Bitcoins/Litecoins/Virtual Currencies

Jackie Treehorn · Apr 3, 2021

Flobee said:
Be very careful trying to be clever with taxes and crypto. The IRS is using services like Chainalysis to track transactions. You gave exchanges your KYC information when you bought the coins presumably. You are very trackable unless you do significant work to hide your coins. Even if you do hide the coins, they still know how much you bought.

Blockchains are entirely transparent on the base layer when it comes to transactions. If a UTXO can be assigned to you as an individual then your usage can be tracked. Trying to outsmart the IRS is gunna be a bad idea unless you really know what you're doing.

Worth at least skimming this. Its not correct to assume you're safe by default from tracking.

Privacy - Bitcoin Wiki

en.bitcoin.it

I'm not actually looking to do any such thing, I was just more curious about the reality of it. Not really having followed crypto for the past 10 years, my basic understanding (obviously flawed) was that it was a monetary system that was largely untraceable. Clearly not the case.

I don't even own any appreciable amount of crypto, but obviously looking into more.

Jackie Treehorn · Apr 3, 2021

Threelions said:
Planning on using my mined BTC to purchase this at some point. Seems unnecessary, but I love the idea.

Steel seed word capsule

Also a great point was made in that you really need to inform your significant other about any hardware storage you have. I told my wife where it's located and what's needed, but to go to my brother-in-law for help if i eat shit.

That's cool! Gotta look into some stuff like that.

Arden · Apr 3, 2021

Jackie Treehorn said:
Not really having followed crypto for the past 10 years, my basic understanding (obviously flawed) was that it was a monetary system that was largely untraceable. Clearly not the case.

Definitely, definitely not the case. LEA's aren't going to advertise the fact that they can trace crypto, but they definitely can. Most of the time it's not worth the trouble (because it's not super easy), but don't make the mistake of thinking it can't be done. (Not directing this specifically at you- just a general PSA)

Haus · Apr 3, 2021

Yeah, it's kinda the EXACT OPPOSITE of untraceable as it establishes and maintains a full ledger of every single transaction that occurs.

With that said, there are some crypto projects which are centered around adding layers of privacy into the process. I suspect when Crypto really starts to get widespread "common person" adoption the various regulator agencies of the world are going to go after those projects HARD. Under the guise of "anti money laundering"

Rais · Apr 3, 2021

Melicant said:
What temp is your memory junction at while mining stock? Mine actually went down by undervolting power and overclocking memory. The major problem with leaving it totally stock is the fans are based on main GPU temp, but it is actually the memory junction that is usually thermal throttling. 20MH/s is a pretty decent difference (while using less power due to the undervolt).

* Just ticked mine back to stock for a bit. Thermals shot up from 89 avg to 106 on my memory junction which is thermal throttling. I run fans at 95% on my custom tune, and even putting fans to 95 with stock settings I couldn't keep the memory junction under 95. I also went from 97 to 85 MH/s. Custom uses 220 watts vs 315 watts stock (440.KH/J efficiency vs 270).

My mem was running around 108c lol. I had to do some tweaks in order not to burn the house down. My hash rate stayed around the same. I'm around 80cs now.

Melicant · Apr 3, 2021

Rais said:
My mem was running around 108c lol. I had to do some tweaks in order not to burn the house down. My hash rate stayed around the same. I'm around 80cs now.

View attachment 345826

Yeah, memory junction was definitely throttling. 106 is supposed to be max safe, but the company that makes it supposedly has that memory type rated at 98 max. I use afterburner to set a mining profile. 64% power, -200 core clock, +1150 memory clock, 95% fan. That is close to what most people are running from what I have read. Lots run fan at 100% and go higher memory clock, but the gain for me was marginal. Undervolting helps a lot with both thermals.and efficiency. Hwinfo sensor is what I use to track thermals.

Arden · Apr 3, 2021

I don't know about you guys, but if I'm dropping a lot of money into something (like crypto), I like to hear a contrarian position from time to time. As in, "tell me why I'm wrong to like crypto." All Champaign and roses makes me suspicious. There are so many pumpers and hypers and echo chambers out there that it can often be hard to discern honest analysis from fluff. I definitely don't mind taking risks, but I want to be an intelligent investor, not part of a flock of sheep. With that in mind, I listened to a very interesting debate between Anthony Pompliano (pro-crypto) vs Mike Green (anti-crypto).

Full disclosure- I am a crypto proponent and I have money invested in it. I've listened to Pompliano before and I found the guy intelligent and seemingly intellectually honest. I had never heard of Mike Green, but I fully expected Pompliano to kick his ass in the debate. And he did... at first. But I the second half of the debate really surprised me.

Anyway, I won't tell you guys my ultimate conclusions because I don't want to bias anything, but if you feel (like I do) that part of being a smart investor is hearing both sides of an argument, give this debate a listen: it's enlightening.

Rajaah · Apr 4, 2021

Arden said:
You beat me to the math, but yeah. You also have to factor in taxes so reduce that by ~20%.

But I'm not staking until the conversion of ETH 2.0 is done. After this July, I expect the price of ETH to go way, way up. I also expect the rewards for staking to go up as ETH moves to full PoS . I think it's totally reasonably ETH gets to 100k a coin with staking rewards at about 10% within the next couple of years. If you think that seems high, look at BTC and consider ETH has been significantly outperforming BTC for more than a year- and that's BEFORE the ETH 2.0 changes, when ETH becomes much more scarce and much more valuable (see recent posts about ETH PoS).

If you go with the nice round figure of 100k per ETH and 10% staking within a couple years, you would be looking at roughly 100k in passive income per year if you have 10 ETH. Take 20% for taxes and you're looking at ~80k per year, paid out monthly at around $6,700/month, after taxes. Even factoring in additional taxes or lower staking rewards, you are looking at a sick amount of passive income per month.

A lot of people much smarter than me think that ETH will be worth significantly more than 100k per ETH over the next few years. As ETH goes up, your monthly passive income goes up. The numbers are understandably difficult for a lot of people to grasp, but really if you look at how BTC has performed, you already have a prototype for what to expect from ETH. And honestly, I expect way more from ETH than from BTC for lots of reasons already discussed. Literally, EVERYTHING is being built on ETH (look at the recent Visa news).

If DeFi actually gets adopted by a large percentage of the world (which seems very possible to me), ETH at 1 mil per coin isn't unreasonable. If that were to happen, your 10 ETH would suddenly be worth 1 mil a YEAR in passive income (at a 10% stake rate).

Again, the numbers and timeline is probably a little optimistic, but not outlandish imo.

Bought back into BTC at 57k after selling at 59k. After the huge Coinbase fees for both selling and then buying, I'm not even sure if I broke even. Also bought Mana at .97 after selling at 1.07, which definitely did make me a decent little profit (about $80).

I've got a similar idea to you on staking Ethereum to get passive income. Not expecting very much out of it, but even something like $300/month passively is cool and I can continue to increase it over time. Unfortunately we're years away from me being where I want to be with Eth and by then it'll likely be a much higher-cost investment. I've just spent too much money on frivolous things this year and have too many bills to really invest more than a couple hundred in Eth every month (unless I want to completely stop investing in stocks and other cryptos and focus everything on Eth, which I'm not keen on yet).

Rajaah · Apr 4, 2021

Caliane said:
pretty sure the rewards for staking will only go down. the more people that stake, the less rewards.

5% is still more then zero. and adds an element of compounding, and constant "growth" even if the market drops. Something BTC, etc, does not have.

eth at 1million.. woah.. calm down. the marketcap for that would be.. insane. the USD would have to turn into zimbabwee dolleredoos for that to happen.
Currently at near 250k market cap, for 2k Eth.

gold is at about 10trillion markget cap. if Eth were to replace gold today, it'd need to 40x its price. 80,000eth.
So even 100k Eth would mean 11.5 trillion marketcap. (115.3Million supply)

its not.. impossible. but even 100k is some time away.

1m Eth would be... 11.5quadrillion market cap?

Here’s all the money in the world, in one chart

Ever wonder how much money there is in the world? The answer is complicated, which you might expect -- but it has nothing to do with tallying up all the...

www.marketwatch.com

Agreed. Eth ain't gonna get to 1M. I'd say 100k is within the realm of possibility on a 5-10 year timeline. Unless the dollar absolutely crashes, in which case we'll have bigger problems.

Staking value is also going to go down. It won't stay at 7% or 10% type numbers once the value is through the roof. Everyone's gonna want to stake, and the value of staking won't be what it is now. Like I'd be happy with 1% at that point.

It's still worth doing and hoping for the best IMO.

Rajaah · Apr 4, 2021

Lightning Lord Rule said:
Well boys, I took the plunge. Bought $5k worth of BTC the other day at $58K and change. I'm still salty I didn't buy some in back in September when it was at $10K.

My plan is to just hold onto it. I figure that cash is just sitting around right now, so it's better than regular $$$ since that is guaranteed to lose 2-3%/year when things are going well. Now, with the money machine stripping bearings with all of the bbrrrrrrrrr going on, I'll be ahead (less behind?) of the game as long as BTC doesn't crater over the long term.

/crosses fingers
Pls no Elon Musk neg tweet
Pls no Elon Musk neg tweet
Pls no Elon Musk neg tweet

Oh man. If I could go back in time one year and grab all of the stocks during the COVID crash, and invest heavily in BTC when it was sub-10k... it isn't even just wishful thinking, I actively considered doing all of these things at the time and had plenty of money to do it with, and chose instead to just let that money sit in the bank. Like I was -this- close to buying in and didn't. Finally jumped on the stock train in 2021 just in time for the market to basically crater. At least cryptos seem to be looking up! We'll all see what happens together. *Thelma and Louise driving off a cliff.gif*

Rajaah · Apr 4, 2021

Sorry for post spam, usually try to do all replies in one post. Couple questions though:

-Is Nicehash generally the recommended program for mining? I.e. lowest fees etc?

-When you mine something like Ethereum, can you add that to your total instead of selling it? I don't want to cash out / make $7 a day or whatever the case may be, I want to add it to my Eth total. Like I was saying before, I really want to pump up my Ether levels and don't have as much to invest as I want to. It'd be nice if you could do that with anything you mine, meaning your mining will gain value as time goes by. If you're mining just to sell at the current value, that's a lot less appealing. I suppose you could turn around and just make Ether purchases with the money you get from mining, if all else fails (so if I'm getting $7 a day I'll buy $50 of it at the end of the week, kind of thing).

Caliane · Apr 4, 2021

Rajaah said:
Agreed. Eth ain't gonna get to 1M. I'd say 100k is within the realm of possibility on a 5-10 year timeline. Unless the dollar absolutely crashes, in which case we'll have bigger problems.

Staking value is also going to go down. It won't stay at 7% or 10% type numbers once the value is through the roof. Everyone's gonna want to stake, and the value of staking won't be what it is now. Like I'd be happy with 1% at that point.

It's still worth doing and hoping for the best IMO.

yeah. my "totally based on 100% true facts, and real numbers" prediction on ETH.

I think ETH has been currently largely depressed by the stagnancy and uncertainly of Eth 2.0.
I mention Eth in areas not directly in crypto circles. like jimmy dore comments, various youtubers, etc, when Cryto or BTC is brought up. and, I'll often see naysayers about "oh they've been talking eth 2.0 for years".

Which as my previous post on Eth hopium discussed, seems to make Eth imho a majorly favorable risk/reward scenario right now.
EIP-1559 in july.
As we get closer, I would expect the price of Eth to be super volatile, as more and more people start to bet for or against it. But over all rise slowly, up to the date.
3k Eth in July before EIP-1559.

A successful EIP-1559 rollout, I think will burst the dam.
5-10x in price of the year to year, assuming the fall->winter update also goes as planned.
July of 2022, I think we could be looking at 15-25k Eth.

From there, 100%/year with adoption could happen. with yeah. 100k in 5-10 years very possible, if not likely.

Flobee · Apr 4, 2021

Arden said:
Anyway, I won't tell you guys my ultimate conclusions because I don't want to bias anything, but if you feel (like I do) that part of being a smart investor is hearing both sides of an argument, give this debate a listen: it's enlightening.

I watched this the other day. Pomp didn't do an amazing job countering Mike's points I feel. I would say Mike won the debate. Mike's concerns about a non economic actor attacking the blockchain are so far as I can tell legitimate. I think Bitcoin could recover from this, but it is absolutely a threat. A more technical person would be much more capable of debating the point than Pomp was though IMO.

Threelions · Apr 4, 2021

Rajaah said:
Sorry for post spam, usually try to do all replies in one post. Couple questions though:

-Is Nicehash generally the recommended program for mining? I.e. lowest fees etc?

-When you mine something like Ethereum, can you add that to your total instead of selling it? I don't want to cash out / make $7 a day or whatever the case may be, I want to add it to my Eth total. Like I was saying before, I really want to pump up my Ether levels and don't have as much to invest as I want to. It'd be nice if you could do that with anything you mine, meaning your mining will gain value as time goes by. If you're mining just to sell at the current value, that's a lot less appealing. I suppose you could turn around and just make Ether purchases with the money you get from mining, if all else fails (so if I'm getting $7 a day I'll buy $50 of it at the end of the week, kind of thing).

NiceHash seems to be the most intuitive program and simple to run. With withdrawals, my experience is that you must have at least $50 mined to take any action on your balance total. You can simply transfer it to your hardware or platform wallet once you've reached that total. You don't need to sell/re-buy coins to get it off the platform. I've been mining BTC, but think switching to ETH may be a better option since like you, I want to pump more into ETH than BTC at the present time.

Arden · Apr 4, 2021

Caliane said:
yeah. my "totally based on 100% true facts, and real numbers" prediction on ETH.

I think ETH has been currently largely depressed by the stagnancy and uncertainly of Eth 2.0.
I mention Eth in areas not directly in crypto circles. like jimmy dore comments, various youtubers, etc, when Cryto or BTC is brought up. and, I'll often see naysayers about "oh they've been talking eth 2.0 for years".

Which as my previous post on Eth hopium discussed, seems to make Eth imho a majorly favorable risk/reward scenario right now.
EIP-1559 in july.
As we get closer, I would expect the price of Eth to be super volatile, as more and more people start to bet for or against it. But over all rise slowly, up to the date.
3k Eth in July before EIP-1559.

A successful EIP-1559 rollout, I think will burst the dam.
5-10x in price of the year to year, assuming the fall->winter update also goes as planned.
July of 2022, I think we could be looking at 15-25k Eth.

From there, 100%/year with adoption could happen. with yeah. 100k in 5-10 years very possible, if not likely.

This narrative fits pretty well with a lot of the things I've been reading. Except I think you are underestimating how quickly ETH would go to 100k if 2.0 works.

Again, feel free to say I'm smoking hopium (maybe I am) but look at BTC. BTC was around 10k in Sept 2020 and jumped to 60k by March 2021. That's 6 months... 10k to 60k in 6 months.

If ETH is at 15k-25k by next summer, it will be at 100k by sometime in 2023.

Arden · Apr 4, 2021

Flobee said:
I watched this the other day. Pomp didn't do an amazing job countering Mike's points I feel. I would say Mike won the debate. Mike's concerns about a non economic actor attacking the blockchain are so far as I can tell legitimate. I think Bitcoin could recover from this, but it is absolutely a threat. A more technical person would be much more capable of debating the point than Pomp was though IMO.

This was pretty much exactly my takeaway. Pomp is a great salesman, but Mike is a great debater. I think Mike won the debate, but I'm not convinced he won the argument. Mike brought up some really, really good points about a few serious concerns regarding BTC.

There are absolutely "non-economic" actors (think fanatical rogue states) that could potentially disrupt or destroy the global economy if everything was based on BTC. How easily they could do it is debatable, but it doesn't seem like it would be that hard.

If the global economy was based in BTC, it's not hard to imagine a rogue state spending 8 billion (or whatever) to essentially unleash an economic nuke and fuck everyone over.

While the system of different countries having compartmentalized currencies and economic systems seems archaic and has it's drawbacks, it gives each country a certain amount of protection and control that they wouldn't have with a universal system like BTC. Mike's point is that wealthy countries (like the U.S.) aren't going to willingly give up that protection/control. Pomp's point is they may not have a choice.

One thing I found interesting is that they both focused on BTC rather than crypto as a general concept. It seems like a lot of BTC's weaknesses can be (and are being) addressed by other forms of crypto. Mike hinted at this a little bit, but he didn't emphasize it. Even though he didn't say it directly, Mike's argument seemed to be "Yes, global adoption of crypto is inevitable, but it won't be BTC."

AladainAF · Apr 4, 2021

Jackie Treehorn said:
I'm not actually looking to do any such thing, I was just more curious about the reality of it. Not really having followed crypto for the past 10 years, my basic understanding (obviously flawed) was that it was a monetary system that was largely untraceable. Clearly not the case.

This was one of the selling points of crypto-fans early on. Everyone that was smart knew this was bullshit.

Rais · Apr 4, 2021

Just found a site that is taking orders for some cards and expects shipment to be within 2 weeks. Picked up 10 3060ti for 650 each my first real mining “investment”. The seller is a site listed on xtoac official website. So I hope I don’t have to do a charge back.

Jackie Treehorn · Apr 4, 2021

Rais said:
Just found a site that is taking orders for some cards and expects shipment to be within 2 weeks. Picked up 10 3060ti for 650 each my first real mining “investment”. The seller is a site listed on xtoac official website. So I hope I don’t have to do a charge back.

That sounds a bit too good to be true no?

Rais · Apr 4, 2021

It does. I'm not holding my breath.

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Bitcoins/Litecoins/Virtual Currencies

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