Cryptocurrency - help me understand please.

Yes and no

biggest gains will always be made on ANYTHING successful by buying in early and cashing out after it gets big.

Thats not advice to go buy etherium or bitcoin, nor is it advice against.

I would say at this point buying any established crypto is like buying microsoft google or apple stock, its unlikely to go down, or if it does, youre probably going to be worrying more about that firewood

 

Any peculiar tax implications? Can you be taxed prior to converting back to dollars, or does one receive a 1099-div type year end statement?

I think my generation is typically skeptical, at least I am.

 

I’m intrigued by Crypto. I’m sure I’ve already missed out on the Big Boom. There’s people trading it full time automatically, using computers, algorithms somehow. One Kid started in his basement and now has a large room full of these machines, automatically making money for him. I have a problem with things I can’t see or hold. Cyberspace and the Cloud, etc. It’s the way of the future. I honestly think crypto is going to get much bigger, especially as our Government issued money gets scrutinized more everyday. The Politicians, Drug Dealers, International Crooks, Underground Enterprises all need a way to handle transactions. It seems obvious.

 

Global Payment Solutions - Instant Processing | Ripple

 

I’ll be honest. I have no idea what it is. People have tried to explain. My brain just won’t give enough of a crap to process what they say. I guess I’ll worry about it if the green paper folding money goes away.

 

I invest some and look at it like whatever I invest I can afford to lose
There was a lot of talk early on how it was untraceable therefore a great way to conduct illegal activity and launder funds but recently an agency, not sure which one was able to backtrack routings and locate the people they were after.
Not sure on all of the particulars of that info but it might give some pause to the illegal and laundering part of the plan

There are tons of coins and new ones popping up all the time
Some make wire transfers more real time rather than a wire etc and in those cases it might make sense
Others allow investors. People like you and I to be the bank, by that you are able to do loans etc to other individuals

It’s like investing in futures, learn the system and allow yourself great gains or losses and if it doesn’t send you into bankruptcy then you’ll be fine
There’s no gains in anything if there was never any risk

 

Currently you pay taxes on gains after a sale but pay nothing on a longterm hold without a sale. Tax rate is dependent on length of hold.

Crypto is a lot to wrap your head around but there is some serious potential in it, to the upside or to the downside....

 

People use crypto everyday and don’t even realize.
Almost every time you use a debit card or credit card it’s directly linked to crypto and the blockchain to move the money around.

 

Thats not what people mean when talking about crypto, and the blockchain there is not technically a blockchain, its just a private entity (bank) moving digital assets on their computers.

Its not quite the same, close but no cigar

 

Most banks settle payments on the SWIFT network (70's tech) Visa and Mastercard use the same network.

No relationship to the roaming 18wheel accident in motion company.