The Litepresence Report on Cryptocurrency

[Zippyjuan]

IRS has not yet ruled on if Bitcoin IRAs are allowed or not in a "self directed IRA". They do for example allow gold and silver but only bullion coins and bars- not numismatic (collector) coins- and those must be held in custody by a second party.

http://www.irafinancialgroup.com/wp/can-you-buy-bitcoins-with-a-self-directed-ira/

Bitcoin is usually described as virtual currency. That’s useful shorthand, but is it really money? And should it be taxed as if it is? Or is it a capital asset? How about a commodity? Or what about a collectible? Most commentators have viewed bitcoins either as a virtual type of currency or capital asset. However, the potential still exists that the IRS could argue that bitcoins do not satisfy the main functions of money and acts more like a stamp or other collectible than a currency.

The IRS says it is studying the matter but has yet to issue any guidance. Until it does, it is anyone’s guess how bitcoin should be taxed. Most users/investors have simply picked what is most beneficial to them when they file their 2013 returns. However, for retirement investors, it important to pause before determining whether to use a self-directed IRA or self-directed Roth IRA to buy or sell bitcoins in light of the lack of IRS guidance as well as the steep penalties involved for engaging in a prohibited transaction. Accordingly, self-directed IRA and self-directed Roth IRA investors should look to other types of IRS approved investments for their retirement funds until the IRS has provided more guidance as to how the bitcoin will be treated for tax purposes.

 

[kfarnan]

Damn, bitcointalk's server got hacked last night. They're sitting on a million dollars in coins over there so you'd think they'd have that forum state of the art by now.

How, it is a forum?

 

[muh_roads]

How, it is a forum?

I think he meant bitfinex. A hot wallet got hacked. They got 1500 coins but 99.5% of coins are held in multi-sig wallets so everything seems fine. They said all funds will be honored.

mt.gox was really incompetant with their setup. Now in the age of multi-sig (addresses start with a 3 instead of a 1), it is nearly impossible to drain an exchange of the magnitude that gox experienced.

FUD was instigated so the news and slight dump happened mid-morning yesterday. Didn't effect much.

 

[muh_roads]

Fidelity used to allow Bitcoin IRAs but say they dropped them in 2013. Unless they changed that again. These guys do but have a $25,000 minimum: http://www.bloomberg.com/bw/articles/2013-12-12/the-bitcoin-ira

Like a gold IRA you need a custodian to hold the Bitcoins for you. http://www.broadfinancial.com/bitcoin

http://www.coindesk.com/invest-in-bit-fidelity-iras/

If that is true then I think Fidelity was available for a day or two. People were posting screenshots and whatnot from their accounts. USAA IRA's as well.

Feet definitely feel like they are being dragged to hold BTC back from popping too fast so the big boys can get into their positions. Winklevii ETF approval definitely feels like it is being held back on purpose by the SEC.

It's all good. We'll be going sideways between 100-300-100-300 for a while IMO. Accumulate the dips. On a logarithmic zoomed out scale, this large chop-chop going sideways makes sense as the new flat line if the next bubble is destined for a consistent 4 figure range.

 

[muh_roads]

Also, how about that LTC? dayum.

 

[presence]

Also, how about that LTC? dayum.

100k wall at 00800 if it breaks its moon time, watch your books

 

[presence]

single use stoploss LTC shares:

def tick():

    ltcbtc = ltcusd = self_destruct = False

    if data[pairs.ltc_btc].price > 0.00801:
        ltcbtc = True
    if data[pairs.ltc_usd].price > 2.01:
        ltcusd = True
        
    if ltcbtc or ltcusd:
        
        if portfolio.usd > 1:
            buy(pairs.ltc_usd)
            self_destruct = True
        if portfolio.btc > 0.1:
            buy(pairs.ltc_btc)
            self_destruct = True
    
    if self_destruct:
        raise Stop()

 

[presence]

4X bitcoinwisdom charts

https://hypron.net/bitcoinwisdom/

 

[FSP-Rebel]

How, it is a forum?

It went offline a few nights ago and I posted the above when I saw on reddit what Theymos (the owner) posted

 

[presence]

*************PRICE ALERT****************


Huobi is knocking on heaven's door.

LTCBTC is also approaching its ceiling.


High 1 day upside potential in BTCUSD and LTCBTC


1505 last Huobi

007600 last LTCBTC


Honeybadger is holding BTC.

 

[presence]

 

[muh_roads]

Nice chop up. Some more sideways for a few days now. Bears wait at 260-280, but that could still be a nice $20-$40 profit per coin.

 

[btcltc]

do you guys think btc and the more prominent altcoins will rise again, perhaps not to what they where before, but lets say that btc will hit at least 600dollars before the end of this year?

 

[Zippyjuan]

More than double by the end of the year? Highly unlikely- for any type of asset or investment.

 

[muh_roads]

do you guys think btc and the more prominent altcoins will rise again, perhaps not to what they where before, but lets say that btc will hit at least 600dollars before the end of this year?

In the land of bitcoin anything is possible. 450 has to be cleared first before 600 can happen. There will be more rollercoasters moving between the 100 to 300 range for a while, IMO. Volatility has slowed down but still massive on a zoomed out scale. And that is considered our new sideways movement on the 1d chart. Try to play the swings to hoard for more BTC. Spend when you want/need to on the up-swings.

As for alt-coins, there will be more wild swings but they are less predictable since they are easy to move for big BTC holders. I think alt-coins will have no unique utility-value in the future once blockstream arrives at the beta stage for bitcoin sidechains. Ethereum has something useful called DApps but people are saying it isn't rocket science and will just be copied. Same goes for "smart" contracts.

More than double by the end of the year? Highly unlikely- for any type of asset or investment.

Bitcoin is not like any other investment what-so-ever. There are no stock splits or reverse stock-splits. It's a never-ending global IPO that anyone can be part of. Not just a select few. And each "share" also doubles as a transmission of value for purchasing goods & services. No stock can do that.

And the 14m current supply being eaten up among a possible 2b internet connected people is nothing I would bet against.

99.98% of the global population was not involved to push BTC to $1200 for the first time. The possibilities are staggering if you think about it.

 

[Zippyjuan]

99.98% of the global population was not involved to push BTC to $1200 for the first time. The possibilities are staggering if you think about it.

You are right. It was a small number of speculators trying to make a buck off of it. The bubble has since burst now that the novelty has worn off and the speculators have mostly cleared out. I would not expect any similar such rush to occur in the future.

 

[presence]

You are right. It was a small number of speculators trying to make a buck off of it. The bubble has since burst now that the novelty has worn off and the speculators have mostly cleared out.

Which is why 2015 has seen more venture capital than ever before?

 

[Zippyjuan]

And yet the price of BitCoin has barely moved since the beginning of the year. It is less than half what it was a year ago ($241 vs $570).

Surely all that investment would lead to more demand for BitCoins and a higher price for it.

 

[presence]

And yet the price of BitCoin has barely moved since the beginning of the year.

Accumulation

Large investors and financial institutions are limited in their ability to move in and out of securities because they deal with large numbers of shares that would drive the price of a security up if ordered all at once. In order to buy their intended number of shares, institutional investors spread their accumulation of shares over a period of time.

​

Read more: http://www.investopedia.com/terms/a/accumulation.asp#ixzz3b68cx7A1
Follow us: @Investopedia on Twitter

 

[Zippyjuan]

Doesn't apply to BitCoin. BitCoin isn't a stock. It is more like a commodity like gold or oil.