Cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.)

[gsoda3 3245]

i think this is just a malicious rumor someone tweeted out but this is what roiled the crypto markets 

 

Quote

YELLEN TO PROPOSE CAPITAL GAINS TAX AS HIGH AS 80% FOR CRYPTO TRADING - HEARD ON STREET...couple mins ago...COIN fading

 

[Tailgate 3021]

Just finished 90% of my BTC purchasing. I will let you know when I complete my position to 100% of target....expect a drop right after.

[Nice Guy Eddie 13509]

3 hours ago, gsoda3 said:

i think this is just a malicious rumor someone tweeted out but this is what roiled the crypto markets 

 

 

Seems like a really bad idea. We will struggle to monitor this market so let's set an abnormally high capital tax rate to create even more tax dodgers.

[GRHorn 105]

11 minutes ago, Nice Guy Eddie said:

Seems like a really bad idea. We will struggle to monitor this market so let's set an abnormally high capital tax rate to create even more tax dodgers.

Well it’s a long way from Biden proposes to Biden signs into law.
 

80% is on the high side of taxes for anything in the world I’d imagine. 
 

Not totally surprising, but not excited about this fight either 

[gsoda3 3245]

Highly doubtful it's credible. The twitter account that broke the "news" had 1,000 followers and no one has ever heard of it.

[BearSchlong 8083]

If it was true Twitter would have howled.

[Party_Taco 3723]

What are the thoughts on GBTC. I just rolled my 401k over into an IRA and am looking at this to get 1-2% exposure to bitcoin here.
I see it is currently trading around -14% to NAV and looking at history it appears to trade at a premium during run ups and a discount during downturns.
Other than the risks with BTC itself are there any unique concerns with GBTC that I should be aware of?
I've just started doing research on this.

None really at the moment afaik - if you’re looking for the easiest way possible to get exposure to BTC this is likely your bet.

I’m long GBTC even as competitors are introduced, which will likely take some of the shine off, but I intend to snap them up as well.

[closetohumping 17435]

I watched doge go from 14 to 18 in a matter of minutes.  Crazy.  

[Nice Guy Eddie 13509]

54 minutes ago, closetohumping said:

I watched doge go from 14 to 18 in a matter of minutes.  Crazy.  

Dips can create quick profits if you can time (get lucky) the market.

[LABEVO 928]

 

[bernorange 8359]

Wow.  Bitcoin market cap well under $1T now.  $923.8B as of the moment. 

[BearSchlong 8083]

And at first glance, about double the daily average volume.  It'll be fine.

Edited April 23, 2021 by BearSchlong

[Nice Guy Eddie 13509]

This dip is also a good reason not to make large buys unless you are prepared for quick 10% loss. My strategy is small buys spread over a few days if not weeks.  I know some might look cross-eyed at dollar cost averaging over days when people are used to dollar cost averaging over months in the stock market but crypto is 24/7 trading and trend move faster in crypto.  A crypto trading day is like a week, or longer, in the stock market.

[closetohumping 17435]

4 hours ago, Nice Guy Eddie said:

Dips can create quick profits if you can time (get lucky) the market.

Couldn't move that quick with Robinhood, at least not last night.  Sucked

 

did grab some at .18 and bought some BTC dip as well.

Edited April 23, 2021 by closetohumping

[po elvis 2070]

after not following bitcoin at all I decided to look at the chart. it is at 46.9k now. my guess is it will bounce to the 50DMA at around 57k and then fall to the 200 DMA which should be around 42k towards the end of May. whatever happens, the chart looks pretty ugly past any bounce you see short term here.

[GRHorn 105]

1 hour ago, po elvis said:

after not following bitcoin at all I decided to look at the chart. it is at 46.9k now. my guess is it will bounce to the 50DMA at around 57k and then fall to the 200 DMA which should be around 42k towards the end of May. whatever happens, the chart looks pretty ugly past any bounce you see short term here.

I agree that the chart looks rough, but during the last bull run of 2017 the price dumped well below the 50 DMA 4 times. This is the first time this year. 

[henrygandorf 29189]

3 hours ago, po elvis said:

after not following bitcoin at all I decided to look at the chart. it is at 46.9k now. my guess is it will bounce to the 50DMA at around 57k and then fall to the 200 DMA which should be around 42k towards the end of May. whatever happens, the chart looks pretty ugly past any bounce you see short term here.

when was it 46.9?  the lowest i see is 48.8 and it promptly went back to 50.4 an hour later.

i don't personally own btc but i use it to track correlated stocks.  when you're doing that, dips can be very useful.  not sure if that's more a discussion for the stonks thread.

[GRHorn 105]

1 hour ago, henrygandorf said:

when was it 46.9?  the lowest i see is 48.8 and it promptly went back to 50.4 an hour later.

i don't personally own btc but i use it to track correlated stocks.  when you're doing that, dips can be very useful.  not sure if that's more a discussion for the stonks thread.

Which correlated stocks? Miners? MSTR?

[henrygandorf 29189]

3 minutes ago, GRHorn said:

Which correlated stocks? Miners? MSTR?

mstr, riot, mara, sos, ebon, can.

riot and mara have been the moneymakers and track in the most reliable ways.  mstr does too i guess, but too pricey to get involved.

[po elvis 2070]

2 hours ago, henrygandorf said:

when was it 46.9?  the lowest i see is 48.8 and it promptly went back to 50.4 an hour later.

i don't personally own btc but i use it to track correlated stocks.  when you're doing that, dips can be very useful.  not sure if that's more a discussion for the stonks thread.

yeah it must have been at 48.9k when i posted.

[henrygandorf 29189]

interesting day today. tomorrow should be normal. 

[GRHorn 105]

6 hours ago, henrygandorf said:

interesting day today. tomorrow should be normal. 

Looks like the bottom is in. Our long national nightmare is over. 

[GRHorn 105]

Don’t listen anymore so I don’t know if Junior is actually mocking here. 

Evidently Lawrence accepted signing bonus in ETH. 

[Nice Guy Eddie 13509]

If I was a crypto company that was signing a celebrity to endorse my product, I would require they take the entire compensation in crypto. If only for PR and appearance sake. Perhaps even structure it, so they don't take control of the crypto keys for X time, or a phased approach. I wouldn't offer an option to take it in USD, unless it was someone like Jordan. Even then, you can explain that the compensation method is part of the endorsement and helps to sell the product by that single aspect.

 

Edited April 26, 2021 by Nice Guy Eddie

[BearSchlong 8083]

All kinds of questions.

Taxation - lump sum and then handled like individual income when converted to fiat?

Valuation - a deal worth 10M in the AM is worth 11M or 9M later in the day?

 

[MontereyMX 869]

Any sort of work around to pull a little IRA money without the tax hit and put it on BTC?

[milkman 428]

Need to learn more about crypto....More importantly the only crypto I own has been purchased through Paypal.  Should I look at other platforms to puchase and do I need a crypto wallet?

[GRHorn 105]

10 minutes ago, milkman said:

Need to learn more about crypto....More importantly the only crypto I own has been purchased through Paypal.  Should I look at other platforms to puchase and do I need a crypto wallet?

Yes you should look elsewhere.  PayPal doesn’t allow you to withdraw your BTC, which may not seem like a big deal to you when you first enter the space, but if withdrawing funds is not an option you don’t truly own the coins. 
 

There’s a couple clear options for buying crypto. The simplest Ux to me is the CashApp if you already use that, but it’s only BTC. You hold your coins on your phone. It’s secure but I wouldn’t hold huge amounts on it. 
 

If you don’t want to hold anything on your phone personally or want to buy Eth or some other shitcoin probably the most popular choice is Coinbase. If your just starting to dabble though I would stick to BTC or if you want Eth. 
 

As far owning a hardware wallet there’s a few options. Coldcard, trezor, Ledger. I own a Ledger Nano S. It’s pretty straightforward to setup. You can store BTC Eth or several different shitcoins on there. 

[GRHorn 105]

52 minutes ago, MontereyMX said:

Any sort of work around to pull a little IRA money without the tax hit and put it on BTC?

Have not done it, but saw this link yesterday. 

 

[MontereyMX 869]

22 minutes ago, GRHorn said:

Have not done it, but saw this link yesterday. 

 

Hmmmm.  Interesting.  Thanks! 

[Nice Guy Eddie 13509]

1 hour ago, MontereyMX said:

Any sort of work around to pull a little IRA money without the tax hit and put it on BTC?

I know you mentioned IRA, but if you have an employer 401k you most likely can take a loan that isn't taxed. You will pay yourself back via paycheck deductions. Plus you collect the interest that you're paying. But be careful that if you leave your job, you need to pay it back quickly or face a tax situation.  This work-around effectively moves retirement money into crypto. I would be 100% clear on the fine print and be sure you can afford the paycheck deductions before going this route.

1 hour ago, milkman said:

Need to learn more about crypto....More importantly the only crypto I own has been purchased through Paypal.  Should I look at other platforms to puchase and do I need a crypto wallet?

If you're dealing in small amounts and you're thinking of crypto as a long term hold, Paypal is fine. Paypal is not going to steal your crypto and they're too public to not reimburse you because of a theft. When you're ready to jump into other coins besides Bitcoin or Ethereum, start thinking about exchanges and wallets. This creates more responsibility for you. There are some protections but it's possible to make mistakes that lead to coin loss. I always recommend sending small, test transactions. Sure you pay more in transaction fees, it's worth it as you increase your knowledge and not lose anything.

Coinbase is a great first exchange to use, especially as you gain more experience. 

[achooloco 1067]

1 hour ago, GRHorn said:

I own a Ledger Nano S. It’s pretty straightforward to setup. You can store BTC Eth or several different shitcoins on there. 

Is it worth it to own the S and the X or vice versa to back each other up? Saying this as someone who just owns btc and isn’t interested/able to deep drive into other coins right now. But it is a nice chunk of btc (to me at least). Was told to just get the X, but the ledger website selling a beginners combo for both devices and I know Jack squat about cold storage 

[GRHorn 105]

16 minutes ago, achooloco said:

Is it worth it to own the S and the X or vice versa to back each other up? Saying this as someone who just owns btc and isn’t interested/able to deep drive into other coins right now. But it is a nice chunk of btc (to me at least). Was told to just get the X, but the ledger website selling a beginners combo for both devices and I know Jack squat about cold storage 

If you’re only hodling BTC I see no reason to pay extra for the X. 

[Burt Macklin 19020]

4 hours ago, MontereyMX said:

Any sort of work around to pull a little IRA money without the tax hit and put it on BTC?

If it’s a Roth, you could take out your contribution amount, but it sounds like it would be much easier to just hold gbtc in that account if that’s where your funds are coming from. 

[Nice Guy Eddie 13509]

2 hours ago, achooloco said:

Is it worth it to own the S and the X or vice versa to back each other up? Saying this as someone who just owns btc and isn’t interested/able to deep drive into other coins right now. But it is a nice chunk of btc (to me at least). Was told to just get the X, but the ledger website selling a beginners combo for both devices and I know Jack squat about cold storage 

I would just get 1 of them but if its not that much more expensive to get 2, why not. Also, only buy from the manufacturer and not a 3rd party site.

If you bought 2, one could not be the backup for the other. they would be 2 separate wallets.  The backup is a 24 word seed which needs to be protected. If someone discovers it, they have complete access to your coins without the hardware device. And you will want to save the seed in a secure spot/location away from the device.

Advanced: The coins are not actually stored on the device at all. The ledger is on the blockchain. The device only creates and maintains your keys (wallet address) to access your balance on the blockchain and to send coins.  This concept confused me in the beginning.

Edited April 27, 2021 by Nice Guy Eddie

[washparkhorn 9939]

Fed Chair Powell press conference - Crypto came up. 

Powell - crypto on the radar, but the Fed will wait and see since the dollar remains the reserve currency.

[Queen Bitch 1692]

 

[GRHorn 105]

1 hour ago, Queen Bitch said:

 

I saw this last night.
 

This is OK, Boomer crystallized into a comedy segment. So many straight up falsehoods included. The good news is it’s just more evidence of the upside still available for people already participating in the market. 

[T’Boo Ted Marshall 2732]

ETH climbing

[GRHorn 105]

 

[nycHorn 2995]

ETH climbing

I’m sure there is a sell wall at 3k but I hope it breaks through soon.

[bernorange 8359]

I was reading a bit about Etherium staking.  I understand that staking ETH means your stake is locked until (and if) Etherium transitions to ETH2 at which point they will be converted to the new coins.  What happens to the ETH held by folks that is not staked when the ETH2 rapture comes?

[Nice Guy Eddie 13509]

1 hour ago, GRHorn said:

 

I seriously doubt that Munger could explain the use case of bitcoin and crypto other than phrases such as "digital fake gold." It's ok to be skeptical or even believe that it's not a good development for world finances but at least be able to explain your position.

[GRHorn 105]

Also Charlie Munger 

 

[Nice Guy Eddie 13509]

2 hours ago, bernorange said:

I was reading a bit about Etherium staking.  I understand that staking ETH means your stake is locked until (and if) Etherium transitions to ETH2 at which point they will be converted to the new coins.  What happens to the ETH held by folks that is not staked when the ETH2 rapture comes?

I don’t fully understand the transition but my understanding is that when Eth 2.0 is fully realized, everyone is flipped into Eth 2.0. What I don’t know is whether its a phased approach or not, beyond this initial break.

one thing I am confident is that whatever date Eth developers provide, double the timeframe.

[GRHorn 105]

19 hours ago, Queen Bitch said:

 

This is a funny thread of Bull Maher being similarly wrong on multiple things. 
 

 

[MirrOlure 14760]

I seriously doubt that Munger could explain the use case of bitcoin and crypto other than phrases such as "digital fake gold." It's ok to be skeptical or even believe that it's not a good development for world finances but at least be able to explain your position.

He’s probably not going to invest time figuring out something in which teenagers have made larger returns than he cumulatively has in his entire career of investing based on “fundamentals”

[Nice Guy Eddie 13509]

Don't get fired up about comedians slamming a new tech, trend, financial tool, etc. Hitting the new kid on the block makes for an easy laugh. 

George Carlin was one of the funniest (not late career) comedians and had spot-on social commentaries in his stand up specials. I recall him making fun of people using credit cards at grocery stores. It was funny at the time but he did not understand the shift in payment technology. He was right though about paying high interest.

Card transactions surpassed checks and cash because it was a better and easier transaction.  I'm aging myself but I recall when credit card purchases initially required a phone call verification. Or manually checking the credit card # against a book of lost/stolen/deadbeat card #s. Yes, the store clerk had a giant, national book of credit card #s to reject, behind the counter. In a sense, I think we are just moving beyond this adoption pain stage with crypto.

Maher is right that there is currently some the Greater Fool theory in all cryptos and NFTs. Which also exists in the traditional stock market as well. The store of value coins are based on what everyone says they're worth. But that is with many assets including real estate.  I've learned to feel differently about Ethereum and DeFi because they can generate income. Yes, it's currently income from the next crypto investor/user but that describes most or all financial products.

 

[nycHorn 2995]

[mention]Nice Guy Eddie [/mention] I think you’ve mentioned it in passing before but I’d love your opinion on MATIC. I know it’s just peaked recently but the more I read the more I like.

[Nice Guy Eddie 13509]

32 minutes ago, nycHorn said:

[mention]Nice Guy Eddie [/mention] I think you’ve mentioned it in passing before but I’d love your opinion on MATIC. I know it’s just peaked recently but the more I read the more I like.

My knowledge is limited on MATIC aka Polygon. Some of the info below may not be 100% accurate.

My initial excitement about them is that many crypto commentators seem excited by them. From my basic understanding, they are effectively a blockchain off of the ETH blockchain. Their proposition is that transactions on the MATIC blockchain is periodically written to the ETH blockchain for security. This allows for quick transactions and almost 0 fees. As a simple use case, you couldn't have an online game transact on the ETH blockchain. Too expensive and slow. MATIC could be used to play something as quick as online blackjack. Obviously a high speed ETH network could be valuable beyond gaming.

MATIC is also making partnerships with DeFi players as they are all held back by ETH transaction fees/costs.  As an example, AAVE is testing out a DeFi exchange on the MATIC blockchain. MATIC has NFT exposure on matic.opensea.io. 

The risk with MATIC is their offering is partially what Eth 2.0 offers, and that may be released late this year.  Can MATIC find a place for themselves in a Eth 2.0 world.