Anybody invest in cryptocurrency?

Discussion in 'Sidewinders Bar & Grille' started by Wound_Up, Feb 11, 2021.

  1. Neil.C

    Neil.C Most Honored Senior Member

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    People often try to explain its uses but it does nothing that is not already available.

    Somebody likened it to stocks and shares but it's not as with stock you own a part of something tangible.

    With crypto - there is nothing there.

    It is simply all about sentiment and a very rocky road of ridiculous highs and lows.

    Terrible thing for the environment too. Bitcoin consumes more energy than Argentina.

    https://www.bbc.co.uk/news/technology-56012952

    Investing is a hobby of mine and I've done OK but crypto - frankly it could all disappear tomorrow.
     
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  2. nutball73

    nutball73 Senior Stratmaster

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    As others have said, please make the distinction between investing and speculation.

    Crypto is pure speculation - it could all vanish tomorrow. Only play with money you can afford to lose.
     
  3. Blue Beagle

    Blue Beagle Senior Stratmaster

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    Genuinely don’t get it.

    Crypto has no use that I can see outside of buying questionable goods on questionable websites. It’s not regulated. It’s extremely volatile. It does nothing that ‘real’ money doesn’t do.

    Just seems like a whole lot of nothing that people are buying for crazy money.
     
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  4. Polarbear

    Polarbear Don Poleone

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    balls. I did the same with GRT... sod it.
     
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  5. stratocarlster

    stratocarlster Most Honored Senior Member

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    Maybe I was harsh calling it a pyramid scheme .. maybe not.
    It's a form of currency of course, as the name suggests. But traditional forms of currency are created so that citizens of a country can conduct trade. I suspect Bitcoin was created because its founders hoped to get rich off the idea. And no doubt they have.
    It does amuse me when people use Elon Musk or some other famous person as evidence that it's a smart investment.
    I mean, Elon's a brilliant guy, and certainly clever enough to know that the mere fact that he drops a billion dollars or whatever into crypto will help create a buzz that keeps driving the price up so he profits.
    As long as there are enough people suffering FOMO who are willing to buy and keep driving the price up, it will keep going up. To the benefit of the people who have already bought in. The earlier you bought in, the better off you are. That sounds very pyramid-like to me.
     
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  6. jvin248

    jvin248 Senior Stratmaster

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    .

    A few quick notes:

    -While people dabble in the dozens of alternatives, Bitcoin and perhaps one of the others will be the long term currency. It had 'first mover advantage'.

    -Crypto Currency is free from government manipulation unlike existing world currencies where a government can decide to print more money anytime they want. You have $1M of US dollars saved up for retirement and with a print run you can only buy $500k with that money. Real example is look at what a Strat cost ten years ago and what it costs this year. If you look into the US 'Federal Reserve' you will find it's a privately held profit seeking corporation.

    -Musk/Tesla bought bitcoin to be a cross-boarder currency hedge against country inflation and thus cut his currency risks. Potentially Tesla could pay all their parts suppliers with bitcoin and it won't matter if those parts are made in China or the US or wherever -- and consumers could by a Tesla vehicle with bitcoin. Remember that Musk's original source of his wealth was co-creating Paypal and selling it to eBay. He understands currency risks and the banking system.

    -If you buy bitcoin just to hold and resell later you are speculating. If you buy a bitcoin miner you can 'earn' bitcoin just like buying a shovel and digging in you back yard for gold or oil. Bitcoin miners use a lot of electricity, but it pales in comparison to the energy and costs of a traditional banking system (they use a pile of computers, terminals, local branch buildings, expensive major city real estate). You can hold bitcoin to make purchases. Even Craigslist has a crypto currency field to search for sellers willing to trade stuff for bitcoin.

    -Don't lose your crypto wallet.




    .
     
    Last edited: Feb 12, 2021
  7. JDug

    JDug Strat-O-Master Gold Supporting Member

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    It all confuses me, although I haven’t read to much on it.

    How trustworthy is it if its not backed up by something? ( Like gold, etc) and government issue.

    At face value, it seems to be very pyramid/ponzi - ish to me.

    Are they still “mining” coins too?
     
  8. dirocyn

    dirocyn Most Honored Senior Member

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    Cryptocurrency is a gamble that more other people will buy than sell. If that happens, the value of the thing you bought goes up. If Musk decides to sell half a billion, the value collapses and everyone else loses out.

    It's a lot like "investing" in baseball cards or vintage stratocasters. Except you can't use bitcoin to make noise, by plugging into an amp or shoving 'em in the spokes of your bicycle wheel.
     
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  9. mjea80

    mjea80 Lost In The Light Silver Member

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    It interests me. I may check it out when Paypal lets Canadian’s buy it using their platform.

    Its like any other super volatile stock these days. Prepare for some major swings.

    I enjoyed the wild Weed stock ride a few years ago. Jumped ship to tech stocks and havent looked back.
     
  10. ChrisDowning

    ChrisDowning Strat-Talker

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    I think it works like this - you send me whatever you want to invest in my new currency "CripticChris" and in the fullness of time I'll give you some of it back.....or not. I'll give the first 50 guys the money the next 100 guys put in, and then they tell everyone they doubled their money, then the next 1000 guys have put money in.... I disappear. 50 happy punters and 1050 unhappy punters who wished they knew where I was living in South America. What could possibly go wrong?
     
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  11. hardwired

    hardwired Strat-Talker

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    What’s the difference between CB and CB apro?

    It looks like this stuff is just like trading stock and has tax consequences. Why does CB send you a 1099 for only $600 or more and Pro raises that limit ? You still need to pay Fed and State tax on any gain correct? Since it’s speculation it’s pretty much 28% Fed tax plus the state so probably looking at a 40% tax chop, ouch!

    What’s this about certain state restrictions, how do I find out about that?

    Can you buy/sell crypto thru a broker like Fidelity and etrade?
    What about 401k and IRA with brokerage accounts?
     
  12. Sarnodude

    Sarnodude Most Honored Senior Member

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    If you are filling out your tax return :
    Turbotax asks whether or not you bought/sold any cryptocurrency. I don't remember them asking me last year..
     
  13. Sarnodude

    Sarnodude Most Honored Senior Member

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    If
    you buy the Federal and State version of Turbotax, they will probably walk you through the crypto currency stuff. Not affiliated with Intuit...
     
  14. joe_cpwe

    joe_cpwe Senior Stratmaster

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    Coinbase has a limited variety of crypto to buy, it costs quite a bit more per transaction, the trades aren't nearly as fast so your price will vary. One upside is there you can earn some 'free' coin it also links to Pro if you create an account there. Coinbase is sort of a 'get started here' place. If you want to do more you'll likely move to another exchange, CoinbasePro, Bittrex...whatever...
     
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  15. Nadnitram

    Nadnitram Most Honored Senior Member

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    Wait -- did I do it wrong? I bought this:

    [​IMG]

    It says it's worth 1,000,000.
     
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  16. Handsome McClane

    Handsome McClane Senior Stratmaster

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    I sunk a big $300 into Dogecoin about a month ago using Uphold. It gained in value and I bought shares of Bitcoin (Yup, I'm the proud owner of .0055 shares) and EOS. Total value of my account is $624 right now.
     
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  17. hardwired

    hardwired Strat-Talker

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    This guy lost money from the wide spread they have to buy. There’s no limit price. He said it can’t use it for Crypto because he lives in NY and Uphold doesn’t’t have a BIT license??

    I thought crypto was supposed to be anonymous and sovereign but it looks to be none of that.

    Lookslike Coinbase is better to buy and then use some other trading platform.

    Is their another good Wallet option?

     
  18. The-Kid

    The-Kid Dr. Stratster

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    Doge coin
     
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  19. Neil.C

    Neil.C Most Honored Senior Member

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  20. Wrighty

    Wrighty Dr. Stratster

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    Me neither, just keep hearing my Dad saying ‘if it looks too good to be true it probably is’.