The Living Off of Cryptocurrency Thread (Parallel/Circular Economies outside the system)

[chance vought]

Chance Vought I want to ask if you lend out your Bitcoin in the safest possible manner what is the interest rate you can earn, how long do you have to lock it up for and how safe is it really?

At the moment I would not lend Bitcoin. It's dumb to put it at risk to get a 2-5% return, on an asset that appreciates 100% per year. You simply don't need yield!!! It's a scam, don't do it.

You are thinking in Fiat terms...because Fiat is always losing value, it always has to be put at risk somewhere...no need to risk your Bitcoin, because it is not losing value.

If you want more value, buy more Bitcoin

 

[Based_Christian_Dude]

I hear the amish dont even have a social security number?

I'm not sure. It depends on how the Amish parents know and report their new children to the federal government.

 

[chance vought]

I'm not sure. It depends on how the Amish parents know and report their new children to the federal government.

They don't report that, I'm fairly certain, I doubt any Amish have ssn

 

[Based_Christian_Dude]

A Monero marketplace: https://xmrbazaar.com/
This was made by Douglas Tuman from the Monero Talks show.

 

[GoodShepherd]

I'm not sure. It depends on how the Amish parents know and report their new children to the federal government.

I'm not sure. It depends on how the Amish parents know and report their new children to the federal government.

There was a former amish girl on Instagram who left her family and she makes videos about the amish community and how they live and I saw in the video that they dont have social security numbers and how shes as an adult now had to go get one since she was out living in the world now. I will have to double check to see how true that was but I think its true

 

[Australia Sucks]

At the moment I would not lend Bitcoin. It's dumb to put it at risk to get a 2-5% return, on an asset that appreciates 100% per year. You simply don't need yield!!! It's a scam, don't do it.

You are thinking in Fiat terms...because Fiat is always losing value, it always has to be put at risk somewhere...no need to risk your Bitcoin, because it is not losing value.

If you want more value, buy more Bitcoin

When you eventually get to the point that you want to retire off Bitcoin you have three basic options:

The first is to sell a small amount of Bitcoin every year which means you have to pay capital gains taxes and your Bitcoin holdings reduce over time.

The second is to borrow against your Bitcoin which then means you have to pay interest and also you now have risk of a margin call plus they now take your Bitcoin as collateral so you have the same custodial risk as when you lend your Bitcoin.

Thirdly you can lend out your Bitcoin and collect interest but are now subject to credit/default risk and custodial risk, changing interest rates and must pay income tax on any interest earned.

 

[chance vought]

When you eventually get to the point that you want to retire off Bitcoin you have three basic options:

The first is to sell a small amount of Bitcoin every year which means you have to pay capital gains taxes and your Bitcoin holdings reduce over time.

The second is to borrow against your Bitcoin which then means you have to pay interest and also you now have risk of a margin call plus they now take your Bitcoin as collateral so you have the same custodial risk as when you lend your Bitcoin.

Thirdly you can lend out your Bitcoin and collect interest but are now subject to credit/default risk and custodial risk, changing interest rates and must pay income tax on any interest earned.

As far as taking loans against it, I think that is fairly safe, since you can do a multi-sig contract. Unchained Capital offers this, and soon (5-10 years) banks will be begging to be allowed to do this, because Bitcoin the the best collateral there is. It’s better than stocks, it’s better than a house, because the lender has essentially zero risk, interest rates will be the lowest of any collateral backed loan product.

Also there is the life insurance angle where you pay in, say 10 BTC, and you can take out a loan against the policy (that never has to be repaid.). The feature here is that once you take the Bitcoin out, you can sell it outright and your cost basis for capital gains is whatever it was when you took the loan.

So your cost basis for the 1 BTC you paid into the policy is $58k, but now you borrow that 1 BTC 10 years later and it’s now $1M, your cost basis when you sell is now $1M, so no capital gains tax.

https://cdn.simplecast.com/audio/2effec98-bec5-4728-ba08-7a86d776e682/episodes/987b7744-c5ba-4e6c-a4b2-11f77220d1dd/audio/5bd741f9-09ca-45dc-84b7-0933f06caaca/default_tc.mp3?aid=rss_feed&feed=MLdpYXYI

 

[Based_Christian_Dude]

Yesterday, I showed a normie that you can actually use crypto to pay for stuff. While I shopping, I just got into a small talk with a very young bloke (looked like he was in first year of university) while waiting in line at the checkout. I commented on how high the prices have gotten since I last shopped here and he agreed while quietly admitting he was struggling to keep up with inflation. I casually explained to him that the Federal Reserve is the reason behind this and the only way to stop them is to move to a currency they can't manipulate like cryptocurrencies. He, of course, didn't understand and probably didn't care until he noticed I had my crypto wallet open on my phone as I was about to buy the store's gift card online to pay for my items. After I bought the card and paid, he looked bewildered and commented on how he thought crypto was a scam. I told him that many coins are, but there's a few that truly are digital cash and showed him and then went about my day.

 

[Based_Christian_Dude]

I just found out there's a Christian accountant who accepts Monero for US tax filing and bookkeeping.

Home | Bear Bookkeeping Tax

Matthew Ryan is a Certified Public Accountant (CPA) and Enrolled Agent (EA) federally licensed to represent taxpayers before the IRS. With nearly a decade of experience working with small businesses and serving countless clients in the world of public accounting, Mr. Ryan is equipped to offer...

www.bearbookkeepingtax.com

He even was in an interview with Aaron Clarey...



His YouTube channel:

Monero Matteo

I'm Matthew. I am an accountant that comments on developments in crypto, current events, philosophy, Christianity and other interesting topics. I'm not a financial advisor/professional and none of my videos are to be construed as financial advice. Follow me at - Twitter...

www.youtube.com