CryptoCra$h - Prepare your Angus

[TheCokeCan]

Originally Posted by KoalaSlim

You aren't off-base.

A lot of the gold and silver freako's are into crypto. It's an anti-govt anti bank mentality.

The IRS also views crypto as a commodity. You will end up paying capital gains on your earnings the same as you would for stocks. If you hold less than a year, you might be penalized up to 39%, but if you hold over a year it drops down to 10-20% (depending on income level).

Gotcha, thanks for the info.

That's interesting how the IRS looks at it - it makes sense, and it's neat how they've already examined it.

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[KoalaSlim]

Originally Posted by TheCokeCan

Gotcha, thanks for the info.

That's interesting how the IRS looks at it - it makes sense, and it's neat how they've already examined it.

It's not that they've already examined it as much as they are too lazy to come up with new rules. They haven't recognized crypto as an actual currency, so these rules are what they deem applicable.

[drstuess]

Isn't there a fidelity etf of Crypto currency? Any benefit of actually buying a currency versus that ( full disclosure I practically know nothing of Crypto currency )?

[KoalaSlim]

Originally Posted by drstuess

Isn't there a fidelity etf of Crypto currency? Any benefit of actually buying a currency versus that ( full disclosure I practically know nothing of Crypto currency )?

To my knowledge not yet. Several ETF funds are under consideration by the SEC but none have been approved AFAIK. If this happens, it's going to cause a crypto explosion because hedge funds would have an easy way to get involved.

Fun fact:

.4% of hedge funds hold crypto assets
5% of hedge fund MANAGERS personally hold crypto.

Ten times as many...

[mr2guru]

All I know is I am making a killing on Litecoin right now. Got in on the ground floor. If it ever hits $2000, I'll have enough to retire. Good enough "lottery ticket" for me. And MUCH better odds. Plus it's fun to keep up on... like a daily scratcher, lol.

Disclaimer: I have several other traditional retirement investments that I actually rely on, cryptocurrency is just a game for me.

[KoalaSlim]

Originally Posted by mr2guru

All I know is I am making a killing on Litecoin right now. Got in on the ground floor. If it ever hits $2000, I'll have enough to retire. Good enough "lottery ticket" for me. And MUCH better odds. Plus it's fun to keep up on... like a daily scratcher, lol.

Disclaimer: I have several other traditional retirement investments that I actually rely on, cryptocurrency is just a game for me.

Charlie Lee, founder of Litecoin just left CoinBase (after getting LiteCoin listed there) to focus full time on his baby. I think you are going to be very happy in a couple of years.

[WRX Shenanigans]

Im ready to pull the trigger on some coin. Im only willing to spend about $700 or so today. What do you recommend: litecoin, ethereum, or half and half? Further, litecoin shot up to $50 over the last few days...should i buy anyway or wait to see if it settles?

[Bryan T]

Originally Posted by KoalaSlim

Each has it's advantages and disadvantages. There is room in the market for multiple for sure.

Bitcoin Pro's:

-Limited eventual supply, no inflation.
-The first, and most recognizable.
-Untraceable transactions, good for drug dealers and gamblers.

Bitcoin Con's:

-Small block size
-Slow transaction speed, not good for merchants
-Untraceable transactions mean limited usefuleness for banks that require this.

Ethereum is more than a currency. It's a platform. It's like a new internet, and it's built on a full Turing programming language. You can make any application you want and run it on the network. The ether coin is more of a "gasoline" that makes all the programs work. So you're buying into an architecture, not a currency. People are currently frantically buying up all the domains on the ethereum network, because a lot of people believe this is internet 2.0, and will replace our current internet because net neutrality is threatened and ethereum network is impossible to control like that, because it's fully decentralized.

Dash, for instance, is solely designed for quick merchant transactions.

Ripple was created by bankers to transfer large amount of funds between bank branches. It can't be mined.

So they all have their uses. Eventually the dust will settle and there will be some major players and then smaller tokens as well. There's already a dentcoin that you can use to pay for dentist appointments. There will eventually be a coin for everything. There will be coffeecoin that you can use to buy coffee beans from suppliers etc. No middle man.

Get it? It's hard to wrap your head around at first.

Interesting ideas. The "coin for everything" doesn't make sense, if I'm understanding you correctly. The utility of a currency is that it lets you buy different types of goods, like the coffee merchant needing to buy dental services. Instead of converting their $coffee to $dental, they just use $. But maybe I'm missing something.

[KoalaSlim]

Originally Posted by WRX Shenanigans

Im ready to pull the trigger on some coin. Im only willing to spend about $700 or so today. What do you recommend: litecoin, ethereum, or half and half? Further, litecoin shot up to $50 over the last few days...should i buy anyway or wait to see if it settles?

I don't feel comfortable giving purchasing advice. I think a price correction might be coming along. Ether is super inflated, litecoin just doubled, and bitcoin has new protocols implementing on August 1st. It could go way up in price or go way down in price.

You might want to wait.

Or you might want to just buy.

Sorry.

[ciscoidiot]

So... if understanding correctly you can still choose to mine crypto currency or choose to buy?

Insert salty comment about "telling everyone about this back in 2013 but doing nothing about it, and now I could be rich".

This **** is fascinating.

[WRX Shenanigans]

Originally Posted by KoalaSlim

I don't feel comfortable giving purchasing advice. I think a price correction might be coming along. Ether is super inflated, litecoin just doubled, and bitcoin has new protocols implementing on August 1st. It could go way up in price or go way down in price.

You might want to wait.

Or you might want to just buy.

Sorry.

Thanks. I appreciate any thoughts really. I realize its like timing the stock market (i.e. impossible), but thought I would at least ask some folks who have been following it longer than I. I think I'll just keep a close eye and if I see a drop I'll hop on it.

Side question. Other websites are showing litecoin up to $50, but Coinbase is letting me purchase at $47. Is there a lag or something? Also, when I click purchase on Coinbase, is that the price I'm guaranteed to get? Or will it adjust when the actual purchase takes place (as with the stock market)? I'm using a credit card btw (I feel more comfortable using a credit card for hopefully a little added protection).

Edit...I just kind of found the answer to one of my questions. Coinbase just updated to $49 for litecoin, so maybe there was just a slight lag.

[Integra96]

Big nope on this.

However I might throw in <1% of taxable for entertainment purposes.

[KoalaSlim]

Originally Posted by Bryan T

Interesting ideas. The "coin for everything" doesn't make sense, if I'm understanding you correctly. The utility of a currency is that it lets you buy different types of goods, like the coffee merchant needing to buy dental services. Instead of converting their $coffee to $dental, they just use $. But maybe I'm missing something.

With the smaller altcoins, their usefulness will play out. I don't know if it really makes sense or not to have a coin for each different industry.

But yes, some coins are useful to store value. Some coins are geared towards fast merchant transactions. Some coins are like Ether in that they aren't really supposed to be a currency but a way of running a network.

[KoalaSlim]

Originally Posted by WRX Shenanigans

Thanks. I appreciate any thoughts really. I realize its like timing the stock market (i.e. impossible), but thought I would at least ask some folks who have been following it longer than I. I think I'll just keep a close eye and if I see a drop I'll hop on it.

Side question. Other websites are showing litecoin up to $50, but Coinbase is letting me purchase at $47. Is there a lag or something? Also, when I click purchase on Coinbase, is that the price I'm guaranteed to get? Or will it adjust when the actual purchase takes place (as with the stock market)? I'm using a credit card btw (I feel more comfortable using a credit card for hopefully a little added protection).

Edit...I just kind of found the answer to one of my questions. Coinbase just updated to $49 for litecoin, so maybe there was just a slight lag.

When you hit the purchase button, It locks in your price at that moment. If you go to GDAX.com you can watch the orders as they come in and out and see it in real time.

There is always a price disparity between different exchanges. If you go to CoinMarketCap.com you can click on the coin price of each coin and a list of exchanges will pop up and you can observe the variance in prices.

The price you are seeing in Coinbase is essentially the most recent transaction from GDAX. You will notice that Asian exchanges sometimes have a large price disparity. They can't just order from any site they choose, so it makes sense that the prices are different in different areas.

[totallynotbeau]

So odd, I've been hearing about mining a LOT lately, from a bunch of different sources. Seems like everyone is getting in on it.

While building a rig I could cook hotdogs on sounds appealing, investing in the currency seems to be the easier way to go.

I've heard that the term "mining" is accurate, as this movement is very much like a gold rush. You know who made the most $$$ during the gold rush? The dudes selling supplies to the miners. Mine the miners they said.

Now I just need to figure out what miners need, and sell it to them.

[KoalaSlim]

Originally Posted by totallynotbeau

So odd, I've been hearing about mining a LOT lately, from a bunch of different sources. Seems like everyone is getting in on it.

While building a rig I could cook hotdogs on sounds appealing, investing in the currency seems to be the easier way to go.

I've heard that the term "mining" is accurate, as this movement is very much like a gold rush. You know who made the most $$$ during the gold rush? The dudes selling supplies to the miners. Mine the miners they said.

Now I just need to figure out what miners need, and sell it to them.

You could buy stock in AMD and other graphics card manufacturers. That would be a safe bet IMO. They are sold out everywhere, and demand is skyrocketing.

[ciscoidiot]

Just bought some Litecoins. Explaining this to my wife is going to be exciting. Glad this thread is here to get me hype about this crazy **** again.

[I25]

So I went to signup for a Coinbase account this morning to get started on the DC train...


It tells me I already have an account...

Guess I'll reset my password and see how rich I am.

Update: $0.00. Looks like I signed up for this back in 2013. **** me sideways for not buying anything back then

[shikataganai]

Originally Posted by Integra96

Big nope on this.

However I might throw in <1% of taxable for entertainment purposes.

I figure it's worth it as a long shot for a pile of money that I wouldn't care about if it went up in smoke.

/me dreams of super early retirement...

[ciscoidiot]

Originally Posted by I25

So I went to signup for a Coinbase account this morning to get started on the DC train...


It tells me I already have an account...

Guess I'll reset my password and see how rich I am.

Update: $0.00. Looks like I signed up for this back in 2013. **** me sideways for not buying anything back then

This gun be gud.

[Jard]

Originally Posted by totallynotbeau

So odd, I've been hearing about mining a LOT lately, from a bunch of different sources. Seems like everyone is getting in on it.

While building a rig I could cook hotdogs on sounds appealing, investing in the currency seems to be the easier way to go.

I've heard that the term "mining" is accurate, as this movement is very much like a gold rush. You know who made the most $$$ during the gold rush? The dudes selling supplies to the miners. Mine the miners they said.

Now I just need to figure out what miners need, and sell it to them.

At a consumer level (6 or less GPUs):
* Started mining a year ago and held on to your ether - could think about selling now and making 6 figures
* Started mining 6 months ago - probably 5 figures
* Started mining in the last month - might make a few thousand dollars
* Start mining now - lucky to get your investment back

This is directly tied to the actual and expected difficulty increase of more and more mining capacity coming online.

[I25]

Originally Posted by ciscoidiot

This gun be gud.

[KoalaSlim]

Originally Posted by Jard

At a consumer level (6 or less GPUs):
* Started mining a year ago and held on to your ether - could think about selling now and making 6 figures
* Started mining 6 months ago - probably 5 figures
* Started mining in the last month - might make a few thousand dollars
* Start mining now - lucky to get your investment back

This is directly tied to the actual and expected difficulty increase of more and more mining capacity coming online.

All true.

The prices are so outrageous on graphics cards right now, it just doesn't seem profitable.

HOWEVER, you could mine a lesser coin like Zcash and if it takes off like crazy, you would of course make a massive profit. But that is a heck of a gamble.

[Jard]

Originally Posted by KoalaSlim

The prices are so outrageous on graphics cards right now, it just doesn't seem profitable.

HOWEVER, you could mine a lesser coin like Zcash and if it takes off like crazy, you would of course make a massive profit. But that is a heck of a gamble.

Finding video cards is less of an issue, honestly, everyone is switching to NVIDIA. GPU risers are all sold out and the other hardware is going to become more scarce.

I am mining as a hobby, but I had *most* of the hardware I needed already laying around.

Even with my small investment, to make any real money, the coin value needs to skyrocket...

[KoalaSlim]

Originally Posted by Jard

Finding video cards is less of an issue, honestly, everyone is switching to NVIDIA. GPU risers are all sold out and the other hardware is going to become more scarce.

I am mining as a hobby, but I had *most* of the hardware I needed already laying around.

Even with my small investment, to make any real money, the coin value needs to skyrocket...

The smartest thing might be to buy an antminer directly off bitmain. It's a dedicated platform. It uses some other achitecture with hundreds of small chips, not graphics cards. I kind of want to get into it, especially because I'm sitting around the house a lot right now with a broken elbow and wrist. I'm just bored as **** looking at GDAX charts and watching youtube vids.