Bitcoin is still early

[Nysoz]

Ric Edelman is a FA who at least sees it as an important part of a well diversified portfolio- even if it's only 1%.

Maybe it's time WCI has a crypto person on the podcast. Maybe someone with a macro background who can prove a use case (or disprove it). Or even back to back episodes on pros and cons. Either way, an asset class with an ever growing market cap should be addressed more formally than it was back in 2017 (I know he discussed it then).

The issue with finding someone to discuss BTC and crypto is finding someone objective about it. People seem to love it or hate it.

I like watching Dave Lee on investing. Has a YouTube channel and is calm regarding most discussions. He talks to some of the big Bitcoin proponents and has a polite back and forth. Some other person said he’s probably done the most reading/research into Bitcoin and not have a position.

https://m.youtube.com/watch?v=SA_80nusQns&t=4351s

[Lithium]

Ric Edelman is a FA who at least sees it as an important part of a well diversified portfolio- even if it's only 1%.

Maybe it's time WCI has a crypto person on the podcast. Maybe someone with a macro background who can prove a use case (or disprove it). Or even back to back episodes on pros and cons. Either way, an asset class with an ever growing market cap should be addressed more formally than it was back in 2017 (I know he discussed it then).

The issue with finding someone to discuss BTC and crypto is finding someone objective about it. People seem to love it or hate it.

I do enjoy most of the WCI podcasts but a spirited debate would be a nice change up.

I would like to learn more about BTC and crypto but I mostly get my education through books and podcasts. My library doesn't have The Bitcoin Standard. I guess I'll keep missing out.

[jacoavlu]

What about the other coins?

they’re called shitcoins

[CordMcNally]

they’re called shitcoins

I like the sound of that. Where do I buy?

[jacoavlu]

I do enjoy most of the WCI podcasts but a spirited debate would be a nice change up.

I would like to learn more about BTC and crypto but I mostly get my education through books and podcasts. My library doesn't have The Bitcoin Standard. I guess I'll keep missing out.

start with recent podcast with Preston Pysh and Robert Breedlove

or if you prefer spirited debate listen to Peter Schmidt v Erik Voorhees

[MillennialDoc]

This price increase is easy to explain. Money printer go BRRRRRR.(Government decides on more stimulus) BTC rips higher every time it does.

"Buy the dip, short the VIX, and [long] bitcoin." BRRRR BRRR BRRRRR

[TheQuietOne]

Maybe this is a dumb question, but how much of the stimulus money is actually going to Wall Street vs Main Street? If a large part of the money is going to Wall Street, does that count as money that will cause inflation? If Bitcoin is a hedge against inflation like digital gold, and the stimulus money actually doesn’t eventually cause inflation (maybe causing large stock bubbles/stock market inflation and housing market inflation instead), then will Bitcoin still be at these prices in the future?

Everyone was worried about inflation after the stimulus during Great Recession but that did not come to pass. Maybe the idea of stimulus leading to inflation will not come true this time either?

I remember a friend of mine in medical school bought Bitcoin almost at its inception. He was a believer in its potential and bought it more for an ideological reason. I read one of Breedlove’s discussion about Bitcoin and again, it was really an ideological argument (rise against the overlords type of thing). I can see how it’s attractive from that perspective. I’m just not sure about it in a functional/practical perspective.

[Brains428]

Different types of inflation- asset price vs CPI. We've had inflation the past 12 years, just not in the price of goods (this year is probably the exception for certain goods during the lockdown- a combination of the populace having more money, and large factory shutdowns domestically and internationally).

Just look at the price of education, homes, healthcare, and the stock market- those are all up.

[jacoavlu]

Different types of inflation- asset price vs CPI. We've had inflation the past 12 years, just not in the price of goods (this year is probably the exception for certain goods during the lockdown- a combination of the populace having more money, and large factory shutdowns domestically and internationally).

Just look at the price of education, homes, healthcare, and the stock market- those are all up.

Yep

gov prints money by buying bonds. Bond yields are driven down. Money flows to equities because yields are down. Stock market is propped up. Concern is it’s a house of cards.

Some argue this directly contributes to wealth inequality.

[Brains428]

And by some- any non-keynesian economist.

If you want to see gold and BTC go to the moon, just wait for Yellen to get sworn in and start pushing MMT buttons.

The build back better, build better back, back better build... whatever tag line... is another thing that is bringing out libertarians and the like to come up with these alternative solutions to central banks and fiat currency.

A couple people say that the reset will just be to pin currency to gold again. The BTC/crypto think it'll be a digital currency.

I still need to read Princes and the Yen. Apparently it would provide insight to today.

Anyway- something about Demark 9 indicators and a pull back. Still trying to figure that one out. https://demark.com/demark-indicators/

[Lithium]

Dumb question - how do you TLH BTC after the inevitable drop?

[Brains428]

https://www.irs.gov/pub/irs-pdf/p544.pdf

page 26- If you disposed of any virtual currency in 2019 that was held as a capital asset, see the Instructions for Schedule 1 (Form 1040 or 1040-SR). Use Form 8949 to figure your capital gain or loss and report it on Schedule D (Form 1040 or 1040-SR).

https://taxbit.com/blog/2019-10-09-how-to-report-crypto-losses/

[NapoleanDynamite]

Dumb question - how do you TLH BTC after the inevitable drop?

This is a good question (from the tax perspective), but the wrong question IMO. Brains428 already answered the IRS component.

But there are two reasons it is a "wrong question". 1. It assumes there will be an "inevitable drop." Of course there is volatility in anything so there will always be increases and drops. But these "drops" may be well after you have achieved a profitable status. If you were to buy 1 BTC today and it rises to 50K but then drops to 40K (a 20% drop), you would still have gains of 17K. This is not a loss from the IRS' perspective. 2. It assumes you would sell at a loss. When the market tanked in March, did you sell all of your position in VTSMX? Of course not. That is a ridiculous question. You held it and it inevitably went back up. So why would you sell the dip with a different part of your Asset allocation?

[jacoavlu]

Dumb question - how do you TLH BTC after the inevitable drop?

https://www.irs.gov/pub/irs-pdf/p544.pdf

page 26- If you disposed of any virtual currency in 2019 that was held as a capital asset, see the Instructions for Schedule 1 (Form 1040 or 1040-SR). Use Form 8949 to figure your capital gain or loss and report it on Schedule D (Form 1040 or 1040-SR).

https://taxbit.com/blog/2019-10-09-h...crypto-losses/

yeah I realize the question is tongue in cheek

but also this isn’t really tax loss harvesting. or, it’s only half way there

Reporting a loss for the deduction is one thing. But implied in tax loss harvesting is a maintenance of exposure which requires a tax loss harvesting partner. I am not aware of any great TLH partner for btc. GBTC I guess. Perhaps there are alternatives, others would know better than I

[Lithium]

This is a good question (from the tax perspective), but the wrong question IMO. Brains428 already answered the IRS component.

But there are two reasons it is a "wrong question". 1. It assumes there will be an "inevitable drop." Of course there is volatility in anything so there will always be increases and drops. But these "drops" may be well after you have achieved a profitable status. If you were to buy 1 BTC today and it rises to 50K but then drops to 40K (a 20% drop), you would still have gains of 17K. This is not a loss from the IRS' perspective. 2. It assumes you would sell at a loss. When the market tanked in March, did you sell all of your position in VTSMX? Of course not. That is a ridiculous question. You held it and it inevitably went back up. So why would you sell the dip with a different part of your Asset allocation?

Actually that is exactly what I would have done (sold VTSAX). I didn’t own that MF at the time but I sold most of my taxable holdings.

you exchange into a TLH partner for the rebound. That way you capture the losses and still stay in the market when it rises. That’s how tax loss harvesting works.