Bitcoin

33,369 posts 121 reps Joined Nov 2009
Tue, Jun 22, 2021 10:18 AM
posted by justincredible

You can. It's not a strategy I recommend, but it's VERY common and very easy. You will always find buyers at any price. According to the usgov, it's not a currency, but property, so you will pay capital gains if you sell.

Thanks.

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jun 22, 2021 2:18 PM

That dip into the $20s didn't last long enough. I had a list started of things I was going to start selling if it stayed down there for a while or went much lower today.

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jun 29, 2021 9:05 AM

We are living through a pretty historic period in bitcoin right now. All mining hash power in China has been turned off and the next difficulty adjustment (the network adjusting itself every 2000 blocks to keep a 10 minute block average) will be the largest in network history. Previous record was about 18% back in like 2011, this time will be 25% (which is apparently the max allowed in the code). Now all of those miners are being distributed throughout the world, with a large portion of them coming to the US (Texas is apparently bringing in a lot of them). This further decentralizes hashing power, which is good.

TL;DR: China had a lot of hashing power that was turned off. Blocks are taking longer than 10 minutes to find now, so the difficulty (basically the size of the random number the miners need to find) will be adjusted to get us closer to a 10 minute average.

Hopefully hardware prices fall low enough that I can get my hands on a miner or two.

iclfan2 Reppin' the 330/216/843
9,465 posts 85 reps Joined Nov 2009
Tue, Jun 29, 2021 9:22 AM

How hard is mining, like how smart do you have to be, how much would it cost to do it, etc.  Is the barrier to entry too high for the average person? And from a tax perspective, would you owe capital gains on the whole thing, or does the price when you mine it just become your cost basis? 

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jun 29, 2021 9:28 AM
posted by iclfan2

How hard is mining, like how smart do you have to be, how much would it cost to do it, etc.  Is the barrier to entry too high for the average person? And from a tax perspective, would you owe capital gains on the whole thing, or does the price when you mine it just become your cost basis? 

I’m sure with a decent technical background you could get up and running.

As far as taxes, I’m pretty sure it can all be done anonymously, especially with off-grid energy, meaning the gov has no idea that you’re earning the Bitcoin.

The issue has always been getting your hand on the hardware because there is a massive shortage of chips. I’m hoping this drives prices down and they become affordable again.


justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jun 29, 2021 9:52 AM

Another option:

https://compassmining.io/

They essentially buy and host the miners for you in a facility with access to cheap energy. You pay for the miner and a yearly hosting fee.

queencitybuckeye Senior Member
8,068 posts 115 reps Joined Nov 2009
justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Fri, Jul 2, 2021 12:14 PM

Brad Sherman is a massive POS. 

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Fri, Jul 2, 2021 12:26 PM

Brad Sherman: we should be a lot more like the CCP. 


justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Fri, Jul 2, 2021 1:12 PM

42 blocks away from the largest downward difficulty adjustment in Bitcoin history. Exciting times for weirdos like me. 

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Sun, Jul 11, 2021 10:31 AM

Ho-hum. More than halfway to the next difficulty adjustment and the network keeps on ticking.

As a recap. China banned mining and about a third of the total hashing/processing power of the network was unplugged essentially at once. Aside from slower blocks for a week or so, it's as if nothing happened. And, all of the miners were shipped out of China and distributed throughout the world. The result of one of the largest governments in the world banning bitcoin mining has made the network stronger.


justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Sun, Jul 11, 2021 10:33 AM

I'm also seeing rumors that Apple will be announcing a $2.5bn purchase tomorrow. Not verified, so I guess we'll see what happens in the next 30 hours or so.

Ironman92 Administrator
56,729 posts 146 reps Joined Nov 2009
Sun, Jul 11, 2021 12:00 PM
posted by justincredible

I'm also seeing rumors that Apple will be announcing a $2.5bn purchase tomorrow. Not verified, so I guess we'll see what happens in the next 30 hours or so.

Good luck


Ironman92 Administrator
56,729 posts 146 reps Joined Nov 2009
Tue, Jul 27, 2021 10:36 AM

It’s gone up consistently since the start of the Olympics…..

Coincidence or just something else?

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jul 27, 2021 10:55 AM

Unrelated.

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jul 27, 2021 10:55 AM
posted by justincredible

I'm also seeing rumors that Apple will be announcing a $2.5bn purchase tomorrow. Not verified, so I guess we'll see what happens in the next 30 hours or so.

I got got. Stupid twitter and the lying liars that lie.

Ironman92 Administrator
56,729 posts 146 reps Joined Nov 2009
Tue, Jul 27, 2021 12:07 PM
posted by justincredible

Unrelated.

Timing exact from my checking a couple times a day.


justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jul 27, 2021 12:09 PM
posted by Ironman92

Timing exact from my checking a couple times a day.


Unrelated.

justincredible Honorable Admin
37,969 posts 215 reps Joined Nov 2009
Tue, Jul 27, 2021 12:22 PM

Looks like it was at the low of $29k and then went to $32k before the Olympics started. Then it went from $32k to $34k over a few days after it started. Then jumped right to $38k on Monday. Not even seeing much of a correlation there.

Part of the price action was leveraged shorts being liquidated. There was $111m liquidated in the course of 10 minutes on that jump to $38k.

friendfromlowry Senior Member
7,778 posts 74 reps Joined Nov 2009
Thu, Jul 29, 2021 12:26 PM

Wish I would have bought more when it was at 29K

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