Bitcoin is still early

[Panscan]

lol, bc you don’t see a difference “no one else does”

and liquidity drying up? literally no evidence.

Liquidity is for sure drying up. Volume diminishing, major exchanges blow up . Price is a facade of low liquidity. Market cap being accurate requires real liquidity and true, significant interest on both sides. Reality is any time someone dumps a significant amount of any kind of crypto (BTC included) price has a drastic swing due to this low liquidity and the effect on “market cap” is far greater than it would be in a real, liquid market.

Crypto market cap now is what 800b in total ? Real money involved likely less by at least 5-10x Still tons of net leverage involved both organic and via ponzi borrow schemes.

Don’t agree with point 4 being easy at all. Literally everyone is insolvent. Binance will soon be, ftx gone, crypto.com gone. Being able to easily access funds requires stable exchanges which do not exist outside of maybe coinbase. But there is nothing to say that coinbase can’t fall too.

[Panscan]

Blockfi insolvent. All of these Ponzi scams are insolvent, which is the total opposite of liquidity. The money is gone

[Brains428]

Front running trades, trading without stops, massive leverage collateralized by levered assets which may or may not have any collateral. Liquidity risk is very real when every time you look into these things, no one actually has the funds to cover a bank run.

As people have pointed out before- the ones with the guns get to decide what the money is- so while every developed economy has too much debt, they can actually conjure up the currency to make institutions whole if a similar collapse were to occur.(

[bovie]

Interesting idea here to me.
1. Just like a since banned member was always predicting and refused to provide details. I would be curious to actual results.
Beginning value
Additions and disposals
Ending Value

Basis paid and sales price for actual gains/losses
Ending balance: Basis and unrealized gains/losses.

2. It would seem that one might consider tax harvesting, even if it meant being out of the market for 31 days.
3. I assume wash sale rules apply.
4. My gut tells me a large number of crypto/BTC investors are going to swamp tax preparers and end up with tax loss carry forwards. What do you mean I lost $100k and can’t deduct it? Crypto/BTC had got to be a red flag to the IRS.
5. What documentation is provided to support a purchase or sale? A spreadsheet is not “proof”.
The IRS typically might request documentation.
Brokerage and bank statements are independent and typically suffice. What is available for an offline wallet or from the online places? If you can’t prove it, basis is zero or triggers a full audit.

short version, actually how profitable realized and unrealized and tax reporting,

I am not challenging you by any means. That is not how you roll. Curiosity and I respect any desire for privacy. Top level would be of interest.

There are no wash sale rules for BTC and crypto. Can repurchase identical “shares” immediately. Should literally never be holding a loss (in theory).

[jacoavlu]

Front running trades, trading without stops, massive leverage collateralized by levered assets which may or may not have any collateral. Liquidity risk is very real when every time you look into these things, no one actually has the funds to cover a bank run.

As people have pointed out before- the ones with the guns get to decide what the money is- so while every developed economy has too much debt, they can actually conjure up the currency to make institutions whole if a similar collapse were to occur.(

yes, fractional reserve eventually gets exposed in crypto land. Leverage eventually gets wrecked. There are those that are humble, and those that are about to be.

bailouts and money printing is just kicking the can down the road. Encourages capital misallocation and dilutes money supply. The concern is such action can’t go on forever.

[jacoavlu]

Blockfi insolvent. All of these Ponzi scams are insolvent, which is the total opposite of liquidity. The money is gone

trusted third parties are security holes. Counterparty risk is real.

self custody only

[jacoavlu]

Liquidity is for sure drying up. Volume diminishing, major exchanges blow up . Price is a facade of low liquidity. Market cap being accurate requires real liquidity and true, significant interest on both sides. Reality is any time someone dumps a significant amount of any kind of crypto (BTC included) price has a drastic swing due to this low liquidity and the effect on “market cap” is far greater than it would be in a real, liquid market.

Crypto market cap now is what 800b in total ? Real money involved likely less by at least 5-10x Still tons of net leverage involved both organic and via ponzi borrow schemes.

Don’t agree with point 4 being easy at all. Literally everyone is insolvent. Binance will soon be, ftx gone, crypto.com gone. Being able to easily access funds requires stable exchanges which do not exist outside of maybe coinbase. But there is nothing to say that coinbase can’t fall too.

everyone insolvent lol ok. Binance published their wallet addresses. You can check those address balances yourself with any blockchain explorer don’t even have to trust them

https://www.binance.com/en/blog/community/our-commitment-to-transparency-2895840147147652626

this of course says nothing of liabilities

[Brains428]

yes, fractional reserve eventually gets exposed in crypto land. Leverage eventually gets wrecked. There are those that are humble, and those that are about to be.

bailouts and money printing is just kicking the can down the road. Encourages capital misallocation and dilutes money supply. The concern is such action can’t go on forever.

Of course. Basically a core thesis of btc and sound money. But until btc is viewed as btc and not btc(insert currency denomination), and as long as the belief isn't held by the wider populous, then it really is just a unique piece of code.

[jacoavlu]

Interesting idea here to me.
1. Just like a since banned member was always predicting and refused to provide details. I would be curious to actual results.
Beginning value
Additions and disposals
Ending Value

Basis paid and sales price for actual gains/losses
Ending balance: Basis and unrealized gains/losses.

2. It would seem that one might consider tax harvesting, even if it meant being out of the market for 31 days.
3. I assume wash sale rules apply.
4. My gut tells me a large number of crypto/BTC investors are going to swamp tax preparers and end up with tax loss carry forwards. What do you mean I lost $100k and can’t deduct it? Crypto/BTC had got to be a red flag to the IRS.
5. What documentation is provided to support a purchase or sale? A spreadsheet is not “proof”.
The IRS typically might request documentation.
Brokerage and bank statements are independent and typically suffice. What is available for an offline wallet or from the online places? If you can’t prove it, basis is zero or triggers a full audit.

short version, actually how profitable realized and unrealized and tax reporting,

I am not challenging you by any means. That is not how you roll. Curiosity and I respect any desire for privacy. Top level would be of interest.

respectfully Tim, no I’m not posting those details. But yes I certainly know.

it’s kind of lol that you don’t think an exchange might produce statements. Or generate a 1099. Or that one couldn’t verify a transaction when the blockchain is a public ledger.

as bovie noted. The IRS has deemed bitcoin “property” with regards to reporting. Wash sale rules don’t apply to property. Though if one is tax loss harvesting they should probably be careful about their UTXO selection and be able to prove basis for those coins should the IRS come asking

Again notice I don’t make predictions or claims or whatever. I frankly thing price talk is uninteresting as I’ve said many times before including when price was moon.

I engage here bc Ive spent some time learning about it and actually using it. Ive run the software. Sending and receiving. Learning about secure storage. Running bitcoin miners. Talking to people actually doing stuff in the industry.

not just repeating some stuff I read on the internet. and so I try to talk facts, correct errors or misunderstanding. And thoughts about the future for bitcoin not in terms of price but what it could be, what it actually can do

Plus it’s just interesting. Feel bad for customers that lost money through FTX but it’s pretty lol to see all the big names getting embarrassed by the massive mistake they made thinking SBF was the next Warren Buffett

[jacoavlu]

Of course. Basically a core thesis of btc and sound money. But until btc is viewed as btc and not btc(insert currency denomination), and as long as the belief isn't held by the wider populous, then it really is just a unique piece of code.

yep. May never happen. But FTX type events help some understand. A whole lot easier now to tell people why self custody is important

[Panscan]

everyone insolvent lol ok. Binance published their wallet addresses. You can check those address balances yourself with any blockchain explorer don’t even have to trust them

https://www.binance.com/en/blog/community/our-commitment-to-transparency-2895840147147652626

this of course says nothing of liabilities

Without knowing the liabilities then this has no significance. If they were so solid, why not post those as well ? Stay safu , right? Transparency ? It’s for effect.

this has constantly cascaded up the chain into bigger and bigger players. I have no reason to think binance is any different.

[jacoavlu]

Without knowing the liabilities then this has no significance. If they were so solid, why not post those as well ? Stay safu , right? Transparency ? It’s for effect.

this has constantly cascaded up the chain into bigger and bigger players. I have no reason to think binance is any different.

at least you can see there’s some coins there. Better than FTX could do

no sane person should keep coins on an exchange anyway

[Panscan]

at least you can see there’s some coins there. Better than FTX could do

no sane person should keep coins on an exchange anyway

Agree . Appreciate you entertaining my cynicism!

[jacoavlu]

CEO of binance on twitter spaces right now

https://twitter.com/i/spaces/1OdJrznoWAyJX

[Tim]

jacoavlu ,
"respectfully Tim, no I’m not posting those details. But yes I certainly know."
Let me phrase it differently,
Would you consider percentages? This is simply curiousity.
NapoleanDynamite as well.
This is not intended as prying. Two investors in BTC that are informative and in for the long term.
No interest in "wealth" or how much exposure. More like my REIT's or Small caps are up or down xx% from the beginning.

I really do appreciate the knowledge you have shared.