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re: Why is crypto crashing?
Posted on 5/28/22 at 2:15 pm to DallasTiger11
Posted on 5/28/22 at 2:15 pm to DallasTiger11
quote:
That's only because you don't know what you are doing in crypto.
And that's why I've stayed out of crypto. I've dabbled enough to keep me interested in learning more. I'm not against it, just far more comfortable in equities, timberland, real estate and PM. So many new products with crypto and not enough free time to feel comfortable enough to invest any meaningful amount doesn't mean I'm shitting on it.
1
Posted on 5/28/22 at 2:18 pm to SmackoverHawg
quote:
And that's why I've stayed out of crypto. I've dabbled enough to keep me interested in learning more. I'm not against it, just far more comfortable in equities, timberland, real estate and PM. So many new products with crypto and not enough free time to feel comfortable enough to invest any meaningful amount doesn't mean I'm shitting on it.
Just ask if you have questions.
You do a great job of diversifying your portfolio as do others in this thread.
Posted on 5/28/22 at 2:22 pm to tenderfoot tigah
And thanks for the links. I don't mind reading and doing my own research, but their is soooo much out there, it's certainly helpful to have some guidance. 
That's what the MB should be. I posted my question and concerns. You responded in a slightly derogatory manner, but did link useful info. I'll take some flak if I get some feedback. Don't bother me one bit. Too many get defensive over their investments when questioned. IMO if you can't defend and explain your investment, you probably shouldn't be in it.
That's what the MB should be. I posted my question and concerns. You responded in a slightly derogatory manner, but did link useful info. I'll take some flak if I get some feedback. Don't bother me one bit. Too many get defensive over their investments when questioned. IMO if you can't defend and explain your investment, you probably shouldn't be in it.
Posted on 5/28/22 at 2:26 pm to SlidellCajun
quote:
My god. Volatility like this in a currency ought to be a massive red flag
It's a massive green flag and why more and more billionaires are investing in it.
quote:
And this brings me to another question. Since crypto doubles as an investment and a currency, does that not make it subject to capital gains taxes for those accepting it as payment?
I would assume you are taxed on any gains or losses made when you decide to sell it, but I haven't looked into it and don't feel like reading business tax law.
Posted on 5/28/22 at 4:20 pm to tenderfoot tigah
quote:
I would assume you are taxed on any gains or losses made when you decide to sell it, but I haven't looked into it and don't feel like reading business tax law.
I looked it up.
If you accept crypto as currency and it increases in value when you sell / convert it, you have to pay short term capital gains tax. Astounding.
Not really a fault of crypto as much as an egregiously punitive rule by the irs.
Posted on 5/28/22 at 10:31 pm to SlidellCajun
quote:
If you accept crypto as currency and it increases in value when you sell / convert it, you have to pay short term capital gains tax. Astounding
I have bad news for you about foreign exchange.
It's the same problem youd run into if it were euro, pesos, rubles, yen etc
Truly astounding.
This post was edited on 5/28/22 at 10:31 pm
Posted on 5/29/22 at 4:55 am to SlidellCajun
quote:Right, that's only if converted w/ STGs realized though. If the transaction is cashed-out >1yr subsequent to crypto acquisition, LTCG rates apply.
If you accept crypto as currency and it increases in value when you sell / convert it, you have to pay short term capital gains tax.
Posted on 5/29/22 at 7:50 am to Hulkklogan
quote:
Just came across this TED talk about block chain tech. I think it is a must-watch for anyone remotely interested in crypto.
Thanks for posting this. It’s well worth watching. She does a good job of describing the technology in plain terms.
I like the blockchain side of the crypto world and I think it’s worth investment.
The currency side is where I see the problems. The fact so many are like looking at the currency, more as a trading tool to make money rather than an actual currency used to buy things is something to be concerned with.
Until it is more widely accepted as a currency, there is going to be high volatility. The high volatility makes these an unappealing currency. Quite a conundrum.
Posted on 5/29/22 at 8:41 am to SlidellCajun
quote:
Until it is more widely accepted as a currency,
good news. that is coming, many state governments (even Louisiana) are drafting legislation to accept it for payment of taxes and fees. this will continue as even the slow moving government is realizing they will be left behind if they dont adapt.
quote:
Until it is more widely accepted as a currency, there is going to be high volatility. The high volatility makes these an unappealing currency. Quite a conundrum.
not really a conundrum, just another example of circular logic on your part.
This post was edited on 5/29/22 at 8:51 am
Posted on 5/29/22 at 9:00 am to AMS
quote:
not really a conundrum, just another example of circular logic on your part.
Not entirely. I watched one of the shows on fox business yesterday and they had someone talking about the struggles with crypto currencies and this was his point. Ie Until it’s more widely accepted, it will be subject to high volatility. It’s not as widely accepted because it’s wildly volatile.
Posted on 5/29/22 at 9:04 am to SlidellCajun
quote:
Not entirely. I watched one of the shows on fox business yesterday and they had someone talking about the struggles with crypto currencies and this was his point. Ie Until it’s more widely accepted, it will be subject to high volatility. It’s not as widely accepted because it’s wildly volatile.
that is entirely circular logic even if said by some guy on TV.
Posted on 5/29/22 at 9:09 am to SlidellCajun
I won't pretend to know how the currency side of things shakes out.
My best guess..
coin = asset used for transaction fees/gas
token = projects' assets built on smart contracts
Some coins are essential to the chain's operation and should be more like a currency, but BTC is deflationary. ETH might become deflationary, too, after The Merge.
Most likely what happens with ETH long-term is that is becomes deflationary through the burn mechanism, and staking APR hovers ~8-12% making it clearly a security and a "hold for life, digital-bond-with-price-appreciation-upside" and we have tokens that are used as currency - crypto-native collateralized algorithmic stable coins like RAI and FRAX. We will also have CBDCs.
I'm not sure what happens long-term with BTC but I'm bearish BTC for very long-term (I.E. 20 year) outlook.
My best guess..
coin = asset used for transaction fees/gas
token = projects' assets built on smart contracts
Some coins are essential to the chain's operation and should be more like a currency, but BTC is deflationary. ETH might become deflationary, too, after The Merge.
Most likely what happens with ETH long-term is that is becomes deflationary through the burn mechanism, and staking APR hovers ~8-12% making it clearly a security and a "hold for life, digital-bond-with-price-appreciation-upside" and we have tokens that are used as currency - crypto-native collateralized algorithmic stable coins like RAI and FRAX. We will also have CBDCs.
I'm not sure what happens long-term with BTC but I'm bearish BTC for very long-term (I.E. 20 year) outlook.
This post was edited on 5/29/22 at 9:13 am
Posted on 5/29/22 at 9:14 am to Hulkklogan
quote:more BTC today than yesterday. Way more today than 2 years ago and 5 years ago. Not sure how it's deflationary. Sure, it'll stop inflating a long time from now.
BTC is deflationary
Miners get inflation. Miners dump.
This post was edited on 5/29/22 at 9:16 am
Posted on 5/29/22 at 9:17 am to Hulkklogan
agree mostly with what you said about ETH, except for it wont have that high of staking return.
strong disagree with what you said about BTC.
but alas its all speculation at this point and no real point in arguing just think that if any crypto will have success in long term it will be BTC.
strong disagree with what you said about BTC.
but alas its all speculation at this point and no real point in arguing just think that if any crypto will have success in long term it will be BTC.
Posted on 5/29/22 at 9:39 am to FnTigers
Big difference in inflationary as in mints new coins without a supply cap, and mints new tokens with a cap.
We could go round and round on it, but generally BTC is seen as a deflationary asset.
We could go round and round on it, but generally BTC is seen as a deflationary asset.
Posted on 5/29/22 at 9:41 am to AMS
quote:
except for it wont have that high of staking return.
Idk, projections are anywhere from 10-15% returns post merge, and demand for block space increases that could keep it there.
It must be a strong incentive to secure the network.
quote:
strong disagree with what you said about BTC.
but alas its all speculation at this point and no real point in arguing just think that if any crypto will have success in long term it will be BTC.
Fair.
My concern with BTC is stagnation, and if transaction fees will be enough to cover security of the network once block rewards get sufficiently low (and eventually eliminated). Nobody knows how it'll shake out though, I could very easily be wrong.
This post was edited on 5/29/22 at 9:45 am
Posted on 5/29/22 at 9:42 am to AMS
quote:
I have bad news for you about foreign exchange. It's the same problem youd run into if it were euro, pesos, rubles, yen etc
But I accept the USD in my business. There is no capital gains tax to be paid.
There is if I or anyone accepts any of the crypto currencies.
Posted on 5/29/22 at 10:06 am to SlidellCajun
quote:
But I accept the USD in my business.
k, but you brought up the 'if' you accepted crypto so i brought up the fact that if you accepted any other currency it would be the same situation, not unique to crypto.
quote:
There is if I or anyone accepts any of the crypto currencies.
there is if you accept *any non-usd currency* imo this shouldnt be your sticking point against crypto as a currency, it behaves in this way exactly the same any non-native currency would.
plus Arizona has a bill, SB 1341, which would consider BTC legal tender. if that takes off it would make accepting BTC exempt from the 'astounding' tax implications you mention. altho there may be legal challenges to it, that problem only exists due to arbitrary classification, which is subject to change
Posted on 5/29/22 at 10:32 am to Hulkklogan
quote:
Idk, projections are anywhere from 10-15% returns post merge, and demand for block space increases that could keep it there.
It must be a strong incentive to secure the network.
I believe those projections were during peak ethereum and times of highest gas fees with the nft craze. 15% is certainly an overshot estimate, I think 6-8% seems more realistic. if demand for the space increases that should mean staking increases. if more individuals stake they get smaller % of rewards individually. theres a going to be balancing act that will occur between stakers/rewards just like with miners/hashrate earning.
could be wrong but those %s just seem high to me, maybe they will be that high in the early post-merge days, but long term will not be sustained. just my 2 cents.
quote:
Fair.
My concern with BTC is stagnation, and if transaction fees will be enough to cover security of the network once block rewards get sufficiently low (and eventually eliminated). Nobody knows how it'll shake out though, I could very easily be wrong.
thats fair as well, but imo a much longer timescale than 20 years. your childrens' children may not be alive to see the last BTC mined. the rewards may be sufficiently low well before then but i think thats still well past 20 years away. the mining hashrate on BTC is the highest ever and is growing. despite declining rewards and a 'crash' btc mining continues to grow. and of course no one knows for certain.
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