Re:How Texas is becoming a Bitcoin mining hub
by captn3m0 on Saturday February 12, 2022 @04:04PM
(#30316451)
The majority of retail investors in BTC are not buying it for the above properties - they are buying it on exchanges that report to the taxman as a speculative asset. For these users, both 1 and 2 are not Satisfied (the bank knows you invest in crypto, and the exchange holds your crypto, you don’t have control over it). (3) is getting harder to claim every day but time will tell.
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Re:How Texas is becoming a Bitcoin mining hub
by ur-whale on Saturday February 12, 2022 @04:14PM
(#30316550)
> they are buying it on exchanges that report to the taxman as a speculative asset
I believe you are correct for the vast majority of small retail crypto investors, and you are also correct that many of them are in a get-rich-quick type mindset. I feel sad for them, but ... there's no known cure for human nature.
But none of these arguments contradict the fact that the asset does have these desirable properties, and that it does create strong demand, especially from HNWI type investors.
As for 3) I disagree: it has always been very hard, and it's actually been much harder in the past.
A 30% downswing like the recent one is total peanuts compared to what happened in the early days. I seem to recall a time where it went from $30 down to $2 in a matter of weeks.