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Bit Coin Troubles

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  • #46
    Originally posted by Sparko View Post

    sure. I also have qualms about how regular money and untraceable things like diamonds are used by criminals.

    I am using it in a perfectly legal way, using a legal broker (Coinbase) who even tracks your investments just like E*trade does, and will issue you tax documents at the end of the year.
    Speaking of which...

    The IRS Is Coming for Crypto Investors Who Haven’t Paid Their Taxes

    I'm always still in trouble again

    "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
    "Of course, human life begins at fertilization thatís not the argument." --Tassman

    Comment


    • #47
      Originally posted by rogue06 View Post
      Just like stocks, you only need to pay taxes on any realized gains (difference in what you paid vs what you sold it for) - and report any income paid to you in crypto.

      Comment


      • #48
        Originally posted by Sparko View Post

        Just like stocks, you only need to pay taxes on any realized gains (difference in what you paid vs what you sold it for) - and report any income paid to you in crypto.
        As my father used to say regarding things like stocks (usually after my mother started freaking out when the market was down), you haven't made or lost anything until you sell. What happens in the meantime is irrelevant.

        I'm always still in trouble again

        "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
        "Of course, human life begins at fertilization thatís not the argument." --Tassman

        Comment


        • #49
          I am learning about another way to earn using crypto. It's called "staking" - basically you are "lending" a portion of a crypto to a pool that they then use to mine more crypto or some other purpose. Coinbase will protect your principal so you won't lose anything, and then you earn a portion of the newly mined crypto as a reward. But you can't use the staked amount or trade it for whatever time period the staking is for.

          One such project is Etherium 2.0 - it is an upgrade to Etherium. eventually all Etherium will be converted to ETH2. Right now they are mining ETH2 and testing various things. You can stake some of your regular Etherium into ETH2 to help them. The amount you stake is put into a separate ETH2 wallet and you cannot trade it or sell it until the conversion is complete (estimating a couple of more years but could be more) - in the meantime, you earn new ETH2 at around 6% year. There is a waiting list I signed up for. I think I will stake some of my Etherium 1 into it, since I planned on holding it for a long time anyway. And it will eventually become Eth2 anyway.

          https://help.coinbase.com/en/coinbas...ng-on-coinbase

          Comment


          • #50
            Originally posted by Sparko View Post
            I am learning about another way to earn using crypto. It's called "staking" - basically you are "lending" a portion of a crypto to a pool that they then use to mine more crypto or some other purpose. Coinbase will protect your principal so you won't lose anything, and then you earn a portion of the newly mined crypto as a reward. But you can't use the staked amount or trade it for whatever time period the staking is for.

            One such project is Etherium 2.0 - it is an upgrade to Etherium. eventually all Etherium will be converted to ETH2. Right now they are mining ETH2 and testing various things. You can stake some of your regular Etherium into ETH2 to help them. The amount you stake is put into a separate ETH2 wallet and you cannot trade it or sell it until the conversion is complete (estimating a couple of more years but could be more) - in the meantime, you earn new ETH2 at around 6% year. There is a waiting list I signed up for. I think I will stake some of my Etherium 1 into it, since I planned on holding it for a long time anyway. And it will eventually become Eth2 anyway.

            https://help.coinbase.com/en/coinbas...ng-on-coinbase
            Something about that seems more than a little off.

            I'm always still in trouble again

            "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
            "Of course, human life begins at fertilization thatís not the argument." --Tassman

            Comment


            • #51
              Originally posted by rogue06 View Post
              Something about that seems more than a little off.
              I am not explaining it that well. basically there are two ways to "mine" new coins "proof of work" and "proof of stake" - Bitcoin uses POW. Basically to create new bitcoin, miners have to solve mathematical equations. The first to do it, earns the bitcoin. This is very computationally expensive (the whole power thing) - Etherium is curently POW but is transitioning to POS. with Proof of Stake new coins are earned by having the largest "stake" of coins and processing transactions instead of solving math problems. So basically you are lending your coins trying to be the largest pool to get more chances to earn more. The proceeds are shared among members of the pool. The actual principal is never at risk because it just basically makes your chances of getting transactions to process better. The only way you could conceivably lose the coin would be for someone to do something deliberately bad, like create fraudulent transaction processes, and get caught. If that happens there are penalties. Apparently coinbase (who owns the pool that they "rent" out) is guaranteeing that if that were to happen, they would protect your investment.

              Screenshot-2021-01-19-at-10.58.33-960x644.jpg

              Comment


              • #52
                The crypto markets are tanking. It all started with Elon Musk mucking around in twitter. This is the biggest problems with crypto. there isn't anything real to "back them" like a stock. They are very volatile and subject to emotional whims. Musk makes a few tweets and the markets go way up. A few more tweets and the markets crash.

                Bitcoin was up to $50K after he tweeted about buying $1.5M and accepting it as funds to by Tesla cars. Then he reversed and said he wouldn't and now it has dropped to $30,000 (going slightly up since). Crazy.

                The other crypto's seem to be following suit for some reason. I think it's a panic sell off because of emotion. Probably a good time to buy rather than sell.

                I wonder if the SEC or some other such organization (maybe they will create one?) will eventually start to regulate crypto and stop people like Musk from manipulating the markets.

                Comment


                • #53
                  Originally posted by Sparko View Post
                  The crypto markets are tanking. It all started with Elon Musk mucking around in twitter. This is the biggest problems with crypto. there isn't anything real to "back them" like a stock. They are very volatile and subject to emotional whims. Musk makes a few tweets and the markets go way up. A few more tweets and the markets crash.

                  Bitcoin was up to $50K after he tweeted about buying $1.5M and accepting it as funds to by Tesla cars. Then he reversed and said he wouldn't and now it has dropped to $30,000 (going slightly up since). Crazy.

                  The other crypto's seem to be following suit for some reason. I think it's a panic sell off because of emotion. Probably a good time to buy rather than sell.

                  I wonder if the SEC or some other such organization (maybe they will create one?) will eventually start to regulate crypto and stop people like Musk from manipulating the markets.
                  There is some opposition to SEC intrusion into cryptocurrency. Here is a group defending itself against an apparent jurisdiction-lacking SEC. I just provide the initial content from the link
                  Source: https://cei.org/blog/lbry-cryptocurrency-prosecution-shows-secs-misplaced-priorities/


                  The Securities and Exchange Commission (SEC), without authorization from Congress or from formal rulemaking, continues its punitive push against blockchain-based companies that sell native tokens with its recent complaint against LBRY and its native LBC cryptocurrency.

                  Even before Bitcoin’s 2017 price surge, widespread interest in alternative or “alt coins”—cryptocurrencies that were alternatives to Bitcoin—was taking hold. Many “alt coin” founders presold tokens to fund eventual network-type businesses. This phenomenon became known as initial coin offerings (ICOs). The practice exploded in 2017-2018.

                  The SEC remained mostly silent during the ICO boom but then flooded alt-coin founders with a tsunami of subpoenas beginning in 2018. To be sure, some ICOs were scams and deserved prosecution, but others were and are legitimate companies building out viable networks and providing value to purchasers and consumers.

                  LBRY, Inc. is one such company. It promotes an “open, free, and fair network for digital content” and boasts 10 million users. Someday it could rival YouTube, Amazon, and other video content providers. But first it risks bankruptcy in a legal fight with the government for violations that lack victims.

                  © Copyright Original Source


                  Comment


                  • #54
                    Originally posted by Sparko View Post
                    The crypto markets are tanking. It all started with Elon Musk mucking around in twitter. This is the biggest problems with crypto. there isn't anything real to "back them" like a stock. They are very volatile and subject to emotional whims. Musk makes a few tweets and the markets go way up. A few more tweets and the markets crash.

                    Bitcoin was up to $50K after he tweeted about buying $1.5M and accepting it as funds to by Tesla cars. Then he reversed and said he wouldn't and now it has dropped to $30,000 (going slightly up since). Crazy.

                    The other crypto's seem to be following suit for some reason. I think it's a panic sell off because of emotion. Probably a good time to buy rather than sell.

                    I wonder if the SEC or some other such organization (maybe they will create one?) will eventually start to regulate crypto and stop people like Musk from manipulating the markets.
                    Yup. According to the WSJ, Bitcoin Falls as Much as 30% as Investors Sour on Cryptocurrencies


                    I'm kind of surprised that it lasted as long as it did given as you said there is nothing actually backing it.



                    Also: Coinbase IPO Turns Out to Have Been Bad Day to Splurge on Crypto

                    I'm always still in trouble again

                    "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
                    "Of course, human life begins at fertilization thatís not the argument." --Tassman

                    Comment


                    • #55
                      Originally posted by mikewhitney View Post

                      There is some opposition to SEC intrusion into cryptocurrency. Here is a group defending itself against an apparent jurisdiction-lacking SEC. I just provide the initial content from the link
                      Source: https://cei.org/blog/lbry-cryptocurrency-prosecution-shows-secs-misplaced-priorities/


                      The Securities and Exchange Commission (SEC), without authorization from Congress or from formal rulemaking, continues its punitive push against blockchain-based companies that sell native tokens with its recent complaint against LBRY and its native LBC cryptocurrency.

                      Even before Bitcoin’s 2017 price surge, widespread interest in alternative or “alt coins”—cryptocurrencies that were alternatives to Bitcoin—was taking hold. Many “alt coin” founders presold tokens to fund eventual network-type businesses. This phenomenon became known as initial coin offerings (ICOs). The practice exploded in 2017-2018.

                      The SEC remained mostly silent during the ICO boom but then flooded alt-coin founders with a tsunami of subpoenas beginning in 2018. To be sure, some ICOs were scams and deserved prosecution, but others were and are legitimate companies building out viable networks and providing value to purchasers and consumers.

                      LBRY, Inc. is one such company. It promotes an “open, free, and fair network for digital content” and boasts 10 million users. Someday it could rival YouTube, Amazon, and other video content providers. But first it risks bankruptcy in a legal fight with the government for violations that lack victims.

                      © Copyright Original Source

                      Yeah its a love/hate relationship. The crypto currency is vulnerable to scammers and manipulators and fraud. But nobody wants governments sticking their nose into it. But they do need regulation and some way to punish those who abuse the markets. Maybe they will create some sort of international regulatory body for cryptos by the crypto people. Something needs to happen though. The biggest push back probably comes from the black market/dark web who want the crypto to be completely free from control so they can use them freely to fund criminal activity.

                      Comment


                      • #56
                        Originally posted by rogue06 View Post
                        Yup. According to the WSJ, Bitcoin Falls as Much as 30% as Investors Sour on Cryptocurrencies


                        I'm kind of surprised that it lasted as long as it did given as you said there is nothing actually backing it.



                        Also: Coinbase IPO Turns Out to Have Been Bad Day to Splurge on Crypto
                        Pretty sure it will go back up. This sort of crash happened before (see the OP that started this thread). Bitcoin and other cryptos are very reactionary because most investors have no idea what crypto actually is and they are all looking for a quick buck and get scared at the drop of a hat. I treat it like I do any risky stock, I just invest what I can afford to lose, and plan to hang on to it for a long time. Over time, the volatility usually evens out and the prices continue to rise. This will most likely end up being a dip, a buying opportunity, and the prices will go back up again.

                        Reading up on it, another bit of news helped the cryptos drop:


                        Hong Kong (CNN Business)Bitcoin and other cryptocurrencies are plunging as anxiety spreads through the market — this time, after China took more steps to crack down on the digital coins.


                        The world's most heavily traded cryptocurrency plunged as low as $30,202 per coin from a high of nearly $44,000 in the past 24 hours, according to data from Coindesk.

                        Bitcoin recovered slightly following the New York stock market open and was down 15% at around $37,280.
                        Alongside bitcoin's fall, several other major cryptos were down Wednesday. Ethereum plummeted below $2,000 per unit at its low before reclaiming some of its lost ground. Ether was down nearly 30% at $2,430 Wednesday morning. The meme-turned-cryptocurrency dogecoin lost nearly 26%.
                        Cyrpto trading platforms Coinbase (COIN) and Coindesk experienced outages as a result of the selloff.
                        Bitcoin was already dropping this month after Tesla (TSLA) CEO Elon Musk said he was wary of its environmental impact. But a new announcement from a trio of Chinese finance and banking watchdogs appears to have shocked cryptocurrency markets even more.
                        The agencies said Tuesday that financial institutions and payment companies should not participate in any transactions related to cryptocurrency, nor should they provide crypto-related services to their clients.


                        "Prices of cryptocurrency have skyrocketed and plummeted recently, and speculative trading has bounced back. This seriously harms the safety of people's property and disturbs normal economic and financial orders," said the statement from regulators supervised by the People's Bank of China and the China Insurance and Banking Commission.

                        China's chilly attitude toward cryptocurrency goes back years. While the country doesn't completely ban cryptos, regulators in 2013 declared that bitcoin was not a real currency and forbade financial and payment institutions from transacting with it. At the time, they cited the risk that bitcoin could be used for money laundering, as well as the need to"maintain financial stability" and "protect the yuan's status as a fiat currency."

                        Members of the public can hold or trade cryptocurrencies, but major exchanges in mainland China have been shut down. Authorities in 2017 also banned initial coin offerings, a way for tech startups to raise money by issuing crypto tokens to the public.
                        https://www.cnn.com/2021/05/19/inves...hnk/index.html

                        Comment


                        • #57
                          If anyone is curious about Dogecoin, I got the following in a Coinbase Newsletter.

                          ----
                          A brief history of Dogecoin. So timeline.

                          From Musk’s SNL appearance to vocal skeptics and curious family members, Dogecoin is inescapable in 2021. DOGE’s value rose by more than 12,000% from January 2021 to early May — but its cultural momentum has been building for almost a decade. As Musk continues to tweet about his favorite crypto, and new dog-themed coins crop up, let’s take a look at the original memecoin’s history.
                          • December, 2013: Software developers Billy Markus and Jackson Palmer meet on Reddit, bond over appreciation of a popular meme, and create Dogecoin — a joke-based alternative to Bitcoin. Unlike BTC, which is designed to be scarce, Dogecoin is intentionally, comically abundant, with 10,000 new coins mined every minute and no maximum supply.
                          • January, 2014: Dogecoin enthusiasts on Reddit raise more than $50,000 in DOGE to fund the Jamaican bobsled team’s trip to the Sochi Winter Olympics.
                          • March, 2014: Same community raises $55,000 to sponsor NASCAR driver John Wise’s Talladega appearance. (The car’s graphics include a giant Shiba Inu on the hood.)
                          • April, 2019: Elon Musk tweets about DOGE for the first time: “It’s pretty cool.” Musk also reaches out to the Dogecoin development team around this time, according to Decrypt.
                          • January, 2021: Investors on Reddit’s WallStreetBets forum band together to pump “memestocks” like GameStop and AMC. Looking for the next opportunity, traders settle on DOGE, which is worth a fraction of a penny.
                          • February, 2021: Musk tweets a flurry of DOGE memes, including a photoshopped image from The Lion King (in which the Tesla founder holds a Shiba Inu up to the sky). Prices begin to spike.
                          • May, 2021: DOGE hits its all-time-high of $0.72, driven by the broader crypto boom, months of individual investor interest, and a steady drip of Musk tweets, punctuated by his appearance on SNL. (Prices fall in the hours after the broadcast, but remain vastly up for the year.)

                          Why it matters… Despite Dogecoin’s ubiquity, the question remains: why is it valuable? The short answer is supply and demand, as is the case with many assets. While traditional investors like Warren Buffett tend to be obsessed with “fundamentals,” younger online traders may be more focused on momentum — and in a financial system where many feel excluded, the idea that a joke-based coin can be worth about as much as General Motors or Adidas might just be part of the appea
                          l-----------------


                          So if anyone is thinking of investing in dogecoin, be careful. The fact that it is so easy to mine and there is no limit means that it can't hold any real value and will eventually be diluted by inflation.

                          Comment


                          • #58
                            Originally posted by Sparko View Post

                            Yeah its a love/hate relationship. The crypto currency is vulnerable to scammers and manipulators and fraud. But nobody wants governments sticking their nose into it. But they do need regulation and some way to punish those who abuse the markets. Maybe they will create some sort of international regulatory body for cryptos by the crypto people. Something needs to happen though. The biggest push back probably comes from the black market/dark web who want the crypto to be completely free from control so they can use them freely to fund criminal activity.
                            I would be happy with simply locking up cryptos up on weekends like with stocks. The 24/7 nature of it doesn't give it (or us) a break.

                            Comment


                            • #59
                              Originally posted by Sparko View Post

                              Pretty sure it will go back up. This sort of crash happened before (see the OP that started this thread).
                              At least for now, you appear to be correccccc. Corrrrr... Coooorrrrrrre...

                              You are not total wrong.

                              Bitcoin Price Bounces After Cryptocurrency Crash Shocks Market: Dogecoin, ether also recover lost ground after Wednesday’s selloff.


                              I'm always still in trouble again

                              "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
                              "Of course, human life begins at fertilization thatís not the argument." --Tassman

                              Comment


                              • #60
                                Originally posted by rogue06 View Post
                                At least for now, you appear to be correccccc. Corrrrr... Coooorrrrrrre...

                                You are not total wrong.

                                Bitcoin Price Bounces After Cryptocurrency Crash Shocks Market: Dogecoin, ether also recover lost ground after Wednesday’s selloff.
                                I am sure it will still bounce around some as some people will instantly sell once the stock gets back up to what they paid for it, as they try to get out of what they suddenly realize is a scary risky thing.

                                right now I am down about $200 from what I have put into cryptocurrency over time. I bought some bitcoin and etherium back when it was cheaper even than the recent drop, but I also bought some a couple of weeks ago when it was near its peak. That averaged out to a $200 loss, which seems to be recovering.

                                I am mostly just playing with it. Maybe I will get lucky and make a killing, or maybe I will lose it all. I am treating it like gambling basically. I have some money in what basically amounts to "penny stock" coins, coins that only cost a few cents each. I bought a few hundred Ankr at 12 cents. If it goes up I could easily double or triple my money. If not, I am only out $50.

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