What happens if you withdraw $1 million dollars from Coinbase into your bank?
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.
I am a steemit user and I live in Baker City. Crazy seeing NE Oregon mentioned here.
Vancouver, WA here :)
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 ;-)
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!
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 ;-)
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
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.
That is illegal, it's called structuring.
References
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.
Its hard to crack the shell of systematic conditioning. I am happy to see you give it a whirl!!
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.
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.
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!!
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.
Good advice.
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!
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!
You can always cash your million in pieces and send then to different banks/accounts
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. :)
That is my favorite world to think about.
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!!!!
Im trying to get there but a little more to go...
p.s fuc the banks!!!!
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 .
Yes! That's what I'm thinking. Good point.
Our money should be our problem. But maybe just not in this world 🌎
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...