What's next for cryptocoin now that China lost control
gotoguy
Florida
So a couple of years ago, crypto was flying high, and Canada and the US started regulating it like a stock, meaning people would have to pay tax on profitable trades. That hit was a couple of 100 billion, and a 30-40% hit, and lasted about 6 months.
Then the big hit came and China wanted better control of its currency so they outlawed mining. That decreased the market 50%, more than a trillion, and lasted 4 - 6 months, but really less than that because in the middle they had a crack down. The response to the mining law was to invented cryptos that needed less mining and therefore were "mining proof".
So now China has outlawed owning crypto. That caused about a 1/2 trillion loss, but only a 20% of the total international investment, and lasted only a month or two (though we still haven't really recovered completely).
It seems to me that as long as people are willing to pay taxes on crypto to use it lawfully, and as long as there are countries with money that is hard to use internationally who need an alternative, as long as there are leaders that oppress their population so people need a way to leave, and as long as there are people that want to hide or launder money, crypto is here to stay. So that means forever!
Can anyone think of the next bad thing that could happen? What more can china do besides execute crypto users? Can Janet Yellen do anything more than she has? At this point isn't it too big to fail?
Then the big hit came and China wanted better control of its currency so they outlawed mining. That decreased the market 50%, more than a trillion, and lasted 4 - 6 months, but really less than that because in the middle they had a crack down. The response to the mining law was to invented cryptos that needed less mining and therefore were "mining proof".
So now China has outlawed owning crypto. That caused about a 1/2 trillion loss, but only a 20% of the total international investment, and lasted only a month or two (though we still haven't really recovered completely).
It seems to me that as long as people are willing to pay taxes on crypto to use it lawfully, and as long as there are countries with money that is hard to use internationally who need an alternative, as long as there are leaders that oppress their population so people need a way to leave, and as long as there are people that want to hide or launder money, crypto is here to stay. So that means forever!
Can anyone think of the next bad thing that could happen? What more can china do besides execute crypto users? Can Janet Yellen do anything more than she has? At this point isn't it too big to fail?
21 comments
I will play along and comment on your discussion.
This is the latest Ponzi scheme/Pyramid scam, this time involves made up “money”, like Monopoly money, but is “virtual money” that is claimed to be outside the control/manipulation of governments.
In the USA, because it has become a popular item; although cryptocurrency bills itself as a form of “money”, the Internal Review Service (IRS) considers it a financial asset or property.
That is why as with most investments the government will want to tax the “profits”.
What Bitcoin should be called is a “virtual” “bank note”, that instead of being printed is being coded in the virtual reality world of computer science. And should be regulated the same as a “bank note”.
Currency used to derive its value from the content of precious metal (gold standard), today's money is backed entirely by social agreement and faith in the “issuer”, in most cases a country’s government.
This scam like most others use greed to scam “investors” with the prospect of future wealth and promises of large returns on the “investment”
To answer your question:
Q: At this point isn't it too big to fail?
A: Nothing is too big to fail...
Im bullish on it big time and will enjoy watching the old rich with “Peter schiff” syndrome become the new poor. Just remember with crypto, if you can’t run a validation/node yourself, it’s just another bank
I agree with most of the posts, that like paper money, it has almost no worth unless people believe it is backed. Also you are correct that government backing means something, but some governments are less solid than Bitcoin right now, and more volatile. Afghanistan and Venezuela for example. Some countries do not let their currency leave borders (china) without permissions. SanchoRG pointed out the reasons some people want crypto and why he doesn't.
I guess aside from the fact that most of the group thinks it a poor investment and even a Ponzi scheme, is there anything besides additional taxes that Yellen can implement that would outlaw it? Additional taxes just help the deficit and make it less profitable.
At this point at least the top 10 cryptos are accepted and verified to the point that they can no longer be prosecuted as a Ponzi.
To me the most devestating development to one or more cryptos is the ability to
Back in the day my friend Mike was hired by MCI and got 2.8 million in stock options. At poker 2 years later he was raised $4.00, reached into his gym bag, pulled out a sheaf of papers and said I call with 55,000 shares of Mci, if you allow me: We didn't and he understood....
What the gov can't do it take it from me, or keep me from sending/receiving it to another wallet anywhere in the world, any time of the day, within minutes.
https://www.businessinsider.com/mint-1-t…
The technology is here to stay, so will the platforms remain. I’d pick ether, lite coin, and some btc if you need diversification. Other than that probably ni more than yiu can handle to lose(obviously).
Which cryptos are worthwhile? You can still get into Bitcoin, if you don't need immediate profit. The price in USD will go up, but I can't tell you whether that will be this month or two years from now, you have to have the ability to hold on - or just use it. Ethereum has some specialized use cases, and is hot right now, so maybe you can make some profit on it but it's not something you're going to be using to conduct commerce, i.e. pay for coffee. For actual commerce, Dash is actually best (dashpay.io) - you can spend it at 155k places in the US alone via the DashDirect app; however it's not great for day traders since people haven't caught on to it just yet and the price isn't "mooning". Dogecoin is fundamentally useless - it's the current "tulip" - nothing at all going for it besides two celebrities. Ideally you should look into the code and features of each coin; if you want my opinion, no other coins are even worth discussing.
Always remember the credo "Not your keys, not your coins". This means "custodial" wallets where some web site handles everything for you do not truly give you ownership. The provider might steal them, government might require them to be taken from you, they could get hacked. You need to have a hardware wallet (google it if you don't know) and secure your own computer so you don't get hacked (step 1 of which is never run Windows).
</lecture>
It’s about freedom.
It’s about getting the government off your back.
It’s about getting middlemen and third parties out of your transactions.
It’s about control, autonomy, empowerment.”
All these claims are just that, claims, that are undeniable false claims and misinformation.
All these types of claims are used to steal money and have always come from snake-oil salesmen, door-to-door hucksters, con-artists, TV shopping channels, paid “celebrities”, news agencies, crooked politicians, false prophets etc etc etc.
I'm mostly betting on BTC. BTC is a permission-less, trust-less system. I don't need anyone's permission to use it and I don't need to trust the parties involved to deliver. The current "trustees" of the financial system in the USA have squandered that trust to an extreme degree. There is little to no confidence in the administration, the SEC, the IRS, the CFTC, the DTCC/Citadel/Apex etc. Those are the true hucksters, crooked politicians, and snake-oil salesmen. Banks have been getting rich for decades from scams and money laundering. Physical dollars are used in crime 6x more than crypto.
https://tuscl.net/photo.php?id=8786
“Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”
~ Proverbs 13:11