I’m sure I’m losing out on gains selling here, and obviously lost out a lot on when I sold January, but I set a firm X% of my net worth that I don’t want my crypto holdings to exceed, so I’m sticking to that and selling every time I eclipse it. The cash I get from selling I’ll likely just shove in the stock market.
I also have a percentage Y I want to be above, so if the crypto market dips, I’ll reload
A few months ago I decided to approach BTC as I do stocks: ignore the price, dollar cost average, and HODL.
So far, so good.
all I’m hearing is “HI I AM JOSH AND MY HANDS ARE MADE OF COTTON CANDY”
https://twitter.com/100trillionUSD/status/1358760877307138048
motherfucker they don’t even make cars!
I mean it’s a better bet long run than horses I think because there’s no vig. Actually, maybe there is a vig but I can’t figure out what it is.
I don’t know, I think March of 2020 was a real master class in the value of crypto currencies. The world was ending, the sky was falling, and everything was tanking, including cryptos. When the shit really hit the fan, investors didn’t run to cryptos. They didn’t even run to gold, even that tanked. They ran to the currency backed by nukes and tanks.
True, but lets keep in mind that it’s still very early in the crypto game. We’re still at the stage of DOS and dialup connections. Few of us back in the early 90s grasped the extent of what the Internet would eventually become. Those who did got very rich. Crypto may offer another such opportunity in the coming decades.
If Apple tweets out tomorrow saying they will begin to accept BTC, what % of your net worth do you insta jam into BTC?
The trick is to do that before those announcements.
Yeah, a whole lotta this. I kinda Mr. Magoo’d into being mostly on the sidelines during the covid crash but I wasn’t rushing to buy the dip. I remember vividly sitting there watching it and thinking, “Welp, so much for that ‘alternative store of value NEW PARADIGM’ theory, lol, holy shit.”
Even now with bitcoin at almost 50k the hardcore bitcoinbros are still embarassed about that.
The second big embarrassment, considering many hardcore bitcoinbros were also hardcore trumpers, is that after said crash and recovery, similar to stonks, the same broad market trends and narratives started to apply, mainly the one that if Biden wins then markets will start to go to the moon.
I rushed to buy the dip. I was frantically on CB Pro right as it was bottomed out at around 5k before realizing I had no funds in my account. Then I was too cheap to buy through the regular CB platform and pay the exorbitant fees.
That only cost me about 40k and climbing.
Live and learn.
Why would this be a big deal? This is what the state of Ohio did with regard to state income tax, but all it means is that you submit bitcoins to Ohio, those coins are immediately converted to dollars, and the state bears no price risk.
I mean, the headline would sound exciting: Apple to accept bitcoin! But it’s not like tons of people were in need of iPads and had no ability to purchase them with conventional currency.
Maybe lawbros or SECbros can help me out here, but what stops Elon Musk from selling the new TSLA for 1 BTC -or- 80k, you pick the payment method. What happens?
Or replace Elon Musk / Tesla product with any other company that builds a high position in Bitcoin + their product.
I don’t know the answer but I also am very interested in this question.
Guillotine. I didn’t read the entire question but guillotine.
Maybe I’m missing something very important, but your question is very easy to answer:
If a firm offers two different ways to pay for a good or service, the customer picks which one they like and the transaction gets recorded at that value.
Like when furniture companies offer to sell you a couch for either $2,000 in cash or 48 equal payments of $50/month, the customer chooses one of those and the value is calculated as of that date.
Oh, I see. Let’s say Tesla owns $1.5 billion in bitcoin (at current price of ~$45k). And the selling price of a Tesla Model S is $100k.
What happens if Tesla tries to manipulate the market by saying the current price of a Tesla Model S is $100k OR 1 bitcoin?
Well, one thing that will happen is people will immediately purchase Model Ss with bitcoin, and Tesla will be in the unhappy situation of trading a $100k car for a bitcoin worth $45k. In the academic world, we refer to that as a dumb idea.
But putting that aside, does the attempted price manipulation affect Tesla’s financial statements? Maybe they only offer this deal for a single car purchase, so it only costs them $50k. Can that $50k loss allow them to say, “Now that we have established 1 bitcoin is worth $100k, we will revalue our vast bitcoin holdings from $1.5 billion to $3 billion.”?
No, for two reasons:
Bitcoin isn’t marked to market on firms’ financial statements. That is, if a company owns shares of Gamestop, that company will revise its Balance Sheet assets up and down as Gamestop stock rises and falls. And they’ll record a corresponding gain or loss on the Income Statement. But bitcoin isn’t treated like that by the SEC. Instead, it’s treated as property and the financial statement value isn’t adjusted when it goes up.
Even if bitcoin were treated like shares of Gamestop, Tesla offering to sell a Model S for 1 bitcoin wouldn’t be used to value all of Tesla’s bitcoin at a valuation of $100k. The accountant/auditor would just look to the most active bitcoin exchange and use the quoted price from that exchange to value the firm’s bitcoin holdings. But again, this isn’t actually how bitcoin is treated.
To be honest I still don’t believe they actually make and sell the cars. Somebody should offer to buy one for 2 bitcoins and call their bluff.