Bitcoin - Time to Sell?

[sengsational]

Why the need to invest 10% of one's portfolio in bitcoin, which is a currency (or at least they want you to believe it is) when I don't invest 10% in euros, or yen, or rubles.

That. I'm not saying it won't go up more, I'm saying I haven't speculated in currencies up to this point, and don't plan on starting now.

 

[twaddle]

 

[twaddle]

Uh oh. What Elon giveth, Elon taketh away.

 

[JoshTrent]

Uh oh. What Elon giveth, Elon taketh away.

I took pause when I read that quote too.. the "Dogefather" has spoken!

I find it ironic that he has so much influence on the Crypto Market, with TSLA holding a large sum of it.. yet he isn't going to trade it, he is just hold it? It's almost as if he wants to manufacture more "scarcity" into BTC.

The BTC I'm holding was purchased 5+ years ago, and I really don't consider it part of my NW, as I know it could tank any day. I plan to hold until it's $250k or $0. Either way, I'll be just fine.

 

[jazz4cash]

Hodl on, Elon. Hodl on

 

[gcgang]

I’d sell my Bitcoin if I could just remember the password for my account where 10 years ago I bought $25k worth.

 

[target2019]

It's possible to understand Bitcoin by reading some number of articles and messages. I recommend looking for a book that explains Blockchain and related technology, and also examines coin in a critical way.

It's real, and sticking around for a long time. At this time I'd guess it makes more sense as stored value for transactions, rather than as an investment. Yes there is risk, but the generations behind us seem to be comfortable with more risk than the average bear.

 

[flintnational]

Colonial Pipeline apparently paid the ransom payment in crypto currency. That cannot help crypto's reputation with the wider public. Right or wrong, this type of activity will continue to link crypto with crime. Some of crypto's "strengths" untraceablity and lack of central sponsorship, may also be its downfall as a currency.

 

[luckydude]

A problem I see with bitcoin as a currency for commercial transactions is its propensity for wild swings of its "value." A currency will only be widely accepted in transactions (except those conducted in the dark web or illicit trades) if its value is relatively stable, so that the downside risk to the vendor and the upside risk to the consumer are minimal.

It would be interesting to see any stats on the volume of commercial transactions conducted in bitcoin.

I don't have any bitcoins related "investments" but I wouldn't mind putting some play money into it purely as a speculative play on the next downswing just for fun.

 

[VanWinkle]

Most mining is done where there is as much solar energy as possible available because the cost of electricity is the biggest element in mining and so makes solar & wind power much more competitive. In fact the most profitable miners can run on pure solar power, as they have a predictable energy need making them ideal for setting up an optimized solar solution.

So at the end of the day if one wants to retire early and still have passive income, move to a high sunshine location and set up a bitcoin solar mining farm.

https://medium.com/swlh/a-solar-crypto-manifesto-95c6422802a4

Thank you for the warning ERD 50!!!!

 

[EastWest Gal]

Most mining is done where there is as much solar energy as possible available because the cost of electricity is the biggest element in mining and so makes solar & wind power much more competitive. In fact the most profitable miners can run on pure solar power, as they have a predictable energy need making them ideal for setting up an optimized solar solution.

So at the end of the day if one wants to retire early and still have passive income, move to a high sunshine location and set up a bitcoin solar mining farm.

https://medium.com/swlh/a-solar-crypto-manifesto-95c6422802a4

It was an interesting article. However, the author himself admits that he does not see cryptocurrency as real, useable currency but pair solar energy production to mining cryptocurrency as a way of generating income from crypto mining. Quoting from the article:

"People, called “miners”, use their computers to solve a very challenging math problem. As they solve these problems, they are occasionally awarded a cryptocurrency coin. The blockchain allows everyone to see and verify who has been awarded coins. And once the coins are awarded, they can be sold or traded with others in the system — often for very large sums of fiat (read: actual) money."

 

[Texas Proud]

It is time to SELLLLLLL...


My 17 yo daughter came home from school when CNBC said bitcoin had dropped to $42,000 during the day... she said to sell all her stocks and buy bitcoin!!!


Yep, when that happens it is time to sell...


BTW, per Fidelity her 1 year return is 55%.... and that is taking out 7% for her to spend....

 

[DR1959]

Bought more GBTC

I also sent money to blockfi
They pay 10% back on stablecoin which is USD cash.
Can't beat that yield!!

They need cash to margin all the people that want to buy bitcoin.

 

[flintnational]

It is time to SELLLLLLL...


My 17 yo daughter came home from school when CNBC said bitcoin had dropped to $42,000 during the day... she said to sell all her stocks and buy bitcoin!!!


Yep, when that happens it is time to sell...


BTW, per Fidelity her 1 year return is 55%.... and that is taking out 7% for her to spend....

Yep, I had a 21 yo nephew basically respond with arrogance when I asked him about his crypto holdings. Apparently I just did not understand how impactful crypto will be. Not sure if there are any buyers left out there.

 

[captain3d]

I thought Crypto was being surprisingly impactful today

But also maybe even more impactful in the future so I would not want to be too arrogant against the possibility either. Nothing wrong with owning a bit of everything.

 

[luckydude]

Yep, I had a 21 yo nephew basically respond with arrogance when I asked him about his crypto holdings. Apparently I just did not understand how impactful crypto will be. Not sure if there are any buyers left out there.

I don't mean to paint all the crypto enthusiasts with a broad brush (my apologies if anyone is offended), but they tend toward the young side of the spectrum and a lot of them seem to have this almost religious, bordering on fanatical, belief that bitcoin as an investment is completely "different" from everything else and that the non-enthusiasts just "don't get it."

Of course, the same sentiment was expressed by all the RE investors back in 2006-2007 and all the dotcom investors back in late 90s and 2000. It is always "different this time" until it isn't.

It's one thing to be a bitcoin investor (nothing wrong with that), but quite another to convince one's elderly mother to invest in bitcoin (disclaimer: I don't know how legit the post is):

https://www.reddit.com/r/Bitcoin/comments/mk87mq/just_got_my_mom_to_buy_almost_half_a_btc/

To moderator: I'm not sure if I am allowed to include a Reddit link here. If not, my apologies and please delete.

 

[tenant13]

There's a real opportunity in the recent drop for anyone whose investment lost value - because cryptos are considered a property by IRS (and not a security), the wash sale rules don't apply to them. So you can harvest the loss for the tax purpose and take advantage of the potential gain.

https://www.cnbc.com/2021/05/25/bitcoin-crash-opens-door-to-a-tax-loophole-for-investors.html#:~:

 

[twaddle]

OP, you apparently called it!

I have to say that I did sign up with coinbase. Very easy for n00bs. Got a wallet now! Send me your unwanted doge!

 

[RobLJ]

I admit I don't understand bitcoin, its attractions (the arguments seem similar to gold), and it's down almost 50% in 3 months, so much for the superiority to "fiat". It's not for me, but then I'm not young or in accumulation mode; it seems more like a hyper-speculative stock, which has its place.

I do think the energy wastage and govt regulation a la China are obstacles (maybe only speed bumps, maybe not). The yewt bought a couple back 6-7 years ago, only he lost his wallet when his computer disks crashed, a bit like piling up your cash and burning it. I realize this is not the norm, but ... neither is it reassuring. I think he and his older brother the winemaker are using their computers when not in use to coin Ethereum, so it doesn't seem to discourage him.

It's not for me, but could be for you, I guess.
To quote Blake:
Mock on, Mock on, Voltaire, Rousseau;
Mock on, Mock on, 'tis all in vain.
You throw the sand against the wind,
And the wind blows it back again.

 

[captain3d]

Netflix vs DVD's
Amazon vs Bookshops
Internet vs The Library
Crypto vs Banks etc

This is kind of the thinking. Can crypto currency become as important as the internet has become but for financial products and services. Etherium for example could become the back bone on which many services will 'settle'.

Maybe.

BTC
3 months = -40%
6 = +21%
1y = +282%
5y = +5200%

Worth a go?

 

[dixonge]

if only...

If only I'd taken my own advice!


Instead, I rode the amazing downhill ride. At least I got a bit of a bump to help justify an exit point. As of tomorrow I'll be out of all crypto. Very glad I limited my purchases...

 

[RobLJ]

I apologize since I know almost none of you are bluegrass fans (I'm not also, but make an exception for Ralph Stanley and a few others, particularly flat-pickers). But I flashed back to this and to my childhood in the Missouri Ozarks.

If only I'd taken my own advice!


Instead, I rode the amazing downhill ride. At least I got a bit of a bump to help justify an exit point. As of tomorrow I'll be out of all crypto. Very glad I limited my purchases...

 

[tenant13]

If only I'd taken my own advice!


Instead, I rode the amazing downhill ride. At least I got a bit of a bump to help justify an exit point. As of tomorrow I'll be out of all crypto. Very glad I limited my purchases...

FYI: you can take advantage of your loss. First, you can write it off which in itself nothing to sneeze at. But because crypto in IRS eyes is property there no wash sale rule that applies to it. You can instantly rebuy it and take advantage of the potential raise in prices. In hindsight you should have sold/bought back when BTC was hovering around 30-32k *

 

[dixonge]

FYI: you can take advantage of your loss. First, you can write it off which in itself nothing to sneeze at. But because crypto in IRS eyes is property there no wash sale rule that applies to it. You can instantly rebuy it and take advantage of the potential raise in prices. In hindsight you should have sold/bought back when BTC was hovering around 30-32k *

I'm still carrying over losses from 2010, I don't really need more! LOL


Either way, my bitcoin experiment is over and I have completely lost faith in it for any purpose other than wild speculation, which is not part of my AA...

 

[captain3d]

So is it time to sell now or do we see $100k by the end of the year?

Come on YouTube hopium suppliers. Let’s see an all time high soon.

BTC at $54k now