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Bitcoins, anyone?

Discussion in 'Off Topic' started by stealthology, Aug 30, 2013.

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  1. Johan

    Johan Funds for M3 secured. Contingent on wife aproval.

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    (Replying here instead of TSLA short term thread)

    Do you know if BTC is getting anywhere when it comes to being accepted as an actual usable currency in China? I.e. not just as an investment vehicle but as an actual mode of payment for goods and services?
     
  2. Causalien

    Causalien "The" 8 ball Oracle

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    #102 Causalien, May 30, 2016
    Last edited: May 30, 2016
    Nope. Adoption is slow. There's a huge technical hurdle to jump through that allows faster transaction time for retail (and to be able to handle larger amount of transactions. The network got saturated a lot faster than originally expected) and is the main reason why the price has languished for the past 2 years. I'd give it about 3~4 years for new technology in development and consensus to be reached in the network to solve this.

    Currently a few test experiments have been implemented but all bombed.

    The current rise, has to do with the fact that there are actually business in the space that you can trust now and people trust this more than whatever it is that they are fleeing from. The biggest hurdle for investors of the space remains the same. Who can you trust to exchange your bitcoin to fiat when banks, boycott transactions to bitcoin in the dark. So new business has to be created to do the fiat conversion and it's hard to trust new business to handle your money.
     
  3. Johan

    Johan Funds for M3 secured. Contingent on wife aproval.

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    Agreed on all points. I'm holding a non-significant position in BTC from 2012. But even for an above-average tech savvy individual such as yours truly I sometimes worry about losing then coins somehow, being ripped off, I keep looking for the safest method of holding the funds. What do you do for holding?
     
  4. Causalien

    Causalien "The" 8 ball Oracle

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    I use more secure methods as prices go up. But the safest bet is a paper wallet made of iron or titanium. Probably won't be bothered to get this done until prices reach $700. There are some products out there for this, but shipping is slow. Lookup cold wallet. This firld is still in transition, but bear in mind that you cannot trust any electronic storage after 7 years. Part of the reason why securing bitcoin is a PITA.

    It really gives you an appreciation if what banks have to do for you to secure cash.
     
  5. Robbit

    Robbit Member

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    Better get to it @Causalien! :D
     
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  6. Causalien

    Causalien "The" 8 ball Oracle

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    Yeah... sh**

    I hate it whenever an exponential jump happens. It means I now have to upgrade all securities.
     
  7. WhiteCap

    WhiteCap Member

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    I know a guy who got into mining back when BTC was about $10USD each (I think it was ~2010). When the bubble hit he cashed out at ~$1100 per Coin. I asked him why he didn't upscale, he said the low-hanging fruit days were over and for him it was just a game, but he made about $70K from his playing. The interest part of that is he owns a solar-farm so his mining rigs were all powered by unmetered energy.
     
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  8. deonb

    deonb Supporting Member

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    That sounds like someone who used to hang out on this forum...
     
  9. WhiteCap

    WhiteCap Member

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    Possible I suppose, he was a techie type character.
     
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  10. Causalien

    Causalien "The" 8 ball Oracle

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    Protip, if he mined in 2010. He made more than 70k if he cashed out at $1100.
     
  11. deonb

    deonb Supporting Member

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    If he didn't sell anything in between. Remember there were a lot of $10'000 pizzas on the original bitcoins.
     
  12. Lloyd

    Lloyd Well-Known Member

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  13. Causalien

    Causalien "The" 8 ball Oracle

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    Yeah. I am assuming he cashed all out at $1100. But any miner from 2010 will obfuscate the real fact about how long he mined, when and how he cashed out. The reality is that if you tried to cash out during the $1100 mania, there's a very high chance that you lost your funds when one of the exchanges failed. Because all exchanges that appeared before Coinbase were scams and ponzi schemes.
     
  14. deonb

    deonb Supporting Member

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    True. I never really saw the appeal of mtgox over Coinbase - even while it was up and running. Timing I suppose.
     
  15. Robbit

    Robbit Member

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  16. Davp99

    Davp99 Member

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    For an investment, there are many other better risks for your Money, Something always didn't pass the smell test with me..Go in if a really big better, and start Lowwwww
     
  17. bkp_duke

    bkp_duke Active Member

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    Each to their own. I just bought two Model S's (used) off the profit I made "playing the bitcoin game" in the past 3 years.
     
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  18. Davp99

    Davp99 Member

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    Wow, I'm impressed, Like to hear more stories like yours...Maybe I'll think about them in a more positive Light, Thanks Duke
     
  19. CME

    CME Member

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    wow. Good for you.
     
  20. cpa

    cpa Active Member

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    From my perspective, how many American bitcoin investors/players are claiming the income or loss on their tax returns when the gains or losses are recognized. And how are they reported, on Schedule D, Form 4797, Schedule C, or their business returns like 1065 or 1120(S).

    Are bitcoins a capital asset? Or are bitcoins a cash equivalent used in a trade or business? Both? How do those who use this means determine where they fall?

    We had a CPE class a couple of years ago, and the consensus among us was that our clients were not reporting any gains, but were trying to backdoor losses to their best income tax advantage if possible.
     

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