[arun_kun]

Originally Posted by SmartCat

Don't look, but Bitcoin value just hit all time highs.

Attachment 2087497

1 BTC = Rs. 15 Lakhs

Do you know why BTC is hitting life highs?

[SmartCat]

Originally Posted by arun_kun

Do you know why BTC is hitting life highs?

The Winklevoss twins think Bitcoin will eventually have a valuation of Gold. That is, $9 trillion marketcap or $500,000 per BTC.

Bitcoin surges to record above $19,800, topping 2017 high
https://www.cnbc.com/2020/11/30/bitc...000-again.html

[xingamazon]

I need some advise
How are you folks making treatment of income earned through crypto currency.

I mean though it is through STCG how do we prove the cost at which I had purchased them in case if there is enquiry.

Any kind of advise would be appreciated

[pandey.jai]

How are you folks investing in Bitcoin or any other alt coins? Do you live in India?

[Samurai]

Originally Posted by pandey.jai

How are you folks investing in Bitcoin or any other alt coins? Do you live in India?

Suppose you found a way and invested in cryptocurrency.

Then this will happen...

https://www.bloombergquint.com/globa...cryptocurrency

Why will Indian government allow a rival currency to INR that will operate like black money, used mainly to avoid taxes and fund illegal deals and even terrorism?

Movement of foreign currency in and out of the country is highly regulated. Every time we get some foreign currency remittance into the company bank account, we have multiple forms to fill and file with different department.

And here comes cryptocurrency, which skips all those procedures. Unless cryptocurrencies fit into the legal framework controlled by GOI, your investment will be at a very high risk.

[tsk1979]

Originally Posted by Samurai

Suppose you found a way and invested in cryptocurrency.

Then this will happen...

https://www.bloombergquint.com/globa...cryptocurrency

Why will Indian government allow a rival currency to INR that will operate like black money, used mainly to avoid taxes and fund illegal deals and even terrorism?

Movement of foreign currency in and out of the country is highly regulated. Every time we get some foreign currency remittance into the company bank account, we have multiple forms to fill and file with different department.

And here comes cryptocurrency, which skips all those procedures. Unless cryptocurrencies fit into the legal framework controlled by GOI, your investment will be at a very high risk.

Black money is illegal. Still people hide it under the mattress, or buy gold and hide it. For this black money, the mattress is a pen drive. And if you use Monero, it gets even harder to track.
Unless the entire world bans crypto, individual governments are going to have a hard time stopping their citizens from amassing crypto.
Its best to allow people to buy it legally, atleast there is a record.

[Samurai]

Originally Posted by tsk1979

Black money is illegal. Still people hide it under the mattress, or buy gold and hide it.

But cash is legal currency. You can use it to buy stuff, and most will accept it.

Is that the case with bitcoin? If my neighbour in Bangalore has 100 bitcoins, what can he do with it? Can he buy a house with it, can he buy a car with it? Not really. He can probably sell it on zebpay, who will transfer the converted rupees into his bank account. This will attract capital gains tax, which he will have to pay. This transaction treats bitcoin like property.

Here is an article that rises some questions:

https://www.fxempire.com/forecasts/a...s-value-689072

[Samurai]

As bitcoin raises to $35K, it is again time to remind everyone that it is a fantasy value. I really wonder when the bubble will burst.

https://www.fool.com/investing/2020/...ouldnt-either/

[Abbas]

Originally Posted by Samurai

As bitcoin raises to $35K, it is again time to remind everyone that it is a fantasy value. I really wonder when the bubble will burst.

https://www.fool.com/investing/2020/...ouldnt-either/

Absolutely! Such volatility without any intrinsic value is clear sign of high value betting.

Also, the argument that this can replace real cash goes for a toss since any tom dick and harry can actually create their own coin and come out with their ICO (Actually many such offering has come and people have lost money).

Why can`t people understand that its just a math algorithm.

As far as the blockchain technology, yes it has many use case scenarios and that is being implemented. It would be better to identify and invest in companies who are leveraging block chain tech into real time use.

[SmartCat]

Bitcoin and startup valuations work on something called the GREATER FOOL THEORY.
https://en.wikipedia.org/wiki/Greater_fool_theory
https://www.investopedia.com/terms/g...fooltheory.asp

The greater fool theory states that it is possible to make money by buying securities, whether or not they are overvalued, by selling them for a profit at a later date. This is because there will always be someone (i.e. a bigger or greater fool) who is willing to pay a higher price.

[srishiva]

Originally Posted by Samurai

But cash is legal currency. You can use it to buy stuff, and most will accept it.

Is that the case with bitcoin? If my neighbour in Bangalore has 100 bitcoins, what can he do with it? Can he buy a house with it, can he buy a car with it? Not really. He can probably sell it on zebpay, who will transfer the converted rupees into his bank account. This will attract capital gains tax, which he will have to pay. This transaction treats bitcoin like property.

Here is an article that rises some questions:

https://www.fxempire.com/forecasts/a...s-value-689072

If I invest real money in something illegal (maybe even mafia, mercenary/hitman business etc), grow it and then come back to transacting it in normal means, will the govt care for the source or means if I pay capital gains tax ?

Asking since you have to exit the bitcoin cloud to get anything tangible and govt will not ask you anything about it. Agree with greater fool theory You mostly buy thinking there will be someone to buy it from you.

[Abbas]

Originally Posted by SmartCat

Bitcoin and startup valuations work on something called the GREATER FOOL THEORY.
https://en.wikipedia.org/wiki/Greater_fool_theory
https://www.investopedia.com/terms/g...fooltheory.asp

In Hindi its called "Iski Topi Uske Sar". By this theory, it can also be implied that this is one Big Ponzi scheme. In crypto, FOMO is setting in. Eventually the people who are getting in last will lose. Where as in Startup valuation, eventually they will come out with an IPO and retail investors will lose. (Ex. Wework)

[SmartCat]

Originally Posted by Abbas

Eventually the people who are getting in last will lose.

- 2014 bull run in cryptos was fueled by geeks
- 2018 bull run in cryptos was fueled by retail "investors"

But 2020 bull run has been fueled by hedge funds (big money).
https://www.barrons.com/articles/hed...ly-51605885268

Multi-billionaire Hedge Fund manager George Soros once famously said (with a straight face):

"When I see a bubble forming, I rush to buy, adding fuel to the fire."

[Samurai]

Originally Posted by SmartCat

Bitcoin and startup valuations work on something called the GREATER FOOL THEORY.

I had come to the same conclusion about startup valuation back in 2015.

[download2live]

These are strange times. Usually the stock prices and gold prices are inversely related. Now we are seeing a rally in prices of both. Same with Bitcoin. So much money getting printed by govts all over the world. That money has to find some place to go.