Bitcoin

psaboy said:
I know very little about Bitcoin and other crypto. How do you mine Bitcoin?
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With little people.

giphy.webp
 
HammerDown said:
“the Pentagon can stop Bitcoin in a second” - @Wild Turkey (who also said it’s not currency and you can’t use it to buy anything)

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The Pentagon LOL!

You dug for that one.

IRS - yes
SEC - yes
DOJ - yes
DOL - yes

DOD - No, in fact they are probably studying how to exploit it and fund rebel groups with it.
 
Swurv said:
then why haven't they?
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Regulation is coming and it is going to center around reporting transactions and filings that are going to be associated with Bitcoin and crypto and there are going to be big penalties associated with not complying.

The United States Government isn't going to allow an unregulated "currency" to undermine the US dollar. They've got a ton of investment in the dollar and even more political/economical capital worldwide with it. They are going to make Bitcoin users jump through hoops to use it and if you don't think so then you are naive.

Congress can, in fact, ban all crypto if they wanted to and there is no constitutional protection so it is up to them if they want to do it. If you think they will ever let it get to the size where it is an actual threat to the USD then you're nuts.
 
Wild Turkey said:
Regulation is coming and it is going to center around reporting transactions and filings that are going to be associated with Bitcoin and crypto and there are going to be big penalties associated with not complying.

The United States Government isn't going to allow an unregulated "currency" to undermine the US dollar. They've got a ton of investment in the dollar and even more political/economical capital worldwide with it. They are going to make Bitcoin users jump through hoops to use it and if you don't think so then you are naive.

Congress can, in fact, ban all crypto if they wanted to and there is no constitutional protection so it is up to them if they want to do it. If you think they will ever let it get to the size where it is an actual threat to the USD then you're nuts.
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I believe this to be true. I don’t believe they will ban Bitcoin. I do believe they will regulate it. I also believe that regulation may give legitimacy to Bitcoin which will help it. I don’t believe regulation will be the end of Bitcoin.
 
dbldwn711 said:
I believe this to be true. I don’t believe they will ban Bitcoin. I do believe they will regulate it. I also believe that regulation may give legitimacy to Bitcoin which will help it. I don’t believe regulation will be the end of Bitcoin.
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What's going to happen is they are going to strip the advantages of using Bitcoin (except that it's free if you mine but if you do mine then it will be a taxable event once you obtain it), they are going to add 1099 and reporting regulation to it and they are going to tax it more freely. For example, if you mine then you will have to claim it on your tax return and pay dollars in tax, after you pay the tax if the value drops you will eat that and if it increases and you trade it then you will pay tax on that.

There is no doubt there is a place in the world for Bitcoin, especially in developing countries that have no stability in their currency but in the US they are eventually going to make it as tough as they can to use it. They also are going to put additional scrutiny on it to attempt to keep it from being used by criminals and terrorists.

For the average person, it is going to be too big of a pain in the ass to deal with it and they will just use cash. The guys that are using it as a criminal enterprise are going to find it more and more difficult to convert to usable cash without notice. They simply are NOT going to allow this to undermine the dollar and come even close to replacing it.

Let's not even start on countries that have banned it already like China.
 
Wild Turkey said:
What's going to happen is they are going to strip the advantages of using Bitcoin (except that it's free if you mine but if you do mine then it will be a taxable event once you obtain it), they are going to add 1099 and reporting regulation to it and they are going to tax it more freely. For example, if you mine then you will have to claim it on your tax return and pay dollars in tax, after you pay the tax if the value drops you will eat that and if it increases and you trade it then you will pay tax on that.

There is no doubt there is a place in the world for Bitcoin, especially in developing countries that have no stability in their currency but in the US they are eventually going to make it as tough as they can to use it. They also are going to put additional scrutiny on it to attempt to keep it from being used by criminals and terrorists.

For the average person, it is going to be too big of a pain in the ass to deal with it and they will just use cash. The guys that are using it as a criminal enterprise are going to find it more and more difficult to convert to usable cash without notice. They simply are NOT going to allow this to undermine the dollar and come even close to replacing it.

Let's not even start on countries that have banned it already like China.
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I don’t disagree with a lot of what you are saying. I’m not sure that the world will ever have one single currency. I could certainly see Bitcoin getting to a place where it’s recognized as currency accepted worldwide however. In fact, isn’t it approaching that now?
 
dbldwn711 said:
I don’t disagree with a lot of what you are saying. I’m not sure that the world will ever have one single currency. I could certainly see Bitcoin getting to a place where it’s recognized as currency accepted worldwide however. In fact, isn’t it approaching that now?
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I'm sure there are people almost everywhere that will accept it but here is the deal:

1. How many do you know that are?
2. At this point for the most part aren't we really talking about a gimmick for techies?
3. The more widespread it gets the more attention it will get and the more regulation that will come down on it.

Look a lot of people used Venmo to hide legit cash payments from the IRS and now Venmo transactions have regulations associated with it. You aren't going to be able to sell crafts on the side for a side-hustle and not report the income on your tax return. The government is always slow to adjust to new technology and honestly, Bitcoin is even more problematic because it is literally a new type of currency so they are just now figuring out what it is and what to do with it. Make no mistake they are going to make it difficult because that is what they do if you do not work within their system and rules.
 
Wild Turkey said:
I'm sure there are people almost everywhere that will accept it but here is the deal:

1. How many do you know that are?
2. At this point for the most part aren't we really talking about a gimmick for techies?
3. The more widespread it gets the more attention it will get and the more regulation that will come down on it.

Look a lot of people used Venmo to hide legit cash payments from the IRS and now Venmo transactions have regulations associated with it. You aren't going to be able to sell crafts on the side for a side-hustle and not report the income on your tax return. The government is always slow to adjust to new technology and honestly, Bitcoin is even more problematic because it is literally a new type of currency so they are just now figuring out what it is and what to do with it. Make no mistake they are going to make it difficult because that is what they do if you do not work within their system and rules.
Click to expand...

There are very large hedge funds that have invested large sums of money in Bitcoin. While those companies may certainly be wrong I’m sure they don’t think they are otherwise they wouldn’t have invested in it.

Investment in Bitcoin is still VERY small when you compare it to investment in US stocks and US bond markets. I don’t write it off simply bc lots if people aren’t using it. It’s still in its infancy. Time will tell where it ends up and how widespread it will be.
 
Wild Turkey said:
The Pentagon LOL!

You dug for that one.

IRS - yes
SEC - yes
DOJ - yes
DOL - yes

DOD - No, in fact they are probably studying how to exploit it and fund rebel groups with it.
Click to expand...

Wild Turkey said:
Regulation is coming and it is going to center around reporting transactions and filings that are going to be associated with Bitcoin and crypto and there are going to be big penalties associated with not complying.

The United States Government isn't going to allow an unregulated "currency" to undermine the US dollar. They've got a ton of investment in the dollar and even more political/economical capital worldwide with it. They are going to make Bitcoin users jump through hoops to use it and if you don't think so then you are naive.

Congress can, in fact, ban all crypto if they wanted to and there is no constitutional protection so it is up to them if they want to do it. If you think they will ever let it get to the size where it is an actual threat to the USD then you're nuts.
Click to expand...

Wild Turkey said:
What's going to happen is they are going to strip the advantages of using Bitcoin (except that it's free if you mine but if you do mine then it will be a taxable event once you obtain it), they are going to add 1099 and reporting regulation to it and they are going to tax it more freely. For example, if you mine then you will have to claim it on your tax return and pay dollars in tax, after you pay the tax if the value drops you will eat that and if it increases and you trade it then you will pay tax on that.

There is no doubt there is a place in the world for Bitcoin, especially in developing countries that have no stability in their currency but in the US they are eventually going to make it as tough as they can to use it. They also are going to put additional scrutiny on it to attempt to keep it from being used by criminals and terrorists.

For the average person, it is going to be too big of a pain in the ass to deal with it and they will just use cash. The guys that are using it as a criminal enterprise are going to find it more and more difficult to convert to usable cash without notice. They simply are NOT going to allow this to undermine the dollar and come even close to replacing it.

Let's not even start on countries that have banned it already like China.
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2011 on line 1. They want their FUD back.

You’re pontificating on a subject you obviously haven’t educated yourself on.
 
dbldwn711 said:
There are very large hedge funds that have invested large sums of money in Bitcoin. While those companies may certainly be wrong I’m sure they don’t think they are otherwise they wouldn’t have invested in it.
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Bitcoin is the best-performing asset of the decade. That said, I have zero interest in investing it. I’m not a trader. I own it.

 
Wild Turkey said:
I'm sure there are people almost everywhere that will accept it but here is the deal:

1. How many do you know that are?
2. At this point for the most part aren't we really talking about a gimmick for techies?
3. The more widespread it gets the more attention it will get and the more regulation that will come down on it.

Look a lot of people used Venmo to hide legit cash payments from the IRS and now Venmo transactions have regulations associated with it. You aren't going to be able to sell crafts on the side for a side-hustle and not report the income on your tax return. The government is always slow to adjust to new technology and honestly, Bitcoin is even more problematic because it is literally a new type of currency so they are just now figuring out what it is and what to do with it. Make no mistake they are going to make it difficult because that is what they do if you do not work within their system and rules.
Click to expand...
So Bitcoin is a currency now??? You said it wasn’t!!! :L
 
dbldwn711 said:
There are very large hedge funds that have invested large sums of money in Bitcoin. While those companies may certainly be wrong I’m sure they don’t think they are otherwise they wouldn’t have invested in it.

Investment in Bitcoin is still VERY small when you compare it to investment in US stocks and US bond markets. I don’t write it off simply bc lots if people aren’t using it. It’s still in its infancy. Time will tell where it ends up and how widespread it will be.
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Here is a clue if you are looking for one:

The Department of Labor has advised 401K funds not to put funds that invest in Crypto

www.cpajournal.com

Department of Labor Position on Cryptocurrency Investment in 401(k) Plans - The CPA Journal

Many 401(k) plan sponsors mistakenly believe that they have no liability for investment fund options made available to participants in core investment
www.cpajournal.com www.cpajournal.com

The DOL recently issued a release strongly cautioning plan fiduciaries to exercise extreme care before adding a cryptocurrency option to their 401(k) plan investment menus (see Compliance Assistance Release 2022-01, 401(k) Plan Investments in “Cryptocurrencies,” U.S. Department of Labor, Employee Benefits Security Administration, March 10, 2022). The DOL intends to investigate plans that offer participant-directed investments in cryptocurrencies, question plan fiduciaries as to their fund selection process, and take action to protect participants.

Now Hammer and his minions on this will come out screaming that Bitcoin is NOT Crypto but in this case, I think we can all agree the DOL is not making that differentiation. It's pretty strong language and I was surprised.
 
HammerDown said:
So Bitcoin is a currency now??? You said it wasn’t!!! :facepalm:
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Don't put words in my mouth.

It's not currency the way you are using it as it is a speculative investment (one that you are way too emotionally attached to BTW).
 
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