If you have cryptocurrencies in Binance, may want to move them out...

[Maverick]

https://www.nytimes.com/2018/02/05/technology/virtual-currency-regulation.html

 

[DrHenley]

Some Bitcoin slang:

1. HODL
Example: "Stay strong, HODL even when the price drops."

In early bitcoin forums, someone posted a message that spelled the word "hold" wrong, and readers interpreted it as an acronym "hold on for dear life," Saddington explains. "Now, it's become a meme of sorts, so that when the prices are highly volatile, bitcoin buyers say 'HODL!'" Saddington describes himself as "a long-term HODLER."

2. FUD
Example: "If someone tells you bitcoin is a bubble, they just have FUD."

This one is simple, Saddington says. FUD means "fear, uncertainty and doubt." Bitcoin followers advise to HODL your coins despite the FUD of those outside the community.

3. Sats
Example: "How many sats are you buying at this price?"

"Sats" is short for "satoshis," a term derived from the first name of bitcoin's mysterious creator, Satoshi Nakamoto. It refers to the smallest fraction of a bitcoin that can be sent, which is 0.00000001 of a bitcoin. Instead of looking at bitcoin in terms of a dollar value, "real traders look at sats, or satoshis," says Saddington.

4. Whale
Example: "There must be a whale behind this coin's movement."

"A whale is someone who owns a lot of cryptocurrency," Saddington says. "According to statistics and the addresses that you can find online — because bitcoin isn't truly anonymous; you can actually find the whales — these are the people who own a ton of bitcoin. We're talking about like hundreds of thousands of bitcoin or more."

If a "whale" sells a lot of their stake, it can cause the price of a cryptocurrency to dip by flooding supply, he explains.

5. Pump and dump
Example: "This coin's chart looks like it was a pump and dump."

"Pump and dumpers are people who often say, 'Hey, let's all of us together pump this coin,' which means buy the coin, create the demand in the market, the coin will go up in value," Saddington says. Then, everyone "dumps" the coin and sells.

These schemes are often orchestrated through apps like Slack or Telegram, he adds, and advises curious chatroom readers to beware of such gimmicks. An investigation into "pump and dump" schemes by Business Insider found the practice to be an "open secret among many cryptocurrency traders."

6. Bagholders
Example: "I think this coin is going to sell off, and someone's going to be left as the bagholder."

"A bagholder, essentially, is a very unfortunate soul who at the end of the day — maybe from a pump and dump — who got 'held with the bag,' which means they wanted to sell at a higher price, but the market moved too fast," Saddington says. Then, that person is left with "a coin they don't want at a price they can't sell it [at]."

7. Mooning
Example: "Ripple is mooning!"

If something is "mooning," that means a coin's price is experiencing a spike. "That is often what you'll see on Twitter, or social media sites," he says. "That is one term that I don't enjoy."

Crypto-watchers will often get excited about minor bumps in price and boast that their coin is headed "to the moon," Saddington says, sometimes only in an effort to inflate the price for their own gain.

"I think mooning is one of those terms I'd like to remove from the general vernacular," he says.

https://www.cnbc.com/2018/01/23/what-hodl-whale-and-other-cryptocurrency-slang-terms-mean.html

 

[DrHenley]

Crypto went back up after the 3 PM market crash. Back to where they were before the dip.

BTFD? Seems dangerous...

Here is what that "recovery" looks like on a 3 month chart - that little uptick at the end. For it even to be the least bit encouraging, it would have to get back above the previous support trend (red line - which is going down itself)

Here is my prediction: The next few days will make or break Bitcoin. If it can't get a rising or even level support trend going soon, it's doomed. People are already predicting Bitcoin diehards will HODL all the way to zero, and that this will go down in history as the "Mother of all bubbles."

 

[Squirtgunsquirter]

Imagine that you bought at $18k. What else could you do but HODL?

I know on Zerohedge, a lot of the bitcoin guys are putting on a brave face. There was a narrow window to make a load of money off bitcoin, I missed it by never buying in. Would I have been smart enough to get out at the top? Unlikely.

 

[DrHenley]

I think the closest thing to the Bitcoin bubble is when the Hunt brothers tried to corner the silver market in 1980. Silver went from $6 an ounce to $50 an ounce in one year, then rapidly collapsed.

Gold, silver, and platinum went through a similar cycle a few years ago.

 

[Brent S]

Though the Dow going down is actually a good thing, it need to head towards correction and back down to reality. Though I fear inflation may fallow all the good economic news. I am wondering what’s fueling the crypto currency spiraling down?

I believe it’s all over China and India threatening delegitimization of it. I think japan and s Korea have an impact as well. Face it, governments are threatened by something they aren’t assured their cut from.

 

[Mountain trapper]

I think the closest thing to the Bitcoin bubble is when the Hunt brothers tried to corner the silver market in 1980. Silver went from $6 an ounce to $50 an ounce in one year, then rapidly collapsed.

Gold, silver, and platinum went through a similar cycle a few years ago.

In the late 90's I bought a large amount (for me anyway) of palladium at less than $200 oz. In a short time it shot up to over a thousand dollars per ounce. And just about as fast as it went up it dropped like a rock, lost almost $800 an oz. Today it's back up to around $1000 oz again. Any investment can be risky, but some are so risky that you better have a strong stomach before investing, and know when to sell.

 

[DrHenley]

I made a modest profit on palladium. Lost my shirt on platinum though. Good thing I only bought a little.

 

[DrHenley]

Y'all might want to read the Wikipedia article about the "Greater Fool Theory". It is still just a theory, but gaining acceptance as a model of how speculative bubbles happen. Notice one of the links at the bottom of the article is to the article about Bitcoin LMAO

https://en.wikipedia.org/wiki/Greater_fool_theory

Basically, people buy into a speculative bubble are fools, but hope to find a bigger fool to sell to. At some point, there aren't any bigger fools out there (usually due to some event that shakes investor confidence) and it collapses.

OH, and I might have been wrong about the Hunt brothers fiasco being the closest thing to what is happening with cryptocurrencies. We may be seeing a repeat of "Tulip Mania."

https://en.wikipedia.org/wiki/Tulip_mania

 

[Gazrok]

I am wondering what’s fueling the crypto currency spiraling down?

That's an easy one. Fear.

It's gaining more governmental attention, in the form of needing regulation, etc. However, many of us realize this is actually what is NEEDED for adoption and making it more legitimate.

Another fear factor is the recent spate of "pump and dump" on low trade volume coins. People don't want to be the proverbial "bagholders", so after the pump and dump, the coin may even disappear completely.

Note, this is typically only with a coin that was bogus to begin with, but for investors who just look at the numbers, vs. the tech, team, and goal behind a coin....they will get suckered in.

Crypto is going through a growth spurt right now, so it will be bumpy. It will go up, it will go down, and likely a LOT more than other investments typically do...so it can be scary for some.

It also reacts FAST to news that affects it, and typically, this is all while WE are asleep (as Asia is the hotbed for it)....

But, in the final analysis, we all simply hope that the coins we bought, a year from now, will be worth WAY more than we bought in for.

 

[Gazrok]

Not sure if I mentioned it before, but Binance has since moved operations to Japan, vs. China, so no need for the Chinese worry anymore.

 

[Maverick]

Wonder how many know that cryptocurrency is considered property that must be filed with the IRS?

Few Americans reporting cryptocurrency trading to IRS for now: report
https://www.yahoo.com/news/few-amer...trading-irs-now-report-080242734--sector.html


https://klasing-associates.com/can-irs-track-bitcoin-failed-report-bitcoin-income-capital-gains/

 

[Gazrok]

kind of one of the perks of it being relatively anonymous, no?

In any case, I'm not making enough to report it anyhow...

Of course, then the converse is true....that we can write off any losses.

I imagine they could, if they wanted to devote the resources to it, get a look at any US based crypto exchange's records, but for overseas exchanges? Not so much....

 

[DrHenley]

Wonder how many know that cryptocurrency is considered property that must be filed with the IRS?

Only when you sell it at a profit because of the capital gains. If you have a loss, they could care less and probably prefer you DON'T report it. Same thing with gold or any other investment you sell at a profit.

 

[Gazrok]

Not so fast. If it's considered capital gains, then you can also write off the losses.

You may be able to deduct capital losses up to the amount of your capital gains plus $3,000 ($1,500 if married filing separately). You may be able to use capital losses that exceed this limit in future years.

Pretty sure I'm low enough though, that I'd pay 0%.