Crypto investing

[CyberB0b]

For you experts with crypto-currency: now that mainstream investing and even many countries are acknowledging and accepting crypto, what do you expect to happen in terms of governmental regulations and controls.

To be clear, I am a real neophyte at this.

It could become the underlying base layer to every transaction in the world. Check out the Nic Carter episode of the Lex Friedman podcast.

 

[InTheZone]

For you experts with crypto-currency: now that mainstream investing and even many countries are acknowledging and accepting crypto, what do you expect to happen in terms of governmental regulations and controls.

To be clear, I am a real neophyte at this.

most of my info comes from these youtubers: Buy the Dip Sell the Tip (DJCrypto) and Digital Asset News. I pretty much avoid Reddit and other youtubers/thumbnails that look like they're running a scam.

 

[Creeper]

For you experts with crypto-currency: now that mainstream investing and even many countries are acknowledging and accepting crypto, what do you expect to happen in terms of governmental regulations and controls.

To be clear, I am a real neophyte at this.

There are no absolutes but it looks like crypto is here to stay. Governments have had plenty of opportunities to kill crypto with either regulations or just outright bans, only China has taken steps and there are rumors China might launch their own crypto as a means of beating the rest of the world powers to the punch and making their cryptocurrency the world standard. Perhaps this is why they are beating up on bitcoin.

Regulation of crypto here in the US has already started and it is ramping up. Exchanges are reporting information to the IRS, mostly for high value investors, but it is just a matter of time before they report everything to the IRS the same way brokerages and banks do. An increase in the capital gains tax might scare away a lot of small investors but time will tell. For miners, the tax laws are absolutely horrible. Unless you incorporate your mining operation, you cannot deduct your operating expenses for mining from your earnings. So if you spend half of your mining profits on electricity, for example, the IRS taxes you on all of what you earn. You cannot deduct the cost of electricity. For some people, this nearly doubles their tax rate on profits. For most mining profit margins are already slim and getting slimmer. Paying taxes on the full value of crypto rewards would make mining unprofitable. Then again, mining be individuals in their homes is not going to be a lasting activity anyway. The future of crypto may be proof-of-stake only. This is where I think governments may want to play. It's right up their alley.

Imagine the US government issuing a US back crypto currency that pays interest over time - like US Savings Bonds. Anyone who has purchased US savings bonds lately know that the entire system has been automated and put online. There are no more paper bonds issued by banks and Post Offices. It is all electronic. Grandma is not giving her new grandchild an envelope with a paper bond anymore. Grandma has to sign up for an account with the US Treasury Department. So do the recipients of any bonds she gives as gifts. Of course babies can't open accounts with the US TD so mom and dad have to do it then create a sub-account or child account for their child. Once this is done, Grandma can buy a bond online and send it to the babies account where it pays interest. It is a very convoluted process and I bet a lot of grandmas are just buying Amazon gift cards instead. If the US treasury issued crypto instead the stupid bonds they issue now, grandma would just need the wallet address of the baby and the US treasury could debit her credit card and issue the currency to the wallet address provided. Then with proof-of-stake, the baby's crypto would accumulate interest over time so when she turns 18 should could use her crypto to buy crack or something.

 

[Reality]

 

[Reality]