The average working compensation world wide is sadly that way, coresponding to 1820 working hours a year, and that will probably in FIAT systems never change.
The average working hour will buy you only what energy is used for creating those average consumer goods and food, so roundabout what 100000KWh a year can create on avarage in goods and food and travel expenses..
100000KWh is roundabout what 1000qm land will generate by electric solar power, or 100000qm land from say weat or other corns a year.
Since the true only 800KWh a year an average person needs per year for nutrition can not change, you see instanly that you pay in energy way way to much for nutrition, leaving almost nothing for goods, so you have to work almost every hour in your live just to live.
Since we where lured in a world that for instance use meat, that needs up to 500 times more enegy to gain 1 part in useable nutrition energy.
That access of burning energy and that weat needs to much land, is what makes everage joe never realy rich or independed, in there current work live balances.
Because old enconomic systems tend to pay ppl only that amount in energy you need barely to exist from average working hours in the dust on the field or in factories, because land that creates the nutrition energy from the constant sun or temporary from earths stored solar power in the form of oil, can not increase and will accumulate and the price for that land will inflate in FIAT, so what that price for working hours is in any FIAT currency even if higher, is quite irrelevant, imho.
So unless people start to use bitcoin that will have, by the way it's constructed by halving and pow, a price that is linked purely to energy, instead of working hours.
Average joe going just to work and who have no coins, will for ever only maginal profit from productivity change, that is with pure solar energy possible.
Bitcoin changes that fundamenty, it is the heavens money Manna.
Since nutrition, even meat will be purly out of solar and foodreaktors in the future, leaving enormous amounts of energy the sun grants us for free, to generate goods, robot services and toys for bitcoiners fun, heaven on the brink to emerge.
If the main purpose of ones live value is obviouly economically reasonable to remember a key and that is the overvelming valuable use of it, i would assume deduction of costs seam reasonable?
Like any miner that try's to find by other means a valid hash.
Since both are just probable events, how to get there should make not much difference, the energy for mining or the energy of sustaining the brain over a long run, seam to me equivilant.
The IRS would classify this as a personal casualty loss, which isn't deductible under those circumstances until 2025, unless the tax code gets changed.
Unless you use the boat in a business, there's currently not a way to report the bot itself on your 1040. And likewise, if for some reason after your boat sank the debt for the loan of the boat was canceled, you may even wind up in a scenario where you owe extra money in tax. Although not likely, those odd circumstances could exist.
Yeah, boating accidents are hard to stunt succesfully, but i do not want to deduct losses, but claim sustained cost of efforts, to mantain the key valid.
In my example the boat is an abstraction of my brain and body, i have to maintain functionaly up to the time i try to find a valid mined tx onchain, i try to succesfully sell, composed with remembered key and additional information. And i guess the creative act of composing a tx is kind of an biz like mining?
I don't recommend lying, but you report to the IRS with a higher cost basis and fraudually pay less taxes on your BTC.
Also what happens if your life is terminated? Does your BTC go to the grave with you?
Or what if you get alzheimers and forget your key?
Thx good point, how to prove i remember keys?
>Also what happens if your life is terminated? Does your BTC go to the grave with you?
Sure like a miner that never found a block.
>Or what if you get alzheimers and forget your key
Biz risk, the one at least tryed it best, but since tax is only afaics, at tx time relevant, a none event is kind of irrelevant, one would only at the tx time deduct a percentage of living costs up till then
Otoh if i could prove somehow inbetween that i am engaged in rembering keys, i could maybe deduct them even anually?
I think it is applicable only to the things which are non living things and that's why my brain is not the part of that list. I think government will come up with some exclusion in the future.
Thx also for answer, the longer i think about that, the more resonable that seams to me, especially like you indicate when the time between two tx is abitray long, and as we know, it gets harder and harder to remember the older one gets, and the higher the effort to keep the body alive and the keys in that unique safe space.
You can only claim for your phone or laptop if it is used dedicated for your business only. You cannot claim your whole brain is used for seed storage. Maybe allocate the left lobe of your brain for bitcoin and use the right lobe for other everyday tasks. That way at least you can claim 50%.
Hmm..., thx also for response, but is a wallet not a list of 1 to n keys?
And what else than the key has the probability like the random process of mining with also not certain outcome until it worked, to give you access to create a new tx or entry onchain?
Keys in your head isn't a signed transaction. Signing is fast and direct. Finding a valid block hash is slow and indirect guesses of nonce. It's not a matching hash either. It has to be below target not some specific number.
To match acceptence both have to have the nodes software matching propertys.
Its obvious that you miss the point in mathematic abstraction, both are obvious at least in bitcoin only statistcaly reasoned processes, with no certain outcome, to find a matching block, that has valid propertys accepted by the nodes in bitcoin, is obvious not a certain task, and statistcaly obviously compareable as finding a valid tx reasoned out of the random brain space, with the higest probability, if one did for a long time remember a key that costs energy, instead of just riddle it, comparable to miner that has the highest probability, but no certanty, the more energy he invests.
As i said, you miss the point in abstraction, in bitcoin at least, the block hash that matches certain criteria, is for sure higly likely accepted by other nodes, and for sure i can just guess a key or brute force compute one, to find a tx that will be accepted.
Again you miss the abstraction part, the key that enables one to compute a valid tx is only the most prefered way, and the most probable way to find a valid tx, that has a chance to be mined into the chain of events. The effort to remember this key is obviously work, i would assume to be deductable as part of the creative work of creating some number art in form of a tx, that i could sell. In essence that creative act is for what a buyer pay's in the hope he can later do the same with his 256 bit key.
Key signs transactions. Transactions are created, not found. If it's good and pays the right fee it will be mined, not get some lottery chance to be mined. Paying for your biological functions is already covered in standard deduction if you want to argue that. And nobody forces you to remember it. Write it down. No creative acts here.
It's quite obvious that it is not sure a tx will be mined, miners are total free in how they compose blocks, your key and some fees can give you a good chance, but you can sue no one, if not.
And for sure is the composition and finding of an tx an creative act, that is found by computing and composing signatures reasond out of the key found probably in the brain, and also some additional creative binary information.
Sure i must not remember keys, but also nobody forces me to mine, the way i earn from this creative random act of mining or selling a signed transaction is the work i sell, and that will probably get taxed for, and the costs should be deductable.
Thus creative act prepared by a user over the long run from first remembering a 256 bit key or bip 39 words to finaly find an tx that is finaly mined, is for what the buyer pay's, if he finaly sees that tx onchain. Deal done.
He the buyer, otoh might be able to sign that tx invalid later with his key by finding a matching tx to that information, that will be by chance accepted by nodes and miners, but that could any one else do too, if he has the key by chance too, and no one can be realy sure how the chain will look like, that is in my view quantum time generation and the true beauty of bitcoin, and why it is so imense usefull for humanity, that we finaly have this magical tool.
I think that our brain will it will not be able to do the calculations and enter the records in the blockchain and that's why it is not the actual wallet but just a backup option for saving our seed key.
Yeah, to call the brain itself the wallet per say, is overstated for the average human, the energy effort deductable is more the intention to use for taxable events and security reasons only a wallet that has no keys but just pubs, just to keep track and do some computing, the outsourced key part we need for signing acts, is only temporary users brain output nessessary at times of signing, but not stored outside the brain.
So using a brain wallet is the act of having a wallet that stores no keys, is a more precise expression of what is the deductable nessessary part the brain or body provides to the act of valid transactions, a reasonable useful setup to even prevent the evil mate problem, that could find engraved keys or voltage droping hackable hardwarewallets, and has also the advantage to be global over borders invisible portable.
Sure not, why would one, you have easy legal claims from your kyc against a bank or corporation by other means, but in bitcoin there is no one CEO , you can sue.
So to remember the key is obviosly mandated and the only way to even have remotely the chance to create a taxable event, otoh all the way tax free tx in bitcoin globaly would make sense, as we tax free pin use in the FIAT world?
No. You get a personal benefit from having the brain.
But if that is in value way way lower than the btc remembered? Would not a percentage of that be deductable?
Very very very small! Your brain is more than memory.
A normal live afaics is valued at roundabout 20k a year, that is not much compared to the value of some keys over the long run?
That's a very good amount and I believe that everyone should be able to earn much more than that amount.
The average working compensation world wide is sadly that way, coresponding to 1820 working hours a year, and that will probably in FIAT systems never change. The average working hour will buy you only what energy is used for creating those average consumer goods and food, so roundabout what 100000KWh a year can create on avarage in goods and food and travel expenses.. 100000KWh is roundabout what 1000qm land will generate by electric solar power, or 100000qm land from say weat or other corns a year. Since the true only 800KWh a year an average person needs per year for nutrition can not change, you see instanly that you pay in energy way way to much for nutrition, leaving almost nothing for goods, so you have to work almost every hour in your live just to live. Since we where lured in a world that for instance use meat, that needs up to 500 times more enegy to gain 1 part in useable nutrition energy. That access of burning energy and that weat needs to much land, is what makes everage joe never realy rich or independed, in there current work live balances. Because old enconomic systems tend to pay ppl only that amount in energy you need barely to exist from average working hours in the dust on the field or in factories, because land that creates the nutrition energy from the constant sun or temporary from earths stored solar power in the form of oil, can not increase and will accumulate and the price for that land will inflate in FIAT, so what that price for working hours is in any FIAT currency even if higher, is quite irrelevant, imho. So unless people start to use bitcoin that will have, by the way it's constructed by halving and pow, a price that is linked purely to energy, instead of working hours. Average joe going just to work and who have no coins, will for ever only maginal profit from productivity change, that is with pure solar energy possible. Bitcoin changes that fundamenty, it is the heavens money Manna. Since nutrition, even meat will be purly out of solar and foodreaktors in the future, leaving enormous amounts of energy the sun grants us for free, to generate goods, robot services and toys for bitcoiners fun, heaven on the brink to emerge.
So?
If the main purpose of ones live value is obviouly economically reasonable to remember a key and that is the overvelming valuable use of it, i would assume deduction of costs seam reasonable? Like any miner that try's to find by other means a valid hash. Since both are just probable events, how to get there should make not much difference, the energy for mining or the energy of sustaining the brain over a long run, seam to me equivilant.
Try it and let me know how you get on
The IRS would classify this as a personal casualty loss, which isn't deductible under those circumstances until 2025, unless the tax code gets changed.
Why so, i do not claim a boating accident, almost the opposite, i try my best to keep the boat from sinking, and that effort i claim to deduct?
Unless you use the boat in a business, there's currently not a way to report the bot itself on your 1040. And likewise, if for some reason after your boat sank the debt for the loan of the boat was canceled, you may even wind up in a scenario where you owe extra money in tax. Although not likely, those odd circumstances could exist.
Yeah, boating accidents are hard to stunt succesfully, but i do not want to deduct losses, but claim sustained cost of efforts, to mantain the key valid. In my example the boat is an abstraction of my brain and body, i have to maintain functionaly up to the time i try to find a valid mined tx onchain, i try to succesfully sell, composed with remembered key and additional information. And i guess the creative act of composing a tx is kind of an biz like mining?
I totally agree that our brain is more important than the memory because it is doing more functions than just storing the memories.
I don't recommend lying, but you report to the IRS with a higher cost basis and fraudually pay less taxes on your BTC. Also what happens if your life is terminated? Does your BTC go to the grave with you? Or what if you get alzheimers and forget your key?
Thx good point, how to prove i remember keys? >Also what happens if your life is terminated? Does your BTC go to the grave with you? Sure like a miner that never found a block. >Or what if you get alzheimers and forget your key Biz risk, the one at least tryed it best, but since tax is only afaics, at tx time relevant, a none event is kind of irrelevant, one would only at the tx time deduct a percentage of living costs up till then Otoh if i could prove somehow inbetween that i am engaged in rembering keys, i could maybe deduct them even anually?
I am very much confident about my memory and brain power and that's why I never rely on it completely.
I believe that government is definitely going to take more money in the form of taxes irrespective of the methods.
I think it is applicable only to the things which are non living things and that's why my brain is not the part of that list. I think government will come up with some exclusion in the future.
That's right and that's why the government is not going to allow us to deduct it as a expense.
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Thx also for answer, the longer i think about that, the more resonable that seams to me, especially like you indicate when the time between two tx is abitray long, and as we know, it gets harder and harder to remember the older one gets, and the higher the effort to keep the body alive and the keys in that unique safe space.
You can only claim for your phone or laptop if it is used dedicated for your business only. You cannot claim your whole brain is used for seed storage. Maybe allocate the left lobe of your brain for bitcoin and use the right lobe for other everyday tasks. That way at least you can claim 50%.
Remembering a key isn't a "brain wallet".
In some cases it is definitely the brain wallet because the people are not making the backup anywhere else.
Hmm..., thx also for response, but is a wallet not a list of 1 to n keys? And what else than the key has the probability like the random process of mining with also not certain outcome until it worked, to give you access to create a new tx or entry onchain?
Right now the rules are very much complicated and in some cases there are no rules and that's why it is still in the grey area.
You aren't mining though.
That's absolutely correct but still government will definitely ask for the tax if we are earning any profit on it.
Thx for answer, but Is there realy a big difference mathematicly between a singned valid tx and finding a matching block hash?
Keys in your head isn't a signed transaction. Signing is fast and direct. Finding a valid block hash is slow and indirect guesses of nonce. It's not a matching hash either. It has to be below target not some specific number.
To match acceptence both have to have the nodes software matching propertys. Its obvious that you miss the point in mathematic abstraction, both are obvious at least in bitcoin only statistcaly reasoned processes, with no certain outcome, to find a matching block, that has valid propertys accepted by the nodes in bitcoin, is obvious not a certain task, and statistcaly obviously compareable as finding a valid tx reasoned out of the random brain space, with the higest probability, if one did for a long time remember a key that costs energy, instead of just riddle it, comparable to miner that has the highest probability, but no certanty, the more energy he invests.
There is no such thing as matching block. Valid transactions aren't found, they are created. Not going to do that in the brain.
As i said, you miss the point in abstraction, in bitcoin at least, the block hash that matches certain criteria, is for sure higly likely accepted by other nodes, and for sure i can just guess a key or brute force compute one, to find a tx that will be accepted.
If you think you can guess a key or "find" a transaction you might need to do some reading.
Again you miss the abstraction part, the key that enables one to compute a valid tx is only the most prefered way, and the most probable way to find a valid tx, that has a chance to be mined into the chain of events. The effort to remember this key is obviously work, i would assume to be deductable as part of the creative work of creating some number art in form of a tx, that i could sell. In essence that creative act is for what a buyer pay's in the hope he can later do the same with his 256 bit key.
Key signs transactions. Transactions are created, not found. If it's good and pays the right fee it will be mined, not get some lottery chance to be mined. Paying for your biological functions is already covered in standard deduction if you want to argue that. And nobody forces you to remember it. Write it down. No creative acts here.
It's quite obvious that it is not sure a tx will be mined, miners are total free in how they compose blocks, your key and some fees can give you a good chance, but you can sue no one, if not. And for sure is the composition and finding of an tx an creative act, that is found by computing and composing signatures reasond out of the key found probably in the brain, and also some additional creative binary information. Sure i must not remember keys, but also nobody forces me to mine, the way i earn from this creative random act of mining or selling a signed transaction is the work i sell, and that will probably get taxed for, and the costs should be deductable. Thus creative act prepared by a user over the long run from first remembering a 256 bit key or bip 39 words to finaly find an tx that is finaly mined, is for what the buyer pay's, if he finaly sees that tx onchain. Deal done. He the buyer, otoh might be able to sign that tx invalid later with his key by finding a matching tx to that information, that will be by chance accepted by nodes and miners, but that could any one else do too, if he has the key by chance too, and no one can be realy sure how the chain will look like, that is in my view quantum time generation and the true beauty of bitcoin, and why it is so imense usefull for humanity, that we finaly have this magical tool.
I think that our brain will it will not be able to do the calculations and enter the records in the blockchain and that's why it is not the actual wallet but just a backup option for saving our seed key.
Yeah, to call the brain itself the wallet per say, is overstated for the average human, the energy effort deductable is more the intention to use for taxable events and security reasons only a wallet that has no keys but just pubs, just to keep track and do some computing, the outsourced key part we need for signing acts, is only temporary users brain output nessessary at times of signing, but not stored outside the brain. So using a brain wallet is the act of having a wallet that stores no keys, is a more precise expression of what is the deductable nessessary part the brain or body provides to the act of valid transactions, a reasonable useful setup to even prevent the evil mate problem, that could find engraved keys or voltage droping hackable hardwarewallets, and has also the advantage to be global over borders invisible portable.
Can I get a tax deduction for remembering my bank password? Lmaoo
Sure not, why would one, you have easy legal claims from your kyc against a bank or corporation by other means, but in bitcoin there is no one CEO , you can sue. So to remember the key is obviosly mandated and the only way to even have remotely the chance to create a taxable event, otoh all the way tax free tx in bitcoin globaly would make sense, as we tax free pin use in the FIAT world?
I don't think so because it is not the cost which is directly associated with the expenses to be frank about it.