Posted on 02/19/2021 11:29:47 AM PST by bkopto
The price of bitcoin crossed another major milestone Friday, as the cryptocurrency’s market value surpassed $1 trillion, according to Coindesk.
The digital currency was trading at just under $54,000 per coin Friday as it hit the new level, and rose to a high of $54,880 later in the session, according to Coin Metrics. The price of bitcoin has now gained about 350% over the past six months. Before the recent surge, the digital asset has never traded above $20,000.
(Excerpt) Read more at cnbc.com ...
Basically the same as any capital asset sale like a stock. Date purchased, sold, purchase price, sales price. Pay capital gains taxes on the profit or carry forward losses.
Depends what the meaning of "destroy" means. They can "destroy" the value in a flash. They come out with FEDCoin that can be used everywhere, can accommodate the massive real world liquidity and transaction rates needed. Bye, bye Bitcoin value.
A lot of very happy very wealth Chinese- china where most bitcoins are generated.
Digital Currency = Three Card Monte
I initially invested $3k and cashed out $2k when it took a small dip.
So I’m not planning to pull back unless it takes a giant dump.
And I will still end up with a profit.
Yes they do, however, they too go up and down in value based upon perception more than anything else.
-Bitcoin is overpriced.
-Bitcoin can be devalued.
-Bitcoin are not backed by physical assets.
It’s used electricity that is in a bubble.
“I’m been a Bitcoin investor for 3 years. Never received a 1099. Never reported any income or interest earned. Never reported on Schedule D.”
If you have held the Bitcoin and not sold it...no issues.
If you have sold any for a profit you are guilty of unreported capital gains, subject to taxes, penalties and interest.
Over 210K and going up faster than a rocket to Mars (48,000 MPH)
nope. what that will do is give all electronic currencies like bitcoin more credibility.
that’s like saying the usps is going to (back in the day) come out with its own clunky version of a fax machine, which will bury the fax machine. it will have some advocates, for sure, and that’s great....competition is good.
but once the government endorses the concept of electronic currency like that, bitcoin will become much more widely accepted (if not understood). and then it will be seen correctly as untethered from political control / fed policies.
I found this awhile back. It shocked me to be honest.
https://cryptotrader.tax/blog/the-traders-guide-to-cryptocurrency-taxes
So how can people be “mining” bitcoins by running some piece of software?”
excellent question.
the mining is also the transaction confirmation process...by confirming the validity of transactions (ie, that Bob’s bitcoin was owned by Bob, and it was transferred once and for all to Sue), then the confirming computer gets a small reward - that’s the mining part. I also like the term minting.
the computer program which is used for this confirmation process also governs how much bitcoin is mined/minted/distributed as a reward....every few years, that number drops. And, once 22 million bitcoins are mined/minted/distributed/birthed....there will be no more. It’s all in the code.
The date for that is projected to be like 2140. Well beyond most of us here.
The code can’t be changed except by 51% being in agreement. So highly unlikely, and I’d assert, physically impossible (computing power, electricity, etc.).
hope that makes sense. good question, though.
Thanks, but that source reinforces my comment that no human understands or can explain Bitcoin or blockchain.
Bitcoin is a scam, just like tulips in Holland.
If it was a valid currency it would have value of some kind behind it. Tell me, what backs up Bitcoin? It is worse than the 1920s Weimar Deutschmarks.
The South Sea Bubble 2.0
I have yet to see a bitcoin.
What’s it made of ?
I really could not care less. Good luck on your investment in the ether regions.
You say “nope” only because you have this hobbyist mentality with no real world understanding of what it would take to implement on a wide scale.
ok
In 1991, I attended a conference on the status and details of the implementation of the new Euro.
Sat 10 feet from the head of the European Central Bank as he gave an overview of the progress and status. Remember when he entered the back of the room, back doors swung open and in he came with two huge bodyguards on either side. They stood on either side of him as he spoke. You could tell they were packing serious firepower under their jackets, just like secret service guys.
At lunch that day, sat at a table for 6 that included the head of the Dallas FED, a French finance minister type, and 3 others. Discussions were of the enormous complexity of changing all banking IT infrastructure, retail infrastructure, currency and stock exchanges, etc. and the enormous effort and complexity of the testing and coordination that was required.
Here’s a simple example of why’s that is all needed:
You walk into a Taco bell and want to buy a taco. You have 5 JoeCoins in your phone crypto account. You order the taco and when you tell the cashier you want to pay in JoeCoins, she gives you a blank look. You explain what JoeCoins are. She says “Oh, I heard about that from my friend.” You think “Awesome, I’m getting my taco.” Then she says her point of sale register can’t accept JoeCoins, there is no button to specify she is accepting JoeCoins and to get them from you.
NO TACO!
but you can pay with a “credit card”. here’s just one example...there’s a bunch of them:
you can also instantly sell crypto on your phone (ie, convert it to “real money”), and send it to your bank account if you want to do that. but you don’t have to, see card above and more like them.
it’s no different from buying stuff in europe today with your dollars
and outside of the retail context, you can text anyone money without the use of a bank/intermediate. that’s a real plus for people in countries with crap currencies.
This is why all these hobbyist coins will never be used widely used and the only ones that will be used are the ones blessed by central banks and huge money center banks and fortune 500 consortiums. They coins must be able to scale for transaction rates in the hundreds of billions of transactions per day. They have to be known in all the major IT infrastructures.
Plus they have to have enough liquidity to buy or selling big amounts does not drive the price up or down by double digits. They have to easily hedgeable for cross currency risk.
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