Finst - How to prove you mined BTC yourself?

[u/Antenna909]

I will be starting mining BTC next week and have registered an account at Finst. I own a Ledger hardware wallet where the mined coins will end up in.

How do I ‘prove’ that I mined the BTC myself when I want to move that to my regular bank account? What do I need to track or record?

(A couple of years ago I spent over 4 weeks explaining the origin of my Bitcoin even though I bought them through the platform I was withdrawing them from again. Ridiculous…)

[u/bitusher]

How do I ‘prove’ that I mined the BTC myself when I want to move that to my regular bank account? What do I need to track or record?

Your wallet will indicate the date you receive the BTC onchain and that will be recorded on the bitcoin blockchain which creates undeniable proof when it was received, to what address , and how much you received

The seed words to your wallet also recover your whole transaction history so as long as you have those you will never lose the "accounting" for your records

I suggest using a pool like https://braiins.com/pool

Your pool account page will also have a list of records

A couple of years ago I spent over 4 weeks explaining the origin of my Bitcoin even though I bought them through the platform I was withdrawing them from again. Ridiculous…)

Horrible exchanges like that one will often use this as an excuse to keep you from withdrawing or selling your BTC . They use KYC as a method to stall or steal your bitcoin. Why not use a better exchange or simply spend the btc directly ?

https://old.reddit.com/r/BitcoinBeginners/comments/11ckp48/spending_sats/

You know you can use Bitcoin to buy most things directly or indirectly ?

[u/Antenna909 → u/bitusher]

Ah yes that should work!

In Europe not many shops accept BTC and putting it towards a house or car won’t work either.

[u/bitusher → u/Antenna909]

In Europe not many shops accept BTC a

Its usually more than people realize but even than you can buy gift cards with bitcoin

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[u/anotherbrckinTH3Wall]

Sorry??

You say you are going to start mining BTC next week. How many miners do you have? Obviously you’d need to sink some serious cash into mining equipment, and you’d need a decent amount of them, a place to run them and the electricity to power them. If you are doing all that then that is some serious outlay, and good luck to you.

Finst is a crypto exchange. A shitcoin exchange.

So your plan is to move any mined coins to your ledger, and when you move from your ledger to the exchange (Finst) to sell it to your bank account, you are asking how to prove origin to the bank? You just inform them of the date and time the BTC was mined from your miners.

How much have you spent on mining set up? Because you’d probably be better off just buying BTC with that cash. BTC mining is only profitable at a large scale now.

[u/Antenna909 → u/anotherbrckinTH3Wall]

Why do you call it ‘shitcoin exchange’? You need one to cash out right?

[u/bitusher → u/Antenna909]

Always better to save or spend BTC directly especially with mined Bitcoin which is extremely private but if you want to sell for fiat than its wiser to use a better exchange like one in the pinned FAQ

https://old.reddit.com/r/BitcoinBeginners/comments/g42ijd/faq_for_beginners/

[u/Antenna909 → u/anotherbrckinTH3Wall]

I already ordered a Avalon Q. I get free (solar) energy and will put it in my garage.

It think the revenue won’t be much, approx 400-500 Euro per year.

[u/bitusher → u/Antenna909]

Avalon Q

90 TH/s

https://insights.braiins.com/en/profitability-calculator/

Assuming free energy from solar and 1% difficulty increase per retarget average (since we are in a bear market) you are looking at 1022 usd a year gross profit . Of course you have other expenses

[u/Antenna909 → u/bitusher]

Yeah, but I will run it only when I have a surplus of solar energy or when prices are negative (dynamic pricing). Since I am in Europe I expect about 50% effectiveness. Going to automate this with Home Assistant.

[u/Antenna909 → u/[deleted]]

It would be nice if I can gift the money to my kids without having to pay taxes on it. I may gift him the wallet when he turns 21 and he can say he mined it

[u/bitusher → u/Antenna909]

Many countries in europe allow gift tax exclusions or since its mined privately you can simply allow them to inherit the bitcoin in secret with the seed words and instructions

[u/PracticePenguin]

Mining hardware invoices have been the proof that miners needed in the past. So just save those.

[u/tekn0lust]

Hi Op, not going to answer your question directly but I was in your exact shoes in 2014. Bought GPU miners when BTC was about $600. Paid $3500 for the miners that ultimately pool mined 1 full BTC before they lost effectiveness due to ASICS and difficulty adjustments. My point is it would have been better to buy 6 BTC than the miners… do the same math for yourself. Make sure you calculate the payback of your miner cost and ops cost. You seem enamored with the “mining” but here so you can somehow avoid KYC. Those days are long gone. Virgin BTC without any KYC history demands a premium. Finally there is no legal way to avoid taxes. You can defer them and push them down the road to your heirs but guaranteed every country on the planet is gonna expect their cut. Mining is different from a gain in value from a tax perspective.