This is interesting for anyone who might someday become a millionaire blogger on Steemit (some already are!).
- Your bank might begin asking questions if you try to cash out $1 million.
I went to the bank last summer and told them I needed a million dollars—cash. They asked for a reason, and I replied, “You didn’t ask me for a reason when I put it in, so why are you asking me about it when I want to take it out?” Think about it, what business is it for the bank to know why I’m taking my money out? What I really wanted to do was to test to see if I could even get my money. The excuses the bank used to not give me my million dollars right away were many.
- You may have to meet with the IRS if you cash out $1 million.
My bank actually told me this. Why would I need to talk to the IRS to withdraw cash from a checking account?
Of course the quotes above are from a guy who actually wanted to withdraw $1 million in cash from his bank account. To put $1 million into a bank account is a bit different.
- If you deposit cash over $10,000 your bank will be required to fill out a form.
- It is possible that you may be secretly investigated by the authorities.
So yes while it is fairly easy to put a million dollars into a bank account, it will definitely trigger some flags which will put you on the radar. You will be on the radar of various authorities who could decide to open up an investigation. While this question hasn't been definitely answered because we don't have many stories from people who have deposited over $1 million in cryptocurrency through Coinbase, we probably can think of it similar to how would a bank react if some person walks in with a black bag with $1 million in cash to deposit. Bitcoin is very much like cash and it is possible the bank could wonder where you got $1 million in cash from.
The good thing about Steemit is that there is a trail which can show exactly where you got it from. This is of course a double edged sword, but in the case where you have a million dollars to deposit, it will be easier to prove you legitimately earned it.
Anyone who has deposited large amounts from Coinbase into their bank account, please feel free to comment under a pseudonym to tell us what it was like.
Probably not a large number of Steemit users in NE Oregon - but I'd accept Steem (and other crypto) for payment at my ISP.
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I am a steemit user and I live in Baker City. Crazy seeing NE Oregon mentioned here.
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Vancouver, WA here :)
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The question is why would anybody move that amount of crypto ever back into fiat? When you have the option to borrow Hero backed by bitshares from your own collateral? Banks have a license by the owners of the federal reserve system to allow you to create fiat out of thin air as long as you back it with collateral - they call it mortgage as one example. Just because they don't tell you that you are the one creating the fiat out of thin air does not mean it ain't so ;-) I rather play the bitshares/Hero game on a decentralized autonomous exchange instead of in a bank. But to each their own preferred game ;-)
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This is really interesting. What do you mean borrow Hero backed by bitshares from your own collateral? I guess I'll just research Hero. I like the way you think!
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Thanks my friend - an excellent summary and overview is here: http://www.sovereignhero.com/thehero/
I'm resteeming most of Stan's and Dan's posts as well as those from others that are relevant to this game.
Due to interest from others I might consider to create videos where I try to explain my understanding of everything and possibly host a webinar where people can ask questions as it is not that easy to wrap one's mind around. But once it clicks the ingenuity of it makes sense as if it's the most organic progression towards where blockchain tech should naturally be heading anyways.
And I have a feeling that Dan's EOS will fit into it all like a glove ;-) We shall see what happens on monday ;-)
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thank you for sharing!
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Yes, but that's still cash which is locked in the crypto space. I can't imagine any real world bank viewing this as collateral, at least for another 5 - 10 years.
You ask why would anyone move crypto into fiat... isn't that obvious. The future isn't here yet.
Obviously, most of us don't like the current banking system but we have no choice if you want to spent your crypto millions. As much as we love crypto, it's not possible to live on it without fiat.
What if someone wanted to buy a house or a car with their crypto profits? They would need to cash out into fiat for the foreseeable future. That is the reality today.
I'm optimistic about cryptos future but right now it is a pain in the ass cashing out any large sums into fiat because all real world banks are regulated by anti-money laundering rules which make it incredibly hard for large withdrawals to happen. Esp in the UK and US
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I would open a few checking accounts, and only do transactions of $8,000 or less over a period of time along with a crypto debit card. Higher amounts and too often will trigger red flags for the IRS. But in reality, I feel we are still early in the crypto world and see no reason to cash out yet. Hopefully, as things progress, there will be no need to cash out at all...just buy/barter via cryptos. Interesting post though. Upvoted, followed, and resteemed.
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That is illegal, it's called structuring.
References
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I was only speaking hypothetically. But for the record, my money invested in crypo was all from after tax dollars and via Coinbase. I am not doing any money laundering or fraud from cash/under the table transactions. Counterfeiting money is also illegal...yet central banks print money out of thin air now in the form of 1's and 0's and charge interest to the governments. Then the government uses that money to bomb other countries. I'll stick to "structuring" over bombing and wasteful spending any day of the week.
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Its hard to crack the shell of systematic conditioning. I am happy to see you give it a whirl!!
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Ha! Thanks for that. Hopefully it all works out, just don't let Dana-edwards know...sounds like a rat quick to snitch on your "illegal" activities.
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If someone deposits that much into their bank account without first talking to an accountant and lawyer, then they better be ready for a world of pain. It's worth the $1,000 in professional fees to save the headaches and money from dealing with the banks/government afterwards.
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I shared this on another post and found it very appropriate to share here as well.
My friend and accountant (and lawyer) is one of the best in the country when it comes to company formation and tax issues. He's the guy I go to any time I know my company is about to have a windfall of cash or sales to find out what I should do to protect as much as possible from that tax man. Here's his website: http://markjkohler.com/
He's super legit and knows his shit! If you are making money and not setup as a business correctly, then you are throwing cash out the window!!
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If you're dealing with non standard six figure profits always talk to an accountant. Maybe you could live overseas for a year to cut taxes or deposit over years, who knows? An accountant that's who knows!
Also if you're investigated it'll likely be closed if you explain you got into Bitcoin early and got lucky. The government will tax the cash and be happy.
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Good advice.
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Someday I hope to try it! But I have a lot of work and good luck between now and then. I do know that certain amount of withdrawals and certain amounts of deposits. Well get you inspected at different levels. A few grand goes unnoticed. Even if it's a couple times a month. But after 7 or so it goes up a level. Hope someone who has attempted this let's us know though!
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Good topic to discuss and thanks for sharing your thoughts on this . Eventually ot is pretty obvious why governments and central banks doesn't want crypto currencies to succeed and if every single person would've know about how banks works it would literally lead to revolution!
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You can always cash your million in pieces and send then to different banks/accounts
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To the bank (and the IRS), the biggest fear is that we dont need to buy fiat anymore, or deposit anything into a bank...
In the past two days, I've seen a Steemian looking to buy a car with Steem, and another trying to sell one.
I imagine a world where we can buy or sell anything using crypto. :)
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That is my favorite world to think about.
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I was given the run around last week just trying to get 9,000.00 out. The bank told me I had to make an appointment!!! I ended up pulling 3,000.00 out their and traveling to other branches until I got what I needed. All in the land of the free!!!!
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Im trying to get there but a little more to go...
p.s fuc the banks!!!!
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When i become a crypto millionaire i would'nt cash out a million dollars, why would i switch my money from deflationary commodity to a inflationary currency .
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Yes! That's what I'm thinking. Good point.
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Our money should be our problem. But maybe just not in this world 🌎
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We will get there... There are a whole bunch of newly minted crypto-anarchist millionaires (and more every day), who are changing the political landscape...
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I do not know ,but would love to have that problem and find out
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Interesting post, thanks. On a related topic, good luck trying to get any decent amount of cash out of a bank, even without questions! I learned just how little they keep on-hand after asking to withdraw much, much less. It took them 5 days to have the money delivered first so you can quickly see what will happen if banks can't serve customers (crash/hack/some other thing)!
I'm definitely keen to learn of people's experiences as we head down the crypto path. The only 'issue' I had was proving some deposits from Coinbase for my mortgage but that was resolved with a formal letter since they don't issue a statement.
Honestly, I think we're all waiting to see what happens because the IRS are clearly scrambling...
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I'm saving this for the future :D when i become a crypto millionaire :D
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One day ✈️
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We hope 🛩
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Its crazy because you can have one good post to bring in the massive following and you can make at least 50-100 dollars per blog
But you even see people making 1,2,or even as high as three thousand dollars
You can get there #steemon
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There's a couple issues with withdrawing that much cash. First, it would wreck their balance sheet, especially at a credit union or something. Second, banks don't keep that kind of cash around, especially since the advent of fractional reserve banking. That means they can issue loans of up to 10 times the amount of cash on their balance sheet. So basically most money is in the ether as they say. That's why Bitcoin and crypto in general is so important to go mainstream...you won't need to tell anybody home much money you have or worry about authorities because you want to withdrawal a million dollars in fiat, because you won't need to.
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Coinbase limits a lot of transactions based on how much personal information you provide. With just basic information provided, the amounts you can transact with are quite small. In order to move around larger amounts of money, Coinbase usually requires you to submit a picture of a government ID and your social security number. In fact, they might require a bit more information than a bank asks for:
http://insidebitcoins.com/news/coinbase-asking-for-more-information-than-banks/34244
Most likely larger transactions are already being reported to government authorities automatically for anti-money laundering purposes. It wouldn't surprise me if there isn't something that automatically flags you for an IRS audit or investigation for truly large money transactions.
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I agree with @steemuwe tho, like for example just by using coinbase it is already giving a better rate on the whole withdrawal. We now get to use encrypted based technology, all round encryption for a lesser rate? That's one hell of a deal. Not forgetting that one day all these transactions would be more seamless than an ATM. I guess I'm tryna say that if I were to withdraw 1 million dollars, if and when, I'd never go through any government prying channels and this coming from a dude living in Asia. I bet Americans have a whole lot more to worry about when it comes to tax given the IRS.Cheers!
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Knock Knock....
Whose There?
Uncle
Uncle Who?
UNCLE SAM
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In this new day and age, I see a handful of pioneers paving the way and taking ownership of their money through decentralized cryptocurrency markets, and many people aren't happy about it. I'm curious to see how big corporations and governments handle this evolving economy.
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I actually can't wait to make direct purchases with crypto. The savings will be massive.
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The banks and the government always have their hands out. Trying to get everyones money each chance they get.
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Well, they gave me some weird looks when i deposited 1 million the first few times but now I'm a regular so it's fine.
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very true
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I know what will happen to me:
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Yes with all i had to go through on a $30k deposit. I factored it would be quite a bit of red tape.
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Yes , this is always happened with the banks , everything will go smooth when you deposit , but when you need to withdraw all kinds of questions and problems for YOUR money
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You will be looking for trouble if you withdraw 1 million from Coinbase to your bank. Best is to stay on the low and get under $10000 once in a while.
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Isn't that illegal? Structuring?
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There isn't necessarily anything malicious or conspiratorial going on here. The bank doesn't have a million dollars in cash even available. Between the reserve banking system and general security practices, extra steps would be involved (including pulling in the IRS since most people don't need that much cash unless they are doing illicit things) to ensure you get your money and there is nothing illegal going on.
Non-illicit activities using lots of money use checks, cashiers checks, wire transfers, etc.
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If I put my million in a location, I would expect to be able to get it back...not the case with american fractional reserve banks. They use our money to make themselves money. I believe it is no-ones business what I do with my money but my own.
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If it really happened, I would be examined by the police, questionable money from where? Do you sell drugs? Hahaha lol
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Keep the million I'm staying in cryptos.
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And what if crypto is banned and you cannot ever spend the million on anything legitimate?
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Simply move to a country that has accepted the currency.
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That would work for now though I'm not sure how long it is until there's some type of government oversight on how much cryptocurrency people are holding. Politicians are slowly looking into regulating it.
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Great post! Thought provoking. I wouldn't ever do this. In fact, Coinbase has limiters in place to prevent it from happening--I believe. However, this would be possible to do on Gemini, so your post is very relevant. Still, I would never do it. Connect a debit card to a crypto-wallet.
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My question is: Why would anyone deposit a million in the bank these days? And why would anyone convert cryptocurrency into fiat, other than to buy something immediately?
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How else am I going to make it rain on these lovely strippers? With paper wallet? :D
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By purchasing Steemycam credits with Steem or btc ;)
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Damn it! That's the first thing I thought when I first came here.
"Wooo.... This gon be good for gonewild..."
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I think If I had that much money in the bank...Then I wouldn't just withdraw in cash (fiat currency) due to the possible future global reset.
I'd invest in Silver and gold metal, something that I could hold to ride the possible storm.
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I believe that you should never cash out all your crypto, it is what got you there in the first place.
What I would suggest is to do it in smaller amount to avoid triggering any alarms.
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https://steemit.com/gdax/@fromfuture/luckiest-man-in-margins-wrecked-on-gdax-coinbase-paint-cartoons
this is the satire cartoon which describe yesterday :)
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That is a very good question. They think they own some of your money. They give you peanuts in interests when you put it into your savings account but think they can do whatever they want and answer them when you want your own money back. What world do we live in. All this is a game to them. We control them, they don't control us. Hope the cryptoworld doesn't act like that.
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great share and damn!! just head shaking... we gotta change this folks, we are on the path, lets not let them take away this new hope in crypto. I see the whole world changing cause of this, i think crypto is gonna be more impactful on humanity then the creation of the internet itself. I worry a lot about government getting in somehow and fucking it all up
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If anything the government will just want their share. So they will increase certain charges etc
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Well i have not gone to bank to withdraw such, but with the little experience i have with bank, i will tell you that is very easy to deposite money in the bank than withdrawing. Bank will always find plenty of excusses not to give you your money. Yes your right, the money you got from steemit blogging is legitmate because you work hard as content writter to earn it.you did a good job.
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Why withdraw to your bank, they will start accepting Steem, lol
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A very informative post @dana-edwards. Thanks for sharing! :)
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I'm always treated unfairly at my bank even for withdrawals over $2000... it's my money!!
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So will the IRS tax you on your earnings from Steemit?
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OHHHHHHHH plz let there be a time that I can experience this troubel :-)
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That's because they don't have your money in your checking account. They let Bob borrow some for a personal loan , they let John borrow some for a home loan. So once your money goes into the bank it changes into " Digital currency" just numbers on a computer screen. If everyone went to the banks at the same time and ask for just 3% of their money the banks would crash, because they don't have your money. Bob spent it and has not paid it back yet or It will take John 30 years to pay his loan back.
Crazy right ?
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I actually enjoyed reading this
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That's probably why you use Poof's API to convert to fiat rather than Coinbase
https://docs.poof.io/
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