Bitcoin

BearWhite

bowlhead99 said:

BearWhite said:

Michael121 said:

BearWhite said:

Username999 said:

BearWhite said:
I also get paid 6% interest on it which is nice.

Where does the 6% interest come from.
Is this from the Forks?

Nope, Blockfi (https://blockfi.com/crypto-interest-account/) pay interest on Bitcoin, currently at 6%. There are several other companies doing similar things, some seeming more reputable than others. Clearly there is no safety net with these platforms though.

Sound to good to be true. 

Possibly. They're backed by some big players (e.g Fidelity) and are regulated in the US,which is stringent on Crypto firms, so hopefully not. 🤞

Well, their warning: "Please also note that digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. This is not a risk free product." certainly means that you can lose all the value of the crypto you deposit with them, in pursuit of the return they hope to get by lending it out to a reliable borrower. Their business can also fail if for example the value of crypto falls significantly and the USD loans they made to individuals secured on crypto collateral can't be recovered in cash.

The fact that Fidelity and Morgan Creek et al have put a small amount of their investible capital into the platform -making an equity or debt investment into the platform as a fledgling fintech business which might become more valuable over time - doesn't mean they are going to 'back' you getting your deposit back if the business goes under. They would just write it off as a bad investment and be grateful that they had also made other speculative investments which might do better.

I agree with all you've said. Don't worry, I've gone in with my eyes open, and this is 2% of my portfolio.

EdGasketTheSecond

But how do they make enough to pay you 6% interest? If you can't answer that then you shouldn't have invested there. Anyway isn't the point of crypto currency that it belongs to you and you keep it secret from banks and the establishment in your own digital wallet?

BearWhite

EdGasketTheSecond said:

But how do they make enough to pay you 6% interest? If you can't answer that then you shouldn't have invested there. Anyway isn't the point of crypto currency that it belongs to you and you keep it secret from banks and the establishment in your own digital wallet?

That view is still held by many, but there appear to be plenty of people in the space who are far less dogmatic in that regard. Companies like Crypto.com for instance offer interest, cashback cards and other products, and have allegedly got over 2 million users. For these users to make the most of the service they'll have crypto that isn't in their own digital wallets.

Whitebeard

Well, recently I came across the information that in some state of the US you can pay taxes with cryptocurrency! I guess it means that the near future belongs to crypto. Though for now there are not so many opportunities to pay with crypto. Actually I have found quite a simple method to exchange crypto to money and pay. I have a debit card Blackcatcard with hot crypto wallet option so just exchange crypto for euro and pay online/offline wherever there is a mastercard sign

TBC15

Whitebeard said:

Well, recently I came across the information that in some state of the US you can pay taxes with cryptocurrency! I guess it means that the near future belongs to crypto. Though for now there are not so many opportunities to pay with crypto. Actually I have found quite a simple method to exchange crypto to money and pay. I have a debit card Blackcatcard with hot crypto wallet option so just exchange crypto for euro and pay online/offline wherever there is a mastercard sign

Well something utterly bizarre happening in the USA, who would have thought it.

83705628

Hi does anyone know can you make money on tulips? This book from 1633 says they're theh hot new thing that everyone's buying.

bowlhead99

tcallaghan93 said:

Hi does anyone know can you make money on tulips? This book from 1633 says they're theh hot new thing that everyone's buying.

Netherlands is a good place for investment bargains as it's known that "sell high" can be legal (or at least, not actively prosecuted) in Amsterdam.

83705628

bowlhead99 said:

tcallaghan93 said:

Hi does anyone know can you make money on tulips? This book from 1633 says they're theh hot new thing that everyone's buying.

Netherlands is a good place for investment bargains as it's known that "sell high" can be legal (or at least, not actively prosecuted) in Amsterdam.

 /
🤣

The_Earl_of_Streatham

Whitebeard said:

Well, recently I came across the information that in some state of the US you can pay taxes with cryptocurrency! I guess it means that the near future belongs to crypto. 

One state, Ohio. It lasted about six months before it was declared illegal. Only ten businesses opted to use the facility. This was two years ago.

Why would a government collect taxes in a currency other than its own? It makes a nonsense of at least one of the economic functions of taxation.

https://news.bitcoin.com/ohio-crypto-program-hits-a-snag-attorney-general-finds-it-illegal/
https://thenextweb.com/hardfork/2019/10/03/ohio-suspends-bitcoin-tax-payment-system-no-one-cares-ohiocrypto/

RichTips

Malthusian said:

RichTips said:

On a side note, I recommend in all your endeavors that you try and think outside of your cosy little boxes so that you have a greater chance of seeing value in places you hadn't anticipated.

Ok bagholder.

The idea that governments can't get muh Bitcoin is one of the sillier myths.

During the last Bitcoin boom, transactions in Bitcoin took days (unless you paid a massive premium) even though it was still only being traded between a small minority of get-rich-quick speculators, in contrast to the mainstream payment networks which process billions of transactions near-instantly. If you are having problems with your bank then adding non-GDPR-compliant cruft to all your transactions is not a solution.

Oh my bag. It so heavy. Please, Malthusian, help me carry my heavy, heavy bag.