RE: Regulating Cryptocurrencies... And Why It Matters
Really good read I gained some insight into some things I did not know about. I did not necessarily think of the IRS's decision to start to regulate cryptocurrencies by taxing them as capital gains would be a good thing but I can see now that their actions now validate cryptocurrencies even more. Also I really liked the idea of phantom wealth. I had never heard that term before yet will be using it more from now on because it explains our current debacle perfectly right now. I really liked how you explained how bubble money is basically phantom wealth, one question I have towards this is do central banks and owners of debt help push bubbles higher because they gain more money and influence the greater they grow? My thinking behind this is that if they overvalue a home that is worth $200,000 and then it gets sold later at $500,000 but then the bubble bursts the owner of the home is still on the hook for $500,000 that they bought the house for and now they owe more money than it is worth so they are stuck in this debt cycle.
It was already determined for tax purposes that crypto currency is a security meaning it is subject to capital gains just like a house, stock, or bond.
The banksters inflate things so that they can sell at the top and buy at the bottom. With their access to unlimited fiat, they can bubble anything. Of course, they really only start the process then the feeding frenzy takes over.....the stupid money, i.e. general public is the last in..just in time to ride it down. By this time, the banksters are on the sideline ready to jump in and buy things on the cheap.
Many homeowners experienced this exact thing in 2008. The reason this crashed the economy, is that so much new debt had been created that income necessary to pay it didn't exist.
We are in an even worse position now, as the solution undertaken then was to create 5X the number of dollars that then existed, which were given to the banksters - not the debtors, who went bankrupt - and those banksters simply added zeroes to their balances such that they were then solvent.
Once they were solvent, they proceeded to do the EXACT SAME THING and recreate the bubbles.
It will crash in 2018.
Think BTC mooned lately? I am confident that John Macafee's dick is safe, despite his promise to eat it on live TV if BTC didn't reach (some outrageous sum by some too early date). Given the non-inflationary, non-debt basis for BTC, I believe $100k valuation by the end of 2018 is conservative.
As bubbles pop, and BTC moons, those $100T's of phantom dollars will be owned either by extremely stupid people (which, seeing as they own that money, isn't likely) or it will be invested in BTC and other IMMUNE cryptocurrencies by smart investors.
What will $100T influx do to BTC price? How about 5X that? That will be BTC moon.
Today is still before the beginning.
I am not an advisor. I don't know what the hell I am talking about, and am probably insane. If you follow my opinions, which come from an anonymous shitposter on an internet kelp-pickling forum, as investment advice, you are probably insane too. Don't do that!
John Macafee is certifiably insane, also.
Don't be John Macafee!
Edit: oh yeah, those unfortunate homeowners who risk being upside down in their mortgages? If they aren't stupid, when they have enough equity in their homes due to real estate bubble causing valuation to greatly exceed what they owe in their mortgages, they'll take out second mortgages and buy BTC, LTC, or any solid (non-scam) cryptocoin.
Then, they'll be fine.