Bitcoin and Crypto-currency
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Bitcoin and Crypto-currency

By BayArea following x   2017 Nov 5, 3:36pm 195 views   4 comments   watch   quote     share  


#investing

Hi guys,

I'd like to start a conversation on crypto-currency, particularly Bitcoin.

What do you all think about it from an investment point of view today? I have some buddies in the finance world who are quite bullish on it and claim we are just scratching the surface. Judging by the recent performance, they may be right.

For people who are investing in Bitcoin, what are you using to invest and what recommendations do you have for a new investor?

Also, how are gains taxed compared to typical stock market gains?

I read this week that over 100,000 merchants in the USA are accepting Bitcoin today.

At the same time, digital currency does scare me a bit as it seems so abstract. Curious what PatNet thinks.

Thanks guys!
1 Patrick   ignore (0)   2017 Nov 5, 4:03pm   ↑ like (0)   ↓ dislike (0)     quote        

BayArea says
Also, how are gains taxed compared to typical stock market gains?


There are no taxes on bitcoin gains, since no one knows who the owners are. I suppose you could get caught at the point of converting it to dollars, but why even bother converting if merchants will directly accept bitcoin?
2 BorderPatrol   ignore (0)   2017 Nov 5, 5:14pm   ↑ like (1)   ↓ dislike (0)     quote        

Patrick says
but why even bother converting if merchants will directly accept bitcoin?


to cash out big sums to buy a car or a house, they need to.

one of these days the gov will ban all of them. crypto currencies are heaven for tax evasion and money laundering. enough people do it, tax revenue will be down and uncle Sam will step in.
3 Newbie123   ignore (0)   2017 Nov 5, 5:47pm   ↑ like (1)   ↓ dislike (0)     quote        

Hi BayArea,

I use Coinbase for buying cryptocurrency. Coinbase and GDAX are the same company and you can actually buy via GDAX with paying zero dollars in fees!!
Coinbase is very user friendly and intuitive but charges fees. As soon as you fund your electronic wallet on Coinbase you can instantly transfer the money to GDAX and buy cryptos for free there. Here is a tutorial:
At this point Coinbase/GDAX is only trading BITCOIN, Litecoin and Ethereum.
Right now, Bitcoin is rallying due to the upcoming fork. It seems, people are selling the Altcoins in order to obtain more Bitcoin to benefit from the fork. After the fork happened (Nov 16th) I expect Bitcoin to correct.

From my experience: Whenever I bought Bitcoin, Litecoin and Ether I thought its expensive. A few weeks later I regretted not buying more.
In my opinion, Cryptocurrency has just started. Once the institutional money starts trading it it will take off even more.
4 WookieMan   ignore (0)   2017 Nov 5, 6:09pm   ↑ like (1)   ↓ dislike (0)     quote        

Newbie123 says
In my opinion, Cryptocurrency has just started. Once the institutional money starts trading it it will take off even more.

I don't doubt what you're saying here. Bitcoin could hit 20k for all I know and I'll miss out on those gains admittedly.

The one question I've had for pretty much all the people I've heard getting into this market, mind you these are people that are lucky to have a $60k a year job, what happens when the government shuts this down? I've yet to hear an answer that would make me even remotely comfortable investing in this stuff. So much of the language and behavior around bitcoin and crypto currencies has the smell of the pump and dump penny stock markets. There's absolutely money to be made. Massive amounts. You're a fool though to think you know the game compared to the people running this market.

This is anecdotal, but I know one individual VERY well that gets burned on anything he does outside of the field he knows. Literally EVERYTHING. He's pushing crypto. So yeah, I'll stay away. I've followed this policy of avoiding his choices and it has done me better then most "strategies." This isn't a joke either. He has the heard mentality and gets burned every time.

I'd personally stay away BayArea, but everyone's risk tolerance is different. Tread carefully with money you'd be willing to lose at a casino would be my only advice. For me right now, that would be $10k. But I'd rather spend 40 hours researching companies, that are legal entities and extremely unlikely to be shut down, that might pop on the regular stock market, Throw the $10k at them. Versus buying bitcoin that will very likely be shut down at some point by the US government and most foreign governments. For me it's a when not if conversation about bitcoin being shut down. That's just my opinion and I think anyone saying otherwise is just stating their own opinion. And that's the problem with this type of market. Good luck if you do decide to dive in though.

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