bitTax Launched – “Estimate your Bitcoin Tax Return.”

bitTax (Launched April 16, 2014)

bitTax is like TurboTax, but as you might of guessed for Bitcoin (but not like your thinking). The purpose of bitTax is basically to act as an accounting site for all your coinbase or Bitcoin related transactions as far as I can tell . So far you are allowed to link your coinbase account with them or upload CSV data, and or sign up for email news from them.

bittax.com

Checking out their Twitter they claim you can estimate your Bitcoin tax return even though such a thing does not exist maybe it would of been better to rephrase the statement to something along the lines of “Estimate how much you might owe the IRS with bitTax if you actually care to pay the government with something designed to not be taxed.” Considering that is really what they mean to say. Likely though unless someone makes a killing off Bitcoin most people will not care to add Bitcoin earnings to their return since it can’t be proven you “earned” anything, and even if someone does make a killing Bitcoin’s purpose was to avoid things like taxes. With that said the actual usage of their service might be in question because Bitcoin was again created to circumvent the government.

bitTax’s FAQ Quoted in full:

What is bitTax?
The goal of bitTax is to facilitate virtual currency calculations for U.S. tax payers.

In its present form, bitTax is a Minimum Viable Product (“MVP”) existing for demonstration purposes only and should not be relied upon in filing for U.S. tax returns.

bitTax calculates how much in long/short term capital gain/loss and gross income a U.S. taxpayer has to pay to the Internal Revenue Service for each calendar year. This is important to know in case you are planning to amend your tax returns for the previous years.

bitTax also shows in real time your Daily Balance with respect to potential tax liability in the current year. It is important for you to know the remaining amount available to you after taking into consideration U.S. taxes that will be due next year.

Basically, bitTax shows to you in real time how many bitcoins you have after adjusting for your potential U.S. tax liability. So, you can plan your spending and tax paying accordingly.

You can do instant currency conversion by clicking on the button with the $ or BTC amount.

How do you calculate the amount of tax due?
Currently, we use First-In-First-Out (FIFO) methodology.

We assume for now that each transaction from my account to any outsider leads to realized gain/loss.

We also adjust for the short term and long term capital gains/losses. For the sake of testing this MVP version, we assume that short-term capital gains are taxed at 25% and long-term capital gains are taxed at 15%.

We will add a more elaborate tax calculation shortly.

Why do you show bitTax to the public before it is complete?
We hope to have a working version of bitTax before October 15, 2014.

Meanwhile, we will keep rolling out features based on feedback from early adopters like you.

I am a good citizen and I also would like to pay taxes. Why do you do these calculations only for U.S. taxpayers?
We will add calculations for other jurisdictions in the future. Please let us know which countries we should add first.

What about altcoins – litecoins, dogecoins, namecoins, peercoins, etc?
We will get to altcoins at some point in the future. Please let us know which ones you would like to have first.

What kind of information do you collect about me and store on your servers?
We value your privacy. We mean it.

We are not gonna ask for your facebook, linkedin, google+ and other accounts. We are not gonna attempt to figure out who you are.

We do not want to know who you are.

We simply want to provide a useful service to you.

Currently, we store only the latest email address you have provided to us. Upon your request, we will notify you of the results of our calculations. We may also choose to notify you of our future releases.

We do not store any bitcoin-related data. We will notify you and update the answer to this question if and when we decide to store more data on our servers.

We will not intentionally sell, share, or distribute your personal information to third parties, except as required by law.

They also have a disclaimer at the footer of their site which really does make it seem like a real tax website.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with Treasury Department and IRS regulations, we inform you that any federal tax advice contained on this web site and its communication is not intended or written by the parties to be used, and cannot be used for the purposes of (i) avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

We would like to hear your thoughts on what you think of this new bitTax.

How to download YouTube videos without software!

Download YouTube Videos | No Software Required (MP4 / FLV / WebM)Download YouTube VideosSo you want to download YouTube videos without any software you say? We can help!

Just follow this example below to download YouTube videos.

Normal YouTube Video Address:
 youtube.com/watch?v=p5i7ZwMXobo
Downloadable Address (Just add "ss" in front of "youtube" so it reads "ssyoutube")
 ssyoutube.com/watch?v=p5i7ZwMXobo

Alternatively you can use deturl.com


Google & YouTube Easter Eggs & Cool Features

Google Easter Eggs

Google & Youtube’s hidden easter eggs.

MD5Live is not just about Bitcoin we are also about technology and interesting stories. So every once in awhile Google likes to change their logo to reflect times of year, famous birthdays, and sometimes just to have a little fun they change it to something you think is serious. Since Google owns Youtube these Easter eggs also flow through Youtube. One of the most notable is Missile Command. If you click the white space beside the video than type in 1980 in sequence a game will appear above the video allowing you to play classic Missile Command game.

Missle Command (Youtube Easter Egg)

Type 1980 after clicking the white space beside the video to play.

Google Easter Eggs Missile Command

 

The Youtube Easter egg code 1337 no longer works for some unknown reason.

GeekWeek

If you go to the search bar on Youtube and type in “/ geekweek” without the quote symbols YouTube will transform into a what seems to be Unix.

Youtube Easter Eggs GeekWeekGoogle itself has also done a few things especially during April fools. One of my personal favorites is when they introduced internet through the toilet. When I was younger I thought this was totally serious.

Google TiSP (Toilet Internet Service Provider)

http://www.google.com/tisp/

April Fools TiSP

Check out this video for the top 17 coolest Google Easter eggs I have a tried a few and they really do work not all of them though I failed to have the Chuck Norris one work.

So if you know of more Easter eggs go ahead and comment below and let everyone know about them so they can try them out and remember 1337 no longer works and if you see it commented on video they have achieved epic fail status.

My power cable exploded on me…

Exploded Power Cable

So yeah my power cable exploded.

So the other day I learned that all power cables are not the same when I had one of the two power cables I use for my Block Erupter Cubes explode. The cable got extremely hot and built up pressure I guess and next thing you know I have a firework show over by my outlet moments before my PSU started to shut down I quickly go and unplug the cord but am unable to unplug it as it was so hot at the time I could of received a third degree burn.

As you can tell there is clearly a hole in the side of this cable. The light gray you see on the cable is the inside of the cable there is also some metal fragments sticking out. So after looking over the cable a little further after this incident turns out this cable is a very low amp cable (around 1~3). Anyway everything still works fine all I did was go out get a new cable that was meant for computer use (around 10~15 amps is good) and the cable worked fine didn’t even begin to get warm on the cable. The PSU has been running solid as well. So yeah before you accept a second hand cable from someone check to make sure it can at least afford to run a few hundred watts and a few more amps than 1~3 try more like 5~15.

Math & Load

These cubes use 280Watts on high clock. So in order to keep one running on low clock you need at least 500 to 600 watts worth of power. The cube in question was running on low clock so wattage was not the issue. In this situation the second hand cable I received was the right size but for some reason was a very low amp cable. The cable I replaced it with can handle 10 amps the cable that exploded was only able to handle around 1 to 3 amps which is very odd.

I recommend a cable like this:

(Yes it’s an affiliate link but also to give you exact clarification on what I consider a good power cable.)

Tripp Lite P007-006 6ft Power Cord C13 to 5-15P 120V 15A 14Awg SJT

Tripp Lite P007-006 6ft Power Cord C13 to 5-15P 120V 15A 14Awg SJT 

What you see above is a 14AWG cable which is thicker than an 18AWG cable. I currently use an 18AWG on both my PSU’s but for more protection a 14AWG would be preferred. The cable I had explode was 18AWG in size, but I am also under the impression it was not meant for the type of use I put it through or it was defective or that too many amps was going through the cable as it could only handle a few amps on the cable’s rating. Hope this post helps you guys decide what type of cables you need in order to start using the Block Erupter Cube.

How does Bitcoin have value?

Value

How does Bitcoin have value?

To understand this you must first understand how money itself has value. In the United States the United States Dollar has value because it is backed by gold to an extent. Gold is desirable so this in turn means our money has value because if it is put into question we can refer to the gold. Also you have to consider that we as humans simply give money value because it gets us things and the fact we accept it as payment from working is another indicator of value. So for something to have value you need to believe it has value.

Bitcoin has worth because it is “earned” through “work”. This work is when your computer or someone else’s computer or ASIC hardware solves math problems to verify transaction via a “block”. If a block is found by someone solo mining they would earn 25 Bitcoins. This is impossible now as you would need to at least control 1% of all network hashing power in order to have a chance of finding a block.

So lets recap. You need something to use as currency for it to have any value.  People must believe this currency has value. Finally you need people to accept it and use it actively to have value. These three factors give or take make money have value and is the reason you use it. Bitcoin is considered valuable because it is earned by people trying to keep the network safe. Bitcoin is hard to get as well so rarity / scarcity does play a role.

So to help you in your search for the understanding of value here are a few wiki links. This is where we got most of our information from, but re-wrote what we read in order to make it more understandable to the average person or at least that is what we hoped to accomplish.

Leave a comment and tell us how you feel about Bitcoin how it is valued, and if we did a good job or not writing this article. Feel free to talk ask us anything AMA. Also check out our forums.