Author Topic: Bitcoins - about to hit $5,000 per coin today! (Read 773463 times)

Mayday · « **Reply #4451 on:** January 22, 2021, 01:38:13 PM »

Quote from: Bindare_Dundat on January 22, 2021, 12:43:37 PM

But this hasn't occurred this last BTC drop? ETh remained relatively stable compared to BTC, did it not? Arent prices volatile, not stable?

The ratio unwinds on a pullback and is not stable. I was looking at this very thing during the pullback the other day because I needed to understand whether falls on ETH were faster than a BTC. A 10%+ reduction of ratio during this last slide followed by a return to the previous ratio means in a slide ETH falls faster.

When we see BTC tap 21k and even lower on the downward overrun, you will see ETH get utterly wrecked for the duration of that decline and drop to a 0.028 or lower ratio. This will be in the ‘minutes of the bottom’ and then a window of hours. After that it will been bounce up to a close and begin it’s upward ratio run.

loco · « **Reply #4452 on:** January 22, 2021, 02:45:20 PM »

Good read:

The Bit Short: Inside Crypto’s Doomsday Machine

Jan 14, 2021

https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

Bindare_Dundat · « **Reply #4453 on:** January 22, 2021, 03:43:49 PM »

Quote from: loco on January 22, 2021, 02:45:20 PM

Good read:

The Bit Short: Inside Crypto’s Doomsday Machine

Jan 14, 2021

https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

Ok.....

Mayday · « **Reply #4454 on:** January 22, 2021, 10:48:17 PM »

Quote from: loco on January 22, 2021, 02:45:20 PM

Good read:

The Bit Short: Inside Crypto’s Doomsday Machine

Jan 14, 2021

https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

It’s for tax evasion.

Tax is applied when a purchase and sale is completed. A sale is classed as an exit from the purchase/asset hold.

If you buy ETH using tether or BTC and then you sell ETH into tether or BTC you are completing the investment transaction and tax is applied in local currency.

The reason people use tether is to try and keep their buy and sell transactions private from the banking audit systems. Legit exchanges report your transactions to the govt anyway so you need to play by the rules or get fined or sent to jail.

If you choose an exchange that doesn’t report transactions and doesn’t accept bank account inflows and outflows then you are subject to the exchange being frozen. That’s a risk you accept.

I wonder if the guy who wrote the article declared his profits? Or if he is whinging about the risk of a system whilst taking advantage himself?

I see loads of people online crowing how it’s awesome Bitcoin is becoming bigger and in the next breath whinging they can’t evade paying tax on profits.....

Griffith · « **Reply #4455 on:** January 22, 2021, 11:06:49 PM »

Quote from: loco on January 22, 2021, 02:45:20 PM

Good read:

The Bit Short: Inside Crypto’s Doomsday Machine

Jan 14, 2021

https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

On January 8th, I saw this post on Hacker News about Tether manipulating the price of Bitcoin. That shook me: I’d assumed Tether had been purged from the crypto markets, yet apparently it was still around. But how much Tether could there really be in the crypto markets? Surely not that much.

Still, I took a look. The answer, I was surprised to see, was a lot:

The upshot: over two-thirds of all Bitcoin — $10 billion worth of it — that was bought in the previous 24 hours, was being purchased with Tethers.

Practically all the crypto sold on these three exchanges was being bought with Tethers. None at all was being bought with USD.

Bitcoin was clearly correlated with Tether; Tether was clearly being issued at a frantic rate; and that issuance had a high probability of being backed by nothing at all.

It seemed I’d been wrong to dismiss Tether. Tether wasn’t just in the crypto markets — Tether was the crypto markets.

From January 2020 to September 2020, the amount of all foreign currencies held by all the domestic banks in the Bahamas increases by only $600 million — going from $4.7B to $5.3B. (The table is in Bahamian dollars, but the Bahamian dollar is pegged to the US dollar, so 1 BSD = 1 USD.)

But during the same period, total issued Tethers increased by almost $5.4 billion — going from $4.6B to $10B!

The implication was shocking: there weren’t nearly enough dollars in all the domestic banks in the Bahamas to back the Tethers that were floating around in the crypto market.

So this was crypto’s big short: Tether Ltd. was short of US dollars — to the tune of about $25 billion.

- - - - -

That's a summary of his key points.

He's basically arguing that Tether is issuing out tokens which aren't backed by USD (since they do not have anywhere near the funds or assets to back these amounts) but are still used to buy cryptocurrencies.

This is also the argument Roubini made against Tether and Bitcoin, that it's being manipulated, due to use of unbacked Tether tokens.

Mayday · « **Reply #4456 on:** January 22, 2021, 11:15:45 PM »

Cheers for the summary Griff.

It really should shed some light for people that tax evasion is massive in crypto.

Still, at some point you will want to exit in local currency and if you deal with enough money, your account will be frozen and investigated.

A lot of early holders worth millions are pissed to discover them buying 10M of ETH using BTC has triggered a 5M tax bill.....

gib · « **Reply #4457 on:** January 22, 2021, 11:25:09 PM »

Quote from: Mayday on January 22, 2021, 11:15:45 PM

Cheers for the summary Griff.

It really should shed some light for people that tax evasion is massive in crypto.

Still, at some point you will want to exit in local currency and if you deal with enough money, your account will be frozen and investigated.

A lot of early holders worth millions are pissed to discover them buying 10M of ETH using BTC has triggered a 5M tax bill.....

Depends on the country. But yes, in most countries, if you are wanting to deposit a large amount of money into a bank, the banks will be required to satisfy themselves as to the legitimacy of the source of the money. Having said that, I know at least 4 people who have "cashed in" over 1m USD in BTC over short periods of time. They are all accredited HNWs with a offshore bank based in Hong Kong. They do need to do an annual survey that asks them about the source of their wealth etc, but for them its all been OK. From the HK bank they can send to any account they wish. Also, in HK as an off shore bank, no need to pay any income taxes or capital gains tax.

Mayday · « **Reply #4458 on:** January 23, 2021, 03:30:02 AM »

If it’s offshore and you keep it offshore at worst you risk a freezing of funds.

If you move offshore to onshore you risk freezing of funds, assets, fines and jail.

It’s almost laughable how easy it is to ping someone. The only sure way is to be out of the system and keep out. This means paying people using crypto.

The second you enter the system you are visible. People think nobody looked and so they keep doing it. Eventually they get a knock and face jail time because it wasn’t a one off but several instances and larger amounts.

Everybody always gets away with it until they don’t get away with it.

Bindare_Dundat · « **Reply #4459 on:** January 23, 2021, 03:33:48 AM »

Just pay the taxes. Were all going to be billionaires anyway, hiw much money did you need?

Griffith · « **Reply #4460 on:** January 23, 2021, 08:10:54 AM »

For BTC, do you guys believe we could see a further drop, or that it has consolidated at about 30-32k for now?

Army of One · « **Reply #4461 on:** January 23, 2021, 08:16:53 AM »

Quote from: Griffith on January 23, 2021, 08:10:54 AM

For BTC, do you guys believe we could see a further drop, or that it has consolidated at about 30-32k for now?

Nobody knows.Some like me feel 28 was as low as will go, others think 21.This is repeated everywhere, nobody knows in situations like this, where the Technical Analysis (charts) say its going lower, but the unusual events of the time, covid, mass rush to assets out of fiat etc could invalidate that.Its an unusual time in bitcoins history where the Whales aka the early buyers/miners who held the vast majority of the coins, are trying to dump but every dump is now getting bought up by the now entering Institutions who have far more money and resources.Before when the big holders decided to dump their coins to buy back lower, it was only weak handed retail public they were dumping on who didnt have the money or resolve to buy the dumps without the price cratering.

Humble Narcissist · « **Reply #4462 on:** January 23, 2021, 08:35:16 AM »

Quote from: Bindare_Dundat on January 23, 2021, 03:33:48 AM

Just pay the taxes. Were all going to be billionaires anyway, hiw much money did you need?

Ha, ha, sure you are.

Griffith · « **Reply #4463 on:** January 23, 2021, 12:08:39 PM »

https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-prepares-for-a-massive-breakout-ahead-of-cmes-eth-futures-launch-202101210549

Ethereum price prepares for a massive breakout ahead of CME's ETH futures launch

The crypto community awaits the launch of CME Ether futures on February 8.
The derivatives are anticipated to be a game-changer for Ethereum amid the new record high. Technicals and on-chain metrics suggest that Ethereum is poised to rally to a new all-time high of around $1,700.

According to David Grider, an analyst at Fundstrat Global Advisors, Ethereum can hit $10,500 by the end of 2021. The medium-term technical outlook points to highs of $3,000.

Theoak* · « **Reply #4464 on:** January 23, 2021, 12:47:57 PM »

Quote from: Bindare_Dundat on January 22, 2021, 01:01:34 PM

yeah, I dont understand.

bitcoin is a protocol for money in the same way as the internet is a protocol for information. do we have 7500 different internets? do we have "potentially disruptive development in the alternative internet space"? why not? the innovation in the webspace is happening within the network. innovation and disruptive development can and will happen only within the bitcoin protocol.

before we move on, we all need to be on the same network, the same track, the same language.

we are trying to get a unified measurement implemented globally. a measurement for value. imagine the engineers of the world came up with 7500 different ways of measuring length. confusion much, eh? no engineering possible, you know?!

Theoak* · « **Reply #4465 on:** January 23, 2021, 12:51:13 PM »

Quote from: Griffith on January 22, 2021, 07:36:56 AM

https://kryptomoney.com/ethereum-2-0-set-to-cause-halving-the-aftermath-of-ethereums-proof-of-stake/

Ethereum 2.0 Set to Cause “Halving”

Eth 2.0 issuance is expected to be somewhere between 100,000 and 2 million a year, with the most likely scenario being that it will be much less than 2 million.

ETH Supply to Be Halved- presently, Ethereum has about 4.7 million ETH in issuance yearly, with ETH 2.0, ETH supply will range between 100,000 and 2 million annually, apparently less than 2 million.

Halving Will Be Accompanied by “Burning”- following every significant increase in transaction volumes, the total ETH in circulating supply will be reduced due to “burning”.

Explaining what was meant by “burning”, Buterin said that the initial transaction fees charged by the protocol will be halved, the first part goes to the miner as a ‘reward’, while the other part just gets burnt.

New development and innovation will be added to the existing Bitcoin network backbone as 2nd-layer add-ons (LN is one such example and there are, and will be, others). Bitcoin is currently a huge decentralized network, the size of which the world has never seen before. It is by far the fastest computational entity currently in existence on earth. This achievement is not easy to replicate. Apart from its vast size, it possesses features no other network of its kind possesses. Bitcoin is decentralized, trustless, immutable, borderless, scalable, super-hardened, super-robust, deflationary, scarce, not owned by any specific entity. It's all of the above and more. All at the same time. These are not blockchain properties, they are Bitcoin properties.

Just as new, innovative internet technologies are added on top of the tried, tested and robust TCP/IP layer, so will new, innovative technologies be added on top of the Bitcoin network backbone. There's no need to reinvent the wheel when the wheel is the optimal strategy. There are 100s of car brands, but their products all use wheels, because anything else is sub-optimal. Bitcoin is the "wheel" of the digital monetary revolution, and it will be used for decades to come. We, as Bitcoin HoDLers, are now tapping on the fundamental building block of a monetary instrument that will shake the foundations of the world's financial and wealth infrastructure. The avalanche has started, it's getting bigger, and it's unstoppable.

If anyone thinks an altcoin can easily replace all of the above, he is deluded. It's just a matter of time. You can either understand the tech, realise its potential and embrace it, or wait until you are forced to do so. It's up to you.

Mayday · « **Reply #4466 on:** January 23, 2021, 01:03:32 PM »

Quote from: Griffith on January 23, 2021, 08:10:54 AM

For BTC, do you guys believe we could see a further drop, or that it has consolidated at about 30-32k for now?

Army will be correct that it will tap 28k.

I am saying ballpark 21k, 14 day timeframe. That will either be a wick or a close.

Mayday · « **Reply #4467 on:** January 23, 2021, 01:17:41 PM »

Quote from: Griffith on January 23, 2021, 12:08:39 PM

The crypto community awaits the launch of CME Ether futures on February 8.
The derivatives are anticipated to be a game-changer for Ethereum amid the new record high. Technicals and on-chain metrics suggest that Ethereum is poised to rally to a new all-time high of around $1,700.

According to David Grider, an analyst at Fundstrat Global Advisors, Ethereum can hit $10,500 by the end of 2021. The medium-term technical outlook points to highs of $3,000.

The week CME launched futures for Bitcoin they shorted it and it crashed.......

Just sayin.....

To put that guy’s forecast into perspective:

Grider’s forecast for BTC end 2021 is 40k which might be ok (could be a tad high).

ETH @ 10.5k means a ratio of 0.26 vs today’s 0.038. A ratio of 0.15 would make ETH the same size as BTC. A ratio of 0.26 means he thinks ETH will be the overwhelming market leader by year end and BTC falling massively behind.

I don’t have a prob believing in a 40k year end price. But ETH to dwarf BTC in 11 months time? I think we might see a permanent ratio increase but that might be 0.04 by year end not 0.26.....

His forecast would essentially mean square, microstrategy and grayscale all being billion dollar purchases of ETH instead of BTC.......

SOMEPARTS · « **Reply #4468 on:** January 23, 2021, 01:41:21 PM »

This last couple pages showing the prospects for manipulation and tax issues...

Answer from the crypto cult "yeah, but..."

Theoak* · « **Reply #4469 on:** January 23, 2021, 02:33:47 PM »

Quote from: SOMEPARTS on January 23, 2021, 01:41:21 PM

This last couple pages showing the prospects for manipulation and tax issues...

Answer from the crypto cult "yeah, but..."

Bitcoin is the first global 24/7 market that everyone and their grandma can participate in without permission. almost all bitcoiners are able to sell all or at least some of their stack with a stroke of a key. In contrast to almost all other financial products, where brokers, opening hours and other reasons create a friction that does not allow anyone to play nervously around with live changing amounts of money.
This makes bitcoin, this unique global 24/7 market, structurally susceptible to media campaigns, FUD campaigns, online marketing spin doctors. (Manipulation)
As long as the mindset of "buy&sell" smart, of "it can go to zero, so always be aware and have your sell trigger ready and alert" persists, FUD induced selling will be a thing.

There are CEO's of IT related companies who panic sell their btc stash at the local bottom because they hear "double spend OMG!!1!!!"

Try inserting FUD about van Goghs paintings and see how many art collectors will panic sell their van Goghs. not a single one. tell weak hand bitcoiners that china will use the bitcoin kill switch tomorrow and you will have some that are happy to panic sell their entire stash within a few minutes..
This is also one of the reasons for the high volatility. Over time this will correct itself.

Matt · « **Reply #4470 on:** January 23, 2021, 04:43:24 PM »

Quote from: thegamechanger on June 18, 2015, 12:43:20 PM

sounds risky, ill invest my money in an old hardcore cellar gym rather.

This aged well.

SOMEPARTS · « **Reply #4471 on:** January 23, 2021, 05:32:07 PM »

Quote from: Theoak* on January 23, 2021, 02:33:47 PM

Bitcoin is the first global 24/7 market that everyone and their grandma can participate in without permission. almost all bitcoiners are able to sell all or at least some of their stack with a stroke of a key. In contrast to almost all other financial products, where brokers, opening hours and other reasons create a friction that does not allow anyone to play nervously around with live changing amounts of money.
This makes bitcoin, this unique global 24/7 market, structurally susceptible to media campaigns, FUD campaigns, online marketing spin doctors. (Manipulation)
As long as the mindset of "buy&sell" smart, of "it can go to zero, so always be aware and have your sell trigger ready and alert" persists, FUD induced selling will be a thing.

There are CEO's of IT related companies who panic sell their btc stash at the local bottom because they hear "double spend OMG!!1!!!"

Try inserting FUD about van Goghs paintings and see how many art collectors will panic sell their van Goghs. not a single one. tell weak hand bitcoiners that china will use the bitcoin kill switch tomorrow and you will have some that are happy to panic sell their entire stash within a few minutes..
This is also one of the reasons for the high volatility. Over time this will correct itself.

Cliff notes:

"yeah but..."

Marty Champions · « **Reply #4472 on:** January 23, 2021, 05:37:37 PM »

You cant by shit with crypto dumbasses

Bindare_Dundat · « **Reply #4473 on:** January 23, 2021, 05:38:55 PM »

Quote from: Marty Champions on January 23, 2021, 05:37:37 PM

You cant by shit with crypto dumbasses

Lol.ok.

Over 100,000 merchants worldwide accept bitcoin. Notable ones include Microsoft and Expedia, as well as the online electronics retailer Newegg. ... You can use bitcoin to buy a gift card and then shop at those retailers or another one of the 200-some that they work with, including giants like Nike, Target and Starbucks.

Marty Champions · « **Reply #4474 on:** January 23, 2021, 05:47:23 PM »

Quote from: Bindare_Dundat on January 23, 2021, 05:38:55 PM

Lol.ok.

Over 100,000 merchants worldwide accept bitcoin. Notable ones include Microsoft and Expedia, as well as the online electronics retailer Newegg. ... You can use bitcoin to buy a gift card and then shop at those retailers or another one of the 200-some that they work with, including giants like Nike, Target and Starbucks.

well its not encrypted if u do buisness with corporations , what a lie