Wow. Bitcoin is almost $1,500

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Shmee

Memory & Storage, Graphics Cards Mod Elite Member
Super Moderator
Sep 13, 2008
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I noticed recently several countries adopting it as legal tender.
 
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njdevilsfan87

Platinum Member
Apr 19, 2007
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You can't peg a currency to Bitcoin...

Nothing can be pegged to Bitcoin. Even other cryptos cannot be pegged to Bitcoin. If there's one the thing Doge community go right it's that 1 Dogecoin = 1 Dogecoin.
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
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You can't peg a currency to Bitcoin...

Nothing can be pegged to Bitcoin. Even other cryptos cannot be pegged to Bitcoin. If there's one the thing Doge community go right it's that 1 Dogecoin = 1 Dogecoin.

All the crypto currencies seem to be pegged to each other in a way. When Bitcoin has a bad day and drops 10%, the other cryptocurrencies like Litecoin, Dogecoin, and Ethereum seem to do the same. I mean, seriously, look at the price charts. They all drop in lockstep, like some whale with a computer trading program is calling the shots.
 

DrMrLordX

Lifer
Apr 27, 2000
21,605
10,796
136
You can't peg a currency to Bitcoin...

I think @ultimatebob mostly has it right. If enough commerce in El Salvador is derived directly or indirectly from trading with BTC, eventually the fluctuations of BTC may effect the value of their own currency. Though I must admit that since they have abandoned the colon in favor of the US dollar . . . maybe that will not happen.
 

FelixDeCat

Lifer
Aug 4, 2000
29,148
2,030
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I had a thought today that made me wonder about Bitcoin. Earlier this year there were predictions of BC$100,000, BC$250,000, etc.

Noted investor Kathie Wood thinks these numbers are possible, maybe even BC$1M. Someone said that in order to see BC$1M, it would need to have a market cap of $27 TRILLION DOLLARS, which currently equals the entire balance of all retirement assets in the United States.

Im not saying that BC will not see $100,000+ but my thought this weekend was it may be LESS likely because:


1) As more crypto currencies like DOGE and ETH take investor dollars, that means those same dollars will not be invested in BC.

2) The wider adoption of more cryptos as a form of payment means that people can own ANY widely held crypto, not just bitcon.

3) Being that people who trade cryptos like to see their money grow (investments), they may see greater growth opportunities in alternative coins besides BC, which will keep more money going into "alt coins" instead of BC.

4) I was also reading that newer block chains are less complex, more flexible and easier to mine than the original bitcoin block chain.


BC does have a scarcity value but its other qualities seem to be spread now amongst other coins, which may make it less attractive in the future due to its price.
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
4) I was also reading that newer block chains are less complex, more flexible and easier to mine than the original bitcoin block chain.

Most cryptocurrencies have a variable mining difficulty, and only release a set number of coins every year. This is why people were able to pile up millions of Dogecoin (for example) early on, where it would be much more difficult to do so now without a server room filled with dedicated mining hardware.
 

DrMrLordX

Lifer
Apr 27, 2000
21,605
10,796
136
Someone said that in order to see BC$1M, it would need to have a market cap of $27 TRILLION DOLLARS, which currently equals the entire balance of all retirement assets in the United States.

Market cap is unrealized value. It isn't representative of market liquidity. I've seen different estimates of how much market liquidity is required per dollar of market cap, but those estimates always put the ratio with liquidity far below capitalization.

1) As more crypto currencies like DOGE and ETH take investor dollars, that means those same dollars will not be invested in BC.

Eh. People have predicted The Flippening for years now. Hasn't happened yet, though ETH got close at least once.

2) The wider adoption of more cryptos as a form of payment means that people can own ANY widely held crypto, not just bitcon.

Some tokens on the Ethereum network are now a bit easier to buy thanks to swap contracts, but exchanges still look at market cap

4) I was also reading that newer block chains are less complex, more flexible and easier to mine than the original bitcoin block chain.

Depends on which blockchain.
 

Icecold

Golden Member
Nov 15, 2004
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Anyone planning to stake their ethereum?
I am currently with a small amount at Coinbase. They handle all the validator responsibilities, and in turn you get 6% return and your Eth is locked up until Ethereum 2.0 is ready. There are other options that take less of a cut than Coinbase does, the actual staking rewards are 8% so Coinbase is taking 25% of the rewards, but it seemed like an okay way to try it out with a small amount and see how it goes. I really can't think of any reason not to stake it, whether at Coinbase or otherwise if you are investing in Ethereum long term and have no intention of needing to liquidate it in the next couple of years. I guess other than maybe the taxes aspect, but I'm hoping with how large Coinbase is that they'll just send me a 1099 I can import into Turbotax that has it all laid out on there. Coinbase shows your staking rewards in realtime as a USD amount, but I'm guessing it's just showing total staking rewards multiplied by current eth price. Since the staking rewards don't actually pay out until Ethereum 2.0 is ready, maybe that doesn't trigger a taxable event until that time and would then lump sum as paid interest for taxes? I'm really not sure on that.

@Roger Wilco when I signed up it was ready in < 2 weeks from what I recall, but I got on it fairly early I think.
 

Roger Wilco

Diamond Member
Mar 20, 2017
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Many of the CeFi lending platforms (such as Gemini) offer 4-6% apy on ETH, and those funds aren’t locked.
 

ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
It looks like staking is not available on Coinbase Pro. So if I move the coins from Coinbase Pro to regular Coinbase, is there a fee I have to pay? Or is it free? It's kind of dumb Coinbase and Pro are separate.
 

pete6032

Diamond Member
Dec 3, 2010
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I am currently with a small amount at Coinbase. They handle all the validator responsibilities, and in turn you get 6% return and your Eth is locked up until Ethereum 2.0 is ready. There are other options that take less of a cut than Coinbase does, the actual staking rewards are 8% so Coinbase is taking 25% of the rewards, but it seemed like an okay way to try it out with a small amount and see how it goes. I really can't think of any reason not to stake it, whether at Coinbase or otherwise if you are investing in Ethereum long term and have no intention of needing to liquidate it in the next couple of years. I guess other than maybe the taxes aspect, but I'm hoping with how large Coinbase is that they'll just send me a 1099 I can import into Turbotax that has it all laid out on there. Coinbase shows your staking rewards in realtime as a USD amount, but I'm guessing it's just showing total staking rewards multiplied by current eth price. Since the staking rewards don't actually pay out until Ethereum 2.0 is ready, maybe that doesn't trigger a taxable event until that time and would then lump sum as paid interest for taxes? I'm really not sure on that.

@Roger Wilco when I signed up it was ready in < 2 weeks from what I recall, but I got on it fairly early I think.
I'm also not seeing a downside of staking if I was planning on holding those coins long-term. I bought some in 2018 and haven't used the coins at all. They've just been sitting in my wallet accruing value. Might as well put them to work, right?

I am not up-to-date on my crypto exchanges, and I don't have 32 ETH to stake so I'd be staking in a pool. My one concern would be staking with a shady entity. I'd be fine doing it with some place like Coinbase though.
 

Icecold

Golden Member
Nov 15, 2004
1,090
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I'm also not seeing a downside of staking if I was planning on holding those coins long-term. I bought some in 2018 and haven't used the coins at all. They've just been sitting in my wallet accruing value. Might as well put them to work, right?

I am not up-to-date on my crypto exchanges, and I don't have 32 ETH to stake so I'd be staking in a pool. My one concern would be staking with a shady entity. I'd be fine doing it with some place like Coinbase though.
That was my main reason for staking on Coinbase even though it's only 6%. I didn't want to end up in a staking pool that is a scam or gets hacked or something, and information on staking still seems somewhat hard to come by since it's so new. My thought process was 6% is better than nothing, and at least I know it's a legitimate company to deal with. I don't have anywhere near the 32 eth to run my own validator, but if I did I think that's the route I would go since it would be pretty interesting to me, and be higher staking rewards as well(higher than Coinbase at least)

It looks like staking is not available on Coinbase Pro. So if I move the coins from Coinbase Pro to regular Coinbase, is there a fee I have to pay? Or is it free? It's kind of dumb Coinbase and Pro are separate.
As far as i can tell it should be free and instant to transfer between them, but I don't have Coinbase Pro setup currently just regular Coinbase. If you have 32+ eth you could also look into running your own validator node if that interests you at all, once it's setup it's basically just leaving a PC running at all times connected to the internet. From what I've read there could be a period during/after the merge where the staking rewards are much higher than now, and it seems likely that Coinbase or whoever would leave it locked in at 6% or whatever it was when it was intiially staked. If you don't have 32+ eth, as far as I know the options are either a staking pool, or an exchange that will stake it for you such as Coinbase or Kraken.

Many of the CeFi lending platforms (such as Gemini) offer 4-6% apy on ETH, and those funds aren’t locked.
I had posted about Eth staking on another forum, and somebody recommended https://nexo.io/earn-crypto as a place to earn interest on it without the funds being locked. It looks too good to be true to me, especially the interest rates on fiat, but I could never figure out what the 'gotcha' was that I was missing, so I've steered clear. 10% interest on USD(fiat, standard US currency not USDT or anything like that) especially seems like it has to be too good to be true - https://nexo.io/earn-fiat Gemini appears to currently be 2.05% APY on Bitcoin and Ether but I haven't looked at any of the other lending platforms.
 
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ponyo

Lifer
Feb 14, 2002
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My Robinhood ACH deposit finally cleared so I used it all to buy Dogecoin today. In Elon I trust! Dogecoin to the Moon!

Bid/ask spread on Robinhood is definitely worse than on Coinbase. So you're really not getting free commission trades. I had Robinhood and Coinbase both open and compared bid/ask spread before placing the order on Robinhood. I think you're better off paying the commission at Coinbase. There's no free lunch.
 
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Icecold

Golden Member
Nov 15, 2004
1,090
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I'm not sure if Robinhood is still this way, but previously my understanding is you wouldn't be able to access your keys, and could not transfer the actual crypto to a wallet, or other exchange, etc. You could only buy or sell Crypto on Robinhood, and to move it elsewhere required selling it and rebuying elsewhere, a taxable event. It's probably something that would be worth looking into, especially after what happened with them and Gamestop earlier this year.

Edit - it appears to still be that way. According to this link - https://robinhood.com/us/en/support/articles/cryptocurrency-transfers-and-deposits/
Robinhood website said:
Coin Withdrawals
At this time, we don't have the functionality to allow customers to transfer their cryptocurrency assets into or out of their Robinhood Crypto account, but we’re currently working on providing those abilities for supported cryptocurrencies.
Transferring Coins Into Robinhood Crypto
At this time, we don't have the functionality to allow customers to transfer their cryptocurrency assets into or out of their Robinhood Crypto account. However, we’re currently working on providing the ability to deposit and withdraw supported cryptocurrencies.
 

ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
I'm not sure if Robinhood is still this way, but previously my understanding is you wouldn't be able to access your keys, and could not transfer the actual crypto to a wallet, or other exchange, etc. You could only buy or sell Crypto on Robinhood, and to move it elsewhere required selling it and rebuying elsewhere, a taxable event. It's probably something that would be worth looking into, especially after what happened with them and Gamestop earlier this year.

Edit - it appears to still be that way. According to this link - https://robinhood.com/us/en/support/articles/cryptocurrency-transfers-and-deposits/
Yes, I know you don't own the actual coins at Robinhood. That's fine. I'm not looking to download or transfer Doge out of Robinhood. I don't plan to keep lot of money at Robinhood. I was curious about Robinhood and wanted to test them out. I only transferred in $15k which I used to purchase Dogecoin today. I might transfer little more money in to buy more Doge but I won't keep lot of money at Robinhood. But I can see why people like and get hooked on Robinhood. The app is slick, and they make everything like unlocking achievements and video game. Very smart of them.
 
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Roger Wilco

Diamond Member
Mar 20, 2017
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I had posted about Eth staking on another forum, and somebody recommended https://nexo.io/earn-crypto as a place to earn interest on it without the funds being locked. It looks too good to be true to me, especially the interest rates on fiat, but I could never figure out what the 'gotcha' was that I was missing, so I've steered clear. 10% interest on USD(fiat, standard US currency not USDT or anything like that) especially seems like it has to be too good to be true - https://nexo.io/earn-fiat Gemini appears to currently be 2.05% APY on Bitcoin and Ether but I haven't looked at any of the other lending platforms.

Alas, Coinbase has deemed me worthy of staking!

For it's worth, here is an explanation by someone from Blockfi (although it's from Feb 2020):

"We are able to pay the 8.6% interest out to our clients by lending those funds deposited out to our loan borrowers. Our loan borrowers borrow USD collateralized by a minimum of 200% of the loan value. For example, a borrower taking a $50,000 USD loan would need to collateralize that loan with $100,000 worth of Bitcoin or Ether. Additionally, we have a margin system set in place which request margin calls and liquidate collateral as necessary to ensure loan performance. To date, we have had a perfect payback record. Borrowers have a strong incentive to payoff their loans and interest given the excess collateral that we hold. Further, collateral liquidations may trigger undesirable tax consequences to that borrower as well.

Corporate debt and financing is way more challenging & expensive for crypto companies. A lot of banks don't like taking exposure and risk to crypto companies. BlockFi is a Bitcoin denominated company - we carry it on our balance sheet. Dollars are expensive right now but we have other sources of funding for our loans other than clients stablecoins. It's an option that makes sense for BlockFi and for our clients who would other wise have dollars sitting in the bank earning at best 1-2% :)."