What moves Bitcoin?

[indiajust]

Options exchanges are starting to proliferate. CME still has the biggest book, but that could change. Canadian laws are more future forward, both for crypto and drugs. So BTCC is now a valid ETF in Canada, perhaps a lower cost approach and more secure than MSTR. GBTC is best for prof investors 1M+ so that you can buy directly and sell 6 months later to reap the bid/ask spread (almost 25% markup!)

 

[indiajust]

There is no guarantee of any value. Not for gold, not for fiat currency, and certainly not for crypto. Up until Roosevelt there was a connected path between silver/gold the dollar and by extension to most of the rest of the worlds paper. Progressive dreams of empire broke constitutional money and created the third US central bank. US nationalized the banking system and shifted banking risk from bank shareholders to taxpayers. Bretton Woods nationalized gold holdings. Which Nixon defaulted on. Since then, the US dollar has been roughly speaking a petrodollar, backed by the empires constraint that all OPEC energy trading to take place in USD. Low cost oil and gas via fracking broke that market, in combination with China refusing to use dollars to buy US government debt. Which has spread planet-wide now, since no one has bought a Tbill since 2014 other than the Fed.

The fundamental problem is Triffin's dilemma. It impoverishes the working class while rewarding the political class, undermining all empires from the bottom. Because the world is using our money. Worth reading about.

A separation of currency and state (a return to constitutional money) would reverse Triffins Dilemma (combined with liberal trade laws, low tariffs) allow ordinary folks to return to wealth building activity that can't be co-opted by DC.

Ironically, crypto is good for the common man, and undermines the centralized command/control of the DC war machine. All empires have gone down the currency destruction path. Crypto might provide a more graceful, less fatal, glide path for this empire. Might. We shall see.

 

[jurgs01]

There is no guarantee of any value. Not for gold, not for fiat currency, and certainly not for crypto. Up until Roosevelt there was a connected path between silver/gold the dollar and by extension to most of the rest of the worlds paper. Progressive dreams of empire broke constitutional money and created the third US central bank. US nationalized the banking system and shifted banking risk from bank shareholders to taxpayers. Bretton Woods nationalized gold holdings. Which Nixon defaulted on. Since then, the US dollar has been roughly speaking a petrodollar, backed by the empires constraint that all OPEC energy trading to take place in USD. Low cost oil and gas via fracking broke that market, in combination with China refusing to use dollars to buy US government debt. Which has spread planet-wide now, since no one has bought a Tbill since 2014 other than the Fed.

The fundamental problem is Triffin's dilemma. It impoverishes the working class while rewarding the political class, undermining all empires from the bottom. Because the world is using our money. Worth reading about.

A separation of currency and state (a return to constitutional money) would reverse Triffins Dilemma (combined with liberal trade laws, low tariffs) allow ordinary folks to return to wealth building activity that can't be co-opted by DC.

Ironically, crypto is good for the common man, and undermines the centralized command/control of the DC war machine. All empires have gone down the currency destruction path. Crypto might provide a more graceful, less fatal, glide path for this empire. Might. We shall see.

Nice post!

 

[AtlasShrugged]

Charlie Munger said this about Bitcoin yesterday:

"Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the uneatable by the unspeakable.”

 

[captain3d]

I think they said the same thing at $9000. But it is not their thing I would not expect them to be interested in the same way they were not interested in tech stocks.

 

[Koolau]

There is no guarantee of any value. Not for gold, not for fiat currency, and certainly not for crypto. Up until Roosevelt there was a connected path between silver/gold the dollar and by extension to most of the rest of the worlds paper. Progressive dreams of empire broke constitutional money and created the third US central bank. US nationalized the banking system and shifted banking risk from bank shareholders to taxpayers. Bretton Woods nationalized gold holdings. Which Nixon defaulted on. Since then, the US dollar has been roughly speaking a petrodollar, backed by the empires constraint that all OPEC energy trading to take place in USD. Low cost oil and gas via fracking broke that market, in combination with China refusing to use dollars to buy US government debt. Which has spread planet-wide now, since no one has bought a Tbill since 2014 other than the Fed.

The fundamental problem is Triffin's dilemma. It impoverishes the working class while rewarding the political class, undermining all empires from the bottom. Because the world is using our money. Worth reading about.

A separation of currency and state (a return to constitutional money) would reverse Triffins Dilemma (combined with liberal trade laws, low tariffs) allow ordinary folks to return to wealth building activity that can't be co-opted by DC.

Ironically, crypto is good for the common man, and undermines the centralized command/control of the DC war machine. All empires have gone down the currency destruction path. Crypto might provide a more graceful, less fatal, glide path for this empire. Might. We shall see.

Ignoring the (arguably) political issues in this post: It's true that there are no guarantees for ANY currency (heck, there's no guarantee for ANYTHING having value into the future - what would you pay for a (recently manufactured) buggy whip?) BUT even some of the fiat currencies have a fairly long track record (some hiccups, revaluations, etc. etc.) but STILL seem to buy stuff every day. Bitcoin is the new comer. Even if the fiat-money-printing countries don't succeed in crushing it, there is (arguably) less chance (statistically) that it will be around in 200+ years (like the greenback) or 500 (sorry, could be wrong on that) years for the Pound Sterling, or 5000+/- years for gold. Serious competition indeed, though you can print all you want (except for gold - but I'll bet they're working on it like alchemists.) In all such things, YMMV.

 

[OneMarcilV]

I am not investing in BitCoin. But decided to byte and purchase 300.00 for LiteCoin. That is equivalent to 1.5 coin.

It is fun to look the value with live updates.

Purchased this through PayPal. PayPal sells 4 different cryptocurrencies.

I like using that service because this is a simple way to purchase these. My worth on my voune not at this minute is 280.71 not at this recent update the worth is 280.25.

The other sellers are so complicated. Plus I am asked by two of these sellers to send a photograph of my ID. Either a driving license or a state issued ID.

That is where I say no to these.

PayPal does not ask for these.

 

[OneMarcilV]

Just one month ago, the price was $10,000.... Today Less than $7,000.

There must be reasons. Seriously... in Vegas there is the "house".that eventually accounts for odds and limits.

Thoughts?

Sorry... missed the current thread on the subject. OK to delete.

I realize I am replying to a old writing. Look at BitCoin today 47,816.25 . Really hard to predict which way this currency will head.

 

[OneMarcilV]

Supply and demand.



Next!

Agreed. This is kind of like legalized gambling. Which I think is ok. Because I am in this just for fun.

 

[steelyman]

I am not investing in BitCoin. But decided to byte and purchase 300.00 for LiteCoin. That is equivalent to 1.5 coin.

It is fun to look the value with live updates.

Purchased this through PayPal. PayPal sells 4 different cryptocurrencies.

I like using that service because this is a simple way to purchase these. My worth on my voune not at this minute is 280.71 not at this recent update the worth is 280.25.

The other sellers are so complicated. Plus I am asked by two of these sellers to send a photograph of my ID. Either a driving license or a state issued ID.

That is where I say no to these.

PayPal does not ask for these.

I bought a small amount of each of the 4 cryptos that PayPal offers in Dec 2020. Mainly out of curiosity and the fact that PayPal waived fees till 2021.

I sold enough to recoup my original investment a few weeks ago and am leaving the remaining in PayPal. I’m curious to see what tax forms PayPal will send for tax year 2021. My understanding is that the sales already made will be taxed as short term capital gains while the remainder will be long term capital gains if I hold for a year.

 

[OneMarcilV]

Unless the start making abbunch of monies the taxes will be slim to none.

My Lite in munis now 2.69 now. Not ,asking much monies. Paid 300. Worth 275.75.

I like using Pay Pal because this is a simple way to purchase this. I wish DogCoin was offered. What is what I wanted to purchase in the first place.

 

[yakers]

I’m curious to see what tax forms PayPal will send for tax year 2021. My understanding is that the sales already made will be taxed as short term capital gains while the remainder will be long term capital gains if I hold for a year.

Im curious about handling taxes too. Turbotax had a interview question about them and I understand all the data would have to be entered manually which is going backward for me, I LOVE that TT directly downloads from Vanguard & Wells Fargo, hate to go manual again. For people who trade a lot of crypto there must be an app that captures all the details. Please post how you handled crypto tax reporting.

 

[steelyman]

Please post how you handled crypto tax reporting.

I haven’t handled anything yet (crypto rookie here). It seems like I’d receive a 1099-B but I don’t know. I’ll find out when the time comes.

I see that a lot of Quicken users have trouble because the tiny fractional coins aren’t handled well.

 

[OneMarcilV]

The way my LiteCoin is doing I will be owed monies from the IRS.