OT: Ray, how's your Bitcoin investment going?

[verticaldoug]

Originally Posted by Tony T

With over 18m of the 21m Bitcoin mined, I was surprised to learn that the last Bitcoin is estimated to be mined 120 years from now.

It is the algorithm with the hash. It is designed that way to halve the issuance of new bitcoins over time. If you think about it, it is like built in inflation.

My fundamental issue with the whole cryptospace is the amount of leverage built into the system is very large. The cryptospace needs to extract real hard currencies to pay for the electricity and other resources consumed by the miners. The concept of TETHER is just a plug, because the original dollars eventually get sucked out and they use the dollars to buy CRYPTO to place in reserves instead of dollars, then when the CRYPTO increases, the value of the reserves versus the outstanding TETHER supply increases and they just issue more TETHER. I think this whole nexus is probably a fraud.

In many respects, it looks like a position held at Archegos which is just being pyramided.

We will eventually find out when the asset pool backing TETHER is disclosed to the NYAG.

For CRYPTO, it is a race about becoming part of the financial system before becoming a threat to destablize it. The only difference will be how and what form GOV Regulation comes.

[fiamme red]

Coinbase is valued at more than BP: https://www.bbc.com/news/business-56750102.

[sipmeister]

Originally Posted by cnighbor1

What gets me is the amount of energy it takes to generate one bitcoin.
It is extremely high and for that reason alone they should be banned

For people who claim to be Earth conscious and green friendly, they're not being green when they choose crypto. There are plenty of articles out there highlighting the amount of energy consumed. It's staggering.

[Ozz]

These folks had it all figured out: The Island of Stone Money

[MattTuck]

Schwab has a market cap of 122B, with AUM at 3.25 trillion. just for reference.

Etrade at about 11B wtih 500B AUM.

Coinbase is at ~80B market cap with 223B in assets on its platform.

Comparing it to BP, which had a high market cap of 240+ Billion more than 15 years ago... isn't really all that meaningful. Most of a stock's value is based on growth potential -- and let's just say the growth potential for fossil fuels is constrained by policy actions to cut emissions.

Atleast coinbase has a business model where they charge fees. Etrade and the other big brokerages have largely abandoned trading fees, and make most of their money on interest spreads... so to say they are brokerages is a bit silly. They are more like banks in how they make their money, with trading costs as a loss leader to attract people to park their money there.

[SPOKE]

If I bought Bitcoin at $3000 then sold at $60k how is this gain treated with regard to taxes? (Income...capital gains)

[slowpoke]

Originally Posted by SPOKE

If I bought Bitcoin at $3000 then sold at $60k how is this gain treated with regard to taxes? (Income...capital gains)

Same as stocks: less than a year? Short-term gains (income); otherwise long-term gains. Congrats!

[mistermo]

Originally Posted by SPOKE

If I bought Bitcoin at $3000 then sold at $60k how is this gain treated with regard to taxes? (Income...capital gains)

I've wondered this too and should know the answer and I'm still not clear.
When one buys Euros, then the dollar declines, causing Euro to become more valuable, no cap gains is required, even if you decided to convert back to dollars.

Isn't crypto a substitute currency? Why would it be treated differently? I'm still trying to wrap my head around this. (I bought DOGE a month ago).

[slowpoke]

https://www.irs.gov/individuals/inte...y-transactions

[SPOKE]

Originally Posted by slowpoke

Same as stocks: less than a year? Short-term gains (income); otherwise long-term gains. Congrats!

Thank you!

[jimcav]

So do the crypto exchanges report sales with 1099 like Etrade etc does? I had the impression a lot of this was under the radar and not reported

[verticaldoug]

If you are a US Persons, yes you should get a 1099.
https://help.coinbase.com/en/coinbas...esource-center

Like all things financial, it eventually will get regulated because it will be taxed.

All unregulated financial markets will eventually defraud their investors. It's like gravity.

[specie]

Originally Posted by slowpoke

Same as stocks: less than a year? Short-term gains (income); otherwise long-term gains. Congrats!

Thanks

[mistermo]

Originally Posted by verticaldoug

If you are a US Persons, yes you should get a 1099.
https://help.coinbase.com/en/coinbas...esource-center

Like all things financial, it eventually will get regulated because it will be taxed.

All unregulated financial markets will eventually defraud their investors. It's like gravity.

Newbie here. I've heard there's an element of anonymity that appeals to many, and there's a "ledger", whatever it means in the crypto context. How can one be anonymous if they're receiving a 1099? A few years ago our company IT system was seized by malevolent outsiders. They promised to reinstate after a bitcoin ransom, which was paid. Somehow they were able to keep that anonymous.

I listened to this podcast which I found fascinating, but it triggered more questions than answers. RadioLab The Ceremony Are there any documentaries or crypto for dummies that one can recommend?

[Tony T]

Dogecoin!!!
https://www.theverge.com/2021/4/16/2...pike-elon-musk
“ The joke currency, which as recently as January 27th was worth less than a cent, hit 47 cents this morning” “...the market cap is more than $51 billion.”

.