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 anywayMy 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 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...
does this make you view it any differently?
because i sure wish i'd known this sooner lol
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.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
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.... 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.