Bitcoins/Litecoins/Virtual Currencies
- Thread starter Tripamang
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Arden
Blackwing Lair Raider
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I'm assuming at the end of the year I'll have to pay capital gains tax on my profits...? Same as stocks right?
Brad
Trakanon Raider
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Capital gains tax is only after you hodl it for 12 months, otherwise it is income tax, which also includes swapping one coin for another coin if you did not hold the first coin for 12 months. Same goes for stock.
Arden
Blackwing Lair Raider
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My understanding is that you pay capital gains taxes on both stocks and crypto. If you hold either asset for less than a year, you pay the short-term capital gains tax. If you hold either asset for more than a year, you pay the long-term capital gains tax.
Please let me know if this is incorrect.
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Fees are always much higher during bull runs. Even BTC fees drop to pennies during bear cycles.
When I used crypto to pay for my VPN recently, I just used Litecoin to do it.
Lightning is a bitcoin layer 2 solution that will become more adopted over time. It works like this: you enter a 'payment channel' with a party by moving some BTC into it. That's one blockchain transaction. You can then send and receive coin from this party and anybody connected to this party and anybody connected to those parties etc for virtually nothing and instantly. The channel can be closed at any time by either you or the party you entered a channel with, then it settles on the blockchain. In that way you can make thousands, or millions of purchases using BTC while only paying two blockchain fees and a much smaller lightning fee. And since you're not leaving BTC to do this, you don't miss out on further appreciation.
Multiple currencies have always coexisted. Bitcoin doesn't need to be able to handle every possible use case everywhere in the world to be successful. Nobody says gold is worthless because they can't buy groceries with it or that cash is worthless because it depreciates; nothing is the best at everything. Buying groceries with electronic payment systems is a solved problem. Nobody cares what they use to do this so long as it works. Paypal, Apple pay, VISA, whatever.
The thing the world really needs is a store of value that doesn't decline over time which cannot be confiscated and nothing does that better than bitcoin. That's its primary use case. It's not a coincidence that BTC and the stock market (lol TSLA. I like TSLA though) shot way up after the money supply went vertical. If you're a working class guy with little savings living in the US then you can't see a use for BTC, particularly if your wage rises to match inflation, but if you're a rich asshole sitting on hundreds of millions of USD then you will see it. Watch some Michael Saylor videos. Trump damn near doubled the money supply to try to get reelected because covid tanked the market and now Dems are about to print another 2 trill to prevent a foreclosure crisis because printing is a lot easier than taxing rich people. All this after they never stopped printing since the 2008 crisis. It takes awhile to see inflation hit your grocery bill but you'll see it in things like real estate and college a lot sooner and is largely why that shit is skyrocketing.
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Brad
Trakanon Raider
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Yes you are correct, it is 4 am where I am, short term capital gain tax is right, not income tax
It just that short term capital gain is taxed as regular income.
Arden
Blackwing Lair Raider
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Rajaah
Honorable Member
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Got Mana on a dip, have a good feeling about that one long-term. Seems to have a stable foundation and is still very inexpensive.
Not so sure about Aave but I went in on that too. I'm sensing a lot of uncertainty in its buyers after the huge spike it had recently. Keeps having lesser spikes and slow declines, like people are diamond-handing it. Wonder if the GME crowd is involved. In any case, I'm expecting a bit of a loss on this one since it seems like I'm getting in late but maybe not, we'll see what happens. The trajectory should be upwards if the stampede doesn't freak out from a lack of major spikes.
My apps are protecting me from Doge. Decided to put $100 on it, but Coinbase doesn't allow Doge. Had to go to Robinhood to find it, and they don't seem to allow crypto purchases unless your funding has been fully processed. In other words I'll have to wait a few days before it lets me do the purchase. Yarg.
Not so sure about Aave but I went in on that too. I'm sensing a lot of uncertainty in its buyers after the huge spike it had recently. Keeps having lesser spikes and slow declines, like people are diamond-handing it. Wonder if the GME crowd is involved. In any case, I'm expecting a bit of a loss on this one since it seems like I'm getting in late but maybe not, we'll see what happens. The trajectory should be upwards if the stampede doesn't freak out from a lack of major spikes.
My apps are protecting me from Doge. Decided to put $100 on it, but Coinbase doesn't allow Doge. Had to go to Robinhood to find it, and they don't seem to allow crypto purchases unless your funding has been fully processed. In other words I'll have to wait a few days before it lets me do the purchase. Yarg.
Arden
Blackwing Lair Raider
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Here's a super interesting question that no one can answer:
When you buy doge on RH you aren't actually buying doge, you're just betting on the price. You never possess or own actual doge, even though your RH account indicates you do. You can't xfer doge off your RH account for this reason- because you never actually have it.
In this case, you'd pay income tax on doge, not short-term cap gains, right? I'm thinking you would count it as gambling winnings. No idea of this would help or hurt your tax bottom line.
When you buy doge on RH you aren't actually buying doge, you're just betting on the price. You never possess or own actual doge, even though your RH account indicates you do. You can't xfer doge off your RH account for this reason- because you never actually have it.
In this case, you'd pay income tax on doge, not short-term cap gains, right? I'm thinking you would count it as gambling winnings. No idea of this would help or hurt your tax bottom line.
Rajaah
Honorable Member
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Intredasting. Yeah, I wouldn't put more than $100 on Doge on a buy-in, it seems volatile as fuck. Unfortunately I have to use RH because it's the only place that allows it.
Aave not looking so hot. The chart screams "people unsure of it and hedging their bets" and if it goes below the latest buying plateau (aka all of those people start losing money) I think it might plummet. Will take another look at it tomorrow and might convert my Aave money to Mana.
Aave = Honeypot?
Caliane
Avatar of War Slayer
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possibly.
looks like just about everything sagged the last couple days. Did my taxes.. and bought more Eth yesterday, and basically immediately lost it.
Aave is new. so its spike may be everyone feeling out its value and correct price point. it is more likely to crash then something more established.
looks like just about everything sagged the last couple days. Did my taxes.. and bought more Eth yesterday, and basically immediately lost it.
Aave is new. so its spike may be everyone feeling out its value and correct price point. it is more likely to crash then something more established.
Arden
Blackwing Lair Raider
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If you had invested 1k in doge when you posted this yesterday and sold right now, you would have made $310.
Arden
Blackwing Lair Raider
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I haven't found one. If there was a better place doge would be even higher than it is. Everyone is struggling to find a place to buy/sell. I still use RH even though they suck bc they are free and I'm already set up there.
Places like gemini and coinbase will fuck you with fees.
Arden
Blackwing Lair Raider
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I've been cautious with doge because it doesn't make sense as a long-term investment (for reasons already stated in this thread). That said, I'm finding myself being forced to revise my thinking a little bit.
Ostensibly, there are better cryptos for long-term investment, but here are the facts:
1. Doge is popular. Really, really popular. People are hanging onto the coin they are buying and it's been driving up the floor steadily.
2. For whatever reason Musk seems absolutely intent on turning doge into a legit coin. He's also now bringing other celebs (Snoop Dogg, Gene Simmons) into the mix. At first I thought Musk was just going to pump it once or twice for a laugh, but this seems to be something more for him.
3. Doge is still relatively hard to find and sell for a lot of people. The laws of supply and demand dictate that because demand is high, a supply will be made available. When it does, it's reasonable to think even more people will be investing in it, driving the price up further.
For these reasons, I'm going to invest a decent amount of money into doge during the next big dip. Nothing life-breaking, but at least a few thousand, with the idea of holding onto to most of that for the relative long-term.
The one question I have with doge is the "unlimited cap" thing. The biggest thing hurting doge from actually becoming a legit currency is that they can make limitless amounts of it. Is that something that can be changed? Can a cap be added?
Ostensibly, there are better cryptos for long-term investment, but here are the facts:
1. Doge is popular. Really, really popular. People are hanging onto the coin they are buying and it's been driving up the floor steadily.
2. For whatever reason Musk seems absolutely intent on turning doge into a legit coin. He's also now bringing other celebs (Snoop Dogg, Gene Simmons) into the mix. At first I thought Musk was just going to pump it once or twice for a laugh, but this seems to be something more for him.
3. Doge is still relatively hard to find and sell for a lot of people. The laws of supply and demand dictate that because demand is high, a supply will be made available. When it does, it's reasonable to think even more people will be investing in it, driving the price up further.
For these reasons, I'm going to invest a decent amount of money into doge during the next big dip. Nothing life-breaking, but at least a few thousand, with the idea of holding onto to most of that for the relative long-term.
The one question I have with doge is the "unlimited cap" thing. The biggest thing hurting doge from actually becoming a legit currency is that they can make limitless amounts of it. Is that something that can be changed? Can a cap be added?
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Doge has a value that is entirely meme based. You should only buy it if you have enough free time to check its value every 20 minutes because it could dump to nothing or moon in an extremely short period of time.
It is a meme. It has no use case, project, or intrinsic value.
It is a meme. It has no use case, project, or intrinsic value.
TJT
Mr. Poopybutthole
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Rajaah
Honorable Member
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I don't know about investing a few thousand, but I think you're onto something with the supply and demand. I've had a tough time getting any Doge myself, so it's safe to assume that if it became just as easy to get as BTC you'd suddenly see a huge surge in people buying it. I know it's really popular so I was surprised it didn't surge higher the past week. Now I know why: It's just a pain in the ass to get. If Coinbase decided to make it available, it'd probably surge overnight. What do you consider a good dip to buy-in at? I haven't been following it at all. When I first looked at it last week I believe it was 0.039 or thereabouts, then later it was 0.051 or something along those lines.
Kharzette
I'd use RH if I were you. Though it does make you wait for crypto (unlike stocks). Put $500 into the app and wait a few days until it's been approved/transferred from the bank and THEN I think it'll let you buy crypto. They'll only "front" you the money for stocks, otherwise there's a wait. I'd rather go through them than any dodgy platforms though.I'm down to clown, so I'll put $500 on Doge in a day or two and see what happens.