I have this right, Each time a pool pays out, that is what you made as a profit, even if you are holding. So are we going to be double taxed when the value rises and we sell? Also, if this is considered income then we should be able to write off expenses.
 

Janus67

Benching Team Leader
Joined
May 29, 2005
Yeah it doesn't make sense to me either. That and I have no idea how they can possibly track that info if you aren't going to a tracked exchange and immediately converting.

 

mackerel

Member
Joined
Mar 7, 2008
If you buy stocks you don't need to claim anything until you sell. That's when profits or losses are determined. How is crypto any different?

If you buy and sell crypto then it works the same. Mining is where it gets different. You didn't buy the crypto, but you acquired value through mining. UK tax sees that as as "other income" and thus must be reported if over a threshold per tax year. Potential tax liability when you sell is then calculated on the change in value over that time and isn't income any more, but capital gains.

A parallel when I used to have a day job, I was employed and worked in the UK, but the company I worked for has US HQ. As part of my package I got shares in the company listed on NYSE. When they are given to me, I get taxed on their value at that time. I can't lose, because the company deducts the share of shares required to cover the value of tax due to me receiving them. Made up example, say I get 100 shares but the tax due to receiving them is 40 shares, I therefore receive a net amount of 60 shares. If I sell it for much more or less than that, then capital gains might come into play again.

Edit: above is written for an individual doing mining. I think if you were to run a company to do mining, then you might have a better argument for offsetting costs and equipment. However I'm not familiar with business regulations so I could be wrong.

Personally, it would be nice if I could consider the crypto acquisition through mining as buying at 0 cost, then when selling it all goes to capital gains, but it doesn't work like that here. I generally have a large capital gains allowance that never gets used, whereas my income pot up to this tax year has been rather full. With no job currently I do have a lot more slack in my income allowances so it doesn't make a difference to me personally unless I go get a job later this tax year.
 
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Blaylock

"That Backfired" Senior Member
Joined
Jun 5, 2013
Location
Go Blue!
So I've been playing around in HiveOS for a couple of days now and I think I have a decent handle on how it works. I've managed to rework my OC/UV as the windows settings are not optimized for Linux. I'm back up to the same hashrate I was in Windows but managed to lower my Wattage from 500W to 475W at the wall (whole system). I really like the layout of HiveOS and especially like the option of managing the miner remotely. The only issue is a complete system freeze. Not much you can due accept power button reboot (that I've found). Now to let it work for a few days/weeks and see how stable it is long term.
 
OP
stompah

stompah

Deep Pain Senior Member
Joined
Apr 16, 2001
I also thought about what happens when I am out of the house and a system freezes. At this point the best solution I have come up with is a Rasp Pi or Arduino to access remotely and hit a reset switch.
 

ZL1

Senior Crypto Caretaker
Joined
Oct 24, 2003
I also thought about what happens when I am out of the house and a system freezes. At this point the best solution I have come up with is a Rasp Pi or Arduino to access remotely and hit a reset switch.

get a smart power plug, super useful for mining ;)
 

tRidiot

Premium Member
Joined
May 17, 2003
Crypto's taken a beating this week... ETH still well above where it was a month ago, though. I'll stick it out.
 

Blaylock

"That Backfired" Senior Member
Joined
Jun 5, 2013
Location
Go Blue!
I had a micro-panic as I was in the green for the last few days and it dropped me back in the red. I sold all, but bought back about 30% at a lower price so feeling ok about it.

I just needed to secure most of my ROI.
 

Janus67

Benching Team Leader
Joined
May 29, 2005
I stopped caring about ROI in the short term after having done that in 2012 and 2014 and 2016. Having held onto those amounts since then I'd be up 100fold [assuming no selling between then and now]. I look at it as the cost of business. Unless I had a huge mining farm [2 cards doesn't count, lol], even like I did with my 12x 280x/290/290x farm years ago.
 

ZL1

Senior Crypto Caretaker
Joined
Oct 24, 2003
I stopped caring about ROI in the short term after having done that in 2012 and 2014 and 2016. Having held onto those amounts since then I'd be up 100fold [assuming no selling between then and now]. I look at it as the cost of business. Unless I had a huge mining farm [2 cards doesn't count, lol], even like I did with my 12x 280x/290/290x farm years ago.

very true, I would of been much better off not trading also lol
 
OP
stompah

stompah

Deep Pain Senior Member
Joined
Apr 16, 2001
What I want to know is why my ETH mined varies so much. I will undulate from 1ETH to 1/2ETH and then back up and down. Such a spread.

I am less worried about the USD value of ETH and more interested in stacking ETH for the long term.
 

ZL1

Senior Crypto Caretaker
Joined
Oct 24, 2003
What I want to know is why my ETH mined varies so much. I will undulate from 1ETH to 1/2ETH and then back up and down. Such a spread.

I am less worried about the USD value of ETH and more interested in stacking ETH for the long term.

simple, them fees :)
ETH during heavy trading seasons, like them dips has high fees, was around 8-9 during last one, then it drops back to around 3 per block https://etherscan.io/blocks