Bitcoins - about to hit $5,000 per coin today!

[Mayday]

Any estimates where BTC and ETH will bottom out?

I posted targets for BTC on the other page somewhere.

44.7k - initial target. It tapped this today.
41.2k - secondary target but I think 43k is probably close to the actual bottom.

[obsidian]

hmmmm there could be a job for me. I dont care about going to jail. I could cut a deal where I cash out peoples bitcoins for a %, they get it from me, pay no taxes and they dont have to worry about getting charged with a crime. Granted, they should be right beside me when we do the transaction to assure they get paid.

And then once the IRS comes after you and you squeal like a pig. They could trace back where the Bitcoin came from that filled your pockets. Also if millions of dollars are involved you're not going to do that transaction at an ATM that has a $500 per day withdrawal limit lol!

Paying taxes is a way to get the government to accept cryptocurrencies. I'd rather pay the tax as a necessary evil. Even though I know the fucking politicians will not use that money in a proper and efficient way because they are cockroaches.

[obsidian]

Who provides the cash?

If you have a Coinbase account then the cash would come from them. They have fiat in reserve like normal banks. I bought over $12,500 in cryptos back in 2018. The money was transferred from my checking account to my Coinbase account. I have not yet withdrawn any fiat since that initial investment because I am patient.

Coinbase is regulated so they will play by the rules and make sure they have fiat to cover normal transactions. A run on the banks will take down all banks. So they would limit withdrawal to prevent a situation like that. You're not going to be able to withdraw 10,000 BTC in one transaction. You could sell it to a stable coin or USD but will have to withdraw a million a day or whatever limit Coinbase has in place. But most people will not sell that many BTC unless they want a major correction in the price. Perhaps with the intent to buy more at a lower price.

[obsidian]

Around zero   

Another 15% drop innmy portfolio at the low and I'm out. I'm not taking any chances.

Zero or go home! Buy high sell low! That's how we roll! 

[Bindare_Dundat]

Zero or go home! Buy high sell low! That's how we roll! 

Lol nah I'm good. Didn't say I wouldn't jump back in, just not in the mood to tide it any lower than my set level.

[Mayday]

Perhaps buying at peak could be an effective strategy?

You acknowledge up front you are buying for top dollar.

You know it will tank just after you buy because life gives us little funny moments to laugh about.

You then make such a huge loss your mindset becomes ‘fuck it’ because you are so screwed what’s the point in selling. Years later price blasts past your buy and you are profitable again!

[OneMoreRep]

Hmmm...

BitCoin having a correction.

Binance coin in bear territory.

"1"

[Griffith]

I’m tempted to buy more ETH.

[Humble Narcissist]

Thanks - so it's a finite supply and you net the $ directly from the next buyer.

So, in theory, it's not entirely fluid.  Meaning if you have 80 million in bitcoin you want to dump at a high price, it might not get purchased.

That's what I would fear.  If nobody buys it you are stuck with depreciation to zero.  This is why I keep looking for people who have actually cashed out large amounts of Bitcoin.  Lots of investors think they are millionaires but no one seems to actually cash out to real money.  Part of this could be because they want to stay hidden from the IRS.

[Theoak*]

Around zero   

Another 15% drop innmy portfolio at the low and I'm out. I'm not taking any chances.

Im suprised you're able to punch the keys on the keyboard with such weak hands.

[Mayday]

Im suprised you're able to punch the keys on the keyboard with such weak hands.

Legit LOL 

[Griffith]

Im suprised you're able to punch the keys on the keyboard with such weak hands.

 

[OneMoreRep]

Around zero   

Another 15% drop innmy portfolio at the low and I'm out. I'm not taking any chances.

I can respect that. Not everyone can stomach these corrections and 20%+ drops.

That said, even I am starting to look into buying cryptos.

Off the top of my head, I am considering fractional shares in Bitcoin, a small position into ETH, large position in Binance Coin, Polkadot and Cardano.

Even with this risky endeavor, I would only invest 10% of my portfolio into cryptos, as I know it's volatility can fuck anyone up.

It's money that you have to be ready to part with. Set it and forget it kind of thing...

"1"

[obsidian]

I’m tempted to buy more ETH.

I have been buying ETH the past 3 years via mining. With prices as they currently are it is very profitable. I am getting ETH at just under $300. Thus even if the price of ETH crashes to $500 I am still making money. But that could change if they pass EIP-1559.

The crazy thing is as the price crashed yesterday my fees increased because of all the transactions going on. My estimated monthly earnings in USD approached $7,000! It fluctuates up or down depending on the number of transactions, price of ETH, hash rate and mining pool luck. And if the price of ETH goes up to say 10K my monthly earnings would have been insane. Because I have been hodling ETH. I sold some for Cardano and BNB but the majority has been hodled the past 3.5 years.

I will also be able to deduct my electrical and equipment costs from my taxes. I have not done this yet but have all the invoices ready for when I do take profits.

[obsidian]

Griffith, what do you make of this? Some miners are pissed off at the EIP-1559 initiative.

Here's the problem for Ethereum. The gas fees are an issue with smart contracts and projects are bleeding to Binance Smart Chain. But they need the miners to secure the network just like Bitcoin. If miners abandon Ethereum the security will become a risk because of a 51% attack possibility. If they keep the miners happy the smart contracts suffer.

[obsidian]

More Ethereum FUD?

[OneMoreRep]

I have been buying ETH the past 3 years via mining. With prices as they currently are it is very profitable. I am getting ETH at just under $300. Thus even if the price of ETH crashes to $500 I am still making money. But that could change if they pass EIP-1559.

How does one go about buying ETH via mining and only pay under $300?

I genuinely don't know and I'm curious. Of note, I recently bought (for the first time in my life) and gifted my nephew some cryptos. I was NEVER a believer in cryptos and I'm still on the fence surrounding the whole thing, but I did manage to log into Binance.us and purchase a decent position for him. Now, I am thinking of pushing at least $5-10K into crypto. ETH looks attractive, but runs high. Hence why I am curious about this mining you speak of..

"1"

[obsidian]

How does one go about buying ETH via mining and only pay under $300?

I genuinely don't know and I'm curious. Of note, I recently bought (for the first time in my life) and gifted my nephew some cryptos. I was NEVER a believer in cryptos and I'm still on the fence surrounding the whole thing, but I did manage to log into Binance.us and purchase a decent position for him. Now, I am thinking of pushing at least $5-10K into crypto. ETH looks attractive, but runs high. Hence why I am curious about this mining you speak of..

"1"

You calculate your monthly ETH payouts and then look at your electrical bill. So in my case my monthly payout is around 4 ETH but could be 3.5 ETH or even 3 ETH depending on pool luck, difficulty, number of transactions on the network etc. My electrical bill has been around $900 per month. But that includes gas for water heater, washing machines, microwave, TV, furnace etc. I am guessing the electrical cost for the mining is around $750 per month.

$750 / 3 ETH = $250 per ETH
$750 / 4 ETH = $187.5 per ETH

I am mining directly to an ETH address on Coinbase. But you can have the payments go to any ETH address, for example Binance. Payments are done weekly.

That being said I was also mining ETH when it was $110. But keep in mind the rigs were also heating the house so I saved some money by paying less natural gas for the furnace to heat the house. So even at that low price if was worth the risk. Our electrical bill was also lower back then. Our bills have been higher the past few years because of infrastructure improvements. They jacked up the rates for everyone to upgrade the gas lines.

I would not go out and try to buy GPU cards right now. The prices are very high and it is sold out everywhere. And GPU mining for Ethereum is nearing the end as the transition to proof of stake. Nobody knows how much longer. 1-2 years or maybe less. There are apparently ASIC miners on the network mining Ethereum. Ethereum was supposed to be ASIC resistant but they were able to develop ASIC miners. They are apparently much more efficient than GPU miners but are hard to find and expensive. And once Ethereum mining goes away they will be useless and become door stoppers. At least with a GPU you can use it for games, videos etc. ASIC miners can't do anything but solve a specific algorithm. Bitcoin miners are all ASIC now. In the past you could mine Bitcoin with a CPU or GPU but those days are long gone.

[obsidian]

^^^^^^ I have a lot of GPU cards - over 40 to be precise. You are not going to get these payouts with one GPU. One ASIC miner could match that, but that ASIC miner would cost over $20,000.

[Grape Ape]

If you have a Coinbase account then the cash would come from them. They have fiat in reserve like normal banks. I bought over $12,500 in cryptos back in 2018. The money was transferred from my checking account to my Coinbase account. I have not yet withdrawn any fiat since that initial investment because I am patient.

Coinbase is regulated so they will play by the rules and make sure they have fiat to cover normal transactions. A run on the banks will take down all banks. So they would limit to withdrawal to prevent a situation like that. You're not going to be able to withdraw 10,000 BTC in one transaction. You could sell it to a stable coin or USD but will have to withdraw a million a day or whatever limit Coinbase has in place. But most people will not sell that many BTC unless they want a major correction in the price. Perhaps with the intent to buy more at a lower price.

Thanks OB, I appreciate you taking the time to explain.

While I'm not sure it's a deterrent, there appears to be legitimate barriers on huge payouts.

Wonder how much cash they're sitting on.

[Soul Crusher]

Thanks OB, I appreciate you taking the time to explain.

While I'm not sure it's a deterrent, there appears to be legitimate barriers on huge payouts.

Wonder how much cash they're sitting on.

This is why GB is a treasure and the best goddamnfng site ever.   You get real answers to stuff.

[obsidian]

Thanks OB, I appreciate you taking the time to explain.

While I'm not sure it's a deterrent, there appears to be legitimate barriers on huge payouts.

Wonder how much cash they're sitting on.

You're welcome.

[obsidian]

This is why GB is a treasure and the best goddamnfng site ever.   You get real answers to stuff.

Yes this forum is great! I appreciate the low amount of censorship here. There are other forums out there that are also great. I expect forums to make a comeback as big tech increases censorship.

There's a lot more real conversation taking place on forums.

[Mayday]

So what’s the deal with 559?

All the big players talk about 559 being the green light for a ethereum to rocket off.

miners say it’s the death?

Who is right?

Excuse my ignorance here as I am not familiar with mining but if you make so much profit from mining why do other miners complain about costs and never making any money? What am I missing?

 ETH mined mid last year would have returned 10x in value even at today’s price. If ETh mined today returns 10x in 12mths time how are miners not making huge money?

[obsidian]

So what’s the deal with 559?

All the big players talk about 559 being the green light for a ethereum to rocket off.

miners say it’s the death?

Who is right?

Excuse my ignorance here as I am not familiar with mining but if you make so much profit from mining why do other miners complain about costs and never making any money? What am I missing?

 ETH mined mid last year would have returned 10x in value even at today’s price. If ETh mined today returns 10x in 12mths time how are miners not making huge money?

In mid 2018 and 2019 Ethereum mining was not profitable. Because the ETH price crashed to below $100. And meanwhile the mining difficulty did not reduce enough to compensate. So people were either breaking even or losing money to electrical cost. Some people bought many GPU cards on credit. Now they could not make ROI on those expenses. Some bought GPU cards when ETH reached an ATH in January 2018 at inflated prices. So this is why people were complaining about mining Ethereum and Bitcoin. Remember Bitcoin's price also crashed down to $3,500 or less. Electrical costs were high.

Smart businesses kept mining. Because they factored a low price for Bitcoin and Ethereum when they set up their mining operations. But many people exited mining and sold their GPU cards cheap.

In my case I paid upfront for my equipment and took a chance that the market would come back. I also bought the GPU cards before the prices became insane. I assembled all the machines on my own since I know how to build computers. My equipment cost was more than $20,000. And my electrical costs over the years probably $15,000 - $20,000. I need to look at the expenses.

Starting in 2020 it became profitable to mine again. In my case again I never converted to USD because I can fund my electrical and equipment from fiat. So for me the profit depends on wherever the price of ETH goes. And all my profit is on paper. Only when I cash out to USD does it really become profit.

There are some Bitcoin miners that also just hold BTC. Some miners have to sell to fund their operation and pay electrical and equipment costs.