What will the result be for Trump and the GOP now that they are changing the tax laws on crypto trading? Surely this isn't the end either as Gov can't help but to constantly interfere in our lives and destroy all innovation and demoralize their citizens.
Well for my part, it's this:
1) I will consolidate my holdings into BTC and LTC (likely others will as well which will drive prices sky-high and may kill the Alt market and ICO's By design? Is it easier to attack fewer or more cryptos?).
2) I will NEVER sell them. Ever! Not until the laws change or the dollar dies. Then I'll just spend them. I won't give them the tax revenue.
3) I will NOT be voting for Trump nor will, I suspect, any of his Millennial supporters who are involved in cryptos.
Bitcoin traders face new tax obligations in the US and Russia as authorities keen to get a piece of the action begin ‘tweaking’ laws. As Fortune
and others report today, a tax reform amendment Congress passed this
week will oblige crypto-to-crypto handlers to pay tax on any gains. The
change in the status quo comes as a low-key change in legislation
closes a loophole which previously allowed so-called “like kind
exchanges” to occur tax-free.
All around us we hear of the dangers of crypto currencies by "concerned" governments. They tell us it's a risky asset. A fraud. It will ruin you. But yet, do they really care about you or do they care about their own revenue streams?
Crytpos require you to use your own mind. You must learn about this space and weed through all the fear mongering and determine for yourself if this is a legitimate asset to invest in. Will it survive? I believe so.
Do you have better chances elsewhere? Perhaps in an online Government lottery? The Gov who's looking out for you?
Let's put this in the "A picture speaks a thousand words category".
The truth is friends there are bubbles everywhere. There are so many bubbles everywhere it seems the law of gravity itself has been suspended.
I'm starting to get the sneaking suspicion that what we are really witnessing is a global hyperinflation of ALL assets courtesy of the money printing (aka, global, synchronized recovery [pfffffftttttttt]) by our glorious central banks. May they burn in flames. No I mean it. In a kind, non hate-speech kind of way.
But speaking of bubbles, it seems all you hear about is bubbles in the Crypto space. Bitcoin's (BTC) in a bubble, Litecoin's (LTC) in a bubble, Ethereum (ETH) etc.
With the DOW breaking records every day and the S&P on track to have its first year EVER (YAY!!!) without one single down month and so much speak about bubbles, why do we never hear about that on main stream media (MSM)?
Why do we never hear bubble talk about companies like Amazon, who all things considered have never turned a profit? NEVER!
Let's take a look at a chart of Amazon and I'm just going to leave it at that. They say a picture speaks a thousand words. Or sometimes just thousands of percent.
Wow! Quite a statement from Investopedia, have I picked a winner here?
"Litecoin’s drama-free community and even keel give it less volatility
and a steady trend, making it great for arbitration, trading, spending,
or even fundraising. Savvy cryptocurrency enthusiasts have compared
bitcoin’s market capitalization to Litecoin and done the math based on
its maximum number of coins and other traits and have almost unanimously
declared that it is undervalued. Even so, with much progress being made
on the Lightning Network, Litecoin may one day soon evolve into the
truest form of cryptocurrency yet, and leave the others in the dust."
Bubbles abound and everyone is wondering where BTC, LTC and the cryptos in general get their value. Well, how do we determine their value? As this is a relatively new industry many of these metrics are still being worked out.
In the article below I believe the author Josh Olszewic, does a pretty good job of presenting the Network Utility function of Litecoin.
"Unconfirmed transactions now stand at just over 700, at the time of writing, whereas Bitcoin (BTC) and Ethereum’s (ETH)
unconfirmed transactions are well above 100,000 and 13,000
respectively. 31,000 of the bitcoin transactions have fees set to less than US$0.01, far below the current
appropriate level. These unconfirmed transactions account for 0.87% for
LTC, 1.5% for ETH, and 27% for BTC. The current median fee for LTC is
LTC now has the lowest Network Value to Transactions
ratio among available coins measured, suggesting the coin remains
undervalued based on utility. The metric was devised by Willy Woo and
Chris Burniske and is similar to the traditional Price to Earnings ratio
when selecting stocks."
My background post BS was recruiting engineers for the automotive industry and then I moved on to finance. I had started investing for the first time during the .com boom and did quite well in very short order, thank you. And just as fast got burned. Being in finance I HAD to learn the markets in order to communicate with my high profile clients. Way leads to way and losses outweighing gains led me to understand how rigged the markets are. That's what led me to silver. That's now my goal, to teach others what I have learned.
All information provided on this blog are the personal opinion of the author. I am not a financial advisor nor do I promote the use of them save a very select few. All individuals are responsible for thier own decisions and I encourage all individuals to make decisions based on their own due diligence pertinent to their needs and comfort level. Knowledge just may be your salvation.