How crypto could change the world and Why Cryptocurrency was invented in the first place.
People used to pay each other in gold and silver. Difficult to transport. Difficult to divide.
Paper money was invented. A claim to gold in a bank vault. Easier to transport and divide.
Banks gave out more paper money than they had gold in the vault. They ran “fractional reserves”. A real money maker. But every now and then, banks collapsed because of runs on the bank.
Central banking was invented. Central banks would be lenders of last resort. Runs on the bank were thus mitigated by banks guaranteeing each other’s deposits through a central bank. The risk of a bank run was not lowered. Its frequency was diminished and its impact was increased. After all, banks remained basically insolvent in this fractional reserve scheme.
Banks would still get in trouble. But now, if one bank got in sufficient trouble, they would all be in trouble at the same time. Governments would have to step in to save them.
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All ties between the financial system and gold were severed in 1971 when Nixon decided that the USD would no longer be exchangeable for a fixed amount of gold. This exacerbated the problem, because there was now effectively no limit anymore on the amount of paper money that banks could create.
From this moment on, all money was created as credit. Money ceased to be supported by an asset. When you take out a loan, money is created and lent to you. Banks expect this freshly minted money to be returned to them with interest. Sure, banks need to keep adequate reserves. But these reserves basically consist of the same credit-based money. And reserves are much lower than the loans they make.
This led to an explosion in the money supply. The Federal Reserve stopped reporting M3 in 2006. But the ECB currently reports a yearly increase in the supply of the euro of about 5%.
This leads to a yearly increase in prices. The price increase is somewhat lower than the increase in the money supply. This is because of increased productivity. Society gets better at producing stuff cheaper all the time. So, in absence of money creation you would expect prices to drop every year. That they don’t is the effect of money creation.
What remains is an inflation rate in the 2% range.
Banks have discovered that they can siphon off all the productivity increase + 2% every year, without people complaining too much. They accomplish this currently by increasing the money supply by 5% per year, getting this money returned to them at an interest.
Apart from this insidious tax on society, banks take society hostage every couple of years. In case of a financial crisis, banks need bailouts or the system will collapse.
Apart from these problems, banks and governments are now striving to do away with cash. This would mean that no two free men would be able to exchange money without intermediation by a bank. If you believe that to transact with others is a fundamental right, this should scare you.
The absence of sound money was at the root of the problem. We were force-fed paper money because there were no good alternatives. Gold and silver remain difficult to use.
When it was tried to launch a private currency backed by precious metals (Liberty dollar), this initiative was shut down because it undermined the U.S. currency system. Apparently, a currency alternative could only thrive if “nobody” launched it and if they was no central point of failure.
What was needed was a peer-to-peer electronic cash system. This was what Satoshi Nakamoto described in 2008. It was a response to all the problems described above. That is why he labeled the genesis block with the text: “03/Jan/2009 Chancellor on brink of second bailout for banks.”. Bitcoin was meant to be an alternative to our current financial system.
So, if you find yourself religiously checking some cryptocurrency’s price, or bogged down in discussions about the “one true bitcoin”, or constantly asking what currency to buy, please at least remember that we have bigger fish to fry.
Given how early in the Rogers Adoption Curve for Crypto we are, I would like to take a moment so we can just imagine what this technological revolution, which I consider is the next huge step for human kind, could bring. I will emphasize some socioeconomic implications of descentralization, but I`m mostly interested in listening to, and debating your inputs.
Blockchain and Crypto Currency are here to change the world forever.
The implications of decentralization
As you may know one of the core proposals of blockchain is decentralization, and with it we can optimize so many processes that this alone could be the revolution we are talking about. By eliminating intermediaries, we can save on the cost they add to the supply chain ensuring those that create the value, keep it. Or we can simply save on fees.
To quote the man himself:
Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly. – Vitalik Buterin.
To put it simply, imagine that you replace Binance (a centralized company) with a robot. A robot that you have programed so well, whose code you publicly audit, and that is so safe you can trust it with billions of dollars in liquidity pools, so it proceeds to host and operate the trading platform by itself. In case you didn’t know, this is already a reality! Many people here trade on those platforms on a daily basis.
But this goes beyond replacing Centralized Exchanges with Automated Market Makers, Airbnb with a blockchain DApp that connects landlords and costumers, or even banks with complex smart contracts that allow you to borrow, save, tokenize physical assets, and so on. This goes way beyond.
Here is where I start to fantasize of the future. Think about replacing capital itself, think about getting rid of corporations. Lets dream of a world with DAOs massive adoption.
With DeFi, we may no longer need a company like Nestlé…
And specially not their investors. Of course, you will still need the people administrating, planning, monitoring, generating new ideas that adapt to their context, and creating innovative solutions for a complex world only humans can comprehend. But the figure of shareholders and CEOs that steal all the value that workers create and leave them with a tiny fraction of it, can disappear. This can be the basis of a once in a century transformation.
Just as an example: Nestlè’s coffee growers in Colombia keep less than 10% of the final sale price, and barely make a living on it, so are actually abandoning the rural areas.
With Blockchain, DeFi and Smart Contracts, people like you and me can collectively fund such an operation, and then agree upon specific terms like wages by direct democracy, voting with our crypto holdings. Then we would proceed to allocate funds, hire “developers” which would ultimately be regular office jobs that keep the organization functioning. Once in operation we would frequently vote on decisions and results, which would ultimately keep the highest level of accountability for people working in the organization. This is already happening by the way, this is how some blockchain projects work today. We just haven’t applied it to industrial and physical supply chains yet.
Let’s go back to our project to replace Nestle. Imagine that an organization’s main goal is not to maximize profits for shareholders and bonuses for CEOs anymore. Instead, it’s the interest of regular people and the company’s collaborators that drive its actions.
Most likely, you and I will want to consolidate an efficient and effective supply chain, that is sustainable and keeps the dignity and wellbeing of its collaborators as a guiding principle. We are not longer at their mercy on issues like climate change, we can now take immediate action against it, or stop endangering and hoarding water supplies in classic Nestle fashion.
Also, we are making profits, so we are redistributing capital, and improving our quality of life, which will be most notorious in the most vulnerable communities, usually those that extract/harvest/mine raw materials.
This is what could happen with the blockchain descentralization of business. And you could apply it to pretty much anything, but maybe initially it could be for low labor and capital intensive businesses.
I’ll give you another example. I work for a solar power multinational company. If you don’t know it, solar energy is essentially a financial product, most people working in these companies don’t care about the world, its simply that solar is a very safe and lucrative hustle, and all investors care about is having a nice return of investment (ROI). As of now, my company works exclusively for large scale corporate clients or the state itself, given that’s where the nice ROIs are, since they give you the projects that allow you to place large capitals at once. This means, as of today, we blatantly ignore the regular people that seek for our help and funding to power their farms and/or houses with solar energy. They’re not that profitable my boss tells me. This is shitty, and I’ve thought of quitting several times.
But back to the point. Now, imagine once again, we get rid of the institutional investors. Now you and me create Reddit Solar Co, a DAO. Our only purpose is to facilitate access to electricity to those without it, and to advance in the urban implementation of renewable energy. We help the world, make dividends that are automatically distributed by the DAO, and also our own Crypto is rising in value.
So, we just created a DAO that manufactures and distributes food globally right? Or maybe Reddit Solar Co. As an organization born on the blockchain, we won’t have to adapt to the state of the art innovations on the crypto world like an old steam locomotive attempting to adapt a warp drive on top of it. We were born in space.
From the beginning, our Ethereum based DAO could adopt VeChain’s solution for supply chains, Cardano will help us to give an integral solution to the unbanked communities that provide our raw material, they now have IDs, access to DeFi and education. The land deeds and legal documents that relate to our enterprise are certified by LTO Network, we move money internationally with XRP or Stellar, and don’t worry, we use Polkadot to ensure proper blockchain interoperability.
Too complex for you? Don’t worry, you don’t even have to know or care about this, leave that to others. You’re into finance. Maybe sales is your thing and there’s a little Michael Scott in you. Or you`re into social work and want to supervise our community engagement at the start of the supply chain. Just go do your thing! You don’t necessarily have to be involved in all of this.
All you know is you do your job and receive your crypto salary.
Just as computers and the internet changed the world forever, and not only had economic implications but also changed our culture, routines, work lives and ways to interact with each other, crypto will. We are just so early; that all we can do for now is dream.
You’re having too much hope in humanity dude…
Sure, I may be making some optimistic assumptions on the motivations of humans, I may be saying that we will use this technology for good, and that we care about each other, and that’s one way to look at it. But we could also argue in favor of this from a sceptic perspective: even if you don’t care about the collective wellbeing of your community, it’s in your interest to live in a safer environment right? Ergo you want to reduce poverty. Its also in your interest to stop global warming so organized human life can continue to exist, or to make sure you and your children will have water and food in 50 years, that’s why you will want to use technology for good even if you only care about yourself. Also lets not forget the powerful incentive of profits. Crypto has the clear potential to achieve all of this.
Most of the current generation of crypto projects will be ready and operating within the next 3 years, so all we will need by then is the will to use this technology for good, and the vision to change the world.
This is just the beginning, we will be killing industries but giving birth to others we could have never imagined before.
Cons of Crypto: A coin called “Chia” is gobbling up 1,125,000 TB storage per day. Just to farm this token that no one seems to use. This takes resource wastage to a whole new level.
Chia is a coin that works on a proof of time space consensus. I.e. to farm this coin, one must allot dedicated hard drives and allot the space (known as plots), and get rewarded for it. Sounds good on paper, and one could even be tempted to think they may put that spare 500 GB space left and earn some passive income on it.
Except, this one already requires industrial grade storage space, just to farm a token that has almost zero adoption anywhere.
As you can see from this coin’s explorer, the storage is growing by almost 1000 PiB per day, in the last few days.
So a growth of 1000 PiB per day => almost 1125000 TB of storage per day is added onto this network, just to mine these coins. This equates to 1.1 million 1 TB drives added per day just to support farming on this network!
Pros of Crypto: – People in Hong Kong Use The Crypto and Blockchain To Fight Against Media Censorship Reference
Network effect and staying power BTC is the first virtual currency to solve the double-spending issue. The Bitcoin Protocol offered a solution to the Byzantine Generals’ Problem with a blockchain network structure, a notion first created by Stuart Haber and W. Scott Stornetta in 1991.
Bitcoin undoubtedly has a ‘brand’. It has perhaps the most substantial name recognition of any existing crypto asset and is basically synonymous with ‘cryptocurrency’ to the lay public.
Despite near constant proclamations of its demise, Bitcoin has not died. One could argue that – as the progenitor of cryptocurrencies – its longevity and continued profitability is itself an investment thesis.
As the number of public addresses, daily active users (DAU), and large holders/long term holders continue to trend upwards, it becomes harder and harder to ‘put the genie back in the bottle’:
Bitcoin’s valuation is well described by the most fundamental factor intrinsic to its network: the number of addresses that hold BTC. Applying Metcalfe’s law, the total value of Bitcoin’s network is well explained, with an R squared of 93.8%, simply by the square of its user base, n.
Store of value to hedge inflation
Over its lifetime, narratives of Bitcoin’s value have gone through several shifts, from the original cypherpunk vision in the white paper of p2p ‘e-cash’ to today’s ‘digital gold’ narrative.
One theme underlying both of these points, however, is a reaction to or distrust in the current financial system. This was true during the financial crisis of 2008 (see the genesis block message) and is still relevant today with unprecedented levels of monetary and fiscal stimulus being pursued by governments worldwide. Government deficits and central bank money printing may lead to inflation and thus drive investors towards assets like gold or Bitcoin to preserve their wealth.
This notion that BTC is a store of value to hedge inflation has certainly caught on in the last few years – not just from institutional or hedge fund investors, but from companies like MicroStrategy, Square and Tesla adding BTC to their balance sheets.
Like gold, BTC is scarce – only 21M will ever exist. It is estimated that 3M-3.7M BTC have been lost forever/will never enter circulating supply again.. One estimate is that 14.5M BTC are essentially illiquid.
To take one example, Grayscale’s BTC trust – which has no redemption process and thus effectively takes BTC out of circulation – alone holds over 600k BTC.
Like gold, BTC is also divisible, interchangeable and durable. Unlike gold, however, BTC is a digital asset and is thus easier to purchase, move and store.
If the store of value narrative endures, Bitcoin may have significant upside in supplanting a share of gold’s use case (estimated to be a $10T asset class).
Development
One of the common counterarguments for Bitcoin is that it is a ‘dinosaur’ with little technological improvement or development (as compared to its more innovative successors).
Segregated Witness (SegWit): a protocol upgrade proposal that went live in August 2017. This protocol upgrade effectively increased the number of transactions that can be stored in a single block, enabling the network to handle more transactions per second (TPS)
Lightning Network: is a second-layer micropayment solution for scalability
While other blockchains boast enterprise development, some companies are indeed building on Bitcoin. For example, Microsoft recently launched a Decentralized Identifier (DID) network (ION) on the Bitcoin mainnet
Ideological foundation for a potentially new financial system, without the old, decrepit, and corrupt banks and middle men.
The Environmental Argument is almost pointless, as it is the most efficient way of transporting millions of dollars around the world in mere seconds. And I mean efficient in all ways, there us no other single asset in the world capable of transporting this amount of capital wealth with such a low environmental impact or financial cost. If not, try moving 4 millions dollars of gold. Also, as Btc increases in value, this gets more on more efficient.
Innovation of the technology and the first mover advantage in capturing this new market’s value/future value. Btc will always be at the top as mainstream adoption continues relating Crypto=Bitcoin.
Ability to be bankless, with proven liquidity (thanks to Tesla) and with the best performing asset creation-to-date.
Inability of third parties to do anything about your Btc holding without the seed phrase. Government’s can hardly tax it if, as Michael Saylor put it: “I had a boating accident and forgot my seedphrase, I don’t have acces to my crypto anymore so I can’t be taxed”. In a way, nobody but yourself can prove that you still have access to those funds, so, can they truly be taxable?
The S2F model and updated S2F XA model. So far they have been scarily precise. Otherwise, Metcalfe’s law assures anyone that bitcoin may never go to 0, as the network is already strong enough to provide a certain degree of value.
Bitcoin has been around way too long, and to the uneducated it is the face of the crypto world.
Bitcoin has no smart contracts.
Bitcoin is slow.
Bitcoin fees are expensive.
People see it as an investment, not a currency they can use and spend. In the end this is not defined as it’s supposed to be used, but only as store of value. It’s at the state of gold, not of a coin.
Bitcoin has become outdated, the only thing it’s useful for is investing, day to day transactions are useless.
Bitcoin’s largest advantage and in fact it’s greatest disadvantage is that it’s the oldest cryptocurrency. Since then technology has evolved so much to become more energy and time efficient.
Bitcoin is like the grandpa of crypto and we should look at it as such. Admire it for its wisdom because it has taught us so much, but also acknowledge that each of its children are trying to make their own marks on the world.
It’s huge environmental impact due to its proof-of-work concept. BTC has a carbon footprint like Singapore, uses as much electrical energy as the Netherlands, and produces as much electronic waste as Luxembourg. This is a huge problem and needs to be accepted more widely.
It’s slow. with an average transaction time of like 10 minutes, we are pretty far from instant transactions – this might not be a problem in all cases, but is one when one would like to use it like a currency, as it was planned originally
High transaction costs – not ETH-high, but too high
Bitcoin takes a lot of energy to mine and use. As of May 2021, a single Bitcoin transaction takes as much energy as 760,201 VISA credit card payments (source). To keep this in context, the world banking system uses about two times as much energy as the Bitcoin network (source)
Bitcoin is difficult to mine. GPUs and CPUs don’t have enough computing power to compete with other miners, meaning so-called Application-Specific Integrated Chips (ASICs) are required. These are expensive – generally in the range of $1000 to $6000, depending on how new the model is (source). This restricts Bitcoin’s mining pool to people and groups who have enough wealth to invest in ASICs, which threatens the goal of keeping cryptocurrency decentralized.
Bitcoin transactions can take a long time to be confirmed. The average time for a transaction to confirmed once is 10 minutes (source), but for a payment to be absolutely final, it needs to be included in multiple blocks to ensure consensus in the mining pool. This takes even longer, sometimes up to one hour (source, for 6 confirmations).
Bitcoin transactions require expensive mining fees. At the moment, the average fee for a single transaction is $14.35, making Bitcoin unsuitable for day to day use (source).
Bitcoin lacks many features available in other coins, including smart contracts (programs run on and enforced by the blockchain, see here), anonymity (source), and CPU mining (allowing anyone with a CPU to mine, thus making the network more democratic and less susceptible to being taken over by large groups).
Crypto is definitely a good way to make money. However, you might end up finding the tech interesting. I know that I sure did, and having a sound understanding of your investment will make a big difference in your ability to hodl. It doesn’t have to be much, just a few YouTube videos.
Strategies when it comes to cryptocurrencies The HODL’er: you buy and basically you never sell. It’s kind of the holy grail of strategies when it comes to crypto according to this sub. Buy and forget and check back 10 years later. You’re a millionaire, Harry! No stress and no maintenance. You can even buy more over time and continue stacking your fat holdings. Do this if you believe in crypto long term
The Goal Setter: set a goal and sell when you reach that goal. Maybe it’s 3x and I’m out. Or maybe it’s make enough for student loans and I’m out. Or maybe it’s $1MM and sell half. Can be anything. Stress depends on your goal.
The Active Trader: Buy high and sell low
The Swing Trader: Some people are good at trading – they usually wait for those days where the whole market bleeds 20-30% in a day then they buy and wait for the bounce and they sell. Rinse and repeat. But they also risk missing out on the rocket jumps. But they also minimize the risk of being in the market when there’s a crash. In the end they might be able to increase their total holdings but for most beginners they lose rather than win. High stress and high maintenance.
The Cycle Trader: you DCA in during the bear market when everything has lost 80-90% of its ATH (alternatively, a year before the Bitcoin halving). Then you slowly sell off everything approximately a year after crypto starts trending up and enters a bull market. So this method has worked well for many people – they don’t necessarily time the top right but they continue to increase their holdings over several cycles. This might be the smart move if you have discipline. The risk is that history no longer repeats itself. It has worked the past 2 cycles but it’s not guaranteed it’ll work again. Medium stress, low maintenance
The Arbitrager: usually they have algos do the trading for them. They minimize risk and just arbitrage the price differences between exchanges. They might not care about crypto and just want to make money. They miss out on the bull run but also miss out on the bear market. Low stress, medium maintenance.
The Moon Chaser: 1000x or bust. Forget $10K eth or $100K btc, they want the next shiba or safe moon. They buy coins with market caps in the millions and hope for the pump to sell. This is like the lottery ticket buyers of crypto. High stress, high maintenance, smooth brain
–HODL, dont sell with a loss if you believe in your Coin long term.
–Stake, staking is really important! I cant tell you enough, if we are in a bear market and you can stake for a few years you can easily get 20-30% more coins then you have right now.
–DCA, keep buying. The bear market is where you DCA, dont stop buying. Right now is where you can get coins cheap! Just dont stop DCAing cause you are scared! Pick projects you believe in long term and keep buying at low prices!
–Get rid of coins you dont believe in long term, shitcoins. Many wont survive the bear market.
–Research coins for the next bull run!
Crypto Currency Market Cap Visualized during the Pandemic
https://preview.redd.it/1awl671333vc1.jpg?width=959&format=pjpg&auto=webp&s=329adad185378d1f320a443485f3d21f9642af28 As you all know, the halving event happens every four years and can change the value of bitcoin. In 2012, when the first bitcoin halving happened, bitcoin was still new. People were just starting to pay attention to it, but big banks and government rules were not sure about it yet. The price of bitcoin went up and down, but not by a lot. It was around this time that Coinbase started. There was also a big scam that happened, so other things likely effected the price more than the halving. By 2016, more people and businesses started accepting bitcoin, and it became more popular. This was also a year when a lot of things were happening around the world, like the Brexit vote and changes in Chinese money, that made more people interested in bitcoin. New York made some new rules that helped make things clearer for bitcoin businesses. This year, there was also a big focus on making bitcoin work better and faster through the Lightning Network. In 2020, even more big companies started to use bitcoin, and it became a way for them to protect their money against big changes in the world economy, like the COVID-19 pandemic. The price of bitcoin went up, and more rules were made in Europe to help manage digital money businesses better. This year also saw new technology to make bitcoin more private and efficient. Overall, bitcoin halvings didn't have as large affect on the price immediately, but as you can see on the chart, the price went up shortly after. I believe similar will happen this halving, a relatively steady price going into it and a slow but steady rise to 90K or so by the end of the year. So stack those satoshis and be sure to avoid CEX (I've been burned, plus its a good idea to avoid stricter governance and fees). Use a direct on/off ramp like Moonpay or kado.money to buy without having to go through a CEX. Coinbase and Robinhood are terrible for fees folks. Okay, end of my crusade - let's wait and see what happens! submitted by /u/ChodeMcGee [link] [comments]
I’d like to remind newer people on this sub that crypto influencers with the craziest predictions are most active when the market is overheated. Some buyers not only buy into these predictions, they confidently start spreading them. See this thread from 35 days ago. It was on a post about a person cashing out when btc was around 70k. Many people in the comments were very insistent that OP of that post had made a huge mistake by selling at the start of a “massive” bull run. You can see my back and forth with some very confident people. It is not to say that the bull run is durably over, but it does seem like we could be entering into a cool-off period, at the very least for the altcoin market. I hope that we use this as a reminder to be humble in our opinions when it comes to crypto market. When BTC price goes up, it not only lifts many altcoins with it but also the confidence of many crypto investors. Please stay humble, and remember to take profits along the way. submitted by /u/daarhi [link] [comments]
Vitalik Buterin revealed a technology that could significantly improve Ethereum's main network by making it more compatible with zero-knowledge proofs, a privacy-preserving cryptographic technique. This new system, called Verkle trees, is designed specifically for zero-knowledge proofs and would address the limitations of the current system, leading to faster transactions and lower costs. Additionally, the Ethereum community's adoption of Verkle trees, as opposed to proposed adjustments, could attract more users and developers to the network, potentially increasing the value of Ethereum. submitted by /u/romanian143 [link] [comments]
We've started a movement on the MOON sub to get the broader crypto community to talk about Moons. Project Apollo is a community-driven virality program intended to get our beloved MOON trending on X by blitzing Crypto Twitter in a small window of time during the next full moon. We've been doing missions every other day for about a week now and want to bring that positive energy over here as well. And what better way to spread the love of Moons than with MEMES? Previous missions included coordinating hashtags, networking with CT influencers, testing Twitter Spaces, and more. Today's mission Create memes and promotional material. We need a way to visually communicate the good vibes of MOON. Post your favorite MOON memes below and let's have some fun during these red days. User u/stonkgoesbrr posted a great example here. And here is what it looks like as a scheduled tweet as discussed in the previous post! In fact the post on the Moons sub is full of great examples like this one by u/Inside-Effective-353. Please share memes and promotional material, be it images, videos, GIFs or anything else related to $MOON, that we can use on Twitter during the Apollo raid. As discussed in the original post, all coin eruptions happen on Twitter. I don't like Twitter either but that is just a fact. We need a coordinated effort in a very short period of time to go trending/viral, so we can be an established name in the space and onboard new community members. We'll use the full Moon, which people will already be talking about, as an orbital slingshot to trend our keywords. On April 23rd, around the time of the full moon (depending on where you live) and according to this countdown, we will raid CT to flood the timeline with tweets about $MOON, our hashtags, promo material, Twitter Spaces and more. But it all needs to happen in a window of a few minutes when the countdown expires. Check the time in your time zone here. Let the memes begin! submitted by /u/Deeyennay [link] [comments]
Here's a summary of all impacts for yesterday's annual federal budget, from the following link: https://acgca.ca/publication/federal-budget-commentary-2024/ Crypto-Asset Reporting Framework Budget 2024 proposed to impose a new annual reporting requirement on crypto-asset service providers that deliver business services effectuating exchange transactions in cryptoassets (e.g. crypto exchanges, crypto-asset brokers and dealers, and operators of crypto-asset automated teller machines). Crypto-asset service providers would be required to report to CRA, in respect of each customer and in respect of each crypto-asset, the annual value of: • exchanges between the crypto-asset and fiat currencies; • exchanges for other crypto-assets; and • transfers of the crypto-asset, including the requirement to report information in respect of a customer of a merchant where the crypto-asset service provider processes payments on behalf of the merchant and the customer has transferred crypto-assets to the merchant in exchange for goods or services with a value exceeding US$50,000. Reportable crypto-assets would exclude central bank digital currencies and specified electronic money products (e.g., digital representations of fiat currencies), which would be reportable under proposed amendments to the Common Reporting Standard included in Budget 2024. In addition to information on crypto-asset transactions, cryptoasset service providers would be required to obtain and report information on each of their customers, including name, address, date of birth, jurisdiction(s) of residence and taxpayer identification numbers for each jurisdiction of residence. If a customer is a corporation or other legal entity, the same information would need to be collected and reported in respect of the natural persons who exercise control over the entity. Reporting would be required with respect to both Canadian resident and non-resident customers. Withholding for Non-Resident Service Providers Budget 2024 proposed to provide CRA with the legislative authority to waive the 15% withholding requirement on payments to non-residents for services provided, over a specified period, if either of the following conditions are met: • the non-resident would not be subject to Canadian income tax in respect of the payments because of a tax treaty between its country of residence and Canada; or • the income from providing the services is exempt income from international shipping or from operating an aircraft in international traffic. submitted by /u/Cptn_BenjaminWillard [link] [comments]
Hey r/Cryptocurrency, we’re giving away 0.5 Bitcoin to one lucky winner to celebrate the upcoming halving. All you need to do is be the FIRST person to correctly guess what the exact USD value of Bitcoin to the nearest dollar, as reflected on Kraken, will be at 04:00 PM UTC on April 20, 2024. https://i.redd.it/ou36bfijc1vc1.gif Participants must have a Kraken account verified to at least the intermediate level. One submission only per account. Read the full contest rules here: https://www.kraken.com/btchalving2024redditterms Submit your official answer here: https://docs.google.com/forms/d/e/1FAIpQLSd-sa1HHUbP_HxtFyW_JmDdpo7JIwZSBP5VjvbOz_7VNMt18w/viewform?usp=sf_link Don’t forget to comment below with your predictions. First across the line takes it all! *Geo restrictions apply submitted by /u/krakenexchange [link] [comments]
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TLDR: Tell everyone you know about every scam related to crypto, especially Pig Butchering. You might save someone from destroying their life by some guy in a hotel-prison in Cambodia that does not care about you or your nanna. Pig butchering scams thrive because scammers exploit one of the strengths of cryptocurrencies, which is self-custody. It puts the onus of protecting one's money on you, the holder. When you take self-custody, you accept losing all of the fail-safes that banks offer in case of having your money stolen...to a certain extent. Not to mention, giving up the insurance that banks offer. This is not about banks and their pros and cons, so please do not bother responding/commenting on it. I truly do not care. Once your money is sent to a scammer through crypto, it is gone. Seldom do people recover it, but most of the time it is gone. Anyway, if you truly care, do not talk about crypto itself. Just educate others on the scams revolving around crypto. Cryptos are not a scam inherently, but there are scam coins (rug pulls), which is another story. But in short, crypto is heavily used to scam people. How to educate them: Just bring up how pig butchering happens. If they know about it, I guess you don't really need to say anything. Give them an example. Share videos about pig butchering with everyone that you care about, especially grandparents. And especially people you know who are invested in crypto. Share videos seeking to educate us on these scams with the most vulnerable people in your life, those who might have a disease such as Alzheimer's or anything else affecting their ability to recall. And tell them to never trust anyone on the phone. If in doubt, GO TO THE POLICE. submitted by /u/SquatDeadliftBench [link] [comments]
With all the news surrounding different wallets nowadays and how hot wallets are dangerous, I’m looking to get a hardware wallet, but not sure which one. Asking y’all veterans here for your advice on which wallet would you recommend to use, granted I want to prioritize privacy and security above everything? Also, which hardware wallet has the best UX/ease of use? People here have told me before to not click on any links, so I’ll try not to do that, so any descriptions would be greatly appreciated so I can search them up myself 🙂 Thanks in advance! submitted by /u/not-clever-at-all [link] [comments]
30 minutes ago I got a call from CoinBase stating I was involved in a data breach from Turbo Tax. It was from an automated robo call. About 30 seconds later guy calls, and explains I'm involved in a data breach. He says my account was compromised and that I needed to transfer funds to my wallet. I'm so f**cking stupid I fell for it. It took almost a half hour to go through the process, and I was dumb enough to go through the entire transaction before getting suspicious. The got the ETH, nothing else. It wasn't that much, about $300 and change, but that isn't the point. Thank God I didn't have anymore in there, and luckily when they started having me go through the rest of the assets I started to get wise. And of course that's when the call was disconnected. I can say it's losing the money that upsets me, but that isn't it. It's my stupidity and lack of paying attention. I'm 66. I'm old. Probably too old to be messing with this stuff. I'm lucky I haven't been messing with my crypto for quite a while so the funds are just minimal to keep the account active and open. I'm sick to my stomach that I was duped. Just had to share and get this off my chest. It's been years since I've been ripped off for anything, like 20 or more. It sucks getting old and being foolish, I'd say it's because I'm female, but even that can't be used as an excuse. I won't stop beating myself up over this for a long time. Caveat emptor, folks. submitted by /u/Thick-Resident8865 [link] [comments]
Welcome to the Daily Crypto Discussion thread. Please read the disclaimer and rules before participating. Disclaimer: Consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading, and could be an attempt to manipulate new readers by known "pump and dump (PnD) groups" for their own profit. BEWARE of such practices and exercise utmost caution before acting on any trade tip mentioned here. Please be careful about what information you share and the actions you take. Do not share the amounts of your portfolios (why not just share percentage?). Do not share your private keys or wallet seed. Use strong, non-SMS 2FA if possible. Beware of scammers and be smart. Do not invest more than you can afford to lose, and do not fall for pyramid schemes, promises of unrealistic returns (get-rich-quick schemes), and other common scams. Rules: All sub rules apply in this thread. The prior exemption for karma and age requirements is no longer in effect. Discussion topics must be related to cryptocurrency. Behave with civility and politeness. Do not use offensive, racist or homophobic language. Comments will be sorted by newest first. Useful Links: Beginner Resources Intro to r/Cryptocurrency MOONs 🌔 MOONs Wiki Page r/CryptoCurrency Discord r/CryptoCurrencyMemes Prior Daily Discussions - (Link fixed.) r/CryptoCurrencyMeta - Join in on all meta discussions regarding r/CryptoCurrency whether it be moon distributions or governance. Finding Other Discussion Threads Follow a mod account below to be notified in your home feed when the latest r/CC discussion thread of your interest is posted. u/CryptoDaily- — Posts the Daily Crypto Discussion threads. u/CryptoSkeptics — Posts the Monthly Skeptics Discussion threads. u/CryptoOptimists- — Posts the Monthly Optimists Discussion threads. u/CryptoNewsUpdates — Posts the Monthly News Summary threads. submitted by /u/CryptoDaily- [link] [comments]
This is basically just me venting, but maybe good conversation. I've been aware of crypto since Litecoin was new (I even mined it on my shitty GPU). I thought I was better than the simple scams, but today a "dev" was able to talk me into giving up my private passphrase. And all for a fucking memecoin. Now, I was smart, I didn't "invest" more than I was prepared to lose, and am only down about 60 bucks. But I'm incredibly embarrassed. This wasn't exactly an Oceans 11 or CIA-level operation here. Just, "lets fix your wallet, enter your passphrase on this website". Oh, the SOL you told me to put in my wallet is gone, oh the 9.2 million shitcoins I was trying to transfer transferred, and are now... Gone. It hinged entirely on me being an idiot, and it worked. Really messed up my whole day. How did you put it behind you when you did something really, really stupid? submitted by /u/_Haverford_ [link] [comments]
https://i.redd.it/i6peuy3uqwuc1.gif **Disclaimer:** Does this look like financial advice? You are right. It isn’t. Treat it so. “Do Your Own Research” (DYOR) is not a fad but an important element of the cryptoverse. Do keep that in mind. https://i.redd.it/i6peuy3uqwuc1.gif Market Capitalization Impedes Price | The Unknown Vague Logic A couple of years back when I was interacting with crypto enthusiasts on one of the forums and I made a point about one of the meme coins making it to $1, everyone said that it was impossible due to market capitalization. I did not understand what that meant, so I probed further. But no matter how much I asked or what I asked nobody could explain why market capitalization mattered. https://preview.redd.it/vn6dbjr5rwuc1.png?width=1920&format=png&auto=webp&s=b3aaf9772c1009d30f9b41ed9aebb8eeae1fb7a4 The answers were vague – “do you think the market cap of a meme coin will be more than Bitcoin?” or “market cap will not allow the meme coin to go above a certain value”, etc. If I asked why, there was a marked silence. Nobody could explain further. I did my research as to why and here it is. Also, remember that if your loved meme coins can’t reach $1 today, it doesn’t mean they cannot achieve that price in a few years to a few decades from now. That again, can be attributed to market capitalization. Let’s see how. https://preview.redd.it/v3b8v7r7rwuc1.jpg?width=800&format=pjpg&auto=webp&s=faea3138b1d5b6a75c4d44637f57dc7d21d401cc What Is Market Capitalization | And Why Do We Have It As A Measure? A simple definition of market capitalization is: Market Cap is the monetary worth of a company (share) or commodity’s (quantity) basic unit multiplied by the total number of units. Let me throw some numbers at you and then we will come to market capitalization. Crypto Verse The total market capitalization of the crypto market as of April 2024 is $2.37 trillion Out of the total market cap, Bitcoin alone accounts for $1.24 trillion Bitcoin and ETH combined account for a $1.6 trillion market cap There are 13,920 coins/tokens in the crypto space listed on Coingecko There are roughly 20,000 coins/tokens estimated across the crypto space (it could be more. Many are listed on smaller exchanges or trading on DEXs) There are an estimated 1057 exchanges worldwide listed on Coingecko. Again, the number of exchanges could be higher The global crypto users are estimated to be around 580 million by crypto.com as of 2023 end This was about the crypto space. Now let’s look at global economics. Global Economy The Global GDP at the end of 2023 was $105 trillion The money supply in the global market was $83 trillion Global GDP per capita was $12,263 [This figure was as of 2021] Global Population as of 2023 was estimated at 8 billion So, the global currency = global GDP per capita * global population = $98.1 trillion **Note:** The difference in point 2 and point 5 could be because of the 2021 numbers for GDP per capita Global disposable income per capita would be roughly 70% of global GDP per capita = $8,584.1 [Assuming a flat 30% tax for all] Global disposable income = global GPD per capital * global population = $68 trillion So, that sums up all the numbers that we wanted to see. Did it make any sense so far? No? Okay, let me explain. https://preview.redd.it/v3b8v7r7rwuc1.jpg?width=800&format=pjpg&auto=webp&s=faea3138b1d5b6a75c4d44637f57dc7d21d401cc Market Capitalization | Why Can’t My Meme Reach $1? Case 1: Shibu Inu at $1 Let’s take one of the famous meme coins after Doge, Shiba Inu. Here are some of the stats of Shiba Inu: Number of tokens in circulation: 589 trillion Current Price: $0.00002239 Market Cap: 13.19 billion [number of tokens * current price] Shiba Inu reaching $1, will need a market cap of $589 trillion. That’s roughly six times the money supply available globally. Look at points 2 and 5 under the global economy. This means we don’t even have that much money worldwide to buy anything worth $589 trillion. Besides, $589 trillion is roughly 250 times the global crypto market cap. Do we really think, that if anybody had money to buy crypto, they would pour that money into Shiba Inu and not Bitcoin? So, this is why your favorite meme reaching $1 is not easy. It is difficult, not impossible. https://i.redd.it/i6peuy3uqwuc1.gif Case 2: Did I Say Not Impossible? | How Is That? The easiest answer for that is to wait for a few decades and the global economy will have the money you need to buy your favorite meme coin. Is that true? Well, the global economy is projected to grow by a little over 3% year-on-year and if we use the same growth for money supply, then in 64 years, the global supply would be at $590 trillion. Even then, we aren’t going to put all our money into Shiba Inu, right? So, take another 60 years after that for any possibility of Shiba Inu reaching $1. In other words, the market cap of Shiba Inu at $589 trillion [if Shib is to reach $1] is so huge that it will require 64 years from now for the global economy to even have a money supply of $589 trillion. https://i.redd.it/i6peuy3uqwuc1.gif Case 3: So, My Meme Coin Is A Distant Dream? | Any other possibilities? There is one other possibility that is being adopted by all your favorite meme coiners. What is that? Burning excess supply. How does that work? There are many ways in which an excess supply can be burned. You can send your excess coins/tokens voluntarily to a burn address, or the fees that are collected while transacting in your favorite coins/tokens can be burned, or the largest holders of your favorite coins/tokens burn their holdings to reduce supply and thereby increase price. For example, if the burning of coins/tokens reduces Shib’s supply from 589 trillion to 20 billion, then Shib at $1 amounts to a market cap of just $20 billion. In other words, burning the token supply is a way to depress the market cap, thereby increasing the token price. https://i.redd.it/i6peuy3uqwuc1.gif Case 4: What About Adoption? Will More People Coming Into the Crypto Verse Help My Favorite Meme Coin/Token? That’s an interesting take. But even then, no additional people coming into the crypto verse is going to offset the fact that there is only $83-$98 trillion in money supply. But what can happen if additional people do come in is that a mid-way can be reached. If we can combine the burning of excess tokens and bringing in newbies into the cryptoverse, a coin like Shib can reach $1 much earlier than the projected 120 years. How does that work? From points 1 and 7 under the crypto-verse, we know that the crypto market cap stands at $2.37 trillion and users at 580 million. This roughly translates to $4000 per user leading to the market cap. Each user has put $4000 to give us a market cap of $2.37 trillion. The global disposable income per capita is $8,584. So, for every one of those 8 billion people to spend $4000 in the crypto verse (which is 50% of their disposable income) it would lead to an inflow of: Money Inflow: Total Population \ Per Capita Spend of $4000 = 8 billion * $4000 = $32 trillion.* Now, assuming all of this $32 trillion goes towards your favorite meme [hard to digest as new inflow of money will usually go towards Bitcoin or ETH or both or any of the other 20,000 coins/tokens], and your favorite meme does manage to reduce its supply to 30 trillion or lesser over the next twenty years, there is a chance that Shib reaches $1. A collective action of reducing supply and increasing adoption can lead to your favorite coin/token reaching $1. That is by depressing the market cap and increasing the money supply, the token price can increase. The above point is riddled with so many assumptions. Assumptions like all of the 8 billion people across the world will join the crypto bandwagon, all of the 8 billion will spend $4000 on crypto, all of the $32 trillion coming in will go only towards your favorite coin/token, and most of all, the possibility of the crypto-verse expanding by 18 times in just 20 years. So, it is not a straight-forward working. https://preview.redd.it/v3b8v7r7rwuc1.jpg?width=800&format=pjpg&auto=webp&s=faea3138b1d5b6a75c4d44637f57dc7d21d401cc Market Capitalization | Now Does It Make Sense Why Looking At It Is Important? All of the above examples would have shown you why looking at market cap is important. Don’t be driven into believing that any coin with a humongous supply is going to make you a billionaire just because you bought a billion tokens. Chances are that the world does not have enough money to help you become a billionaire. 😉 So, keep looking at the market cap and the supply, and be prudent in your investment decisions. https://i.redd.it/i6peuy3uqwuc1.gif **Image Courtesy:** Ijmaki at Pixabay https://i.redd.it/i6peuy3uqwuc1.gif submitted by /u/Savi321 [link] [comments]
Crypto's most bullish news is just 1 week away. But instead of recognizing this fact, they get disillusioned by "blatant" world news, a country launching drones to attack another country and doing literally zero damage trying to do so. Cascades of liquidations of leverage plays, panic selling paper hands, red days. People get scared so easily. Fortune favors the bold, many people want to become millionaires, but most people are also too scared. We currently have more bullish news than ever: Hong Kong approved 2 crypto ETFs UBS RAISES CHINA 2024 GDP GROWTH FORECAST TO 4.9% FROM 4.6%...China not only can FUD crypto, it can pump crypto hard, too Never we reached ATH before halving, this time we did break new ATH...next ATH will be massive. Treat the dip as a blessing, it will end sooner than most of us believe. PS: The dip can dip, but it wont stay that forever. submitted by /u/LisHere321 [link] [comments]
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