Most of the pieces are in place for creating a stablecoin that lets you legally declare 0% in capital gains tax every year. Let me explain.
I came across an idea here to create a coin that people could roll their capital into before declaring their taxes that would allow them to book a loss while not actually losing any money. The original idea was for a stablecoin that would “self destruct” and pop back up after the new tax year so that everyone holding it could loss harvest while in theory not lose anything.
Implementation:
* The stablecoin would be a fork off any algorithmic stable coin, with minor features detailed below
Features:
* Stablecoin remains pegged at $1 through most of the year
* Right before the new tax year the following events occur on the blockchain
** A snapshot of the blockchain is taken (detailing who holds how much)
** The stablecoin is “rebased” to $0
** All tokens are then automatically liquidated at $0 out of holders wallets (realizing the tax loss)
* After the new tax year a completely new clone blockchain (lets call it series B) springs up and new tokens are airdropped to wallet holders that were wiped out according to the previously referenced snapshot (of series A) effectively reimbursing them and restoring the blockchain to what it was before, just on a new chain (theoretically the new chain should achieve the same market cap as the previous chain in the series).
* Rinse repeat the above steps every tax year iterating on the series of new chains that spring up by 1.
So, buy the coin before the new tax year, get liquidated for 100% loss, file taxes, get airdropped your wealth back. Rinse repeat every year and never pay capital gains.
The last part of this problem is how to redesign the airdrop action in this system. The IRS declares airdrops as income so we need a different method to basically achieve the same outcome. This is where I'm hoping the community can come in. Thoughts from the jungle?
BTB or anyone running e-commerce biz, do you have a preference or opinion on digital products vs. physical products. The BTB vernacular seems more in-line with digital products however most of the e-commerce discussion on the stack seems to refer to physical products due to inventory references but could be wrong. I would also assume it's far cheaper to create and test products with digital/information products.
New here and would like some input. Considering the move in crypto's of late, what is the consensus on paying off debt now. I have been going 50/50 on debt vs investment. I was late to the crypto game and tried to catch up before the latest run. Didn't get there. Now wondering if I should go all in on getting my debt paid off? Or should I just continue to DCA and pay off 50/50?
If the first $50k biz fails should we invest another $50k with the knowledge learned from the first experience? Or if we cant get something running with that amount we are ngmi
To be honest I've been on the fence of getting back into ecommerce after leaving my last business and reading this post I'm feeling good about starting another company. Last time was a partnership, this one will be solo and I'll take the lessons I learned last time. Thanks for the great content always.
A product I buy regularly had its price go up, but they also improved its quality. Good move.
The alternative (reducing quality to keep costs down) is why you can't buy Olympia Beer anymore, even though it used to be the #2 beer in the USA. Each change may have cut quality by 1%, but over time they made a hundred changes...
Level 7 - Interstellar Autist
Most of the pieces are in place for creating a stablecoin that lets you legally declare 0% in capital gains tax every year. Let me explain.
I came across an idea here to create a coin that people could roll their capital into before declaring their taxes that would allow them to book a loss while not actually losing any money. The original idea was for a stablecoin that would “self destruct” and pop back up after the new tax year so that everyone holding it could loss harvest while in theory not lose anything.
Implementation:
* The stablecoin would be a fork off any algorithmic stable coin, with minor features detailed below
Features:
* Stablecoin remains pegged at $1 through most of the year
* Right before the new tax year the following events occur on the blockchain
** A snapshot of the blockchain is taken (detailing who holds how much)
** The stablecoin is “rebased” to $0
** All tokens are then automatically liquidated at $0 out of holders wallets (realizing the tax loss)
* After the new tax year a completely new clone blockchain (lets call it series B) springs up and new tokens are airdropped to wallet holders that were wiped out according to the previously referenced snapshot (of series A) effectively reimbursing them and restoring the blockchain to what it was before, just on a new chain (theoretically the new chain should achieve the same market cap as the previous chain in the series).
* Rinse repeat the above steps every tax year iterating on the series of new chains that spring up by 1.
So, buy the coin before the new tax year, get liquidated for 100% loss, file taxes, get airdropped your wealth back. Rinse repeat every year and never pay capital gains.
The last part of this problem is how to redesign the airdrop action in this system. The IRS declares airdrops as income so we need a different method to basically achieve the same outcome. This is where I'm hoping the community can come in. Thoughts from the jungle?
17 Years Young. Closed first two digital marketing clients with a third on the way.
@ChadMuzlim on twitter by the way. Thankful for yall
Needed this reminder. Thanks for cutting through the noise (again).
Thanks. Great post as always. I couldn’t stop laughing about the wallet card.
A lot of people calling for a 50% Correction/Bear Market in 2022 (Crypto Birb, Qiao Wang), what's your view Bull?
At what point is it time to move out of the US?
Is it too late to start a business if you are 30 and just realizing all of this?
What an awful face
BTB or anyone running e-commerce biz, do you have a preference or opinion on digital products vs. physical products. The BTB vernacular seems more in-line with digital products however most of the e-commerce discussion on the stack seems to refer to physical products due to inventory references but could be wrong. I would also assume it's far cheaper to create and test products with digital/information products.
New here and would like some input. Considering the move in crypto's of late, what is the consensus on paying off debt now. I have been going 50/50 on debt vs investment. I was late to the crypto game and tried to catch up before the latest run. Didn't get there. Now wondering if I should go all in on getting my debt paid off? Or should I just continue to DCA and pay off 50/50?
If the first $50k biz fails should we invest another $50k with the knowledge learned from the first experience? Or if we cant get something running with that amount we are ngmi
Love you, bull. I heard there’s a discord of the jungle, anybody got a link?
How do you see inflation affecting less-wealthy countries such as Mexico, Thailand etc?
To be honest I've been on the fence of getting back into ecommerce after leaving my last business and reading this post I'm feeling good about starting another company. Last time was a partnership, this one will be solo and I'll take the lessons I learned last time. Thanks for the great content always.
A product I buy regularly had its price go up, but they also improved its quality. Good move.
The alternative (reducing quality to keep costs down) is why you can't buy Olympia Beer anymore, even though it used to be the #2 beer in the USA. Each change may have cut quality by 1%, but over time they made a hundred changes...
If Wood is correct it will change financial theory and monetary policy forever. They will find out how much is too much the hard way.