BITCOIN

jvandy50

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My point on taxes is that depending on how the D's tie all the new taxes together, it could create a mega-sell before the end of the year for all long term (and maybe short term) asset holders to beat the new taxes.
surely they'd announce it on jan 1 or something close to that. maybe let us enjoy hangovers first, then bam, enjoy your extra taxes. would prevent as much of a sell-off anyway
 

Weather Man

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surely they'd announce it on jan 1 or something close to that. maybe let us enjoy hangovers first, then bam, enjoy your extra taxes. would prevent as much of a sell-off anyway

My fear is the opposite, they pass this year and make the taxes retroactive to the first of the year.
 

Weather Man

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well that's one way to cause chaos lol

i guess that is the current administration's MO

Midterm reaction is the only thing holding them back. If they increase the house and senate seats, unrealized capital gains is coming and worse.
 

Weather Man

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60+ South Korean crypto exchanges set to suspend operations next week: Reuters



  • Over 60 cryptocurrency exchanges in South Korea have until Friday midnight to notify customers of a partial or full suspension of trading services, a week before a new anti-money laundering regulation comes into effect, Reuters reports, citing people familiar with the matter.
  • "Should some or all services need to be closed, (exchanges) should notify customers of the expected closing date and the procedures to withdraw money by at least seven days before the closure," the Financial Services Commission said earlier this week.
  • Exchanges that have not registered with the Financial Intelligence Unit by Sept. 24, as well as those that have registered but failed to secure partnerships with banks will be prohibited from trading in won.
  • Of all exchanges, nearly 40 are set to suspend all services, while another 28 have security certificates, but have not secured bank partnerships, Reuters notes.
  • A mere four exchanges - Upbit, Bithumb, Coinone and Korbit - have registered and secured partnerships, and thus can make won settlements.
  • Some smaller exchanges already said they will end Won trading, and will continue operations involving only digital coin trading until securing partnerships with banks, Reuters reports.
  • In the crypto universe, Bitcoin (BTC-USD -1.3%) slides to $47.4K in the past 24 hours, and has been trading in the $47K to $48.6K range since Wednesday.
  • In mid-August, Binance ended South Korean Won trading pairs to comply with regulation.
 

jvandy50

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@Weather Man i just had an idea...just saw your post in the stock pick thread and see you like dividends...

staking BTC in the Celsius app earns 6.20% APY

a couple others to note...
ETH 5.35%
MATIC 10.51%
LTC 4.08%
ADA 4.06%


does this make you view it any differently?

because i sure wish i'd known this sooner lol
 

Weather Man

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@Weather Man i just had an idea...just saw your post in the stock pick thread and see you like dividends...

staking BTC in the Celsius app earns 6.20% APY

a couple others to note...
ETH 5.35%
MATIC 10.51%
LTC 4.08%
ADA 4.06%


does this make you view it any differently?

because i sure wish i'd known this sooner lol

It appears that it is taxed as ordinary income and adds a level of tax complexity I would pass on.

As blockchain technology continues to evolve, new and established coins are increasingly looking for ways to use this development to reward their current coin holders and provide incentives to new customers to adopt their coin. Proof of Stake (PoS) or ‘Staking’, has arisen as a result of the energy intensive and increasingly difficult requirements necessary to undertake Proof of Work protocols used to validate coins like Bitcoin. This is also used extensively in Decentralised Finance or DeFi.

Staking is a way of earning interest or ‘rewards’ just for holding certain types of cryptocurrency and placing them in a smart contract, like Tezos, Cosmos or even Ethereum 2.0 when it launches. Staking allows a crypto holder ‘stake’ their crypto currency into a pool of crypto and earn interest or rewards. Staking is similar to depositing currency to a bank account and accumulating interest. It is an easy way of letting your crypto work for you in order to earn more crypto.

Instead of solving complex algorithms to earn coins as you might when you mine Bitcoin, participants nominate coins they own to be used as validators to guarantee the legitimacy of new transactions on a block chain. These new transactions can then be officially added to a blockchain. Essentially, the coins you stake act to validate the legitimacy of a new block on the blockchain. In return for validating a new block, participants receive new coins. If your crypto validates a new block that is later found out to be invalid, you may lose some of the coins you staked in what is known as a slashing event. The reward and penalty process differs between blockchains.

Staking your crypto increases the blockchain’s resistance to attacks and the ability to process transactions quickly. By staking your crypto, you’re adding another layer of protection to the network.

A big downside to staking, is that your crypto is not under your control while in a staking pool. Some pools also have a vesting period where you are unable to make trades for a prescribed period of time. If you’re a regular trader or looking to make a quick profit, staking probably isn’t for you. Staking encourages token holders to hold their coins long-term and actively participate in the blockchain.

There is also a risk of a ‘rug pull’, where a smart contract has vulnerabilities and the creators of the pool or a third party removes your crypto from the smart contract. Due to the nature of blockchain, such transactions are irreversible. This one of the risks of participating in DeFi, and also why there is an increased reward and substantial returns can be generated from staking.

Staking isn’t available on all blockchains (Bitcoin doesn’t allow it) and generally requires you to possess a certain amount of coins or level of investment before you can qualify. Some exchanges, like Coinbase, will allow you to contribute an amount to a staking pool. This allows casual investors to earn without having to use their own validator hardware or have a significant asset pool. Staking pools have a lower barrier to entry and low or free membership and can be both private or open to the public.
 

98 svt

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Reminds me of Buffalo Bob
the silence of the lambs GIF


"I'd **** me."
 

jvandy50

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It appears that it is taxed as ordinary income and adds a level of tax complexity I would pass on.

As blockchain technology continues to evolve, new and established coins are increasingly looking for ways to use this development to reward their current coin holders and provide incentives to new customers to adopt their coin. Proof of Stake (PoS) or ‘Staking’, has arisen as a result of the energy intensive and increasingly difficult requirements necessary to undertake Proof of Work protocols used to validate coins like Bitcoin. This is also used extensively in Decentralised Finance or DeFi.

Staking is a way of earning interest or ‘rewards’ just for holding certain types of cryptocurrency and placing them in a smart contract, like Tezos, Cosmos or even Ethereum 2.0 when it launches. Staking allows a crypto holder ‘stake’ their crypto currency into a pool of crypto and earn interest or rewards. Staking is similar to depositing currency to a bank account and accumulating interest. It is an easy way of letting your crypto work for you in order to earn more crypto.

Instead of solving complex algorithms to earn coins as you might when you mine Bitcoin, participants nominate coins they own to be used as validators to guarantee the legitimacy of new transactions on a block chain. These new transactions can then be officially added to a blockchain. Essentially, the coins you stake act to validate the legitimacy of a new block on the blockchain. In return for validating a new block, participants receive new coins. If your crypto validates a new block that is later found out to be invalid, you may lose some of the coins you staked in what is known as a slashing event. The reward and penalty process differs between blockchains.

Staking your crypto increases the blockchain’s resistance to attacks and the ability to process transactions quickly. By staking your crypto, you’re adding another layer of protection to the network.

A big downside to staking, is that your crypto is not under your control while in a staking pool. Some pools also have a vesting period where you are unable to make trades for a prescribed period of time. If you’re a regular trader or looking to make a quick profit, staking probably isn’t for you. Staking encourages token holders to hold their coins long-term and actively participate in the blockchain.

There is also a risk of a ‘rug pull’, where a smart contract has vulnerabilities and the creators of the pool or a third party removes your crypto from the smart contract. Due to the nature of blockchain, such transactions are irreversible. This one of the risks of participating in DeFi, and also why there is an increased reward and substantial returns can be generated from staking.

Staking isn’t available on all blockchains (Bitcoin doesn’t allow it) and generally requires you to possess a certain amount of coins or level of investment before you can qualify. Some exchanges, like Coinbase, will allow you to contribute an amount to a staking pool. This allows casual investors to earn without having to use their own validator hardware or have a significant asset pool. Staking pools have a lower barrier to entry and low or free membership and can be both private or open to the public.
my CPA has been asking about my crypto stuff for years. it helps that he's also into it and understands how all this stuff works.

i just was curious if the passive income part would be a bonus to you.

after doing the math, i'd get more dividends from something like IVR/ET/T...but didn't know if that'd sweeten the deal for ya
 

Weather Man

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my CPA has been asking about my crypto stuff for years. it helps that he's also into it and understands how all this stuff works.

i just was curious if the passive income part would be a bonus to you.

after doing the math, i'd get more dividends from something like IVR/ET/T...but didn't know if that'd sweeten the deal for ya

I have investing buckets that have higher risk/dividends. The risks associated with staking that pay 8%+, appear to be high and the tax treatment bad (for me).
 

Weather Man

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It is interesting that the 10 year US bond is the gold standard for safety when the shit hits the fan.

Bitcoin leads cryptocurrency plunge as global markets suffer 'risk-off' day​

Sep. 20, 2021 7:43 AM ETBitcoin USD (BTC-USD), ETH-USDBy: Stephen Alpher, SA News Editor2 Comments

Bitcoin cryptocurrency symbol on yellow balloon. Man hold needle directed to air balloon. Concept of finance risk
Velishchuk/iStock via Getty Images

 

Weather Man

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Coinbase stock falls 5% as it ends plans for crypto lending amid regulatory pressure



  • Cryptocurrency exchange Coinbase Global ((COIN -5.5%)) drops to its lowest level since early-August as the company said it will not go forward with the Lend program shortly after the Securities Exchange Commission threatened to sue with a Wells notice, the company said on its website.
  • Under the program, customers would earn interest on USDC - guaranteed by Coinbase - well-above what traditional depository institutions offer for a savings account.
  • Coinbase (NASDAQ:COIN) said it will also discontinue the waitlist for the USD Coin annual percentage yield program, which already had hundreds of thousands of sign ups before it got dropped.
  • The SEC told the exchange that if it launches Lend, they will sue because the feature is considered a security, but "they refuse to tell us why they think it's a security," Coinbase CEO Brian Armstrong said in a tweet.
  • The downside move in COIN may also be enhanced by Bitcoin's ((BTC-USD -7.8%)) plunge as global markets suffer a 'risk-off' day.
  • Separately, as digital asset adoption continues to accelerate, the company said it's opening Prime, a crypto brokerage, to all institutional investors, Coindesk reports. Tesla CEO Elon Musk, PNC Bank, SpaceX, and Tesla (NASDAQ:TSLA) are among some of Prime's clients, Coindesk notes, citing a shareholder letter from last month.
 

Weather Man

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Interesting data on BITCOIN, some interesting comments following the article. TREESPACE had an interesting comment I thought.


Table 1

Bitcoin ownership analysis


Table 1 shows the top 0.002368% of addresses hold 40% of the supply of Bitcoin. Of this 40% around 8.5% is held by exchanges on behalf of a great many investors. That leaves 31.5% of Bitcoin held by ~985 addresses, representing 0.002593% of estimated total 38 million addresses. But an individual or entity can own many addresses, so the number of owners is likely far fewer than 985. Excerpted from Bloomberg article, "The Bitcoin Whales: 1,000 People Who Own 40 Percent of the Market"...

... A few massive investors can rock it with a shrug... What's more, the whales can coordinate their moves or preview them to a select few. Many of the large owners have known one another for years and stuck by Bitcoin through the early days when it was derided, and they can potentially band together to tank or prop up the market. "I think there are a few hundred guys," says Kyle Samani, managing partner at Multicoin Capital. "They all probably can call each other, and they probably have." One reason to think so: At least some kinds of information sharing are legal, says Gary Ross, a securities lawyer at Ross & Shulga. Because bitcoin is a digital currency and not a security, he says, there's no prohibition against a trade in which a group agrees to buy enough to push the price up and then cashes out in minutes.
Take a look at Table 1, and then tell me Bitcoin is not open to manipulation. Bitcoin supply data might be completely public and verifiable, but anonymous Bitcoin addresses are certainly not. Imagine the outrage if owners of over 30%, or even 5% of the shares of a publicly-traded company were allowed to remain anonymous and to trade without disclosure. Imagine the possibilities.
 

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