Bitcoin crash coming (28 Viewers)

[L3urntout]

Let's not go into this ignorant:

The US dollar has been in a +/- 30% trading range for your lifetime as measured by its value vs other currencies. High inflation or low inflation doesn't seem to have the sort of effects one might have expected.

Inflation in the first world has been low for quite some while. I am more concerned with deflation than inflation and manage my assets accordingly. I agree it is hard to understand how the fiscal splurges of the last twelve years didn't lead to inflation in the US Dollar, but it didn't. Treasury yields are at record lows.

"Gold bugs" have been exceptionally concerned about inflation ever since the Carter administration ( 1976-1980), However, the Federal Reserve and US fiscal policy has essentially abolished inflation. Crypto has other reasons to prosper, which is good for it as inflation doesn't seem to be much of an issue for now.

I suspect a fundamental lack of understanding comes with the notion of a "huge transfer of wealth". My net worth was not diminished while other people racked up early gains in bitcoin. Nor was I enriched the last few years as the coin rose then fell then rose then fell then rose again. There is an opportunity cost that came from sitting on the sideline regarding bitcoin. The same could be said about amazon stock, or apple stock.

We don't know if bitcoin is the next great thing or a sucker's trap. Could be it is like buying Microsoft for a quarter per share. Could be it is like buying Iraqi Dinar, or beanie baby, or a herd of Emu. < shrug>

Please be sure to pay your taxes. Yes, playing in the crypto markets is taxable. Miners need to get specialized tax advice.

It is going to suck conducting business in bitcoin. EVERY transaction is its own taxable event (for now). For a single store that might amount to a million lines of capital gains and losses each year. The "wash sale" rules are going to be tested. < meaning you can't take losses on repeated transactions, but you still owe for the gains>

Paypal is going to report your side of transactions to the IRS. This could be a life changing event. Take the responsibility as a citizen to pay taxes seriously.

I have no idea about the tax systems in other nations. Good advice is essential.

The people who bought bitcoin and held it are not liable for taxes until they sell. < or buy something with it >

I wish you all good fortune. Be prudent. But I know some lessons have to be learned the hard way. - - - Or the path to great riches requires patience and persistence. Only time will tell which is which -=- DrStrange

PS after some reflection, I wonder how Paypal is going to handle its tax reporting obligations. On the surface it seems like they have to report each crypto transaction as a purchase and then a sale. That could end up being a massive job. Glad it isn't me having to get it done. Also sorry for the poor sods at the IRS dealing with such a dauntingly large tax return.

Only if you have 200 transactions for 20k plus are you going to get a 1099k which coinbase isn't even sending out as it isnt required

BTC/ETH is currently a commodity under the IRS guidelines, no official documentation that indicates wash selling would apply here at the current time.

Also I don't think other inflationary currencies is a good barometer to discuss the effects of inflation.

 

[L3urntout]

Also @Ronoh another factor to consider is taxes

If I were to swap my btc to eth it would be effectively buying an options contract on the ratio flipping in my favor between now and tax time with a minimum of 15% haircut applied to it, and then if you were to short term sell it, depending on price it could easily be another % haircut on the reconversion.

But low and behold I am a degen and some of the profits I took it btc I kicked it back into ETH.

 

[wuffle]

Also @Ronoh another factor to consider is taxes

If I were to swap my btc to eth it would be effectively buying an options contract on the ratio flipping in my favor between now and tax time with a minimum of 15% haircut applied to it, and then if you were to short term sell it, depending on price it could easily be another % haircut on the reconversion.

But low and behold I am a degen and some of the profits I took it btc I kicked it back into ETH.

So glad we don’t have capital taxes here

 

[L3urntout]

So glad we don’t have capital taxes here

Tis my civic duty to spread my cheeks for Uncle Sam, God bless.

But seriously jealous lol, where is this? Puerto Rico?

 

[wuffle]

Singapore

 

[Darson]

Wash sales rules do not currently apply to crypto as it's treated as property and not stocks/securities. While that doesn't mean that the rules can't change, I can't imagine crypto being categorized as a stock or security. Wash sale rules don't apply to foreign exchange transactions, so it wouldn't necessarily make sense to apply it to crypto and not forex. Also, the global crypto market is under a trillion dollars - not even one Apple. So I can't see effort put into regulations unless it gets significantly larger. Of course, this is all based on common sense which doesn't necessarily align with regulatory oversight.

I have a friend who was very early into crypto and he said he'll sell a couple coins when they hit $120k. He feels that there is still a long way to go... I know many people like this, who bought things like Apple 20 years ago and although they could sell today for a huge profit, they still sit on the stock as it just keeps going up and up. I think it's highly unlikely that I will sell my Amazon stock unless I really need the money.

 

[L3urntout]

Wash sales rules do not currently apply to crypto as it's treated as property and not stocks/securities. While that doesn't mean that the rules can't change, I can't imagine crypto being categorized as a stock or security. Wash sale rules don't apply to foreign exchange transactions, so it wouldn't necessarily make sense to apply it to crypto and not forex. Also, the global crypto market is under a trillion dollars - not even one Apple. So I can't see effort put into regulations unless it gets significantly larger. Of course, this is all based on common sense which doesn't necessarily align with regulatory oversight.

I have a friend who was very early into crypto and he said he'll sell a couple coins when they hit $120k. He feels that there is still a long way to go... I know many people like this, who bought things like Apple 20 years ago and although they could sell today for a huge profit, they still sit on the stock as it just keeps going up and up. I think it's highly unlikely that I will sell my Amazon stock unless I really need the money.

That's how I felt but watching my paper gains ignite in 2018 was surreal. I want to deleverage to a more reasonable ratio, like only 70% crypto LOL. Lost 5 years of my day jobs pay by going to sleep!

 

[Marius L]

That's how I felt but watching my paper gains ignite in 2018 was surreal. I want to deleverage to a more reasonable ratio, like only 70% crypto LOL. Lost 5 years of my day jobs pay by going to sleep!

Sounds like some diversification is needed, lol. Hope you hodled all the way

 

[HaRDHouSeiNC]

Sounds like some diversification is needed, lol. Hope you hodled all the way

Ive been in HODL mode since 2011 and working on stacking ETH when it was $100 ish

Ive been trying to tell people since BTC was $100 and $1000
Not sure anyone was paying attention though

 

[Payback]

Anyone that is holding at least 100 UNI is able to claim a free airdrop for 220 MIR tokens. They are worth about $1.15 at the moment so just about $250.

http://eth.mirror.finance/airdrop

 

[L3urntout]

This is really affecting my work productivity lol.

Loaded up on some MKR, I'm becoming fonder of YFI... and im thinking about scraping some spare assets into some yolo plays lol

 

[L3urntout]

Long have we waited. All time high baby.

 

[SpaceMonkey420]

Long have we waited. All time high baby.

All time high. 20,800. That means Every single person who bought and held coin before today has made money. Hash tag winning.

 

[wuffle]

This is really affecting my work productivity lol.

Loaded up on some MKR, I'm becoming fonder of YFI... and im thinking about scraping some spare assets into some yolo plays lol

Will recommend to dump that coin (MKR) and load up on some ASS (Aave, SNX, Sushi).

Bullish on the yearn ecosystem too, particularly Sushi and Cover

 

[L3urntout]

Will recommend to dump that coin (MKR) and load up on some ASS (Aave, SNX, Sushi).

Bullish on the yearn ecosystem too, particularly Sushi and Cover

Yeah yearn is pretty lit, experimenting now with a few eth for the ecosystem. But not a fan of synthetix tbh. I'm a sucker for first mover advantage, hence maker as far as defi goes.

Yefi is novel and im looking into sushu now.

 

[wuffle]

If first mover advantage then it would be UNI for you. However Sushi is shipping much faster with Bentobox and Onsen launching soon

 

[L3urntout]

If first mover advantage then it would be UNI for you. However Sushi is shipping much faster with Bentobox and Onsen launching soon

Well profit sharing adds great incentive, i can sushi is well poised to over take uniswap soon, but why aave vs other large lending protocols? I was looking at longing eth by locking up collateral, but not sure as to why someone would use aave when the rates are so much worse.

Is it just the flash loans?

 

[wuffle]

Well profit sharing adds great incentive, i can sushi is well poised to over take uniswap soon, but why aave vs other large lending protocols? I was looking at longing eth by locking up collateral, but not sure as to why someone would use aave when the rates are so much worse.

Is it just the flash loans?

Aave ships faster and they have more innovation/features coming in their v2. If you're just looking to borrow/lend then Compound rates are probably better

 

[L3urntout]

Lol i say larger but yeah it really is only compound or mkr

 

[HaRDHouSeiNC]

All time high. 20,800. That means Every single person who bought and held coin before today has made money. Hash tag winning.

Yah if this triggers a steady run up and the high holds watch alts go crazy now

ETH old ATH was over 1000

 

[L3urntout]

@wuffle I sold all my maker for sushi lol

On the other hand btc is tearing it up!!!!

My next sell off at 25625 is going to come faster than expectd

 

[wuffle]

@wuffle I sold all my maker for sushi lol

On the other hand btc is tearing it up!!!!

My next sell off at 25625 is going to come faster than expectd

You can choose to stake your sushi to xsushi. Current yield is around 20%~ the last I check

 

[L3urntout]

You can choose to stake your sushi to xsushi. Current yield is around 20%~ the last I check

done and done lol

 

[johnjohn]

to the moon!

 

[Bill_Man618]

to the moon!

And back!!!

Calling a crash like we had in 2017. By end of 2021 BTC will be under 10k calling it now.

 

[Lemonzest]

And back!!!

Calling a crash like we had in 2017. By end of 2021 BTC will be under 10k calling it now.

I hope so. I want to buy but this is nutty.

 

[wuffle]

And back!!!

Calling a crash like we had in 2017. By end of 2021 BTC will be under 10k calling it now.

Buy all the BTCs below 10k

 

[grebe]

Just sold my BTC that I stupidly bought thru paypal yesterday (stupid that I used paypal, not stupid I bought it). I made $20....which happens to be 1 tournament buy in on my Pokerrrr group! FREEROLLLLLLLLL

 

[Bill_Man618]

I hope so. I want to buy but this is nutty.

Yeah if it goes below 10k I'm jumping in so i can ride the next wave to riches. From what I understand this rally is being fueled by hopes that BTC will go mainstream. However, I think that idea is a loooooooong way from reality. In order for BTC to become commonplace in society it needs to be less volatile and that's not going to happen for a long time imho.

 

[SpaceMonkey420]

I hope so. I want to buy but this is nutty.

I’m was gonna swoop hard again and max at 18 but missed it this week by an hour. I wasn’t happy at 19. Oops.