Current Events > Bitcoin broke 20K

(+) Yeah! (+)

2Pacavelli posted...

Or if you stick to Coinbase atleast transfer your coin to Coinbase pro before you make exchanges because that has lower fees as well

How do you do that?

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im not 13 posted...

How do you do that?

Download the Coinbase pro app and/or set up Coinbase pro from your pc. Then ho to withdraw/send bitcoin and their should be an option to send to Coinbase pro

EndOfDiscOne posted...

There are surely going to be many more Bitcoin bubbles that grow and pop, but positive growth over the long term as long as people continue to buy it.

That's a pretty big if

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2Pacavelli posted...

Download the Coinbase pro app and/or set up Coinbase pro from your pc. Then go to withdraw/send bitcoin and their should be an option to send to Coinbase pro

And it is defiantly cheaper than using regular CB?

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im not 13 posted...

And it is defiantly cheaper than using regular CB?

Yeah it's definitely way cheaper. Making a trade on Coinbase instead of Coinbase pro cost me about $200 last week. And with the price that it has increased that's probably another $50 added on to that in lost profit

Theon_Greyjoy posted...

20, 21, and 22 all in the same day. No one holding can say theyre at a loss right now.

Add 23 to that

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Solid Snake07 posted...

That's a pretty big if

I don't know just hearing the rumblings in the financial industries, most see Bitcoin as something that is here to stay, whether they like it or not.

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I cashed out, looking a lot like 2017 in here. My guess is people will hold until the new year and then try to sell because they dont want to pay taxes on their gains this year.


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That feeling when you lost 0.7 Bitcoin back in early 2018 due to foolish altcoin trades smh

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Background_Guy posted...

Fuck why did I invest in ETH

I guess it depends when you bought in, but it's having a better year than BTC is

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BTC may reach 30,000. Stop and drop then reach 50,000 or maybe even more for 2021

https://youtu.be/tOAqXD2Kx8c

Reliable channel I've been following for a few months. Don't mind his accent. Made some hundreds off his advice

I would have invested in Bitcoin years ago if I had the slighest clue how to do so.

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LivingLegend posted...

Says who?

Watch the video Bro

FabIe posted...

Dammit. Now graphics cards are going to be even harder to find.

probably have another run on it. though maybe not, that kinda mining is useless nowdays.

Usually when BTC reaches it's all time high there is big pull back.

With BTC the last two major bull runs, once BTC passed its ATH there were pullbacks that put it back at its previous ATH, then it continued its run dwarfing what it had previously seen before

Based on the previous years ther trend shows it may continue that pattern

There's heavy amounts of institutional money coming into the space because they want to own and control all of the Crypto like they do with everything else so that will drive the price up greatly.

Christian RULES posted...

What are the chances of it going to $50K next week? Now good time to buy?

Imo I'd say wait for a heavy drop, the once it hits that low buy as much as you can and watch for the heights it can reach in 2021

Good thing I've been stacking my bags for the last year and a half.

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Christian RULES posted...

What are the chances of it going to $50K next week? Now good time to buy?

I highly doubt it gets to $50k by the end of the year.

IMO put a little money in now, and keep putting some in every week.

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EndOfDiscOne posted...

I highly doubt it gets to $50k by the end of the year.

IMO put a little money in now, and keep putting some in every week.

You don't think this is a bubble right now?

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indica posted...

You don't think this is a bubble right now?

Not when comparing this to past runs. What we're seeing is typical for what happens after a halving. If the pattern holds, we could see close to a year of more growth before it crashes. And the bottom of the next crash will be higher than $20,000.

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In my opinion this is a bubble created to cash out before Mt. Gox users get their Bitcoin that was locked up for years once the lawsuit finalizes. They are more than likely going to cash out in droves so you need to get it while the getting is good.


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I love all the numbers folks are pulling out of their asses.

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https://twitter.com/rorypiant/status/1331634917889945604?s=20

This is Chainlink's CEO explaining the reason for the BTC's rally.

EndOfDiscOne posted...

I don't know just hearing the rumblings in the financial industries, most see Bitcoin as something that is here to stay, whether they like it or not.

I think there's a future for block chain technology, potentially at least. That doesn't mean bitcoin is necessarily along for the ride.

Just pretty sketch to me. People don't utilize it as a currency, which is supposed to be it's purpose. People use it as a speculative asset to trade to more reliable and stable currency like the dollar.

I obviously don't have a crystal ball, but nothing about bitcoin screams "this is the stable currency of the future"

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Solid Snake07 posted...

Just pretty sketch to me. People don't utilize it as a currency, which is supposed to be it's purpose. People use it as a speculative asset to trade to more reliable and stable currency like the dollar.

People and big institutions are using it as a hedge to protect their wealth against the dollar. In addition big institutions are creating financial products off of the bitcoin for their investors as they have to step it up to protect their market share against the up and budding DeFi space on the Ethereum platform.

Blockchain is a solution in search of a problem.

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Chortlez posted...

People and big institutions are using it as a hedge to protect their wealth against the dollar. In addition big institutions are creating financial products off of the bitcoin for their investors as they have to step it up to protect their market share against the up and budding DeFi space on the Ethereum platform.

There are many better ways of hedging against the dollar, including gold, which is physical and actually exists. Institutions are letting fools fuck around with cryptocurrency so they can make money off of them.

Largely folks are jumping into bitcoin to make money (real money, actually backed by institutions with authority) off speculation.

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If I invested what I did into bitcoin as much as I did into gold the past year then I would have double the Crypto that I have today

I'll continue on rolling with my bitcoin

2Pacavelli posted...

If I invested what I did into bitcoin as much as I did into gold the past year then I would have double the Crypto that I have today

I'll continue on rolling with my bitcoin

Yeah, folks were also ecstatic about their tulip bulb and beanie baby returns too.

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1337toothbrush posted...

Blockchain is a solution in search of a problem.

@1337toothbrush

You couldn't have been more wrong. Why? Smart contracts. Let me give the story I normally tell people to help them appreciate its significance.

A few years back, I was a line cook. Like everyone else, we all had that job where we constantly butt heads with others and for me it boiled up to the point where I decided to quit. Put in my 2 weeks' notice but during that time, I put in overtime. My boss, being as lackadaisical as she was, procrastinated and procrastinated on reviewing my time sheets and when I finally went to pick up my cheque, she just gave me my usual pay. She never got around to reviewing my timesheets, stiffing me out of $100.

Smart contracts would have eliminated this problem altogether. Blockchain would have kept track of my hours, smart contracts would have paid me my agreed upon wages based on the hours clocked in.

Yes, this technology already exists, but the purpose of blockchain adoption is to make these features universal. We want to eliminate the need for trust, me trusting my boss would do her job. Smart contracts would force people to uphold their obligations and promises. Smart contracts would literally render the tradition of "a man's word" obsolete. This is the automation that steal away jobs and create new ones in ways never before seen.

To give an example of how far we've come so far with smart contracts, in the DeFi space (decentralized finance, I should have said before), you can get savings rates of 7%. Leaving your money in the bank, you get 0.1% or some cases, a negative interest rate. The DeFi space has eaten 5% of the Financial market so far, and it's only accelerating.

1337toothbrush posted...

There are many better ways of hedging against the dollar, including gold, which is physical and actually exists. Institutions are letting fools f*** around with cryptocurrency so they can make money off of them.

Gold isn't as readily available as the BTC to store and to transfer. The accessibility for BTC is incredibly low. I can send BTC to someone in Cuba or North Korea once I know their BTC address. Gold, that's an adventure to accomplish. And institutions are using it to create new products off of.

Start taking this seriously, every big name enterprise is working on this, every federal bank is researching this, and every government is investing in this.

Chortlez posted...

You couldn't have been more wrong. Why? Smart contracts. Let me give the story I normally tell people to help them appreciate its significance.

A few years back, I was a line cook. Like everyone else, we all had that job where we constantly butt heads with others and for me it boiled up to the point where I decided to quit. Put in my 2 weeks' notice but during that time, I put in overtime. My boss, being as lackadaisical as she was, procrastinated and procrastinated on reviewing my time sheets and when I finally went to pick up my cheque, she just gave me my usual pay. She never got around to reviewing my timesheets, stiffing me out of $100.

Smart contracts would have eliminated this problem altogether. Blockchain would have kept track of my hours, smart contracts would have paid me my agreed upon wages based on the hours clocked in.

Yes, this technology already exists, but the purpose of blockchain adoption is to make these features universal. We want to eliminate the need for trust, me trusting my boss would do her job. Smart contracts would force people to uphold their obligations and promises. Smart contracts would literally render the tradition of "a man's word" obsolete. This is the automation that steal away jobs and create new ones in ways never before seen.

To give an example of how far we've come so far with smart contracts, in the DeFi space (decentralized finance, I should have said before), you can get savings rates of 7%. Leaving your money in the bank, you get 0.1% or some cases, a negative interest rate. The DeFi space has eaten 5% of the Financial market so far, and it's only accelerating.

How would smart contracts have solved this? How does blockchain keep track of your hours?

If you have any material on DeFi, please send it my way. At a glance it looks unsustainable. A rate of 7% means there are folks benefitting from higher rates elsewhere and so this could be temporary while the times are good and there is significant downside (or simply a scam that benefits early adopters and screws over people who hold too long).

Chortlez posted...

Gold isn't as readily available as the BTC to store and to transfer. The accessibility for BTC is incredibly low. I can send BTC to someone in Cuba or North Korea once I know their BTC address. Gold, that's an adventure to accomplish. And institutions are using it to create new products off of.

Start taking this seriously, every big name enterprise is working on this, every federal bank is researching this, and every government is investing in this.

Gold is just as readily available to store and to transfer, you simply represent the amount as a digital number. Yeah, sending things to countries that the US government has sanctioned is difficult because it's illegal. Do you honestly think governments won't seize control if it gets big enough?

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1337toothbrush posted...

If you have any material on DeFi, please send it my way. At a glance it looks unsustainable. A rate of 7% means there are folks benefitting from higher rates elsewhere and so this could be temporary while the times are good and there is significant downside (or simply a scam that benefits early adopters and screws over people who hold too long).

I think browsing Chainlink's blog is the best way to get your feet wet in the world of blockchain. Mind you, this has been updating for 2 years so you have a metric ton of stuff to catch up on.

https://blog.chain.link/

For DeFi in particular, here's this youtube channel that helped me figure out what the heck was going on.

https://www.youtube.com/channel/UCh1ob28ceGdqohUnR7vBACA

I will tell you, there are projects where you could have gotten above a 100% interest rate, heck above 1000%. This was at the height of Yield Farming. I got in late, so I got in at 80% interest rates but then my farming pools closed up shop. Of course, as insane as these rates were, of course, there were downsides like impermanent loss (you were putting in your own crypto that was subject to being lost due to how the functionality if the pool works), and the crypto you were farming losing value so you had to decide to sell off quickly to get your profit in or stay in "for the technology".

1337toothbrush posted...

Gold is just as readily available to store and to transfer, you simply represent the amount as a digital number. Yeah, sending things to countries that the US government has sanctioned is difficult because it's illegal. Do you honestly think governments won't seize control if it gets big enough?

Not to the extent crypto is. You still have to go to an exchange or central entity to transfer. And governments are certainly trying to gain control over crypto. They're trying to KYC (know your customer) everyone's crypto addresses. Exchanges already require you to KYC to make an account, where you need to provide a valid form of ID and whatnot. But once you send it off an exchange, you can hide your crypto in the mix of transactions, especially in other exchanges that don't require KYC.

You have a lot lot lot lot lot lot lot to catch up on. This is the future so prepare yourself from now. For anyone else reading this and don't know the first thing about crypto,

https://atomicwallet.io/academy

This will help you get the terminology down.

Chortlez posted...

I think browsing Chainlink's blog is the best way to get your feet wet in the world of blockchain. Mind you, this has been updating for 2 years so you have a metric ton of stuff to catch up on.

https://blog.chain.link/

For DeFi in particular, here's this youtube channel that helped me figure out what the heck was going on.

https://www.youtube.com/channel/UCh1ob28ceGdqohUnR7vBACA

I will tell you, there are projects where you could have gotten above a 100% interest rate, heck above 1000%. This was at the height of Yield Farming. I got in late, so I got in at 80% interest rates but then my farming pools closed up shop. Of course, as insane as these rates were, of course, there were downsides like impermanent loss (you were putting in your own crypto that was subject to being lost due to how the functionality if the pool works), and the crypto you were farming losing value so you had to decide to sell off quickly to get your profit in or stay in "for the technology".

Thanks. Again, another quick glance at this just screams scam to me. What do you mean by "impermanent loss"? If your crypto can be lost, how is it not permanent?

7% interest might have been reasonable (in fact, it used to be that you could get those sort of rates with regular money in CDs and such) but 100% or about 1000% is the realm of complete BS. Something very wrong is happening then.

Chortlez posted...

Not to the extent crypto is. You still have to go to an exchange or central entity to transfer. And governments are certainly trying to gain control over crypto. They're trying to KYC (know your customer) everyone's crypto addresses. Exchanges already require you to KYC to make an account, where you need to provide a valid form of ID and whatnot. But once you send it off an exchange, you can hide your crypto in the mix of transactions, especially in other exchanges that don't require KYC.

You have a lot lot lot lot lot lot lot to catch up on. This is the future so prepare yourself from now. For anyone else reading this and don't know the first thing about crypto,

https://atomicwallet.io/academy

This will help you get the terminology down.

Exchanges are made difficult on purpose due to regulation and of course middlemen wanting a piece of the pie. It's not all downsides, though, because for example if you accidentally send amounts to the wrong person or whatever, there are mechanisms to reverse such transactions. Not the case for bitcoin. There is nothing technically that makes blockchain any easier and you'll find that if cryptocurrencies get adopted more, you'll also be seeing more of these inconveniences and fees. Hell, crypto exchanges already charge fees.

It's really funny seeing cryptocurrency fanatics recreating early banking and running into the same issues that happened many years ago (e.g. bank runs) but thinking what they're doing is new and the wave of the future. Like, obfuscating financial transactions isn't a new thing either and you don't need cryptocurrency to do it.

edit: by the way, you never answered my questions regarding smart contracts and how blockchain would supposedly track your time.

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1337toothbrush posted...

Thanks. Again, another quick glance at this just screams scam to me. What do you mean by "impermanent loss"? If your crypto can be lost, how is it not permanent?

To give you a botched summary, the way lending works in DeFi is that lenders would input crypto into a pool. Say, Ethereum (ETH) holders would input their ETH into this pool for others to borrow from for their DeFi adventures. To incentivize people to lend their crypto, they would get paid for lending their crypto out, and usually it would be in a different currency, a stablecoin like DAI where 1 DAI =~ $1 USD (it's not totally equal and fluctuates by 0.0001). To give these stablecoins currencies value, the pools are balanced to maintain a specific price ratio, if the pool has $1 million and is split 50/50 between ETH and DAI, there's $500K worth of ETH, and $500K worth of DAI. But here lies the problem, crypto isn't stable.

If ETH goes up in price, that means they have to sell off ETH to buy more DAI to maintain the ratio. Which means they're selling off your ETH (if you've contributed to the pool) to buy more DAI. So a proportional amount of your ETH contribution gets converted to DAI. If you redeem your crypto and leave the pool, sure you'll have your ETH and your equivalent DAI so you can buy back your ETH, but it's may not equal to the original value of what you contributed to the pool. That difference is called the impermanent loss. It's impermanent because, if you stay within the pool, there's the chance that the price goes back down so you can get back your ETH (and potentially more). But once you exit, that impermanent becomes permanent.

Here's a way better explanation with handy dandy graphics if my explanation wasn't clear.
https://www.youtube.com/watch?v=8XJ1MSTEuU0

Mind you, this is DeFi, where it's all automated and of course, decentralized. So it's somewhat high risk, high reward. If you want to play it safe, there's Celsius Network, founded by Alex Mashinsky, one of the founders of the Voice over Internet Protocol (VoIP). They're basically a bank founded upon blockchain technology so you have safe and consistent savings rates of 7-14% depending on what cryptocurrency you're lending out to them.

I admit, I had my eye on them from the Chainlink partnership, but it did leave a very sour taste in my mouth how they hired some chick to manage a $300 million portfolio for them and when you googled her name, boom, the first link was a porn video of her. It threw the community in a loop where we had to investigate and verify claims of human trafficking and exploitation. Fun stuff. Still plan on leaving my stuff with Celsius Network since I'm not doing anything with most of my stash in cold storage (not on an exchange where the entity or exchange owner can do what they want with it).

And to answer the questions, in an ideal world, we would have a blockchain to track the clock in and clock outs that I manually inputted from inside the restaurant, and after each week, the smart contract would have calculated my earnings and immediately sent a payment to my crypto wallet. A database could suffice with tracking the hours inputted, but using a blockchain or some other distributed ledger tech (DLT) would ensure it's not the restaurant maintaining full control and potentially tampering with the hours.

With smartcontracts, one thing to note is that on a blockchain, "bank accounts" are universal in the form of cryptowallets. Smart contracts are just applications that exist on the blockchain, but makes them different is that they execute upon some event that has taken place. So me, clocking in and out would be an event that would trigger a smart contract.

I suppose I never explained what a smart contract is, check this 1 minute video out by Ari Juels, he is the lead scientist for Chainlink Labs and one of the leading cryptographic scientists in the industry. He is one of the coauthors of the paper that coined the term "proof of work".

https://www.youtube.com/watch?v=KndHlI2ffEg

And if you're curious about what Chainlink is, the World Economic Forum coauthored a whitepaper with the CEO of Chainlink on the framework needed to interface business systems of today with the blockchain. That framework (not explicitly stated) is Chainlink.

https://twitter.com/ChainLinkGod/status/1336718802831044608?s=20

Chortlez posted...

To give you a botched summary, the way lending works in DeFi is that lenders would input crypto into a pool. Say, Ethereum (ETH) holders would input their ETH into this pool for others to borrow from for their DeFi adventures. To incentivize people to lend their crypto, they would get paid for lending their crypto out, and usually it would be in a different currency, a stablecoin like DAI where 1 DAI =~ $1 USD (it's not totally equal and fluctuates by 0.0001). To give these stablecoins currencies value, the pools are balanced to maintain a specific price ratio, if the pool has $1 million and is split 50/50 between ETH and DAI, there's $500K worth of ETH, and $500K worth of DAI. But here lies the problem, crypto isn't stable.

If ETH goes up in price, that means they have to sell off ETH to buy more DAI to maintain the ratio. Which means they're selling off your ETH (if you've contributed to the pool) to buy more DAI. So a proportional amount of your ETH contribution gets converted to DAI. If you redeem your crypto and leave the pool, sure you'll have your ETH and your equivalent DAI so you can buy back your ETH, but it's may not equal to the original value of what you contributed to the pool. That difference is called the impermanent loss. It's impermanent because, if you stay within the pool, there's the chance that the price goes back down so you can get back your ETH (and potentially more). But once you exit, that impermanent becomes permanent.

Here's a way better explanation with handy dandy graphics if my explanation wasn't clear.
https://www.youtube.com/watch?v=8XJ1MSTEuU0

Mind you, this is DeFi, where it's all automated and of course, decentralized. So it's somewhat high risk, high reward. If you want to play it safe, there's Celsius Network, founded by Alex Mashinsky, one of the founders of the Voice over Internet Protocol (VoIP). They're basically a bank founded upon blockchain technology so you have safe and consistent savings rates of 7-14% depending on what cryptocurrency you're lending out to them.

I admit, I had my eye on them from the Chainlink partnership, but it did leave a very sour taste in my mouth how they hired some chick to manage a $300 million portfolio for them and when you googled her name, boom, the first link was a porn video of her. It threw the community in a loop where we had to investigate and verify claims of human trafficking and exploitation. Fun stuff. Still plan on leaving my stuff with Celsius Network since I'm not doing anything with most of my stash in cold storage (not on an exchange where the entity or exchange owner can do what they want with it).

Yeah so this is just like Upstart, LendingClub, Prosper, or any other P2P lending system, except using funny money with shadier people. You were acting like this was the same as putting your money in the bank and collecting interest. It's not, you're trusting that these people won't just take your coins and run (like what happened numerous times, e.g. Mt. Gox for a famous case). That's really the thing though, Bitcoin was created to avoid centralization but all you're doing here is instead of putting your trust into big banks, you're putting your trust into fly-by-night operations.

You could avoid all that and simply manage your own wallet, but you miss out on making money off others. Similarly, you could keep cash in a mattress and not deal with the banks in the same way. If you want to argue that it's easier to transmit bitcoins, sure, but then the other side can't really use bitcoin for most useful things so they'll have to exchange for regular currency anyway.

I don't like what the fed and the government are doing with pumping trillions into the stock market at the cost of the value of the dollar, but I also don't see my currency dropping in value as dramatically as bitcoin did after 2017 and likely what will happen after this latest bubble.

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Chortlez posted...

And to answer the questions, in an ideal world, we would have a blockchain to track the clock in and clock outs that I manually inputted from inside the restaurant, and after each week, the smart contract would have calculated my earnings and immediately sent a payment to my crypto wallet. A database could suffice with tracking the hours inputted, but using a blockchain or some other distributed ledger tech (DLT) would ensure it's not the restaurant maintaining full control and potentially tampering with the hours.

With smartcontracts, one thing to note is that on a blockchain, "bank accounts" are universal in the form of cryptowallets. Smart contracts are just applications that exist on the blockchain, but makes them different is that they execute upon some event that has taken place. So me, clocking in and out would be an event that would trigger a smart contract.

I suppose I never explained what a smart contract is, check this 1 minute video out by Ari Juels, he is the lead scientist for Chainlink Labs and one of the leading cryptographic scientists in the industry. He is one of the coauthors of the paper that coined the term "proof of work".

https://www.youtube.com/watch?v=KndHlI2ffEg

And if you're curious about what Chainlink is, the World Economic Forum coauthored a whitepaper with the CEO of Chainlink on the framework needed to interface business systems of today with the blockchain. That framework (not explicitly stated) is Chainlink.

https://twitter.com/ChainLinkGod/status/1336718802831044608?s=20

What you described is already possible. Your employer could set the system to automatically accept the clocks that you manually inputted but they put in an extra validation step because they don't want to automatically pay out whatever you input. What if you lie and input way more hours? Using a blockchain changes nothing.

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Chortlez posted...

People and big institutions are using it as a hedge to protect their wealth against the dollar. In addition big institutions are creating financial products off of the bitcoin for their investors as they have to step it up to protect their market share against the up and budding DeFi space on the Ethereum platform.

The vast majority of institutional capital is in tangible assets like stocks. And I can promise you none of their capital they consider idle is in crypto, it's in dollars and maybe some things like gold

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The proof in Crypto is in the pudding. The naysayers will stay in denial because they feel they missed out. It's still early though on the grand scale, smart investment even if you start from now own can still be life changing

so I'm curious is to way people pay a fee on other platforms to buy bitcoin when there is RH and WB to buy from without any commission?

insomniacRA posted...

so I'm curious is to way people pay a fee on other platforms to buy bitcoin when there is RH and WB to buy from without any commission?

What's WB? I'm assuming RH is Robinhood. The problem with Robinhood is that you don't actually have custody of your coin. You can't transfer it to your own personal wallet or any other so you're effectively buying a stock and not actually acquiring Cryptocurrency

2Pacavelli posted...

What's WB? I'm assuming RH is Robinhood. The problem with Robinhood is that you don't actually have custody of your coin. You can't transfer it to your own personal wallet or any other so you're effectively buying a stock and not actually acquiring Cryptocurrency

Ah I see. WB is webull.
What would be the benefit of actually owning the coin vs buying the stock then? With the stock, you're essentially making money the same way you would by owning the coin if the price of BTC goes up. Is it the different demand for people wanting the stock vs the actual currency?

insomniacRA posted...

Ah I see. WB is webull.
What would be the benefit of actually owning the coin vs buying the stock then? With the stock, you're essentially making money the same way you would by owning the coin if the price of BTC goes up. Is it the different demand for people wanting the stock vs the actual currency?

The problem with having the stock is that your stuck on their platform. So if you acquired a bunch of coin on Robinhood then wanted to transfer your Crypto to a bank like Nexo, or Blockfi, so that you can actually earn interest on your savings you wouldnt be able to do that.

Unless you sell the asset for Fiat (USD, Euro etc.)

The problem with that though is that once you sell the asset you will have to pay capital gains taxes on whatever it increased by. Which is either 20% or 37% depending on whether it's long term or short term gains.

If you actually own your Crypto you'll be able to send it, make exchanges with it or do whatever you want without having to sell it for USD. So you wont be forced to pay those heavy taxes.

You can also even exchange your coin for other stable coins, like USDTether, which is a cryptocurrency that matches the USD in value. Even doing that you wont have to pay any capital gains taxes because you still technically are holding Crypto

2Pacavelli posted...

The problem with having the stock is that your stuck on their platform. So if you acquired a bunch of coin on Robinhood then wanted to transfer your Crypto to a bank like Nexo, or Blockfi, so that you can actually earn interest on your savings you wouldnt be able to do that.

Unless you sell the asset for Fiat (USD, Euro etc.)

The problem with that though is that once you sell the asset you will have to pay capital gains taxes on whatever it increased by. Which is either 20% or 37% depending on whether it's long term or short term gains.

If you actually own your Crypto you'll be able to send it, make exchanges with it or do whatever you want without having to sell it for USD. So you wont be forced to pay those heavy taxes.

You can also even exchange your coin for other stable coins, like USDTether, which is a cryptocurrency that matches the USD in value. Even doing that you wont have to pay any capital gains taxes because you still technically are holding Crypto

This is very good to know. I was about to put in 10k on RB on crypto stocks like an idiot. So far I made $1000 on gains as BTC went up. If I sell, I'm going to pay 20-37% on taxes??? That is substantial srsly. I'm starting to think short selling stocks is a dumb idea now. I'm going to start holding.
Thank you kind sir for saving me from making a regrettable decision.

insomniacRA posted...

This is very good to know. I was about to put in 10k on RB on crypto stocks like an idiot. So far I made $1000 on gains as BTC went up. If I sell, I'm going to pay 20-37% on taxes??? That is substantial srsly. I'm starting to think short selling stocks is a dumb idea now. I'm going to start holding.
Thank you kind sir for saving me from making a regrettable decision.

You're welcome I'm glad I could help.

Even something like Coinbase Pro could be a better option I think the fee is about 1.5% or less and you can set the actual price you want to buy or sell at.

But the best thing to do in the future is set up your own personal wallet and be able to transfer your Crypto their and control your private keys. I've also heard hardware wallets are good too, but I have no experience with them so I cant say for myself.

Short selling can still be very profitable if you do sell for Stablecoins (US Dollar Coin, US Dollar Tether) or other Crypto only and not actual Fiat. Or if you decide to convert your Crypto to another crypto that you know will keep its value or increase.

But both are still potentially high risk things to do if you're not sure what's going to happen in the market.

Another thing about taxes, if you use Crypto to pay for consumer goods directly I also dont think you pay any taxes, except for whatever sales tax the seller included in the price of the good. So if you decide to want to use your Crypto to buy something you're better off using BTC or even Stablecoins to buy it, instead of converting it to cash and then buying the goods, if you have that option.

That's another reason why it's better to have control over your Crypto because if you have it stuck on Robinhood you cant use it to buy or sell things at all so its main purpose as a currency is defeated.

insomniacRA posted...

This is very good to know. I was about to put in 10k on RB on crypto stocks like an idiot. So far I made $1000 on gains as BTC went up. If I sell, I'm going to pay 20-37% on taxes??? That is substantial srsly. I'm starting to think short selling stocks is a dumb idea now. I'm going to start holding.
Thank you kind sir for saving me from making a regrettable decision.

Those are the top tax brackets. You can look up the ordinary income and capital gains tax brackets, but unless you make a lot of money your taxes probably won't be that high.

Also a lot of people are considering recognizing their capital gains before the end of this year in case the Democrats with the Georgia runoff and Biden raises taxes.

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1337toothbrush posted...

Yeah so this is just like Upstart, LendingClub, Prosper, or any other P2P lending system, except using funny money with shadier people. You were acting like this was the same as putting your money in the bank and collecting interest. It's not, you're trusting that these people won't just take your coins and run (like what happened numerous times, e.g. Mt. Gox for a famous case). That's really the thing though, Bitcoin was created to avoid centralization but all you're doing here is instead of putting your trust into big banks, you're putting your trust into fly-by-night operations.

It is. But better. When you leave your money in the bank, they're busy using it to create loans and other financial products. They pay you a 0.01% interest for your efforts. When you leave your crypto on an exchange, they use that crypto to fill sell orders and use the crypto on top of that for other ways to make money. They pay you nothing for leaving their crypto with them. These lending protocols are different in being transparent in what they set out to do and do only what is written in their smart contracts. If you can read solidity, the language smart contracts are written in, you can tell someone setup some back door to rugpull you and verify what a project is going to do what they said they want to accomplish, thereby bypassing the need for trust. If not, you'll have to wait for someone to audit them.

Bringing up Mt. Gox, realize that Mt. Gox is a central exchange, it is heavily discouraged to leave your crypto on a central exchange (Binance, Mt. Gox, Coinbase) because they have control over your crypto like a bank has control over your funds. "Not your private keys, not your crypto". People who keep all their crypto on those exchanges, where the exchanges can lock them out of their funds or move their crypto as they please, they should know better. You are supposed to be your own bank. I don't feel sorry for those guys at all since they broke the cardinal rules of crypto. These lending protocols, your crypto is in an escrow controlled by smart contracts and if the smart contract is written as intended, no one else has access to the crypto.

1337toothbrush posted...

What you described is already possible. Your employer could set the system to automatically accept the clocks that you manually inputted but they put in an extra validation step because they don't want to automatically pay out whatever you input. What if you lie and input way more hours? Using a blockchain changes nothing.

These things are possible, but they're not ubiquitous, not the standard. What they're aiming to do is put ALL business transactions on the blockchain as it promotes fairness on BOTH SIDES. A blockchain would have made my hours more transparent instead of me counting hours on my stubs while they have the database to themselves. The verification is fine, but it wasn't connected to my bank account and clearly she omitted the verification part else I wouldn't have gotten stiffed. And they can setup a system to flag for suspicious hour inputs and clock outs.

Realize that wage theft is magnitudes larger than employee theft. Adoption of the blockchain would eliminate damn near all of it.