Crypto currency

Baron Samedi

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Whales are liquidating the leveraged retail traders today. Massive volatility and a big correction.

Except for SOL, looks like....so far.
 

aloyouis

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View: https://medium.com/chorus-one/introduction-to-crypto-staking-ced72bc1756b


Think of blockchains as in internet computer, and for Proof of Stake blockchains, the staked assets act as the CPU, they process transactions and information on the blockchain, and validate them....generally. Every blockchains has different nuances, but that is the gist of it.

For Proof of Work, the "miners" perform that function, and in Proof of Stake, staked assets go into a kind of Escrow that serves as PoS versions of mining. Don't ask me about the technicals...I try, but haven't got my head wrapped around that yet.

As for Amp....I have $3 worth, got free from Coinbase. I never bought any more. Some folks really like it, and I know it's a strong contender for a big one...but beyond that, I never really looked into it.

On my personal sclae, I would put AMP as a "B" grade investment...a strong, speculative investment. I wouldn't make it one of my primary investments, that have the best chance of having longevity, which would be my "A" grade....but a "B" grade to me is the sort of thing I throw $100 at that I am willing to lose, but expecting it do well.

That's not a warning, or anything, I have a couple of "B" grade investments.....ADAX, ZIL and CELR. I think you need a couple of those if you want to get that 100X return.

That fact that AMP is on Coinbase is an indicator that it will be here for the long haul, too. An indicator, not a "sure thing"...I mean...they list Dogecoin which I hate....because a lot of people are going to lose a lot of money on Doge when it runs it's course....and it will be one more thing that gives Crypto a bad name. But, that is the exception to the rule, generally, getting listed on Coinbase is like the equivalent of getting listed on the Dow, or the S&P 500 in stocks....it means the coin has traction, and generally good funding and structure.
Cool.

On a complete whim I bought 11,700 Amp at just under 4 cents a few months ago. I figured it was a silly guess but I wanted one that looked legit and was cheap. Amp is/was that.

Now about that 100x return….
 

Baron Samedi

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question from a newb. Can I sell and reinvest all profits back into the same crypto during a retreat and avoid taxes?

Not in America.

Every time you dump one crypto into another, or the same, it is considered a sale, followed by a purchase. So, if you do that on a centralized exchange that reports to the IRS, such as Coinbase, the government will know and want to tax you.

Theoretically, if you did it on a foreign exchange, or a decentralized exchange that reports to nobody, there is no way Uncle Sam would know. Like, if you exchange one crypto for another in your wallet, which connects to a decentralized exchange, not only would that be off the grid, so to speak, but you can also buy cryptos that are blocked in America, such as XRP. Theoretically.

But, if you are on Coinbase, and exchange your Bitcoin for Etherium, that gets reported as a sale of Bitcoin, and you pay capital gains on whatever profit you made, and then a purchase of Etherium. It's like selling one stock, and then buying another.

For the record, I ONLY buy stuff from Coinbase....it is the only exchange that I have tied to Paypal. If I want anything else, I just buy crypto X on Coinbase, and then send it to my wallet or another exchange, where I then flip it for what I actually want. Stellar (XLM) is the best way to do that, in my opinion, buy XLM on Coinbase, and send it to whatever exchange or wallet you want and exchange XLM for whatever it is you are trying to acquire.

Technically, that is a purchase, and a sale, and a purchase. But it's done in minutes, so there would be no capital gains on it, anyway.
 

patfan64

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Not in America.

Every time you dump one crypto into another, or the same, it is considered a sale, followed by a purchase. So, if you do that on a centralized exchange that reports to the IRS, such as Coinbase, the government will know and want to tax you.

Theoretically, if you did it on a foreign exchange, or a decentralized exchange that reports to nobody, there is no way Uncle Sam would know. Like, if you exchange one crypto for another in your wallet, which connects to a decentralized exchange, not only would that be off the grid, so to speak, but you can also buy cryptos that are blocked in America, such as XRP. Theoretically.

But, if you are on Coinbase, and exchange your Bitcoin for Etherium, that gets reported as a sale of Bitcoin, and you pay capital gains on whatever profit you made, and then a purchase of Etherium. It's like selling one stock, and then buying another.

For the record, I ONLY buy stuff from Coinbase....it is the only exchange that I have tied to Paypal. If I want anything else, I just buy crypto X on Coinbase, and then send it to my wallet or another exchange, where I then flip it for what I actually want. Stellar (XLM) is the best way to do that, in my opinion, buy XLM on Coinbase, and send it to whatever exchange or wallet you want and exchange XLM for whatever it is you are trying to acquire.

Technically, that is a purchase, and a sale, and a purchase. But it's done in minutes, so there would be no capital gains on it, anyway.
What about getting out of tokens at a loss? Can I use that to offset my gains?
 

Baron Samedi

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Cool.

On a complete whim I bought 11,700 Amp at just under 4 cents a few months ago. I figured it was a silly guess but I wanted one that looked legit and was cheap. Amp is/was that.

Now about that 100x return….

A lot of people really like AMP, and it has an excellent use case role to fill.

I looked at it, and I chose not to dive into it, largely because I don't like the Tokenomics of it;
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It's inflationary until the year 2045. I was born in 1968, and that makes me 77 years old by the time it goes non-inflationary. They release 1 Billion tokens per year, so that it effectively is 3% or so, and declining over time, so that's really not that bad.

That doesn't rule it out as an investment.....but then you look at the distribution in the chart above. 80% of the total supply is being kept by the creators for themselves or to develop the network....80%!!! That is a godawful lot of the total that can get dumped at any time.....let's say they release 1 Billion in normal inflation schedule, but then the price goes up significantly......there will be a portion of that 80 Billion tokens get sold in order for the funders and the funding pools to maximize liquidity! That means essentially that the growth of AMP will be capped.....it will probably never go parabolic, because some portion of that 80% of AMP tokens will get dumped to take advantage of the price, thus driving it down.

I could be totally wrong. I am probably in a fairly small minority in my opinion of AMP as an investment, but that is my personal research and conclusion.

It will appreciate in value, no doubt, I just think there are "faster horses to ride".
 

Baron Samedi

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I just put $50 in a week ago, I'm down. LOL

Also I started mining on my spare PCs, I'm up to two whole dollars! I'M RICH!

Welcome aboard! It can go up just as high and fast as it goes down....that's the nature of an emerging market.

 

Baron Samedi

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View: https://twitter.com/adamscochran/status/1437810201739071498?s=20


Two people at a kosher restaraunt, one asks if they have good calamari, and the other answers that bacon wrapped scallops are better!

That's how stupid this question and answer is.
This is a terrifying combination of power and ignorance!

When one powerful person, who doesn't understand anything about what she wants power over, asks another powerful person, who wants power over crypto, and the answer demonstrates that he doesn't know anything about it, either....

One ignorant person asks about fees on decentralized exchanges, and the "expert witness", one upping the level of ignorance, answers user agreement!......."USER AGREEMENT!"

God Help America, we have to get these two out of the way and get people who at least have a minimum understanding of what the Hell they are talking about in charge!

We desperately need clarity and regulation in the crypto industry, but certainly not from pretenders like these people! Holy Crap! God Help us with these two leading the charge in Washington.
 

SkiptoMyLou

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Totally new to the whole crypto thing. I mean I knew of bitcoin because of the deep web, but I was never able to actually obtain some and gave up.

Other than that I didn't know anything about it, and it seemed so daunting that I just ignored it. Before work today I decided to read this thread and I'm very glad I did, since it gave me a decent idea at least of how it works. I'll definitely will have to look into it more as I go, but it pushed me to invest 200 bucks.

Granted, I'm basically using that money as throw-away just to see how it works. Once I feel more confident I will try to invest more, but decided to go with an amount I can lose without feeling like I made a grave mistake.

Purchased ADA, Polygon, BNB and XLM

We'll see how it goes, but it's oddly exciting to finally be able to get into it without feeling completely ignorant about it, so thanks to this thread and the insightful posts.
 

johnlocke

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View: https://twitter.com/adamscochran/status/1437810201739071498?s=20


Two people at a kosher restaraunt, one asks if they have good calamari, and the other answers that bacon wrapped scallops are better!

That's how stupid this question and answer is.
This is a terrifying combination of power and ignorance!

When one powerful person, who doesn't understand anything about what she wants power over, asks another powerful person, who wants power over crypto, and the answer demonstrates that he doesn't know anything about it, either....

One ignorant person asks about fees on decentralized exchanges, and the "expert witness", one upping the level of ignorance, answers user agreement!......."USER AGREEMENT!"

God Help America, we have to get these two out of the way and get people who at least have a minimum understanding of what the Hell they are talking about in charge!

We desperately need clarity and regulation in the crypto industry, but certainly not from pretenders like these people! Holy Crap! God Help us with these two leading the charge in Washington.

As an absolute novice in this realm, I'm wondering why you are advocating for regulation of this sector? Regulation in what manner and to end?
 

Baron Samedi

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Totally new to the whole crypto thing. I mean I knew of bitcoin because of the deep web, but I was never able to actually obtain some and gave up.

Other than that I didn't know anything about it, and it seemed so daunting that I just ignored it. Before work today I decided to read this thread and I'm very glad I did, since it gave me a decent idea at least of how it works. I'll definitely will have to look into it more as I go, but it pushed me to invest 200 bucks.

Granted, I'm basically using that money as throw-away just to see how it works. Once I feel more confident I will try to invest more, but decided to go with an amount I can lose without feeling like I made a grave mistake.

Purchased ADA, Polygon, BNB and XLM

We'll see how it goes, but it's oddly exciting to finally be able to get into it without feeling completely ignorant about it, so thanks to this thread and the insightful posts.

Welcome to the future of finance, brother. :beer: Your choices are solid ones, for sure. Well done there.My expectation for your bag is you'll see XLM take a long time before it opos, and Polygon could pop at any time...maybe tomorrow, maybe two months. Honestly, not sure how it hasn't yet....but cryptos are like Jack-In-the-Box.....they do nothing, and do nothing some more, and then BOOM! Major push....200% gain...and then crash 50%....and so on.

Crypto is frighteningly volatile...so if you see your investment crash to 50% in a day...don't panic, just hang in there. Sometimes it stagnates for long periods as well, and being such a small market, it is easily manipulated by whales.

I bought DOT at $25.00, only to see it plummet to $13 in a few days, and hang around there for weeks. Now it is in the $30's...so I'm good.

The only thing you need to do is nothing, do not sell, and you'll be just fine.

Eventually, you'll find yourself enjoying the ride. The hardest thing for me is seeing the market crash and not being able to buy more.
 

Baron Samedi

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As an absolute novice in this realm, I'm wondering why you are advocating for regulation of this sector? Regulation in what manner and to end?

Primarily because the government is regulating by enforcement....and creating havoc and destruction in the industry. The SEC primarily. They appear to be selectively picking winners and losers arbitrarily. They are undermining investors.

Also, as a retail investor, they are trying to apply tax codes that are impossible to comply with. As an example, if I receive crypto for any reason, that is a taxable event, and when I sell it, that is a taxable event.

So, for example, I have ADA, which is a "proof of stake" blockchain. So, what happens is, I stake it, which is like putting it in Escrow, and I get rewards...but the rewards are fractions of coins, semi-random...and I have no idea when I get them, or what they are worth when I get them, and I can't even estimate because the price may go up or down 50% in a single day, and I will end up getting roughly 100 or more rewards a year.

That's an easy one...I also have ALGO, which literally gets rewards every day, automatically added to my balance. I have another wallet where I get rewards every few seconds...in tiny fractions, which technically I am supposed to claim something on the order of tens of thousands of taxable events just for that one crypto, and I have no record of when I got it nor what it was worth for any of them.

See, Crypto is a new asset, and government is trying to define it as a "Security", rather than a currency....it is neither, it is both. What the industry desperately wants is clarification, a whole new set of regulations to clarify legal liabilities, as well as taxes for investors. They are trying to apply the Howie Test to crypto, and it doesn't work.

Crypto is programmable money, not a stock. It is also not fiat money, becasue it is programmable, and serves fuctions other than simply trade...it can execute programs, contracts, it can operate things such as passports and digital ID...it has inherent utility that dollars do not have.

OR.....I have Bitcoin. No rewards there, so that's no problem.....but, if I go to the 45th Parallel restaraunt in Maine, where they accept Bitcoin to pay the bill.....now that is technically a taxable event, that I "sold" Bitcoin, converted it to money, thus paying capital gains, and THEN I have to pay the normal taxes due on any other meal purchase on top of it? That is insane.

Some cryptos are mined, some are created through staking, some are simply created at birth and distributed...some are distributed by Initial Coin Offerings, some are distributed for free randomly, and so on....and this all has legal implications which remain undefined.

As an example, the SEC likes to sue exchanges for selling securities, exchanges that are small enough they cannot afford to fight, so they settle, but the SEC has yet to ever state which specific cryptos were securities, or why, because that would necessitate a a clear, legal, definition, which they don't want to do....they are purposefully preserving a system that is impossible to comply with, because there are no regulations that give clear guidelines to comply with.
 
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