Cryptocurrency

[Alias Detective 1,179]

27 minutes ago, Cdub100 said:

It's bullsh1t because they are taking earned coins from staking as a dividend payment. I haven't sold anything.

There's currently a lawsuit going on to stop this. I'm going to wait before filing obviously. I don't want to delete the 1099-misc because I know the IRS has them.

What do you consider earned coins from staking to be?

[Cdub100 3,384]

2 minutes ago, Alias Detective said:

What do you consider earned coins from staking to be?

Unrealized gains

[Alias Detective 1,179]

5 minutes ago, Cdub100 said:

Unrealized gains

Are you being “paid” in coins other that what coin you are staking? If so, a sell or purchase has to be being made somehow.  Right?

[Cdub100 3,384]

2 minutes ago, Alias Detective said:

Are you being “paid” in coins other that what coin you are staking? If so, a sell or purchase has to be being made somehow.  Right?

No, I'm receiving coins in kind. For example, I'm earning 12% DOT on the DOT stake. At no point do I "buy" or "sell" anything. My DOT sits there and I earn more DOT.

[Frozenbeernuts 1,652]

I view bitcoin as a long term investment and short term price movements do not bother me at all. The fact that bitcoin didn't pump as high as I thought doesn't affect me at all, and I tell people to treat it as a long term investment.

If you read the news related to bitcoin you will see countries legalizing it, banks issuing positive outlooks, and truckers starting to use bitcoin to get around the Canadian bank freezes

I have never been more bullish on bitcoin. And I still maintain that most people don't understand it here. They only look at price.

[vomit 502]

15 minutes ago, Frozenbeernuts said:

I view bitcoin as a long term investment and short term price movements do not bother me at all. The fact that bitcoin didn't pump as high as I thought doesn't affect me at all, and I tell people to treat it as a long term investment.

If you read the news related to bitcoin you will see countries legalizing it, banks issuing positive outlooks, and truckers starting to use bitcoin to get around the Canadian bank freezes

I have never been more bullish on bitcoin. And I still maintain that most people don't understand it here. They only look at price.

[Cdub100 3,384]

28 minutes ago, Frozenbeernuts said:

I view bitcoin as a long term investment and short term price movements do not bother me at all. The fact that bitcoin didn't pump as high as I thought doesn't affect me at all, and I tell people to treat it as a long term investment.

If you read the news related to bitcoin you will see countries legalizing it, banks issuing positive outlooks, and truckers starting to use bitcoin to get around the Canadian bank freezes

I have never been more bullish on bitcoin. And I still maintain that most people don't understand it here. They only look at price.

[Hardcore troubadour 12,659]

I read through this and it’s weird. The people that were killing Bitcoin in the beginning are wrong, and the people saying it was going to explode are wrong. I guess we have to just wait and see. Like on page one. 

[Hardcore troubadour 12,659]

Tomorrow night Tucker Carlson is going to have a segment on the FBI’s new crypto currency unit. 

[jerryskids 5,207]

6 hours ago, Cdub100 said:

No, I'm receiving coins in kind. For example, I'm earning 12% DOT on the DOT stake. At no point do I "buy" or "sell" anything. My DOT sits there and I earn more DOT.

Sounds like the best analogy is a dividend reinvestment, which is taxed. 

 

[Cdub100 3,384]

28 minutes ago, jerryskids said:

Sounds like the best analogy is a dividend reinvestment, which is taxed. 

 

It's not though. A dividend received is cash. That is reinvested into the stock at current price. This is more like a stock that gives you more stock.

I'm being taxed on the value of that stock when I get it. And taxed again when I sell it. That's double taxation.

[WhiteWonder 2,172]

7 hours ago, Frozenbeernuts said:

I view bitcoin as a long term investment and short term price movements do not bother me at all. The fact that bitcoin didn't pump as high as I thought doesn't affect me at all, and I tell people to treat it as a long term investment.

If you read the news related to bitcoin you will see countries legalizing it, banks issuing positive outlooks, and truckers starting to use bitcoin to get around the Canadian bank freezes

I have never been more bullish on bitcoin. And I still maintain that most people don't understand it here. They only look at price.

im not sure most people dont understand it.... well, maybe you're right. My whole issue from wayyyy back in the beginning of this thread was the morons pumping it as the greatest invention since the combustion engine and claiming it was replacing fiat currency which will never happen. Alternative form of payment? sure, absolutely. Great investment? sure, absolutely. Governments allowing it to be decentralized and replace fiat? nope. 

and those same morons were the ones talking about how much their investments were up in dollar value. which was odd because by their logic, they should not have cared about the dollar value since they did not plan to sell but rather stockpile for when Bitcoin replaced the dollar.   

but i am perfectly happy to buy and sell and invest like I do in any stock.

[vomit 502]

9 hours ago, Cdub100 said:

I'm being taxed on the value of that stock when I get it. And taxed again when I sell it. That's double taxation.

No it's not.  You're only ever being taxed on the value of the gain.

Let's say you are given the coin and it's worth $100.  The value of your gain is $100, and that is what you are taxed on.

If you sell the coin when it's worth $110, then you pay the tax on the gain again, which is $110-$100, or just $10.  Conversely if you sell for a loss you can deduct the loss.  It's not double taxation.

[Cdub100 3,384]

2 minutes ago, vomit said:

No it's not.  You're only ever being taxed on the value of the gain.

Let's say you are given the coin and it's worth $100.  The value of your gain is $100, and that is what you are taxed on.

If you sell the coin when it's worth $110, then you pay the tax on the gain again, which is $110-$100, or just $10.  Conversely if you sell for a loss you can deduct the loss.  It's not double taxation.

Ugggg you're probably right. I just don't want to pay a tax until a sell.

[jerryskids 5,207]

10 hours ago, Cdub100 said:

It's not though. A dividend received is cash. That is reinvested into the stock at current price. This is more like a stock that gives you more stock.

I'm being taxed on the value of that stock when I get it. And taxed again when I sell it. That's double taxation.

Quote

Dividend reinvestments are taxed the same as cash dividends. While they don't have any unique tax advantages, qualified dividend reinvestments still benefit from being taxed at the lower long-term capital gains rate.

 

[Utilit99 4,099]

Didn't realize this was still a thing. 

[Frozenbeernuts 1,652]

Bitcoin is scaring the world criminals (IMF, world bank, other nation leaders) Little ol El Salvador, one of the poorest countries in the world adopted bitcoin as legal tender. Now they are gearing up to issue bitcoin backed bonds. If bitcoin was so insignificant and worthless, do you think the IMF would give a shlt at all? They wouldn't waste any time on it like they did for the first decade of bitcoin's existence

[nobody 2,044]

Smart of El Salvador to issue bitcoin backed bonds.  

I imagine the IMF is speaking up because this looks a whole lot like a ponzi scheme.  Buy 100 million worth of bitcoin and then use that as collateral against a billion worth of bonds essentially hedging against loss and passing the risk on to the bond holders because I'm sure they're selling these bonds in US dollars.  

Talk about trying to rip people off.  They'll probably offer some sort of fixed rate return so they only see upside and no downside if they default on that debt.  

This is setting up a potential long term cryptocurrency nuke if they default on those bonds, but in the short term it could help potentially fuel a nice little bubble.  I'm sure shady governments all over the world are going to see this and go after the free money, and guys like Russia would definitely do it and they have a lot more scale.  It's a good little play.  Create an alternate currency; take out a bunch of debt against it, and then who cares if you default on it?

It's also a reason why you don't necessarily want a world currency.  You're tying the fate of your money to the likes of El Salvador and Zimbabwe and Greece.  Not sure why anyone would want to do that.

 

[tubby_mcgee 686]

So the reasons that CNN is citing that crypto's are down due to economic and geologic reasons, etc.   Like, aren't those reasons when/why crypto should flourish?  I thought that's why it was created.  Why isn't it doing what it was designed to do?

 

https://www.cnn.com/2022/02/22/investing/bitcoin-price-fall-ukraine-russia-tensions/index.html

 

https://www.cnn.com/2022/01/22/investing/bitcoin-ethereum-cryptocurrency-price-record-high/index.html

 

 

[vomit 502]

3 minutes ago, tubby_mcgee said:

So the reasons that CNN is citing that crypto's are down due to economic and geologic reasons, etc.   Like, aren't those reasons when/why crypto should flourish?  I thought that's why it was created.  Why isn't it doing what it was designed to do?

 

https://www.cnn.com/2022/02/22/investing/bitcoin-price-fall-ukraine-russia-tensions/index.html

 

https://www.cnn.com/2022/01/22/investing/bitcoin-ethereum-cryptocurrency-price-record-high/index.html

 

 

It's possible that the design is flawed.  It was supposed to be an alternative to the dollar, a safe haven, a hedge against inflation, etc, if you want to believe the creators.  In reality it is none of these.  It has turned into a speculative asset play, and the market has let this flourish due to the ability to leverage.

[nobody 2,044]

7 minutes ago, tubby_mcgee said:

So the reasons that CNN is citing that crypto's are down due to economic and geologic reasons, etc.   Like, aren't those reasons when/why crypto should flourish?  I thought that's why it was created.  Why isn't it doing what it was designed to do?

 

https://www.cnn.com/2022/02/22/investing/bitcoin-price-fall-ukraine-russia-tensions/index.html

 

https://www.cnn.com/2022/01/22/investing/bitcoin-ethereum-cryptocurrency-price-record-high/index.html

 

 

You hit the nail on the head.  It's trading like a growth tech stock.  If I was saying it's supposed to be a hedge against inflation, I'd be concerned about this since if that trend continues, it will act as the exact opposite of an inflation hedge.

[Cdub100 3,384]

47 minutes ago, tubby_mcgee said:

So the reasons that CNN is citing that crypto's are down due to economic and geologic reasons, etc.   Like, aren't those reasons when/why crypto should flourish?  I thought that's why it was created.  Why isn't it doing what it was designed to do?

 

https://www.cnn.com/2022/02/22/investing/bitcoin-price-fall-ukraine-russia-tensions/index.html

 

https://www.cnn.com/2022/01/22/investing/bitcoin-ethereum-cryptocurrency-price-record-high/index.html

 

 

When you say crypto I'm just going to assume you mean Bitcoin.

Bitcoin is still in its infancy. As everyone has pointed out BTC is wildly volatile. Just this past year companies started putting it on its balance sheets, governments are mining it and holding it. Hedge funds and banks are trying to secure their position. A few insurance companies will allocate a % of their holdings to it. 

As more and more of these institutions hold BTC. The less volatile it'll be and the more it will flourish in times like these.

I think BTC has held its own pretty well considering. Despite everything we are still in the 38k-46k range

I'd also like to point out literally everything is down. I do believe 20-30 years into the future instead of selling to fiat people in economic and geological trouble will sell to BTC. We aren't there, yet.

[vomit 502]

Buy buy buy

[Hawkeye21 1,855]

 

[lod001 1,237]

1 hour ago, Hawkeye21 said:

 

Need to know if Hunter is heavily invested. 

[RaiderHaters Revenge 3,592]

1 hour ago, Hawkeye21 said:

 

I sold everything, since whatever he even talks about is focked up there is no hope for crypto

[Hardcore troubadour 12,659]

24 minutes ago, RaiderHaters Revenge said:

I sold everything, since whatever he even talks about is focked up there is no hope for crypto

There you go. He never gets it right. How he skated on his role in the mortgage crisis is funny.  He hid behind Obama. 

[Cdub100 3,384]

From what I understand it's just an order for federal agencies to look at regulation changes.

So he's telling them to do what they are already doing.

[edjr 5,567]

BUY  BUY  BUY  

[JustinCharge 2,397]

Biden is getting better.  Last year, I would have expected him to issue an executive order for the federal bureaucracy to color inside the lines with their crayons.  Now he is issuing EOs to have them draw some outlines.  Next year, maybe will start learning shapes like triangle, square, circle, etc.

[nobody 2,044]

43 minutes ago, Cdub100 said:

From what I understand it's just an order for federal agencies to look at regulation changes.

So he's telling them to do what they are already doing.

That's the way I see it too.  May be a good thing that the government is double triple looking at crypto now.

[Cdub100 3,384]

38 minutes ago, nobody said:

That's the way I see it too.  May be a good thing that the government is double triple looking at crypto now.

It's good and bad. I wish they would leave us along for another 5-10 years.

[lod001 1,237]

YAY Crypto! 

(I'm in MARA)

[Frozenbeernuts 1,652]

And even the white house has put their support behind digital currency. They know it would be foolish to try to abolish it. This is the most bullish signal from the most important country in the world. Told you guys

[Frozenbeernuts 1,652]

https://www.coindesk.com/layer2/2022/03/09/americas-quiet-default/

The ramifications of the US freezing Russian dollar reserves

[Hardcore troubadour 12,659]

Sell! Biden got involved. Doomed. 

[vomit 502]

12 hours ago, Frozenbeernuts said:

 Told you guys

[Frozenbeernuts 1,652]

20 hours ago, Hardcore troubadour said:

Sell! Biden got involved. Doomed. 

Biden had no idea what he was talking about. His handlers prepared this

[iam90sbaby 2,125]

Any old heads here still think crypto is a scam? 

[nobody 2,044]

Is there any reason to think it's not a scam at this point?

Let's talk bitcoin.  Bitcoin was either suppose to be an alternative currency by people who are retarded or a gold proxy by people with sense.  It behaves like neither.  Inflation running rampant, in both instances bitcoin should be going bonkers.  Instead it sank and is trading like a tech stock.  

That means the underlying thesis has to be that there is going to be some sort of blockchain network that runs on bitcoin that will generate a return on bitcoin that doesn't involve currency or being a store of value.  Except, right now, no one knows that that is.  There are no SEC filings.  There's no forecasts for profitability.  

If I'm invested in bitcoin, what am I suppose to think?  The technology isn't scalable unless you remove all the features that make it attractive.  It's opensource, so anyone can copy it.  It's at risk of being regulated into obsolescence.  The only thing it has working for it is branding and first mover status.