Bitcoin

$57K today. I remember when it was $55K then down to $15K. My pal says it will go to $100K and then split.
 
$67K today. My buddy called it. He bought low and now he's flying high. Something smells fishy but I'm super happy for him. He plays stocks, real estate, poker in Vegas. Dude is very smart cat. Up $35K already this year playing against drunk fools.
 
Of course, why couldn't you? It's an asset just like anything else. It isn't a security where wash-trading rules would apply to keep people from selling at a loss and immediately buying. But every time you buy or sell it (or almost any asset), there is a taxable event, where you owe taxes on the gains (and can deduct the losses). Nobody is likely to care if someone is playing with a small amount of money and doesn't self-report it. But if they are buying/selling material amounts of money's worth on a US-regulated exchange - and don't track their taxable events, they are in for a nasty surprise if/when the IRS gets curious about their activity.

Anyone who owns bitcoin through another entity other than just having the keys themselves, is subject to whatever rules that entity has in place - whether it is a mutual fund through their non-taxable retirement account, one of the newer ETF's, or any of the rules that the exchange itself has.
 
RandomSoccerFan said:
Of course, why couldn't you? It's an asset just like anything else. It isn't a security where wash-trading rules would apply to keep people from selling at a loss and immediately buying. But every time you buy or sell it (or almost any asset), there is a taxable event, where you owe taxes on the gains (and can deduct the losses). Nobody is likely to care if someone is playing with a small amount of money and doesn't self-report it. But if they are buying/selling material amounts of money's worth on a US-regulated exchange - and don't track their taxable events, they are in for a nasty surprise if/when the IRS gets curious about their activity.

Anyone who owns bitcoin through another entity other than just having the keys themselves, is subject to whatever rules that entity has in place - whether it is a mutual fund through their non-taxable retirement account, one of the newer ETF's, or any of the rules that the exchange itself has.
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Thanks for the answer. Warren Buffet says there is no true value in the coin and it's not backed by anything. My buddy say's it backed by the people and no middleman. I'm just curious and appreciate feedback. I have never seen so many ads by weirdos on Instagram, so it does give me pause.
 
How does a piece of code go from a gifted programmer's head to a value of over $1 trillion in a decade? By solving the thirty-year-old computing problem of double-spending. Tokens' value hinges on blockchains, distributed ledgers of transactions that everyone can see but no single party can alter. Blockchains act as a single source of truth for asset ownership and provenance. There are plenty of reasons for a given token's having value, but all tokens benefit from being provably scarce.—A. Tapscott, Web3
 
crush said:
My buddy say's it backed by the people and no middleman. I'm just curious and appreciate feedback. I have never seen so many ads by weirdos on Instagram, so it does give me pause.
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Tokens can be collateralized Or uncollateralized. The value of uncollateralized tokens freely floats against others based on the token's inherent underlying value. Money today is uncollateralized. Until fifty years ago, holders could redeem greenbacks for gold under certain conditions. Despite losing its peg, dollar bills are still very valuable: parties to the Bretton Woods Agreement of 1944 chose the US dollar as the global reserve currency. China has pushed to elevate its renminbi to global reserve status, but the dollar still represents 60 percent of central banks' holdings around the world.
 
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