The State of Cryptocurrency

[R-T-B]

Crypto takes hours versus days in the clearing house system inter-bank transfers occur through now.

Point: It isn't instant and no one really cares about the speed vs other benefits, otherwise we'd just use paypal.

 

[trog100]

Point: It isn't instant and no one really cares about the speed vs other benefits, otherwise we'd just use paypal.

oddly enough i do use paypal.. pretty much everything i buy is paid for via paypal.. one thing i very rarely use is actual cash..

trog

 

[FordGT90Concept]

Point: It isn't instant and no one really cares about the speed vs other benefits, otherwise we'd just use paypal.

PayPal settles debts with their own funds. PayPal has to wait days for transactions to actually clear too.

The only advantage of non-real time payments is that there's time to dispute it/stop it before it clears.

 

[R-T-B]

PayPal settles debts with their own funds. PayPal has to wait days for transactions to actually clear too.

Difference to the end user is almost nill.

oddly enough i do use paypal.. pretty much everything i buy is paid for via paypal.. one thing i very rarely use is actual cash..

trog

I do too. I have a feeling a lot of crypto users do. Which is sort of my point: Cryptos use case has never been speed. It's nearly irrelevant.

 

[Space Lynx]

Now that the IRS in USA is pushing out letters making sure you report how much Bitcoin you have or have had, I wonder if they will be taking a good look at marketplace sellers who use Bitcoin, like newegg, and forcing newegg to show all large transactions made with bitcoin, etc. One way or another the IRS will be getting their money, I have no doubt about it, might take them a few years to catch up, but yeah.

Some Bitcoin owners are going to be labeled similar to stock market traders and forced to pay the same tax those traders pay at 37% rate.

“The IRS is going to argue that someone who trades frequently and at high volume will be subject to get the ordinary tax rate at 37 percent,” Speiss says. “Traders need to be careful.”

IRS means business when it comes to bitcoin

In my last column, I reported that the IRS is going after people who trade bitcoin and other virtual currencies — and didn’t bother to pay tax on their gains. In fact, I’m told the IRS sent out 10,…

nypost.com

My advice to any of who have more than 1kin Bitcoin value, report with the IRS, play by the rules, you don't want to end up like this guy:

Wesley Snipes finishes prison time for tax evasion

He's under house arrest until July.

www.usatoday.com

 

[moproblems99]

PayPal settles debts with their own funds. PayPal has to wait days for transactions to actually clear too.

I have really been trying to figure out what relevance this has. 5 days later, still thinking.

 

[Space Lynx]

I have really been trying to figure out what relevance this has. 5 days later, still thinking.

I think he was responding to me when I said one of the main benefits of slower transactions is protection from identity theft, and I do not like that crypto does everything instantly because it is easier for a criminal to do a smash and grab robbery of someone. This is why I prefer to keep my money in the bank.

I think he was responding to me anyway, not sure.

 

[FordGT90Concept]

When you buy something using PayPal, PayPal does many things:
1) it starts the process of transferring money with the underlying bank (credit card, debit, or direct)
2) once the process has been confirmed (bank replies that the account is valid and the requested transaction is now pending), PayPal moves the agreed to sum from the payer account at PayPal to the payee account at PayPal
3) the funds (which are actually PayPal's because the actual bank-bank transfer hasn't completed yet) are available for immediate withdrawal.
4) once the funds clear (usually three days) from the bank-bank transfer, PayPal keeps the funds.

PayPal gives the illusion of speed because it's PayPal's funds being exchanged. The only reason why I know they're masking the ACH transactions is because if you try to remove bank account information immediately after requesting a transfer of money to/from it, PayPal forbids it until it clears.

TL;DR: As far as banks are concerned, everyone is debiting or crediting PayPal Inc. which allows PayPal to be much quicker than the banking system is naturally (they start both transactions using their own funds to settle both debts simultaneously).


Credit card companies do the same thing: when you buy something, you're actually spending the underlying bank's money, not your own. You settle your debt with the crediting bank monthly or interest is applied for lending you the money.


Cryptocurrencies are relatively fast because the public ledger effectively is the bank and the clearinghouse simutaneously.

 

[trog100]

a huge amount of money must flow through paypal.. ultimately in the grand scheme of things this must give it a lot of power..

i never take money out of it i just leave it there ready for my next online purchase.. in times gone past i have had as much as £40000 sat in it.. i know its not legally a bank but i tend to treat it as such..

its a pretty remarkable entity.. near world wide instant payment.. its for sure changed the world even though we dont hear much about it..

trog

 

[killster1]

a huge amount of money must flow through paypal.. ultimately in the grand scheme of things this must give it a lot of power..

i never take money out of it i just leave it there ready for my next online purchase.. in times gone past i have had as much as £40000 sat in it.. i know its not legally a bank but i tend to treat it as such..

its a pretty remarkable entity.. near world wide instant payment.. its for sure changed the world even though we dont hear much about it..

trog

40,000 in paypal? you have ever heard of paypal freezing accounts? i guess if you never sell anything maybe its not a risk? i guess depending how fast you spend you would be better off getting 5% interest on your funds in a online bank.

personally i never leave money in paypal i have had friends who's accounts have been frozen and it took what seemed like a big battle to get it back. i put all my money into buying land in developing countries im betting on it being more than 5% return. i think i have around 1 bitcoin from when ever bitcoin first started and i mined like crazy, used to buy more coins and computer hardware with litecoins. i wonder how much that wallet has in it. i purposely have not checked just for fun to see what happens. // checks litecoin price. 88 each.. hmmmm

 

[Space Lynx]

40,000 in paypal? you have ever heard of paypal freezing accounts? i guess if you never sell anything maybe its not a risk? i guess depending how fast you spend you would be better off getting 5% interest on your funds in a online bank.

personally i never leave money in paypal i have had friends who's accounts have been frozen and it took what seemed like a big battle to get it back. i put all my money into buying land in developing countries im betting on it being more than 5% return. i think i have around 1 bitcoin from when ever bitcoin first started and i mined like crazy, used to buy more coins and computer hardware with litecoins. i wonder how much that wallet has in it. i purposely have not checked just for fun to see what happens. // checks litecoin price. 88 each.. hmmmm

5% returns? what bank you using? my bank only gives me like 0.15% interest rate return on savings LOL -- even if I open a CD its only around 2-3% returns over 5 years. 5% is a bit unheard of these days.

 

[aQi]

Was in my local Town this morning and spotted a Street Begger with Sign saying
" will Accept Bitcoin"

Ha ha ha ha this is getting way too normalised.

 

[trog100]

40,000 in paypal? you have ever heard of paypal freezing accounts? i guess if you never sell anything maybe its not a risk? i guess depending how fast you spend you would be better off getting 5% interest on your funds in a online bank.

personally i never leave money in paypal i have had friends who's accounts have been frozen and it took what seemed like a big battle to get it back. i put all my money into buying land in developing countries im betting on it being more than 5% return. i think i have around 1 bitcoin from when ever bitcoin first started and i mined like crazy, used to buy more coins and computer hardware with litecoins. i wonder how much that wallet has in it. i purposely have not checked just for fun to see what happens. // checks litecoin price. 88 each.. hmmmm

i did have paypal freeze my account.. it rang their money laundering bells...

it caused major problems until it was sorted.. after that i assumed they would trust me more with some money in my account.. he he

trog

 

[killster1]

5% returns? what bank you using? my bank only gives me like 0.15% interest rate return on savings LOL -- even if I open a CD its only around 2-3% returns over 5 years. 5% is a bit unheard of these days.

The key to my statement was ONLINE BANK! i did a quick search and see some 2.2% right off the bat with a 5% but only on the first 5,000..

 

[Space Lynx]

i did have paypal freeze my account.. it rang their money laundering bells...

it caused major problems until it was sorted.. after that i assumed they would trust me more with some money in my account.. he he

trog

I would recommend you just put that money into a 5 year CD or something instead, 100% safe and you gain 2-3% interest.

 

[trog100]

I would recommend you just put that money into a 5 year CD or something instead, 100% safe and you gain 2-3% interest.

the 40k in paypal was a few years back when i was running a small business.. i dont have it any more.. he he

but i do own (hodle) some gold some silver and some crypto.. not much but enough to keep me interested in how prices move.. i would have to be in dire straights before i sold any of it..

both banks and government are looking to a cashless society and negative interest rates.. negatives interest rates mean you pay them for the privilege and lending them money.. its important to own something outside the system..

one important thing is i dont owe any f-cker anything.. all i have i own for real..

trog

 

[juiseman]

That is a lot of money in pay pal.....but you should probably move it out now that you have advertised your balance.
I would anyhow. Maybe that's just me; I guess my belief that if someone wants something bad enough; usually
they find a way to get it.....hackers included.

That being said; one time my pay pal card got skimmed at a gas station. And
Pay Pal was very quick and helpful to get my money back. The girl on the phone was really
nice and sounded kind of hot. So she was very nice to talk too as well as helpful......

EDIT: oh good.....

 

[Space Lynx]

that's fair enough trog, while I don't agree with you fully, I do agree no one should have a monopoly on anything, even if the abuse of power does not happen for twenty years, eventually that kind of power will cause abuse, so I agree, diversity is best. If I ever get enough money to invest in something I probably will do a little gold, its 100% stable price wise, and as satellites and special NASA stuff, plus India, Japan, all countries of the world entering the space race, I foresee the price of gold steadily going up over next 50 years, sure other metals work, but when it comes to deep space technology, gold is still king.

 

[killster1]

that's fair enough trog, while I don't agree with you fully, I do agree no one should have a monopoly on anything, even if the abuse of power does not happen for twenty years, eventually that kind of power will cause abuse, so I agree, diversity is best. If I ever get enough money to invest in something I probably will do a little gold, its 100% stable price wise, and as satellites and special NASA stuff, plus India, Japan, all countries of the world entering the space race, I foresee the price of gold steadily going up over next 50 years, sure other metals work, but when it comes to deep space technology, gold is still king.

but you can make gold i think its cool to invest in metals but someday they will all be synthetic no? Invest in a sweatshop would be my dream and pay everyone double what the other ones around are paying.

 

[Space Lynx]

I suppose that is a risk, synthetic metals probably are the future. I actually had forgotten about that. Well it doesn't matter, I will never have enough money to actually be able to invest anyway, lol

 

[Space Lynx]

CipherTrace says $3.1 billion may have been stolen at cryptocurrency exchanges in 2019

Judging by the latest Cryptocurrency Anti-Money Laundering report by security research firm CipherTrace, crypto criminals are likely to loot an estimated total of $4.3 billion in crypto...

www.techspot.com

CipherTrace says $3.1 billion may have been stolen at cryptocurrency exchanges in 2019
Couple in misappropriated funds and it adds up to a staggering $4.3 billion

 

[Space Lynx]

Bitcoin is at 9500 now... lost $800 or so in last 12 hours. hmm, something to watch, but I expect it will correct itself as 10k seems to be the new stable.

 

[ZenZimZaliben]

good time to buy...maybe.

 

[Space Lynx]

good time to buy...maybe.

there doesn't seem to be much risk anymore, governments of the world seem to be embracing it / regulating it and it still has an advantage over gold in that it can be used worldwide instantly... so I don't know where I stand on it anymore. I was thinking maybe buying $700 worth of a partial coin, and if it goes up great maybe I can get a free Playstation 5 if it goes up enough, but if it crashes then oh well was a risk but still not too much lost.

 

[trog100]

there doesn't seem to be much risk anymore, governments of the world seem to be embracing it / regulating it and it still has an advantage over gold in that it can be used worldwide instantly... so I don't know where I stand on it anymore. I was thinking maybe buying $700 worth of a partial coin, and if it goes up great maybe I can get a free Playstation 5 if it goes up enough, but if it crashes then oh well was a risk but still not too much lost.

long term it has to go up so does gold..

if you want to buy something just for fun.. silver may be the best buy..

trog