What was the profit of BTCFX in 2017? And what points should be noted in the 2018 market?

Happy New Year! I plan to continue writing this column this year as well,@xi10jun1Thank you for your continued support this year!

Cryptocurrencies seem to be booming again this year. It looks like billionaires are being created all over the place, and I can only say thank you for paying so much in taxes.

As announced previously, this column has also changed its name. From “Relaxed! Bitcoin Trading Research Institute” to the newly titled “[Weekly] Cryptocurrency Trade Life.” I appreciate your continued support!

※This column is designed so that half of it is free to read, a matter of conscience. Of course, if you read up to the paid portion (updated weekly at 400 yen per month, about 80–100 yen per column), it would be a great encouragement, and I’d be happy if you subscribe as a tip!

This Week's Performance (Dec 22, 2017 – Jan 4, 2018)

First, as usual, the performance. I will present the changes first.

Last week (through Dec 21, 2017) assets: 59,576 yen
This week (through Jan 4, 2018) assets: 59,464 yen
Change: -112 yen

Even during the year-end and New Year period I traded, there were profit-taking sales toward the year-end and the rise at the start of the year, and I was swept up by new price movements.

Also, perhaps due to more bitFlyer users, delays have appeared on the exchange servers. Therefore, orders have been difficult to execute as planned.

For someone like me who trades short-term, server movements are a matter of life and death. I think I should trade with more leeway in the future.

Now, for the first column of the year, I will first introduce last year’s results!

BTCFX Profit and Loss in 2017

Last year’s trading results were as follows.

(a) Beginning of year (Jan 1, 2017) assets: 53,065 yen
(b) Withdrawals (Sept 28, 2017) amount: 50,432 yen
(c) End of year (Dec 31, 2017) assets: 59,033 yen
Profit/loss (c - a + b): 56,400 yen

Annual profit was 56,400 yen!

As I wrote in previous columns, I withdrew part of the principal partway and now trade from the profit portion. I have to improve on this this year!

However, had I just held cryptocurrency without thinking, I would have made more money. Still, crediting the fact that I survived for over a year with BTCFX without a margin call, I hope someone will praise that…

New Year’s Resolutions

This year I aim for a crypto asset of at least 1,000,000 yen!

To that end, I plan to hold and trade not only Bitcoin but various currencies and ICOs. I have just opened Binance as well.

Also, FX will soon be possible with other cryptocurrencies as well, so I would like to challenge those too.

Free Summary: Cryptocurrencies Will Be Hot This Year Too!

In 2018, it still seems likely that cryptocurrencies will be lively.

However, with that comes more cyberattacks, fraud, and crypto-related kidnapping, which are expected to increase.

If global regulatory voices grow, the Japanese government is also expected to issue statements, which could cause a sharp price drop.

Let’s trade carefully and survive without overconfidence!

So this paid column will discuss future prospects.

Ending Column 1: Latest Tax Information! Updated December 8, 2017!

The National Tax Agency site has updated the latest legal interpretations regarding Bitcoin.

That is here →No.1524 Taxation relations when profits are realized by using Bitcoin | Income Tax | National Tax Agency

According to this, profits obtained by using Bitcoin are treated as “miscellaneous income.”

Therefore, my profits from margin trading, like mine, are generally miscellaneous income. As I have noted in the ending column before, it seems consolidation of gains and losses is not possible. I wish this could be handled differently…

Additionally, according to NewsPicks comments by Hitachi’s President Yuri Kano (No.1524 Taxation relation when profits are realized by using Bitcoin - NewsPicks), if you buy Bitcoin for 100,000 yen and use it to buy something worth 500,000 yen, the 400,000 yen difference is treated as profit.

When you use Bitcoin to purchase goods or services, if the price of Bitcoin at purchase is lower than at payment, that difference is recognized as profit. So the same applies when you shop with Bitcoin on FANCY, so be careful.

And on December 1, 2017, the National Tax Agency posted a document on how to calculate income.

Here it is →How to calculate income related to virtual currencies (pdf) | National Tax Agency

※Please note that laws and tax interpretations may change, and filing methods may change. Before filing, be sure to confirm with your local tax office or a tax accountant.

As expected, BTCFX profits remain miscellaneous income. I wish it would soon be classified as separate taxation with a 20% tax…

Ending Column 2: Shopping with Bitcoin!

Actually, the overseas ecommerce site “FANCY” lets you buy products with Bitcoin! It’s a bit costly for shipping, but there are stylish items you won’t see in Japan!

I have summarized how to use FANCY on this blog, so please refer to it.

→Guide to creating an account, registering, setting up, and how to purchase on FANCY | Investor Jun
→How to purchase items with Bitcoin on FANCY | Investor Jun

※Free content ends here. The rest is detailed analysis and future outlook, so it is paid. If you want to read more, of course, you can also subscribe as a tip—thank you for your continued support!