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Yea i used to trade alot a few years ago. then they increased capital gains on crypto which absolutely KILLED me come tax time. Now i do similar to you, diversify and hold, then take profit every so often. buy dips on occasion.
If Andrew yang pulls through as the next NYC mayor, plan on heading quite a bit on this topic...
Stupid question I'm sure...Will the capital gains impact me if I never take a profit? In 2-3 months of buying crypto I haven't taken any profits to the bank. I just keep converting and holding.
I'd like to know too. Maybe the IRS will start accepting crypto? HAre: capital gains
Are they only assessed if you withdraw the money to your bank? Or are they assessed any time you sell a coin?
True, but the argument most often used against BTC is the physical one that people feel safer with US currency or gold. In those cases, there is no physical currency created. It turns out that wasn't his argument though.
Oh sure and that's the point really, right? If you believe in the full faith and credit of blockchain/the internet/whatever, you feel better about the value being backed. You can certainly feel more secure in the US Treasury than "Blockchain" but feel that "Blockchain" has some value, right? Or are you arguing that it's an either/or question?
Agreed, and if it is on the rise like it has been, who is going to spend it, if they believe it will continue to rise. We don't hold on to our dollars thinking they will be worth 10, or even 2 tomorrow.
I thought the same thing when I first heard about bitcoin on the two plus two poker forums in 2011
who says ETH could hit 6 figures?
The way I read it/understand it is that LINK helps solve the "oracle problem". The oracle is the external/outside information to a blockchain. So we can see that something simple like BTC doesn't need any external parameters. But blockchains, and specifically smart contracts, could reasonably use external data. Let's say I want to do something in a blockchain that depends on the exchange rate. That rate can change daily. How do I get that information into the blockchain in a secure manner?
Wow. Thank you so much. My own research led me to the "Oracle problem", but your real world examples helped clarify everything.
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Looks like this was rejected by commissioners, requesting deeper dive first
IMO go BTC top heavy here....like some of the other distribution spreads posted here (maybe 75% BTC / 15% ETH / 10% others). #notanexpert
We should all hate ourselves for not doing this 5 years ago. That is results oriented thinking. 5 years ago this was all nerds in their moms basement buying pizzas.
I don’t bump this to lol - he was 100% right at the time. Point is “things have changed”.
I don’t know of the golden tablets of Mormonism so I won’t be able to provide a frame of reference between them and BTC.
The trading will become expensive from a tax perspective as moving from one coin to another is seen as a realization of gains. Also, I believe the yield you earn with BlockFi is considered taxable as well.
I wouldn’t beat yourself up too much...quite frankly, you’re still extremely early. RIOT is largely a BTC mining operation though...what worries me about them and MARA, a very similar operation is that they are both trading at about 30x from this time last year - great performance for sure, but BTC is only up 5x during that same time.
Agreed. I own some BTC itself but one of the reasons I like mara/riot is that I can buy options on them. As I understand it there are ways to do that with BTC itself but the barrier to entry on derivatives for the coin itself is much higher.
Is currency exchange always taxed? If I exchange dollars for euros on a Europe vacation and then change them back to dollars when I get home am I taxed on any "gains" I made from exchange rate fluctuations in the interim?
Ultimately, there is probably a lot of work to be done in this country (and in reality globally) to come to policy that’s more thought out not just related to tax implications, but how will digitally native assets overall get regulated. The sense I get is that what exists today was cobbled together to ‘close loopholes’ of taxation exclusion.
Seems like a dumb rule to me. I can't buy Mavs tickets or a whopper with stonk or baseball cards. I can with Bitcoin.
I just read the whole thing twice. Every single time I read about it, it sounds completely fake. Appreciate the link, but this still sounds like a giant scam.
I definitely agree with that. I looked up one of the mining companies people mentioned in the stock thread and the Yahoo profile had the number of employees as 1. So basically just a guy with a bunch of mining rigs. I think with the way people are jumping into stocks once they move and find similar stocks to drive them up, I could easily see your point that these stocks are way overpriced at this point. There’s no real moat and based on financials so far how does anyone know if they are solid companies with good management.
I'm sure you are not alone and that's fine. You shouldn't invest in anything you don't understand or don't believe in. People do that all the time, but it's best and safer not to invest your money that way.
Might I suggest a movie? Cryptopia: Bitcoin, Blockchains and the Future of the Internet. It was made last year, or at least released last year and I thought did a very good job at taking you through the history of crypto and where it might lead to in the future.
GBTC is the biggest/best BTC-similar fund if you're looking to hold a fund that holds BTC
You are forgetting the part where they both are operating at the 8x the hash rate as where they were a year ago.
It’s complicated with his situation, he uses Coinbase for most of his btc transactions but he has a large amount of cash he has to move (not a drug dealer)
