currencies – Question about the efficacy and safety of Privacy Cryptos like XMR, Zcash, etc

new here and haven’t found an answer to this conceptual question:

Crypto is said to have solved the coordination problem through rewards and punishment (honest users are rewarded; dishonest users are punished). From my understanding, this is dependent on transparency of the blockchain as it would be impossible to hold an anonymous user accountable for dishonest behavior. While dishonest use can be considered subjective, I read that BTC addresses this by allowing users to manually adjust their network to exclude dishonest nodes. To do this, one must be able to identify the “dishonest” node.

With something like Monero, I learned that the two nodes involved in a transaction are completely anonymous and that the transaction is also obscured. If this is true, then wouldn’t it be impossible to identify and take action against a dishonest user? Without the ability for an individual node to subjectively discriminated between honest and dishonest nodes, wouldn’t you lose all the trust in the system? How would this satisfy the coordination problem if there’s no longer a means of punishment.

If that’s a bit confusing I can elaborate: The Lemon vs. Peach problem often used by Monero enthusiasts describes a situation where the seller has an advantage in a transaction because they have relevant knowledge of the merchandise. If the seller continues to sell lemons, then eventually all the peaches will disappear due to buyer uncertainty within the system. It seems to me like this relates to privacy cryptos in general. If one participates in an anonymous transaction online, then the seller has the advantage. If the buyer is cheated once, then how can they be certain that they’re not dealing with the same “dishonest” seller in their next transaction? We have a system of rating IRL where you can write a review for a business to let others know that they’re reputable or “honest”, whereas with privacy crypto you can’t even recognize who you did business with.

Doesn’t this pose an issue for privacy crypto in general? You’re kind of entering into transactions based on blind trust with no option for recourse? Is this just the nature of privacy cryptos/privacy in general? You’ve effectively reduced the trust within a network to zero if members cannot actively recognize and choose who to trust.

Would it be incorrect to assume that Monero/privacy cryptos depend on IRL credibility with total node anonymity whereas Bitcoin connects the two assuming you didn’t anonymously acquire BTC?

currencies – Understanding liquidation when trading Cryptocurrency in ByBit

I’m trying to understand how to trade cryptocurrency using ByBit but as you can see I have no idea what I’m doing.

I had $100 dollars (0.0460 ETH) and I got liquidated in less than an hour.

Can someone please explain how did that happen so quickly based on the settings below?

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My understanding was that I was going enter at the Etherium price of $2,115 and that the trade would close at either $2,300 or $2,089 whichever hit first.

How did I lose the whole $100/0.0460 ETH, I’m confused.

currencies – What Taxes Cryptocurrency Owners Will Pay In 2021?

The cryptocurrency market is booming once again. The market has risen to new highs, driving investors to buy bitcoins and take advantage of this opportunity.

Some people might even have reached their take-profit threshold by now, seeing that the price of cryptocurrencies has already made x10 returns in some cases. But taking profit also means that these investors will probably need to pay taxes when they sell their crypto.

However, finding out how to pay your crypto taxes doesn’t seem to be the easiest thing to do. The crypto industry is still in its nascent state, and governments around the world haven’t figured out how to regulate them. There’s no clear guideline, and tax regulations differ greatly from one country to another.

This article will attempt to help you out in this regard. This post should allow you to find out what the tax authority in your country expects from you when you sell or own cryptocurrencies.
How are cryptocurrencies regulated?
Unfortunately, there’s no single answer to this question. Some countries have clear tax regulations for cryptocurrencies. Others, on the other hand, leave them in a gray area, either completely ignoring them or to be left for interpretation.

Some countries have even chosen to outright ban them. This is a result of a general misconception that cryptocurrencies are mainly used for black market purchases, money laundering, or funding terrorism.
Do you need to pay taxes on crypto?
With that said, even in countries where crypto isn’t clearly regulated, you might be not exempt from paying tax upon realizing a profit. Make sure you inform yourself of the taxation of crypto in your country.

Failing to comply with tax requirements is punishable by law, and is considered a crime almost anywhere in the world. It would be unfortunate to receive a hefty fine just because you didn’t know how to declare and pay your cryptocurrency taxes.
How does my country tax cryptocurrencies?
Below, we take a look at some of the major countries in the world and how they tax cryptocurrencies.

USA
In the USA, Bitcoin and other cryptocurrencies are considered as “property”. This means that they are taxed for capital gains, similar to company stocks and bonds. With that said, in some cases, crypto is subject to income tax as well.

Users are supposed to pay tax on capital gains from crypto in the event they:

Sell crypto for traditional money.
Use crypto to buy goods and services.
Trade cryptocurrencies for other assets of this type.

On the other hand, they are subject to income tax in the event they:
Receive gains from decentralized finance product yields
Receive crypto from airdrops
Generate profits from mining
Generate profits from staking
Receive crypto for services or work.

Worth noting is that cryptocurrency losses are also tax-deductible and can be used to reduce your overall tax bill as well.

This guide gets updated regularly and should help you fill in your crypto taxes if you reside in the US.
EU
The EU doesn’t have a blanket regulative for taxing cryptocurrencies. Instead, every country has a different approach to this matter, with some of them being extremely tax-friendly.

There has been a push toward a common framework to tax bitcoin and similar cryptos, but for the time being, taxation is still up to individual countries.

Below are a few examples of such regulations by country:
Germany
Germany has one of the most favorable countries in Europe regarding cryptocurrencies. The reason behind this is because the German government encourages crypto holdings. Although bitcoin is taxable in Germany, as long as you keep your crypto for more than a year, you don’t have to pay taxes.

While not ideal for day traders, it’s one of the best countries for holders and investors.
Portugal
While it may seem surprising, Portugal is one of the most tax-friendly countries when cryptocurrencies are concerned. As such, all crypto earnings in Portugal are tax-free. This includes selling, mining, and trading.

For more details on each country, visit this helpful guide.
Russia
The Russian government has had a complicated history with cryptocurrency regulations. While it doesn’t approve of the free use and trading of cryptocurrencies, it has recently passed a law where it requires crypto holders to declare all crypto income exceeding $8200/year.
China
Similar to Russia, the Chinese government doesn’t recognize cryptocurrencies as legal money. However, due to the large mining operations situated in the country, the government has decided to tax all cryptocurrency revenue on its soil, whether it comes from mining or trading.
Conclusion
Cryptocurrencies are still being regulated and this trend will continue until a global framework is reached. Most countries don’t have a clear set of guidelines concerning their taxation and investors are often left with too little information on how to declare and pay their taxes related to cryptocurrencies.

If you are a cryptocurrency owner, make sure you are up to date with your country’s latest tax regulations on the matter. This will help you avoid hefty fines and even jail sentences for tax evasion.

currencies – Misconceptions About Cryptocurrency Mining

Well, if you want to make a passive income through bitcoin mining without buying any mining hardware then I’m gonna suggest to you a platform where you can make your money grow in very little time span. There are several platforms to grow your money and RKS crypto mining is one of them, where you can invest and make money out of it. The primary focus of this platform is to make cryptocurrency mining accessible from every corner of the world. Moreover, they have several investment plans which anyone can choose according to their feasibility. So what are you waiting for? Just visit the website to engage in cryptocurrency mining from anywhere in the world. [spam link removed]

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currencies – What is a bitcoin miners fee if transaction is free

I’m just browsing around and seen this site Topbtc.com which says it only accepts bitcoin deposits of 0.01 BTC or more.

I clicked on withdraw and it has a note: BTCWithdraw (Fee 0%, Only charge miners fees 0.01BTC)

Does this mean if you deposited 0.01 they would just swallow it for no reason? That will be a scam surely

currencies – Things You Should Know About Cryptocurrency

Well, you are at the right place to get into the world of cryptocurrency mining. RKS cryptocurrency is such a platform where you can grow your money in no time by just investing your initial investment. Furthermore, they have several investment plans on which one can invest on. The primary aim of this amazing platform is to make cryptocurrency mining approachable from every corner of the globe. So what are you thinking? Just go straight to the website and make your first investment. [Spam Link Removed][1]

Are two non-exchangable currencies possible in an MMO?

Imagine an Adventure Coin and a Merchant Coin.

Adventure coins can be spent on training and equipment, at in-game shops, but cannot be transferred between players.

Merchant coins can be transferred between players, and are used for investing in land, ferries, mills, etc.

Do any existing MMORPGs have such a system?

How can this work in the face of "bad money drives out good"?

currencies – I want to use a stablecoin to establish a digital marketplace

I am writing an app/game that has its own marketplace for digital items.

In the past, people would just make their own fake currency that could only be used in-game. Users would trade fiat money for this fake currency to purchase in-game virtual items.

Well, my idea allows for people to sell items in-game and I want to allow them to take the currency they make in-game and be able to trade it back to fiat-money. Either through my company directly or through popular exchanges.

I prefer to defer all the tax ramifications to the users, and the buying and selling of the coin to a third party.

What are my options? Should I make my own? what’s the process? I prefer a stablecoin because then people won’t be concerned (as much) about instability compared to fiat.

It seems the best choice is “DAI” but the transaction time is high and the gas fee is too high. There is “xDAI” but it seems to really complicate the process and I wouldn’t be able to offer an easy and quick way purchase xDAI

Others have commented that this is legally complicated, but why? DAI is used as a NFT for artwork/digital items and that’s what I want to do.

❕NEWS – Bordier & Cie SCmA now offer Crypto currencies services. | Proxies-free

This is one of the oldest bank in Switzerland, the bank now offer cryptocurrency services in partnership with sygnum bank, members operating with Bordier & Cie SCmAs will freely trade Crypto currencies on the Sygnum platform though sygnum won’t offer any financial or digital advise but just trading activities. Other banks that are into Crypto currencies trading include Maerki Baumann & Co., InCore Bank, Basler Kantonalbank, Julius Baer etc.