In Bitcoin We Trust

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  • Fri, Jul 31, 2020 - 04:45pm

    #1
    Mohammed Mast

    Mohammed Mast

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    In Bitcoin We Trust

https://medium.com/in-bitcoin-we-trust/hodling-bitcoin-right-now-is-easy-the-real-challenge-will-start-when-the-price-becomes-parabolic-82f41b379960

  • Fri, Jul 31, 2020 - 06:06pm

    #2
    VTGothic

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    In Bitcoin We Trust

Ha. As the article says, HODL a day, HODL forever.

I have a split plan for spending BTC.

When BTC hits an already-determined price, I’ll slowly start spending .5 BTC that’s already earmarked for that purpose.  My goal will be to withdraw in circumstances that allow the then-rising value of BTC to replace what I withdraw in a specified period of time – rather like pre-harvesting interest on a capital investment. Since I don’t need that money, it’ll be fully “fun” money – my reward for long years of patience. That’s my emotional release valve, too. If subsequent growth doesn’t hit the replacement value, I’ll stop harvesting until it does.

As BTC matures beyond that point, my harvest on that half coin will grow proportionately.

The rest might simply be a legacy to my heirs. We’ll see. I do have a price point at which I’ll seriously consider loosening up another 1 BTC. For that one, I’ll harvest after the fact,  by harvesting the gain beyond that value only after it’s moved beyond it by a certain percent.

  • Fri, Jul 31, 2020 - 07:20pm

    #3
    kunga

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    In Bitcoin We Trust

Investments.  To me, as an old fart, it all comes down to sleep.

There are risks in holding and keeping and defending any wealth.  Land needs No Trespassing signs, money for property taxes and maybe a shotgun.

Stocks,traded or held needs investment in knowledge, time and a trustworthy broker.  Bonds need trust in the issuing institution or sovereign.  Crypto currencies need technological savvy, a functioning internet, an amenable jurisdiction and a way to keep them on ice.  Precious metals need secrecy and a good vault.   All the above involves a side investment of time and money to reduce risk.

For me, it all comes down to the risk I am willing to take and still get a good night’s sleep.

  • Fri, Jul 31, 2020 - 07:54pm

    #4
    Mohammed Mast

    Mohammed Mast

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    In Bitcoin We Trust

LOL

I stand by my assumption. You are a very smart person.

As Mike Tyson said ” everybody got a plan til they get bunched in the mouth”

Everybody’s plans are different with different goals. Much depends on one’s horizon. My horizon is speeding at me like the monolith in 2001 Space Odyssey.

My involvement with crypto is more ethical than financial. I am more in line with Andreas Antonopolous and Satoshi. It took me all of about 2 minutes to grasp the potential for mega change. Change in the direction of freedom.

It was disappointing that this so called tribe missed it completely. It is totally understandable. There is a paradigm espoused and embraced here that is deeply ingrained. This is not to invalidate it in any way. It is however just one way of looking at the world. It is just one paradigm. This site should really be called one E+ There is not even a slight mention any longer of the Environment. But that is another subject.

Thanks for the response. Your posts reveal a very nimble agile mind.

thanks

  • Sat, Aug 01, 2020 - 04:55am

    #5
    VTGothic

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    In Bitcoin We Trust

MM,

I, too, am surprised that PP doesn’t seem to see crypto for what it’s becoming, esp. as Chris appreciates Raoul Pal’s macro views and Pal has embraced BTC as part of his personal small universe of investments.

He recently said, on a podcast with Pomp, that he holds just 4 things. He’s allocated less than 10% of his wealth to BTC, gold, and bonds. (It was unclear if he meant less than 10% allocated to each, or to all altogether.) The vast bulk of his millions is in cash. Bonds are his speculative play, and BTC is his asymmetrical upside bet. He said he’s doubled his bond play in recent months, and was looking to do the same with BTC – I imagine he has since the interview.

I would think all of that would give Chris and Adam grounds to revisit at least BTC. So far, no sign it has, though.

On the philosophical side, my brother (who, thank God, convinced me to make my first BTC purchase back below $800) thinks and hopes along the lines you do – that crypto will prove a strike for individual liberty and financial freedom. I’ll be very happy if that happens, too, but I’m ever more doubtful, esp. regarding BTC. I hodl my small BTC stash because I think it’s where the biggest money is to be made exactly because the institutional players are coming into it in the biggest way. But (to state the obvious, which I know you know) institutions can’t come in unless the coin is “regularized” sufficiently that they can practice fiduciary responsibility according to various nations’ regulations; so, regulation emerges. Out goes freedom and obscurity.

I also think ETH has a good use case as the platform for smart contracts and defi. I’ve just done some consolidation out of several shitcoins to put more into ETH.

Among other coins I like I have some Ripple. Definitely some things to not like about it, but it has an interesting use case and I think they’ve been doing the right kind of dogged infrastructure build-out and partnership development to realize their vision. Good management, so worth the cheap price of getting a seat at the table.

My brother likes Litecoin for his daily use, and he uses it for a number of transactions, including paying his rent to his landlord down in Chile. He thinks it has a good long term use case. I don’t really know Litecoin. Come fall I’ll take time to look into it more. Meanwhile I have a bit just in case it goes to the moon while I’m growing veggies and residing the house.

He also, like you, wants to take advantage of coins and protocols to assert financial liberty. That’s the philosophical side, the quest for meaningful freedom from State actors. I get it and I’m sympathetic, I am just not convinced it will happen. States have a lot of resources to throw at cracking code. And, they’re always going to know when money goes on-ramp or off-ramp. Likewise, they’ll know when the vast bulk of purchases are made, or delivered, even if purchased through anonymous coins. In which case, shipping-receiving may become the point of taxation.

There is some potential to obscure money made on crypto in crypto, but even that can be imputed in various ways. And imo money that’s made but can’t be used for fear of being discovered is not really money at all. I don’t value a fat wallet, but what that wallet, fat or thin, puts into my daily life. So I figure I need to assume Uncle Sam will know what I have; I just need to keep it unrealized, hence untaxed, except as I’m prepared to pay the tax to use the gain.

I expect that, as with stocks, some favorable treatment of crypto gains will be inserted into the tax code when – and because – the connected fat cats will demand it as they realize big gains in the cryptosphere. I will take advantage of that and figure out how to minimize my exposure to tax at my level of financial operation.

And I will always, always make sure that my housing and food is secure even if I lose everything I’ve invested in and gained from crypto – or my residual stock exposure for that matter.

  • Sun, Aug 02, 2020 - 02:09pm

    #6
    Mohammed Mast

    Mohammed Mast

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    In Bitcoin We Trust

Wrote you a long reply last night but it disappeared.

Will Get back when I have some time

  • Mon, Aug 03, 2020 - 08:11am

    #7
    jvanname

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    In Bitcoin We Trust

It is not good for people to constantly talk about the price of Bitcoin without caring about the inner workings of Bitcoin or any possible innovation in the cryptocurrency sector. One cannot and should not predict the price of an asset without knowing or caring about its inner workings. It is also not good for people to constantly predict the future price of Bitcoin because such predictions are never scientific. People make those predictions simply because they have Bitcoin and want to get richer without working hard.

Bitcoin has a mining algorithm that was never designed to advance science, and Bitcoin, as a result, has attracted people who just want to get rich quickly instead of scientifically literate people. Unfortunately, virtually nobody seems to notice this problem.

  • Mon, Aug 03, 2020 - 09:39am

    #8
    VTGothic

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    Reply To: In Bitcoin We Trust

JVANNAME…

What?!? What are you on about? That was incoherent.

  • Wed, Aug 05, 2020 - 10:08am

    #9
    tbp

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    In Bitcoin We Trust

Wrote you a long reply last night but it disappeared.

YEP, this has happened to me twice recently… maybe more times as I may not notice when it disappears. What is going on??

@jvanname
Bitcoin has a mining algorithm that was never designed to advance science, and Bitcoin, as a result, has attracted people who just want to get rich quickly instead of scientifically literate people. Unfortunately, virtually nobody seems to notice this problem.

Fiat money printing is also not designed “to advance science”. What’s your point?

In fact, you couldn’t be more wrong, as it DOES advance science, in one of the most important aspects ever conceived of: Bitcoin’s mining algorithm allows the replacement of trusted third parties (central authorities) with trustless impartial computational power — aka the solving of the double-spending problem, probably the greatest discovery/invention of the 21st century so far.

  • Wed, Aug 05, 2020 - 05:47pm

    #10
    denisgoddard

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    In Bitcoin We Trust

I have made my 25-year career designing and deploying Internet-scale databases. I do not use Bitcoin because the technology was groundbreaking ~10 years ago, but much better options now exist.

The biggest problem I see with bitcoin is that once you have someone’s wallet address, you can see how much money they have, and every transaction they ever made. Nobody should accept that kind of intrusion in their personal finances!

Especially now that there is a widely-used *private* alternative. Monero.

Monero works similarly to Bitcoin, but:

* The blockchain is encrypted. Nobody can see how much you have, where you got it, or where you spent it, unless you give them your private decryption key

* The fees are around $0.01per transaction (compared to $1.00 – $10.00+ for Bitcoin)

* Transactions clear 5x faster (2 minutes instead of 10)

* You can optionally (and very easily) transact over the Tor network, so your ISP and your government don’t know you’re using Monero

The Monero community reminds me a lot of the Linux community back in the early-oughts. Lots of IT people motivated to contribute primarily by ideology and love of good design rather than some plan to hodl and get rich.

I know everybody has their bag of altcoins that they shill. All I will say is that unlike 99.9% of crypto investors, I actually read and understand the tech specs and code before buying. And right now I’m buying all the Monero I can. It stacks up next to the gold mining stocks I bought back in ’09 and physical silver I accumulate.

This video is a great intro. I’m happy to answer any questions I can and will refer to other sources where I can’t

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