Bitcoin/Cryptocurrencies – Digital Gold or Tulip Bulb?

(Alok Bhola) #64

Coinbase Ordered to Turn Over Identities of 14,355 Cryptocurrency Traders to the IRS

On Tuesday, a California federal court ordered the popular cryptocurrency exchange and wallet service Coinbase to turn over records on thousands of customers to the Internal Revenue Service.

The requested records include the name, birthdate, address, and account activity for any user who bought, sold, sent, or received more than $20,000 worth of Bitcoin in their accounts between 2013 and 2015.

US citizens are supposed to pay capital gains tax on cryptocurrency transactions and the IRS labels virtual currencies as property for federal tax purposes. As the court order shows, more than 10,000 people bought or sold more than $20,000 worth of cryptocurrency, but only “800 to 900 taxpayers a year have electronically filed returns with a property description related to bitcoin from 2013 through 2015.”

This “suggests that many Coinbase users may not be reporting their bitcoin gains,” the order reads.

(manivannan.g) #65

Wondering how did we miss this in this thread.

(SkyWalker) #66

If it stays under RBI, then it will be just like another denomination of INR.

(Anupam) #67

May be because Bitcoin doesn’t fall under scope of value investing. Its speculative but disruptive.

(Vivek) #68

Those who want to try the crypto market should definitely try it without worrying too much of bubble and all.
Invest only what you can loose or maybe 1-2% of your savings, risk is minimal with that kind of allocation and you wont be broke if there is a capital loss.

Simple way is if you want to invest say $3000 or 2 Lakhs, Just identify 5-10 coins and distribute equally.
Trades in Crypto provide Asymmetric gains any coin can go to 4000% gains in a matter of just days,

So rather than sitting in the sidelines and debating if its a bubble or not, my advice is to take part in disruptive technologies and if you gain its good and if you loose it isnt going to get you broke either.

(SkyWalker) #69

“Bitcoin is a method of transmitting money. A cheque is a way of transmitting money, too. Are cheques worth a whole lot of money just because they can transmit money?”- Warren Buffett

Not verified whether actual quote of Buffet, sharing from Twitter feed.

I agree with above point, if it is a store of value then what is the real value?

(Vivek) #70

Everyone is highly concentrated on Bitcoin in discussions, its just the first one and leader in Crypto currencies , there are ones like Etherium $450( can be considered as android platform in crypto world) , NEO $35( same as etherium for chinese market) Zencash $30(completely encrypted transactions from end to end) like these many are there, for investments leave out Bitcoin and consider the next ones. One latest addition is Powerledger $ 0.70 which is a startup from Australia who has now tied with Tech Mahindra in India, so many things are there which is actually doing stuffs and solving problems people are still debating on bitcoin alone.
Go to the official websites on each coin read what they are doing , see if you are convinced about the future and take decisions . There are many forums in the crypto world also like Valuepickr , so study and keep moving.

(Shaswat) #71

Bitcoin has no subjective value. It’s probably going to be bigger than Tulip mania. Good points mentioned in the article…

(Alok Bhola) #72

Gold company’s stock jumps 1300% after switching to bitcoin

A small Israeli gold company decided six weeks ago to refocus on blockchain and cryptocurrencies.

In the last month and a half the shares of NLH have leapt 1300% in Israeli New Shekels. According to the company’s first step is to acquire a Canadian bitcoin mining farm, and is in negotiations with BACKBONE Hosting Solutions to buy 75% of its shares in exchange for 75% of its own stock. says the announcement has made NLH the 10th most actively traded stock on the Tel Aviv Stock Exchange.

(Alok Bhola) #73

IOTA has risen 4 fold over the past 10 days ! (Usually if a stock rises this much in 5 years, it is considered a very high performer; A bank FD takes 20 years to give such returns).

It has risen 50% in just the last 24 hrs ! (If a stock rises this much in 1 year, it is considered very good return; A bank FD will take 6 years to give such returns).

It is now just a whisker away from entering the $10 Billion Cryptocurrency Club (currently having only 3 members).

Guys, tighten your seat belts :rocket:

(timedimpulse) #74

The arguments for Bitcoin’s pre-dominance in media coverage and discussions can be made through its first mover advantage and network effects. BTC/USD is the most common pair traded on exchanges. Most people who buy alts buy Bitcoin first and then convert/trade it for altcoins.
But is the predominance justified?

  1. Technology :
    Most altcoins are nascent and experimental technologies while Bitcoin has been in existence for 8 years. It has resisted hacking and spam attacks and remained relatively bug free throughout its existence. It is one of the few truly de-centralized cryptos out there, with the exception of Monero. One can also argue that in the years to come Bitcoin will do what Ethereum and other coins offer, using Layer 2 and Layer 3 sidechains further perpetuating its dominance.
  2. Valuation :
    Bitcoin has given good past returns. High price is a huge incentive for mining (which in turn is good for the network’s stability). Being truly de-centralized gives future optionality in the price if its used as a reserve currency in the future, or is used to back state-backed cryptos.

For a new comer it makes sense to buy into Bitcoin and not trade into altcoins. Price anchoring and unit bias are at play when looking at alternate cryptocurrencies. Buying a whole coin of Litecoin may be more gratifying than buying a decimal of Bitcoin but cheaper is no guarantee of better, just as we see in stocks.

(timedimpulse) #76

This has already been posted on this thread. Please check previous messages.

(Rohit) #77

May be I am asking very stupid question ? In case Bitcoin crashes severely , bubble bursts…than what will be the effect on stock markets , economies ? Is it gonna affect equity markets ? If yes , up to what extent ? Will markets also fall if bitcoin bubble bursts and crashes by 60-70% and how the crash will be correlated to stock markets and economies. Can any one please answer this query.

Thanks in Advance.

(Vivek) #78

There is no correlation with bitcoin movement to markets, If there was any such thing then markets would have gone up with BTC.

(Sachin) #79

What is outlook of Bitcoin future, expected to starts on Dec 18 in CME. Is it possible to Bitcoin price will be short by large whales ?

(Anupam) #80

Bitcoin smashes 15000 $ barrier !

Its like an avalanche, gaining speed, momentum & mass. While economists are busy in finding intrinsic value - if at all it exists, the price is rising like anything.

Whether it rises further or crashes by 90%, it would be a financial spectacle - never seen before.

I recollect from English textbook in school on Titanic. Great it was, greater was the sail & greatest was the sink

(SkyWalker) #81

Difficult to guess, current market value of available bitcoins is around 270B $. What will happen if all of a sudden 270B $ worth thing vanishes? I guess it will impact stock markets negatively and Gold will surge.

Two dangers with Crypto Currencies.

(Sagar Bhadury) #82

it was a the turn for lite coin after the bit coin spike. Lite coin is up more than 50% from last week of 95$…crazy ride…:stuck_out_tongue:

(Alok Bhola) #83

Is investing my savings in cryptocurrency a good idea?

(Alok Bhola) #84

Is Bitcoin more comparable to gold or currency?