The Free Software Foundation is now accepting Bitcoin donations | Hacker News Reader

The Free Software Foundation is now accepting Bitcoin donations

fsf.org

83 pointsTsiolkovsky16 comments

You can see their transactions with Bitcoin Block Explorer:

http://blockexplorer.com/address/1PC9aZC4hNX2rmmrt7uHTfYAS3h...

Serious question: how is the FSF going to turn its Bitcoins into dollars? The one thing that's been keeping me away from Bitcoin is the fact that I haven't seen any really large Bitcoin -> "real currency" sites pop up.

MtGox allowed ACH bank deposit I think.

Last week the exchange added the ability to add funds (for buying bitcoins) using Dwolla (a U.S. ACH-based payment service).

The ability to withdraw funds (after selling bitcoins) to Dwolla is coming, but not automated yet. A request can be made to have a withdrawal to Dwolla processed manually.

Dwolla costs just $0.25 per transaction.

In the E.U. funds may be withdrawn by bank wire (SEPA).

http://en.bitcoin.it/wiki/Mtgox#Withdrawing_Funds

Either at some point in the future, an answer to that question develops, in which case they obtain some money, or an answer never develops, in which case they are out a very small amount of time.

There's not much loss for non-profits to accept BitCoin donations. Unfortunately, it doesn't really help bootstrap the BitCoin network very much, but it's still a bit more acceptance.

It seems MtGox is the biggest. Of course bitcoin's liquidity isn't comparable to a "real" currency, so the exchange rate is quite volatile. If you just want to speculate on currency then you'd probably do better buying Albanian currency.

Since there's virtually no cost in receiving and storing bitcoins, the FSF might just save them until the exchange rate goes up. It's donations so it's not like they risking anything (except for potential legal problems).

I wasn't thinking of using them for speculation. I don't consider myself nearly skilled enough at that. I was thinking of using Bitcoin as an alternative to Paypal and other online payment systems. Unfortunately, the lack of Bitcoin to US Dollar conversion sites puts a big obstacle on that use.

Eventually you may be able to buy things directly with bitcoins.

Or you may never be able to do anything with them.

Also, how do you declare bitcoins on your taxes? It's taxable income, right?

Aren't transactions that occur on bitcoin p2p and "anonymous"? I think Neal Stephenson once predicted such a system would lead to the end of nation states (since they could no longer collect taxes)...

Many, many people have used "p2p" and anonymous means to attempt tax evasion. Nation states are pretty good at passing laws to illegalize their activities and throwing those people in jail.

Nation states will simply make anything that threatens them illegal. See Open Internet in China for instance. Fringe and criminal types will always get around it (always have). But the mainstream, the masses will remained controlled by nation state.

>Many, many people have used "p2p" and anonymous means to attempt tax evasion

Suitcases full of used nonconsecutive notes have always done up until now.

Suppose someone exclusively receives money via bitcoin and their name is in no way linked to the bitcoin address. Yes, they are probably anonymously receiving money. But, if they are purchasing any actual physical goods, the IRS knows they are receiving money somehow. They better be reporting them as the IRS likes to look into people who have spending that is out of line compared to their income.

Also, from the FSF announcement: "Because of the way the system works, contributions to this address will not be fully anonymous."

Arguably, its not taxable income now, since the Bitcoins (just like shares or even casino chips) don't have any value until they're cashed in. If and when the FSF cashes in its Bitcoins, it'll have to declare them as income.

Even if they can't convert the bitcoins to dollars, it's a cheap promotion and lead-gen tool.

How do you turn stocks into dollars?

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