dumps come from rumors that China Gov will shut down exchanges.
That is the bane of current down spiral.
If it is confirmed, all alt coins will suffer.
Any idea of the likelihood of that? Would the exchange operators be able to operate offshore through different servers? And buyers and sellers as well? I know it might be a PIA, but I don't think governments will be able to stop crypto, at least not in the long term. Although the US is making it a PIA through tax consequences. At least they think. Any good accountant or tax lawyer (like me) can turn mining into a loss pretty quick. Personally, I'm just not going to use US exchanges if they are required to start reporting to the IRS. I'm personally not going through the hassle of setting up a business just for tax purposes. Although the losses my help my overall tax situation. I'll have to think about that one. The self-employment taxes might not make it worthwhile. What would make sense is a large group of individuals getting together and forming a mining corporation. Profits would be based on user input, deductions would be great, and no self-employment taxes. The only taxes would be capital gains, either short term (less than one year), or long term (more than one year). Either rate has far less tax consequences than normal income (e.g. employment). The deductions from equipment and electricity costs could be used to create quite a loss for the first year (on paper), then that loss could be carried forward to offset earnings from the next year. The IRS basically just created a lot of work for accountants and lawyers, while gaining no income, except from people who are unfamiliar with proper tax avoidance business formation. Which is probably most miners, unfortunately.
