Beyond the Bitcoin bubble
nytimes.com
Beyond the Bitcoin bubble
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Re: Beyond the Bitcoin bubble
#2I am personally hoping we can survive the speculation craze and reach a point where we can use the block chain technology in revolutionary (or even evolutionary) ways.
Since it’s tax time I can’t help but feel that the true long term danger to block chain technology isn’t draconian government regulation, it’s the IRS.
For example I have a transaction earlier this year where I purchased some software for $15 BTC equivalent. Transaction fees back then weren’t as brutal so I will ignore that issue as I believe it is 100% solvable. What was truly brutal is that using standard FIFO accounting practices I owe an additional 30% tax on the “money” I spent. My cost basis for that particular coin amount was 10% of what the current price of BTC was when I made the transaction.
A new user will have no idea that they even need to worry about this. Worse, Coinbase is fucking awful when it comes to transparent tax information. So as soon as the IRS starts publicly punishing intentional (or worse, unintentional) tax evaders it is a very real possibility that the interest from the broad public will wane.
Now if prices stabilize this problem starts to recede. But even if it does and prices only fluctuate 1-2%, I STILL need to worry come tax time.
Edit: I understood and knew I would owe capital gains when I purchased the software. I am not complaining about having to pay it personally, I am pointing out that this is a pretty significant problem for widespread usage and that the average user of Bitcoin right now probably has very little idea of the consequences of actually using a crypto currency for any kind of transaction that is considered a taxable event by the IRS.
Re: Beyond the Bitcoin bubble
#3This was a necessary phase. Mass adoption couldn't have been achieved without the exponential price rise of various cryptocurrency tokens. There would not have been media coverage of this proportion, had it not been for the gains.
People now talk cryptocurrency, read more about the underlying technology and accept that it will positively affect the industry in the upcoming future. I hope the market stabilizes and some of the tokens actually become useful.
Re: Beyond the Bitcoin bubble
#4This was a necessary phase. Mass adoption couldn't have been achieved without the exponential price rise of various cryptocurrency tokens. There would not have been media coverage of this proportion, had it not been for the gains. People now talk cryptocurrency, read more about the underlying technology and accept that it will positively affect the industry in the upcoming future. I hope the market stabilizes and som…
> People now talk cryptocurrency, read more about the underlying technology and accept that it will positively affect the industry in the upcoming future.
Do they really though? I don't hear anyone outside of people who have actively bought into the cryptocurrency hype saying that it is going to have a positive affect on the industry. I hear a lot of people saying things like "it's a bubble" or that "the rules these currencies are designed to circumvent are there for a reason", etc.
Re: Beyond the Bitcoin bubble
#5I hope the technology matures beyond 'blockchain' and marketing drops the 'coin' moniker and the gold rush dies down.
Cryptographically verified distributed log files should have negligible hype value and be hidden part of the infrastructure. I predict that 10 years from now normal relational databases have infrastructure for shared, authenticated and verified rows and columns and we laugh at the ICO era.
Re: Beyond the Bitcoin bubble
#6I hope the technology matures beyond 'blockchain' and marketing drops the 'coin' moniker and the gold rush dies down. Cryptographically verified distributed log files should have negligible hype value and be hidden part of the infrastructure. I predict that 10 years from now normal relational databases have infrastructure for shared, authenticated and verified rows and columns and we laugh at the ICO era.
You are not seeing the whole picture and don't understand the goal of the "coin" in a "blockchain". I would strongly urge you to do some research so that you can make up your mind from a place of knowledge instead.
Re: Beyond the Bitcoin bubble
#7I hope the technology matures beyond 'blockchain' and marketing drops the 'coin' moniker and the gold rush dies down. Cryptographically verified distributed log files should have negligible hype value and be hidden part of the infrastructure. I predict that 10 years from now normal relational databases have infrastructure for shared, authenticated and verified rows and columns and we laugh at the ICO era.
On the upside, a lot of old banking infrastructure has been re-tooled and upgraded under a billing of "Bitcoin something". I'm hoping we can get our public digital infrastructure similarly budgeted for upgrades before the bubble bursts.
Re: Beyond the Bitcoin bubble
#8This was a necessary phase. Mass adoption couldn't have been achieved without the exponential price rise of various cryptocurrency tokens. There would not have been media coverage of this proportion, had it not been for the gains. People now talk cryptocurrency, read more about the underlying technology and accept that it will positively affect the industry in the upcoming future. I hope the market stabilizes and som…
I’m not sure I agree. It’s true that lot of people now talk about cryptocurrency but all the people I have overheard or listened to talking about it are only talking about price and trading on exchanges and how they don’t have to work anymore and can just live off crypto. I don’t think I have heard people talking about it genuinely believing in it’s usefulness. All the time some of these newcomers talk about it they are just shilling and often they are not even technical people and don’t understand what blockchain is and are using bunch of buzz words from internet to try to spread the word and get more people to invest in it.
Re: Beyond the Bitcoin bubble
#9I am personally hoping we can survive the speculation craze and reach a point where we can use the block chain technology in revolutionary (or even evolutionary) ways. Since it’s tax time I can’t help but feel that the true long term danger to block chain technology isn’t draconian government regulation, it’s the IRS. For example I have a transaction earlier this year where I purchased some software for $15 BTC equiv…
> Since it’s tax time I can’t help but feel that the true long term danger to block chain technology isn’t draconian government regulation, it’s the IRS.
Sorry but no, one country's tax authority is not a long term danger to block chain.
Re: Beyond the Bitcoin bubble
#10I hope the technology matures beyond 'blockchain' and marketing drops the 'coin' moniker and the gold rush dies down. Cryptographically verified distributed log files should have negligible hype value and be hidden part of the infrastructure. I predict that 10 years from now normal relational databases have infrastructure for shared, authenticated and verified rows and columns and we laugh at the ICO era.
You are not seeing the whole picture and don't understand the goal of the "coin" in a "blockchain". I would strongly urge you to do some research so that you can make up your mind from a place of knowledge instead. http://github.com/jpantunes/awesome-cryptoeconomics
This. I don't think a lot of people grasp that cryptocurrency is more than just a distributed ledger. It's as much of an economic innovation as a technical one.