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

[gib]

Do you blame them? Average Joe can put $1,000 in crypto - if that! So they buy Bitcoin? Wow, they can easily double that?! A $1,000 gain is nothing.

Likewise, Ethereum is also too expensive for Average Joe. Solana looks a little more attractive for them, or meme coins.

But what if they get lucky with some obscure, small market cap token that does a 100x? That's why they go to the Solana Casino!

$89,000 BTC is great for people like GIB who got in at $3,500. Less attractive for a new investor with small pockets.

Exactly right. Which is why I have tried so so hard to educate and pass this message on here. All anyone had to do from the time this thread started was buy BTC regularly, stack, and chill.

The guy with $1000 trying to chase alts, over a cycle might well go from 1000, to 1300, to 1100, to 1800, to 900, to 1300, to 2100, to 1700, to 1900, to 1200, and end at 800. After countless trades, essentially trading non-sense, all of which is in the short term dilutive of the value that would have flowed into BTC, had he just stuck with the plan and been aligned with Bitcoiners, instead of being mislead by shitcoiners. Meanwhile, the Bitcoiner who has been faithfully and methodically stacking and hodling wins...

For anyone thinking BTC is "expensive" I would say that it has always seemed "expensive" for anyone who bought it. This is always the way it is with any fast emerging asset.

Remember at the beginning of this thread, I was encouraging people just to get to 1BTC, and how important this would be. Some laughed at this. Now I am encouraging people just to get to 0.1 BTC. And of course in time, the aspiration for many may be 0.001 BTC. For those struggling on low incomes, all around the world (not just on GetBig), I really urge just to put whatever you can into BTC, and use it as a long term savings technology.

We still have BTC to go up around 10x to match gold's market cap (it just flippened silver's market cap last week), and it will flip gold for sure, in time, for obvious reasons.

[gib]

I mined 4 ETH per month for an energy bill of $600. But, the rigs heated the house. Our energy bill was going to be $150-200 regardless. That means ETH at $3,000 is still a 26x to 30x for me. I deducted all the hardware and electrical to cancel out the mining income over multiple years. Any tax I pay now will be capital gains tax.

That is pretty cool. Curious, why did you mine ETH and not BTC?

Were the rigs loud?

Why pay tax? How would anyone know that you mined ETH? (Or that you sold it, unless you sold it on a KYC regulated exchange)?

[Griffith]

You can thank Gensler for those gains. Because he did everything he could to undermine DEFI tokens. That might be about to change.

https://www.cnbc.com/2024/11/14/gary-gensler-reviews-accomplishments-was-proud-to-serve-as-sec-chair.html

Gary Gensler says he was ‘proud to serve’ as SEC chair, defends his approach to crypto regulation

Gensler offered a full-throated defense of his approach to crypto.

Gensler repeated his assertion that while bitcoin is not a security, the SEC’s focus “has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities” and are therefore subject to the SEC’s purview.

Good to see this cockroach has been removed.

Can only be good for DEFI now.

[gib]

Good to see this cockroach has been removed.

Can only be good for DEFI now.

Well remember, his job is to enforce the law, not make the law. There are good reasons why the law regulates public securities (and indeed such regulation is the foundation on which American business success has been built on). With securities regulation, we can invest in companies which we know meet certain financial reporting standards, comply with specified regulations, etc. This enables us to value companies with confidence, lend to companies in confidence, and invest in the shares of such companies with confidence. This cannot be said for companies who issue "crypto tokens" in an attempt to avoid existing regulations, and basically take investor money via fraud.

Gensler is not opposed to the concept of defi in itself. But he does enforce the law against illegally issued and non-compliant securities, as he should.

[Andy Griffin]

Good to see this cockroach has been removed.

Can only be good for DEFI now.

Amen.

Probably doesn't even lift.

[SouJerz]

Do you blame them? Average Joe can put $1,000 in crypto - if that! So they buy Bitcoin? Wow, they can easily double that?! A $1,000 gain is nothing.

Likewise, Ethereum is also too expensive for Average Joe. Solana looks a little more attractive for them, or meme coins.

But what if they get lucky with some obscure, small market cap token that does a 100x? That's why they go to the Solana Casino!

$89,000 BTC is great for people like GIB who got in at $3,500. Less attractive for a new investor with small pockets.

I mined 4 ETH per month for an energy bill of $600. But, the rigs heated the house. Our energy bill was going to be $150-200 regardless. That means ETH at $3,000 is still a 26x to 30x for me. I deducted all the hardware and electrical to cancel out the mining income over multiple years. Any tax I pay now will be capital gains tax. Crypto miners have to pay income tax on crypto they earn and the price is determined when it hits your wallet. If the crypto then goes up in value from there and you sell you have to pay another capital gains tax.

Some gamble and some invest.   Godspeed

[French]

Kaspa will be listed on Kraken Tuesday.
Kaspa is all what you need to be millionnaire.
Buy 50000 to 100000 Kas.
https://www.tradingview.com/news/coinmarketcal:b6c3c2e13094b:0-kaspa-kraken-listing-19-nov-2024/

[affeman]

Kaspa will be listed on Kraken Tuesday.
Kaspa is all what you need to be millionnaire.
Buy 50000 to 100000 Kas.
https://www.tradingview.com/news/coinmarketcal:b6c3c2e13094b:0-kaspa-kraken-listing-19-nov-2024/

lol How's your Solana shitcoin doin' in that century bullrun?

[French]

lol How's your Solana shitcoin doin' in that century bullrun?

Not bad, ptfl (little math) :
.90% Solana (?)
.10% Kaspa (275000@0.12)

[obsidian]

He doesn't need to sell, nor should any Bitcoiner. No #1 principle - Never, ever, let go of your BTC. Hodl, stack, and by all means borrow against it for declining fiat if you need some cash. But never sell it. Same principle those who have built successful property empires - you borrow, build, hold the underlying assets and leverage to get more. But you never sell the crown jewel's.

Saylor can borrow because he has business income which he can use to pay off the interest accumulated by his loans, along with the actual loan itself.

What if someone is retired or does not want to work again ever, and they have 100 Bitcoin?

Here are some examples:

1. Bitcoin Price Appreciation
The core assumption is that Bitcoin's value will increase over time.
If the borrowed amount is small relative to the collateral (low loan-to-value ratio), the borrower can refinance the loan as Bitcoin appreciates, effectively rolling over the debt.
Example:

Borrow $50,000 against $250,000 worth of Bitcoin (20% LTV).
If Bitcoin doubles in value, the same collateral is worth $500,000, allowing for refinancing or easier repayment.
Risk: This hinges on consistent Bitcoin price growth, which is volatile and uncertain.

2. Partial Bitcoin Liquidation
If appreciation occurs, a portion of the Bitcoin can be sold to repay the loan.
While this violates the "never sell" principle, it minimizes the amount of Bitcoin sold compared to selling upfront for cash.
Example:

Borrow $50,000 against $250,000 worth of Bitcoin.
If Bitcoin appreciates by 50%, sell $25,000 worth of Bitcoin to repay half the loan, retaining most of the asset.

So a BTC holder who does not want to work and does not own a business or have business income will have to sell BTC to pay for living expense, food, entertainment, etc. They can take out loans, but still have to pay back the loans. So their BTC holdings will decrease over time.

Suppose someone has 10,000 ETH. If they stake it all they might earn around 3.5-4% APY. Not with Coinbase though because their rates have fallen.

They would earn 351.308 ETH per year, which, at $3,000, would give them a million-dollar income without touching the ETH principle. They can't do that with Bitcoin. It works for Saylor because he has business income.

[obsidian]

Not bad, ptfl (little math) :
.90% Solana (?)
.10% Kaspa (275000@0.12)

Everyone said how great the Solana Phantom Wallet was. Then this happened?!

https://techcrunch.com/2022/08/03/solana-wallet-hack/

Thousands of Solana wallets drained in multimillion-dollar exploit

Solana, an increasingly popular blockchain known for its speedy transactions, has become the target of the crypto sphere’s latest hack after users reported that funds have been drained from internet-connected “hot” wallets.

An unknown actor drained funds from approximately 8,000 wallets on the Solana network, Solana’s Status Twitter account said. It’s estimated the loss so far is around $8 million.

The attack — which has only affected only “hot” wallets or wallets that are always connected to the internet, allowing people to store and send tokens easily — does not appear to be limited to Solana. Justin Barlow, an investor at Solana Ventures, reported that his USDC balance was drained as well. Crypto analyst @0xfoobar confirmed that “the attacker is stealing both native tokens (SOL) and SPL tokens (USDC)… affecting wallets that have been inactive for less than 6 months.”

The attack has compromised other wallets including Phantom, Slope and TrustWallet. Initial reports suggested Solflare users were also impacted, but the company tells TechCrunch it has not been affected by this exploit. Wallets drained should be treated as compromised and abandoned, Solana warned as it encouraged users to switch to hardware or “cold” wallets.

Phantom, a fast-growing Solana-based wallet that hit $1.2 billion in valuation in January, said hours after the hack that it “does not believe this is a Phantom-specific issue.”

The wallet developer later said it “has reason to believe that the reported exploits are due to complications related to importing accounts to and from Slope Finance. We are still actively working to identify whether there may have been other vulnerabilities that contributed to this incident.”

Slope added that it is “actively working to sort out the issue as rapidly as possible and rectify best we can”, while non-fungible token (NFT) marketplace Magic Eden called on users to revoke permissions for any suspicious links in their Phantom wallets.

The cause of the attack remains unclear, but industry leaders including Emin Gün Sirer, founder of another popular blockchain Avalanche, pointed out that the transactions were properly signed, which means the vulnerability could be a “supply chain attack” that manages to steal users’ private keys. @0xfoobar added that “it’s likely something has caused widespread private key compromise”, and warned that revoking wallet approvals will probably not help.

Solana spokesperson Chris Kraeuter declined to answer our questions but referred us to Solana’s Status Twitter account, which states that the issue does not appear to be a bug in Solana’s software “but in software used by several software wallets popular among users of the network.” The company added that its engineers “are currently working with multiple security researchers and ecosystem teams to identify the root cause of the exploit, which is unknown at this time.”

The Solana attack comes just hours after malicious actors abused a “chaotic” security exploit to steal almost $200 million in digital assets from cross-chain messaging protocol Nomad. The “free-for-all” attack, which saw more than 41 addresses drain $152 million — 80% of the stolen funds — was made possible by a recent update to one of Nomad’s smart contracts that made it easy for users to spoof transactions.

[obsidian]

He doesn't need to sell, nor should any Bitcoiner. No #1 principle - Never, ever, let go of your BTC. Hodl, stack, and by all means borrow against it for declining fiat if you need some cash. But never sell it. Same principle those who have built successful property empires - you borrow, build, hold the underlying assets and leverage to get more. But you never sell the crown jewel's.

At one point, Michael Saylor will be the single point of failure or volatility of Bitcoin.

[obsidian]

That is pretty cool. Curious, why did you mine ETH and not BTC?

Were the rigs loud?

Why pay tax? How would anyone know that you mined ETH? (Or that you sold it, unless you sold it on a KYC regulated exchange)?

I started mining in 2017. By then, BTC could only be mined with ASIC equipment. These devices are single-purpose devices that can only mine BTC and nothing else. Newer models constantly make the devices obsolete, so you would never make back your initial investment in the ASIC device, which would become a paperweight.

Ethereum in 2017 was still ASIC resistant and you needed to use GPUs to mine it. That appealed to me. I could use the GPUs in any computer, they could do 3D rendering, play video games or videos, run the OS GUI, etc. So they would never become paperweights. My rigs were modular with 4 power supplies per rig, a motherboard, SSD drive, memory, etc. Basically, everything that a normal computer had in it. I never sold my equipment because I get attached to my stuff. The price of the GPUs has crashed, but the power supplies held their value. I might just hold on to everything indefinitely for shits and giggles. I have 44 GPUs. Two or three failed which I replaced via RMA. They are now out of warranty. One or two will have to be fixed - I need to tear them apart. I can still use those GPUs for 3D renderings.

Some people rented their GPUs to NiceHash. I did that for a few days. You had to install the NiceHash miner and then it would test your GPUs for about an hour or more and then other miners would buy hashpower on NiceHash and your rigs would be thrown into a pool with others. NiceHash paid out in BTC directly. NiceHash asked you if you wanted the most profitable crypto to mine, which was Ethereum at the time. So people on NiceHash were mining Ethereum but getting paid in BTC. I preferred to mine Ethereum directly with dedicated ETH miners - and manage all my rigs.

Early in 2018 I made the mistake of getting on an ETH pool that included massive mining farms (10,000+ GPUs). I was stuck in the pool for a few weeks and could never get to the top of the list to receive my ETH payout. I had to buy hash power on NiceHash with BTC which I used to point to my miner address and within a few hours I got to the top and received a 3.21 ETH payout. After that I immediately switched my rigs to a pool that guaranteed regular payouts. I remained in that pool and others for a few years. The leftover BTC on NiceHash was sent back to Coinbase where I sold it - lmao!

The rigs were not too loud -  a constant hum because of all the fans running - but we got used to it. They were spaced throughout the house. The heat was amazing in the winter - much better than central air. It was a constant heat that penetrated throughout the house. On cold days it was awesome!

[Theoak*]

Saylor can borrow because he has business income which he can use to pay off the interest accumulated by his loans, along with the actual loan itself.

What if someone is retired or does not want to work again ever, and they have 100 Bitcoin?

Here are some examples:

1. Bitcoin Price Appreciation
The core assumption is that Bitcoin's value will increase over time.
If the borrowed amount is small relative to the collateral (low loan-to-value ratio), the borrower can refinance the loan as Bitcoin appreciates, effectively rolling over the debt.
Example:

Borrow $50,000 against $250,000 worth of Bitcoin (20% LTV).
If Bitcoin doubles in value, the same collateral is worth $500,000, allowing for refinancing or easier repayment.
Risk: This hinges on consistent Bitcoin price growth, which is volatile and uncertain.

2. Partial Bitcoin Liquidation
If appreciation occurs, a portion of the Bitcoin can be sold to repay the loan.
While this violates the "never sell" principle, it minimizes the amount of Bitcoin sold compared to selling upfront for cash.
Example:

Borrow $50,000 against $250,000 worth of Bitcoin.
If Bitcoin appreciates by 50%, sell $25,000 worth of Bitcoin to repay half the loan, retaining most of the asset.

So a BTC holder who does not want to work and does not own a business or have business income will have to sell BTC to pay for living expense, food, entertainment, etc. They can take out loans, but still have to pay back the loans. So their BTC holdings will decrease over time.

Suppose someone has 10,000 ETH. If they stake it all they might earn around 3.5-4% APY. Not with Coinbase though because their rates have fallen.

They would earn 351.308 ETH per year, which, at $3,000, would give them a million-dollar income without touching the ETH principle. They can't do that with Bitcoin. It works for Saylor because he has business income.

Purchased borrowing against  btc

[gib]

Purchased borrowing against  btc

Well done!

[gib]

The rigs were not too loud -  a constant hum because of all the fans running - but we got used to it. They were spaced throughout the house. The heat was amazing in the winter - much better than central air. It was a constant heat that penetrated throughout the house. On cold days it was awesome!

Very cool. And yes noted on the heating! There are now some mining/heaters you can buy (as you probably know) - not sure if more of a gimmick - but I do believe in the future we will see portable plug+play devices that those with stranded energy as as solar (or a need for heating) could use.

Curious (and I vaguely recall asking before), but why would you worry about paying capital gains on the ETH mined? Presumably no one knows the identity who who mined these "virgin ETH", and so no one should know of any "gain" you make, unless you happen to decide to exchange them on KYC compliant exchange? (Or are you just extremely law-abiding?)

[a_pupil]

Purchased borrowing against  btc

You'd only impress us getbiggers if it was a Bugatti or a private jet.

[Theoak*]

You'd only impress us getbiggers if it was a Bugatti or a private jet.

Prefer my muscle cars.

[gib]

Prefer my muscle cars.

NICE!

[SouJerz]

Gib what are your personal goals with MSTR hodl? Have an exit price?

[jude2]

Prefer my muscle cars.

I want that.

[gib]

Gib what are your personal goals with MSTR hodl? Have an exit price?

My MSTR is now up over 1100%. Amazing huh? I don't think I've ever had a stock do a 10x.

So, what am I doing in terms of taking gains? Well (not saying others should do it), but basically I also bought (some time later when it became available) a chunk of IBIT (about the same value of my MSTR). So lets say, as an example, I had 100K MSTR, 100K IBIT. I try to keep the amounts balanced - so if MSTR is now 120K, and IBIT is 110K, I sell 5K MSTR and buy 5K IBIT to make it 115K each. I have been doing that all the way up to MSTR being up 1100%, so that now I am still balanced with a 50/50 holding. (IBIT is up around 65% since I started doing this). I am happy to do this as I view MSTR as having more vol on the upside and the downside. (And I have also been putting small MSTR sales gains into Berkshire Hathaway (which I have held for many years and continue to slowly accumulate).

[gib]

Its so wild - so today, MSTR is up around 1200% from my buy on the US markets today. So, I sold a little more off, and again bought more IBIT and more Berkshire Hathaway. Of course purely on past performance I would have been way up just continuing to hodl MSTR, but I don't fully understand their financials, and so I do continue to extract value through small sales...

[jude2]

Its so wild - so today, MSTR is up around 1200% from my buy on the US markets today. So, I sold a little more off, and again bought more IBIT and more Berkshire Hathaway. Of course purely on past performance I would have been way up just continuing to hodl MSTR, but I don't fully understand their financials, and so I do continue to extract value through small sales...

Well done

[gib]

$93,939.39