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Cavalier Crypto 101 (1 Viewer)

Walking Boot said:
You should see the rude awakening going on on places like Reddit right now. I seriously just read a thread where a guy says he bought 8 bitcoins about this time last year for $7000, rode them up to $120,000, sold them all and flipped them into another crypto in December. In January the market tanks and his $120,000 is now worth only $30,000.

EXCEPT the IRS is sniffing around his $113,000 profit (in short term gains, natch) and wants their cut, plus he's in high-tax California, so all-in he owes $50,000. oops

He's not the only one. Anyone on there with any value left in any of the cryptos is still living in fear the rest of the rug is getting pulled out any second now.
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That is amazing. Wow. 

 
Walking Boot said:
My favorite overall, though, is unrelated to crypto. Guy writes: "I decided to try day trading in market swings for a few months. I was jumping in and out of stocks pretty quickly, and racked up about $3000 in profit. Then I figured in the new year I'd try thinking long term. So I withdrew about 20% of my portfolio ($20k), and rebalanced the rest to long-term holds. I just got my 1099 from my broker, dumped it into TurboTax, and they say I owe a ton in taxes! WTF?! I only made $3000 and left 80% of my funds in stocks. What happened? My 1099 says:

Proceeds: $1,300
Cost or other basis $1,350
Wash Sale Loss disallowed: $17,000
Gain/Loss Amount: ($14000)
 

Why do I owe so much?"

All the replies are pretty much "How do you have a $100k account and not know that you owe short-term capital gains at your income tax rate on every trade?"  
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Amazing. Lmao

 
If I weren't saving every last cent just to pay off taxes from last year I'd be buying on a regular basis still.  I really feel like this is an accumulation phase if anything.  Most of the weak hands have already been shaken out.  

There's some real (what I feel are) blue chip cryptos trading out there for about 20% of their ath.  Think a lot of whales recognize that some holders have to sell just to pay off their taxes from last year and will continue to force their hand.  My big concern is Tether, that it could absolutely collapse the market, destroy investor confidence, and present the biggest buying opportunity of our lifetimes.  

I don't think US regulatory action will be nearly as negative as people think.  This is an international market they would be foolish to box themselves out of.  There are big corporations and firms that see this now and as you know, they of course own the regulators.  Toyota and JP Morgan aren't developing on ethereum just to watch D.C. piss it all away.  We've got some friends in real high places.  

You need to understand how much investment has taken place behind the scenes during all this.  Huge financial firms mining crypto.  People leaving storied institutions to work in blockchain tech.  Goldman buying Poloniex.  These wall street firms didn't get their skin in the game just to burn their new toy before it gets its feet on the ground.  GS secured a patent a while back for a coin that could trade crypto and stock assets with liquidity.  Picture a multi billion dollar exchange where people are trading apple/fb stock for crypto. 

You think it's the end but it's only just beginning.  And if it's not this year it'll just be a year or two down the road.  Patience.  

 
ren hoek said:
If I weren't saving every last cent just to pay off taxes from last year I'd be buying on a regular basis still.  I really feel like this is an accumulation phase if anything.  Most of the weak hands have already been shaken out.  

There's some real (what I feel are) blue chip cryptos trading out there for about 20% of their ath.  Think a lot of whales recognize that some holders have to sell just to pay off their taxes from last year and will continue to force their hand.  My big concern is Tether, that it could absolutely collapse the market, destroy investor confidence, and present the biggest buying opportunity of our lifetimes.  

I don't think US regulatory action will be nearly as negative as people think.  This is an international market they would be foolish to box themselves out of.  There are big corporations and firms that see this now and as you know, they of course own the regulators.  Toyota and JP Morgan aren't developing on ethereum just to watch D.C. piss it all away.  We've got some friends in real high places.  

You need to understand how much investment has taken place behind the scenes during all this.  Huge financial firms mining crypto.  People leaving storied institutions to work in blockchain tech.  Goldman buying Poloniex.  These wall street firms didn't get their skin in the game just to burn their new toy before it gets its feet on the ground.  GS secured a patent a while back for a coin that could trade crypto and stock assets with liquidity.  Picture a multi billion dollar exchange where people are trading apple/fb stock for crypto. 

You think it's the end but it's only just beginning.  And if it's not this year it'll just be a year or two down the road.  Patience.  
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I pretty much agree with this. The more they drop the more the opportunity grows. The tether thing definitely has the potential to traumatize the market further and shake out the rest of the bandwagon investors that were looking for rapid ROI. I'm not sure I'd jump in now- but I'm certainly tracking the market for entry levels that I do feel comfortable with. There's a reason why  the super big firms that represent a ton of wealth have put themselves in positions to jump in big time if/when a massive crypto market trauma takes place.  These institutions aren't fleeing crypto- rather they are quietly positioning themselves for a reason. Once the super wealthy become massively positioned in crypto- they will do everything in their power to keep prices up/increasing. The wealthy generally do a good job preserving and increasing their wealth- so once they are heavily invested-- I feel like the days of massive fluctuation and inviting entry levels will be few and far between.

 
Have any of you guys gotten into mining crypto at all?  I started a few months ago and have been slowly accumulating GPU's as I could find them cheap.  I have 44 GPU's on 7 rigs running currently at my house.  I have been mostly mining small new coins such as Snowgem and BTCz.  I do have a bit of BTC and ETH as well.  

I agree with @ren hoek that this is an accumulation phase and that many of the weak hands are getting forced out.  I hope similiar situation happens on the mining side and I can increase the size of my operation this summer for a lot less money than I originally planned.

 
Walking Boot said:
You should see the rude awakening going on on places like Reddit right now. I seriously just read a thread where a guy says he bought 8 bitcoins about this time last year for $7000, rode them up to $120,000, sold them all and flipped them into another crypto in December. In January the market tanks and his $120,000 is now worth only $30,000.

EXCEPT the IRS is sniffing around his $113,000 profit (in short term gains, natch) and wants their cut, plus he's in high-tax California, so all-in he owes $50,000. oops

He's not the only one. Anyone on there with any value left in any of the cryptos is still living in fear the rest of the rug is getting pulled out any second now.
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Wow.  :shock:

 
abbottjamesr said:
Have any of you guys gotten into mining crypto at all?  I started a few months ago and have been slowly accumulating GPU's as I could find them cheap.  I have 44 GPU's on 7 rigs running currently at my house.  I have been mostly mining small new coins such as Snowgem and BTCz.  I do have a bit of BTC and ETH as well.  

I agree with @ren hoek that this is an accumulation phase and that many of the weak hands are getting forced out.  I hope similiar situation happens on the mining side and I can increase the size of my operation this summer for a lot less money than I originally planned.
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That's awesome.  I've thought about it real hard.  I was playing with the idea of getting an antminer.  

But I feel like I'd fail at setting it up or something.  I tried to install an SSD in my pc a while back, hooked up the sata3 cable, tried copying the root directory onto it and redirected the bios to talk to it and just wasn't having any luck.  I'd be the one person to get a mining rig and fail spectacularly at making it work.  

 
ren hoek said:
That's awesome.  I've thought about it real hard.  I was playing with the idea of getting an antminer.  

But I feel like I'd fail at setting it up or something.  I tried to install an SSD in my pc a while back, hooked up the sata3 cable, tried copying the root directory onto it and redirected the bios to talk to it and just wasn't having any luck.  I'd be the one person to get a mining rig and fail spectacularly at making it work.  
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Would make dope meme generator, tho. 

 
Walking Boot said:
You should see the rude awakening going on on places like Reddit right now. I seriously just read a thread where a guy says he bought 8 bitcoins about this time last year for $7000, rode them up to $120,000, sold them all and flipped them into another crypto in December. In January the market tanks and his $120,000 is now worth only $30,000.

EXCEPT the IRS is sniffing around his $113,000 profit (in short term gains, natch) and wants their cut, plus he's in high-tax California, so all-in he owes $50,000. oops

He's not the only one. Anyone on there with any value left in any of the cryptos is still living in fear the rest of the rug is getting pulled out any second now.
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Sounds a lot like the Bay Area in 2002.  A lot of people I knew went from being paper millionaires to bankrupt in a matter of months because of the tax bills they owed on options/stock that then became worthless.

 
Capella said:
DeepBrainChain -90.63%

:lmao:  I thought that one would work out 
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We are going to have some good stories to tell General Malaise's kids someday.  If this wasn't a telltale sign that this was going the way of the tulip craze, not sure what else was.  They were toying with us, we also can claim to have bought "dragonchain" and "bread"  just because well, it was available.

Not sure why we didn't get involved in those cryptokitties.

 
Over on the Phish message board, they are saying that Vertcoin is incredibly oversold right now.  I really don't know, I usually go over there to find out what kind of dab rig I should be investing in.

 
Bitcoin and Ethereum still way up compared to where they started, but I still think the "coin" concept won't matter. It's the tech and the companies providing the tech (now the big boys like Google are in it) that will benefit. I just see the coins as the transfer mechanism. If transactions happen a lot or very fast, WTF cares if you are sending 0.1 BTC for $100 or 1 BTC for $100. Both sides should be in and out in seconds. Like a credit card, there is a "transaction" in Visa money, but there's no worth to it. Store and buyer both used USD for a fee.

 
stbugs said:
Bitcoin and Ethereum still way up compared to where they started, but I still think the "coin" concept won't matter. It's the tech and the companies providing the tech (now the big boys like Google are in it) that will benefit. I just see the coins as the transfer mechanism. If transactions happen a lot or very fast, WTF cares if you are sending 0.1 BTC for $100 or 1 BTC for $100. Both sides should be in and out in seconds. Like a credit card, there is a "transaction" in Visa money, but there's no worth to it. Store and buyer both used USD for a fee.
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The whole “they are up from where they started thing” is pretty dumb. What difference does that make now. Very few people got bitcoin at the ground floor. It’s way more likely people are losing their ### on this thing now. 

 
Capella said:
The whole “they are up from where they started thing” is pretty dumb. What difference does that make now. Very few people got bitcoin at the ground floor. It’s way more likely people are losing their ### on this thing now. 
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I feel like you read one line and replied. 

 
I feel bad, at the end of april, i will buy out shares at at least 45% of original buy in....not 100% sure, if i can i will.

 
IC FBGCav said:
I feel bad, at the end of april, i will buy out shares at at least 45% of original buy in....not 100% sure, if i can i will.
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While a very kind gesture, I don't think you should have any liability to refund anything, and I don't think anyone would take it back, or at least I hope not.

 
Last edited by a moderator:
Honestly, the value here is $3,400 dollars - just sell it and donate the funds to something like St. Jude, Chance for Hope, or something like that. At least everyone can walk away feeling like it was a win then. 

 
fantasycurse42 said:
Honestly, the value here is $3,400 dollars - just sell it and donate the funds to something like St. Jude, Chance for Hope, or something like that. At least everyone can walk away feeling like it was a win then. 
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Well, until the rebound.

;)

 
IC FBGCav said:
I feel bad, at the end of april, i will buy out shares at at least 45% of original buy in....not 100% sure, if i can i will.
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Absolutely nothing to feel bad about. What a roller coaster ride! Worth every penny so far, and it ain't even over yet.

Thanks for doing this Cav. We all knew what we were getting into.

 
If they didn't ask out by January 31, let them cash out March 31 for the current value.  Those who decide to stay/let it ride should be in for another set period so you don't have to deal with random cash out requests.

 
I'm completely fine with what Cav wants to do, but I say let it ride until we go to zero or buy FBG Island, whichever comes first.

 
IC FBGCav said:
I feel bad, at the end of april, i will buy out shares at at least 45% of original buy in....not 100% sure, if i can i will.
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Just keep doing what you're doing.  I think most of us probably like games of chance and viewed it as such.  

Unless feeling bad is code for seeing this as a buying opportunity, i wouldn't think too much about it.

 
This crap is all bad.  We already lost it all in theory.  Just let ride, maybe years.   I will try to get us out to scam stuff and see what happens.  Scan stuff is why i sold iota.

 
In a way I'm kind of glad crypto has fallen off.  I feel like I've come down to earth.  I really do.  I have capitulated, my hopes and dreams: gone.  Now that the 2-week bear market is over Bitcoin can casually retrace back to 16k.  It will literally never go below $6855 again, it's practically science.  

When it's going up it's like the greatest drug!!

 
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