You are right, it’s just speculation but so is buying a miner like this. My comparison is to buy $10k of Grin or spend $10k on a GRN1.
If I buy Grin now
$10k = 3571 GRIN on 12 Apr 2019
$__k = 3572 GRIN on 12 Apr 2020 (duh, same GRIN, we just don’t know price)
If I buy the GRN1 now
Send $10k today to Obelisk
Receive terms that make me assume all risks on specs, design, and delivery
Hope that no other company is producing something to compete with GRN1s
Hope that this is the first time that Obelisk delivers equipment to spec and on time
Hire accountant for mining production and pay taxes at market as mine;
Figure out how to dispose of the GRN1 after 6 months;
Hope that GRN1 produces at least 6,000 GRIN to ROI (needs to for electricity and taxes)
I am not a rocket scientist but maybe there is some theoretical way that the GRN1 could produce magical mystical profits, but I don’t see that future for me.
i can agree with your view, again the one and only deciding parameter is the market cap of Grin before C32 rollout, where the development and coin will be by that time?
Will grin be in the top20 coins with a healthy crypto market? if yes it’s easily a 2B$ marketcap, and you know the emission in 1 year around 45million coin so you can calculate the price per grin.
You mention taxes as if they are based on revenue. I could be wrong, but I believe in most countries they are based on net profits, i.e. if you end up in a loss after paying expenses, you wouldn’t owe income tax.
For US miner: Say $3M for power, so $30M income. Mining device is “computer or peripheral” I assume, so assume 5-yr depreciation (IRS Topic 704), but perhaps 33% depreciable via SoYD (5/15), so subtract $8.33M from income. Tax on $21.67M income is over $4.5M, so I believe you’ll be paying this to US gov’t. Unless you can expense the mining device you have to depreciate.
Yes, taxes are based on revenue. In the U.S., mining profits are considered revenue and they need to be accounted for as they come in. True that you can offset the revenue with losses. But I think the main point was that there is no accounting, capital gains or taxes due or losses at all if someone decides to buy $10k worth of GRIN instead of the GRN1.
This Q&A from an IRS Bulletin is frequently cited:
Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer
resources to validate Bitcoin transactions and maintain the public Bitcoin
transaction ledger) realize gross income upon receipt of the virtual currency
resulting from those activities?
A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income.
can anyone from obelisk help me out? i am from the Netherlands
i placed an order of the obelisk GRN 1 #6224 which i payed 7000$ and again 230$, but after payment i only receive mail from (webtech44@yahoo.co.uk = Hi Lamina,
Just to let you know — we’ve received your order #6224, and it is now being processed:) i send a mail to Phillip obelisk support team no reply
what scared me most is i can not even login to my account at obelisk shop to see my status.
can someone check and give me a feedback, i was hoping Obelisk is the best place.
Agreed, that’s not Obelisk’s site. It looks like a clone website and the order confirmation coming from a yahoo account, it doesn’t look good man. This is obelisk’s actual site https://obelisk.tech/
Its not worth the slight discount they are providing over Obelisk’s direct site. I wouldn’t order from the knock-off site because you’d be at risk of receiving knock-off ASICs, which can affect their resale value. If the hash is lower than advertised, you should report them to the BBB.
I mean, receiving a fake knock-off ASIC that actually functions would be a best case scenario considering that Obelisk never actually produced a the GRN1. But yea, always highly suspect of third party sellers with ASIC preorders. Buy direct from proven manufacturers or bear insanely high risk that your money just disappears.