I wish I had your knowledge. I’m still new to trading and even newer to crypto. Bagholder is my middle name…lol.
No doubt that all crypto dev teams are in it to line their own pockets, but that’s the name of the game with everything in this world.
Overall, I feel the risk:reward is very good and see huge potential in crypto.
I was following the whole Ripple saga, but haven’t followed up for a while.
Gensler says “…lack of protection…” but lots of crypto fintech companies offer insurance. But I suppose that in case of a hack or something rather than all crypto assets being frozen.
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This made me lol pretty good. I feel ya man, I am holding 2 bags of Doge… May just have to cut my losses once it gets back up to 30 cent if it even does lol. FOMO is a NONO…
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If you happen to catch it at the right time, the risk/reward is great, at the wrong time it’s terrible. 
Just don’t invest anything you can’t afford to lose… thinking of it explicitly as gambling helps, as does cashing out half of anything you buy that happens to double in value. You’ll still pay a little bit in taxes and transaction fees, but otherwise it’s house money at that point.
As far as all crypto assets being frozen, that’s unlikely to happen… it’s just that when news hits of the SEC finally taking action to restrict this, it’s gonna get ugly for people who buy in at the wrong time. There’ll be a massive selloff before the exchanges actually delist anything, so at least you’d have the chance to sell at a loss. Buying in when Elon Musk or a celebrity happens to be pumping their own personal shitcoin is also pretty ugly though, and as long as that celebrity includes some fine print somewhere that they’re being paid or disguises their pumping as memes they appear to be getting off scot-free.
At least Elon isn’t dumping, just getting all kinds of people caught in their own FOMO, I guess. To be fair, DOGE is one I didn’t even consider and might actually pass the Howey test at this point. Its own creators have long since stepped away from their role, condemned the whole crypto market as a sick joke and a virtual casino, and called Elon a con artist when he started saying that they’d agreed to work with him to improve the network. That being said, it has no max supply and no mechanism to reduce issuance… price is pretty much entirely based on hype. I’m still kicking myself for not buying a few hundred thousand when they were a penny and I first heard WSB was hyping them, though. 
Short-term, it’s massively outperformed BTC since then, that’s for sure… but I outsmarted myself by putting my bitcoin in a vault five years before Wall Street first thought to start calling it digital gold. Tough to swap it out to DOGE on a whim at 2 in the morning, at this point.
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I also am averse to buying a coin that isn’t supply capped. I think holding favors early adopters, you stand to do better by trading. Look at bitcoin and monero and litecoin the last five days have gone up a bit. I guess for the holidays idk why but if you got in low and sold now you’d have made something.
I’ll always hold some bitcoin. It always shoots up after a block reward halving and I think that is due to happen soon iirc.
After what happened to blockfi I would be very hesitant to put money into anything crypto promising interest. My eschange has a “staking” feature but I’m not using it.
I think more regulation will be good regardless of what it does to the price it will lead to more widespread adoption and lower the stigma from the ignorant.
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Bitcoin is considered a risk asset by the vast majority of the investment world. Other cryptos are also considered risk assets, to the extent they’re considered as investments at all. Risk assets have gone up over the last couple days, the traditional “Santa Claus” rally at the end of the year; that’s basically a recovery from a short-term downturn two weeks ago, for two reasons. First, the “quadruple witching” was last Friday, which caused a bit of a downturn in itself as options expired across every asset class simultaneously. Second, investment managers under pressure have a tendency to sell in late November and December in order to be able to book those capital gains as profits, even if they’re then forced to buy back in at a loss in January. Gotta make sure the books are looking good, after all, regardless of what’s actually happening…
I don’t think there’s a halving coming soon. Fairly sure the last halving was in May 2020, so we’ve got a bit over two years to go unless something truly crazy happens. In theory it’s possible to be at a different pace than once every four years, since the Bitcoin blockchain can’t tell time and goes by block height, but the difficulty adjustment scheme hasn’t failed yet.
Staking is a bit of an odd duck - for now, regulators have decided to treat it as interest, but it doesn’t entirely make sense. For most tokens, staking rewards are basically inflation, just a directed stream of inflation… much like how, when the central bank decides to inflate our money’s value away in order to stem runaway national debt levels, they direct the stream of inflation at their equivalent of stakers, that being large national and investment banks. Bernanke wasn’t kidding about just having to add a few zeroes and push enter. They’ve managed to paint it a bit better this time, since they directly bought assets as well as just pushing money at the bankers to loan out at low interest rates it’s let everyone enjoy the ride rather than just the banks… though you still have to have enough money to buy tickets for the ride in the first place. Anyway, they don’t force the banks to pay taxes on the money that’s magically added to their balances with the Fed, so logically staking rewards shouldn’t be taxed either. Oh well, who am I to argue with the IRS?
And yes, regulation is definitely good in the long-term, at least for the networks that survive. Once there’s regulation forcing the exchanges to stop selling unregistered securities, a lot of the networks will magically disappear as their coders realize the gold rush is over and they’re gonna have to actually build something useful to make money. Much like the dot-com crash, a million neat-sounding ideas that might actually work, just very tough to tell which ones without some insider knowledge that I don’t have. A16z and DCG manage to make money on every project they sign on to though, hmm.
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I don’t buy crypto… I mine it… So there is little risk to anything as I am just printing money 
$150.00 a month/1600$ a year is great profit in my opinion.
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I’d assume either you bought hardware for mining, or you’re using your computer’s hardware, or you’ve rigged up some spare hardware you had sitting around in a DIY… either way, there’s electricity costs and depreciation of equipment, plus taxes if you’re gonna be paying them. I tried mining for a little while 4 years ago, but when there’s actual income entering my bank account I didn’t feel comfortable ignoring the taxes entirely so I shut it off. For at least two years, it was more expensive than just buying the tokens would’ve been, once I factored in electricity… and as far as the taxes, it’s a tremendous pain in the ass to deal with tracking that mining income as an individual, much worse than running a business as a miner would be. I’d rather spend my electricity budget on growing, since there’s nothing entering my bank account the government is relatively uninterested in whatever I’m doing. Nothing wrong with seizing the opportunity to mine when it’s all at a profit though, if you’ve got spare hardware and a little time and don’t mind ignoring the taxes.
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Indeed, I have only bought a little bit of crypto, the rest was free or mined. Currently mine on our 3 gaming PC’s
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Upgraded video card 3080… and using old video card 1060 in a old i5. I did the cost analysis on it for sure and for every 4$ made a day I am only using around $1 of electricity. I am fine with that. I am going to keep everything in the bitcoin wallet for a while until I become a citizen of a country that doesn’t tax income (For various of reasons) “Pura Vida,” . That will happen in the next two years so nothing to worry about until then. …and then it won’t matter.
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Technically, to the IRS, that’s still ignoring the taxes… receiving crypto for work is considered income, you’re just making the choice to receive that income in the form of property with a certain value rather than currency. As long as it doesn’t touch a bank account, though, most likely they’ll never find out… so if you’d want to buy the crypto anyway and you’re just getting a 75% discount, excellent.
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It’s hard to get the graphics cards nowadays, I wish I had one and a rig for it. The tax code is confusing because as I understand it they want to tax you on capital gains of dollars, but not for cross crypto from one currency to another. So if worried about taxes maybe not keep it in bitcoin use something else. But I have not been audited or know anyone that has so idk how hard they look and what catches the evil eye in the first place. Mining seems impractical if you are paying for electricity but if you had a free way to generate it than it’s a great idea.
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You can still make money after the electricity cost. I am. I found 3080’s on Amazon pretty easy at the beginning of December… Yah they aint $800 either… but they were going quick while i was placing my order.
Beware LHR has been installed in these cards to turn the hash rates down. The new driver release turn it on so you wanna stay on the dec1st driver 412.
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Sadly my 3080 is LHR as well.
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Personally I think it is BS. I had to wait for over a year with cash in hand to get one. I understand why they are doing it but I dont agree with it even though I had to wait. A $2400 card and they should not be able to tell me what I can do with it. Why I won’t buy another Apple product… censorship and telling me what I can access with a device I paid a lot for… Im back on 412 and dont expect to upgrade the driver until the nonsense stops. I am considering expanding what I have now and will be looking for other options other than nvida if they are out there…
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They want every damn penny they can get. Crypto to crypto trades aren’t considered like-kind trades, so they’re taxable. The IRS counts it as if you’d sold your crypto and bought the other, so you’ll have to pay capital gains (or can track/deduct capital losses) on whatever you’re trading and keep track of your cost basis for whatever you’re getting in return.
The reason to keep it in bitcoin, or any other crypto, is that exchanges have to send info on your trades to the IRS - if he’s just keeping it in his wallet and it never touches an exchange, it’s actually close to anonymous at that point. It’s when they get KYC info from the exchanges that they start being able to identify addresses… though as you said, the IRS is way behind the times on this. They’re gonna be depending on exchanges to report trades through 1099 forms, and then if things show up right there in the returns they might come after you for their money. If you refuse to pay for a decade or two, then they’ll start actually going after you legally… or if there ends up being a political agenda.
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I’m not super worried about taxes because I haven’t made any money but I haven’t kept track of all the out of exchange transfers. Hopefully no one cares.
Looks like a bad week for bitcoin price, the whales are selling and the coins are sitting on the exchanges, looking bearish. We’ll see what happens.
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I predict a seemingly-magical recovery after the New Year, once options expiry is through… there are lots of vested interests in seeing the month-end price settle at ~46k. That means as many options contracts as possible will expire worthless. After that, 
for a few weeks.
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Idk about that I was reading this:
He basically said that bitcoin isn’t going to have an immediate positive rally but had a great year in 2021 and I think it’s true. Who knows I had read some other thing about the chinese traders getting out of crypto and what effect if any that will have.
Just like usual lots of gossip and somewhat wild swinging of price. I hope it goes up we’ll see.
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True. It might also be that the options market was what was keeping the price afloat at 46-48k in the first place, and now the bears will come out strong. A more accurate prediction would’ve been that the price would stick around 46-48k into the New Year before following the mood of the market, which is as weird as ever since people are still a little crazy. 
When people stop being crazy, markets will stop being weird. I’m not holding my breath, though.
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I would love to sit and smoke with you guys and just listen. Quad-witching, tax stuff, options, the greeks, etc…all stuff I’m still trying to wrap my head around.
Been doing the crypto liquidity pools lately…my newest mind-fuck is impermanent loss.
Also need to start learning how to watch option flow for indication that price of a security will rise or fall.
7k to 25k to 3.5k 
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