COINBASE for Crypto has come

[constant escape]

But so much of this in uncharted territory. Some crypto assets qualify as securities (such as NEXO token), while others qualify as property. Personally I;m sure about the taxation differences there, but I do know there is a lack of clarity regarding crypto regulation, at least here in the US.

Pretty sure Gary Gensler, current head of the SEC and a professor at MIT who taught a course on blockchain and money, says the likes of Ethereum is sufficiently decentralized so as to not qualify as a security, but that diagnosis may change.

 

[Leo]

the thing is, the IRS is so overwhelmed and under resourced in handling normal income tax processing and enforcement that I imagine they have very little handle on how to stay on top of crypto income/loss. lots of incentive for tax fraud, I can foresee the IRS nailing a few people in the coming years to try and make an example of them.

 

[constant escape]

is income from the sale of crypto taxable? sure, you're supposed to report all sources of income when you file your taxes, but is there an automatic process where profit/loss details get reported to the tax authorities (the IRS in the States), or is it the honor system?

Also the IRS now has access to Kraken's user data, specifically the data of users who have purchases/traded over $20,000 worth of crypto. Coinbase, Nexo, many other platforms implement "Know your client" (KYC) procedures in compliance with regulators. IRS apparently out to seize crypto of those who have been dodging taxes.

edit: I could have some details wrong about the IRS/Kraken situation.

 

[constant escape]

Yeah its already underway. But the lack of clear policy probably won;t help the IRS here, in addition to their own probable confusion as you mention. Probably enough time for tax-dodgers to move funds off of custodial wallets like coinbase, kraken, etc, and onto non-custodial wallets (where users have the private key), and from there to other non-custodial wallets, easily and effectively obfuscating their value trail.

 

[wild greens]

Crypto is a wonderful and easy way to wash money providing you stay away from major exchanges and don't loiter in non-secure URL owned wallets

If you stay out of the major exchanges and pass through 6-7 transactions it would take a long time to decipher

Pretty sure most of the minor coins exist solely for this purpose

*

Can't remember if I talked about the dark fail hacks or recent exit scams in this bitcoin thread or the other one but

Thousands of Tor exit nodes attacked cryptocurrency users over the past year

For more than 16 months, a threat actor has been seen adding malicious servers to the Tor network in order to intercept traffic and perform SSL stripping attacks on users accessing cryptocurrency-related sites.

therecord.media

It is not even close to just being the investment situation that it is portrayed as, I think its really strange that none of the mainstream reporting doesn't discuss what a lot of it is being used for ha

Anyway good detail

 

[linebaugh]

Sold my bitcoin after telsa pulled out and my partner was in need of some cash due to unemployment. Nearly doubled my money. Was slightly swayed on the environmental impact but I'm conflicted on that front. Dont think that responsibility falls on to individuals and I'm suspicious that its a bit of a smokescreen to hide that whats really upsetting is the lower types making a profit from fake money.

 

[linebaugh]

glad to see stan took his time off to become a crypto millionaire

 

[catalog]

nice to read you again starb!!

 

[polystyle]

Also forgot Chainlink, which is a decentralized oracle network. An oracle is a means for feeding real world data (weather data, market data, supply chain data, etc) into a blockchain, which is intrinsically hermetic, a closed system. Normally blockchains only compile data native to that blockchain, but having an oracle that provides trusted real world data allows smart contracts to integrate real world information, which is necessary for smart contracts to scale up to their full potential, rather than remain hermetically confined to a blockchain.

These are what i am into- the new networks.

 

[polystyle]

Yeah its already underway. But the lack of clear policy probably won;t help the IRS here, in addition to their own probable confusion as you mention. Probably enough time for tax-dodgers to move funds off of custodial wallets like coinbase, kraken, etc, and onto non-custodial wallets (where users have the private key), and from there to other non-custodial wallets, easily and effectively obfuscating their value trail.

Yeah its already underway. But the lack of clear policy probably won;t help the IRS here, in addition to their own probable confusion as you mention. Probably enough time for tax-dodgers to move funds off of custodial wallets like coinbase, kraken, etc, and onto non-custodial wallets (where users have the private key), and from there to other non-custodial wallets, easily and effectively obfuscating their value trail.

And what with the current situ @ IRS ( overwork and confusion, aftermath of Trump )
who knows what they will really come out with in terms of policy.
We can guess how out of step / not loving change these Gov. types are.

 

[constant escape]

And what with the current situ @ IRS ( overwork and confusion, aftermath of Trump )
who knows what they will really come out with in terms of policy.
We can guess how out of step / not loving change these Gov. types are.

For the most part perhaps. But the new head of the SEC, Gary Gensler, taught a blockchain course at MIT; another SEC commissioner, Hester Peirce, known as "crypto mom", is friendly to the scene and an advocate for regulatory encouragement of innovation; former head of the CFTC Chris Giancarlo just joined the board for BlockFi, one of the leading crypto lending platforms.

Plus, when you consider the global nature of crypto, it becomes clear that if the US doesn't make its regulatory framework clear and welcoming to crypto innovation, that innovation will go elsewhere. Sure seems like all you need to do is mention China and the pertinent congressional committee members would shake off their Bill Maher-esque skepticism. (edit: don't know what subcommittee that would be, off the top of my head)

That said, there is much to be lost if people, especially policy makers, take Bitcoin as an example and generalize the rest of crypto therefrom. There are much better blockchains out there, awaiting recognition and adoption, and honestly I think the civil servants will recognize that, what with the savvy leadership of the likes of Gensler.

However I don't have bright expectations for the likes of Monero, or whichever other ones pride themselves on unregulatability. That said, I know almost nothing about Monero.

 

[constant escape]

These are what i am into- the new networks.

Yeah its an interesting consequence of the open-source nature of much of this: a development team grinds for a couple years optimizing a new, more efficient blockchain model, and a newer startup just adopts similar code from the offset and leapfrogs over the former.

Even if it isn;t open-source per se (which I am led to believe much oft he scene is), it is at least highly collaborative and conducive to such expedited developments.

 

[polystyle]

For the most part perhaps. But the new head of the SEC, Gary Gensler, taught a blockchain course at MIT; another SEC commissioner, Hester Peirce, known as "crypto mom", is friendly to the scene and an advocate for regulatory encouragement of innovation; former head of the CFTC Chris Giancarlo just joined the board for BlockFi, one of the leading crypto lending platforms.

Plus, when you consider the global nature of crypto, it becomes clear that if the US doesn't make its regulatory framework clear and welcoming to crypto innovation, that innovation will go elsewhere. Sure seems like all you need to do is mention China and the pertinent congressional committee members would shake off their Bill Maher-esque skepticism. (edit: don't know what subcommittee that would be, off the top of my head)

That said, there is much to be lost if people, especially policy makers, take Bitcoin as an example and generalize the rest of crypto therefrom. There are much better blockchains out there, awaiting recognition and adoption, and honestly I think the civil servants will recognize that, what with the savvy leadership of the likes of Gensler.

However I don't have bright expectations for the likes of Monero, or whichever other ones pride themselves on unregulatability. That said, I know almost nothing about Monero.

Aha, yes you mentioned Gensler - sometimes that is all that is needed is one person in the right place at certain time >>
Agree about the promise of the chains.
Imagine some future shock among Gov. types and politico's

Promise. After some weeks meeting with ConsenSys in 2015,
previewing Benet's IPFS' and there seemed some promise among these dev's, -
same time they were programmed / designed already years ago ( Eth ) by now and growing pains well, we shall see.

Bitcoin already has it's place, history.
And will we ever know who was or was there even a Satoshi N ...

 

[constant escape]

Had to look up Benet and IPFS - wiki links it with Filecoin. Same developers behind them? I remember Filecoin's meteoric rise earlier this year.

And yeah i think its worth sniffing out the cutting edge blockchains now. I have more at stake in Ethereum than I do Cardano, but the latter could well prove more scalable and implementable. Don't know much about Polkadot. Iota seems promising.

And yeah Chainlink seems to be the most reliable investment so far. As I;ve read a few others say, Chainlink seems to have been addressing and solving a major issue with blockchain that many people in the space haven;t even identified yet, yet alone sought out a solution for. The "oracle problem", how to feed reliable real-world information into smart contracts on a given blockchain. Chainlink is pioneering "hybrid smart contracts" which integrate on-chain data and off-chain data.

Heavy stuff, slowly shipping away at it myself.

 

[polystyle]

Had to look up Benet and IPFS - wiki links it with Filecoin. Same developers behind them? I remember Filecoin's meteoric rise earlier this year.

And yeah i think its worth sniffing out the cutting edge blockchains now. I have more at stake in Ethereum than I do Cardano, but the latter could well prove more scalable and implementable. Don't know much about Polkadot. Iota seems promising.

And yeah Chainlink seems to be the most reliable investment so far. As I;ve read a few others say, Chainlink seems to have been addressing and solving a major issue with blockchain that many people in the space haven;t even identified yet, yet alone sought out a solution for. The "oracle problem", how to feed reliable real-world information into smart contracts on a given blockchain. Chainlink is pioneering "hybrid smart contracts" which integrate on-chain data and off-chain data.

Heavy stuff, slowly shipping away at it myself.

Jah Jah , yes Benet came up with IPFS - a distributed web , data retrieval model
and Filecoin. File it seemed - at the time- he did it as a 'well, why not everyone is doing on ' move , but hey yeah 'why not'. There may be something there for Edu.
Oracles we look at too, exciting area as the global mind converges.
From cyberspace to metaverse , during pandemic

 

[constant escape]

Still can't appreciate the granular technics, but oracles seem to be a real esoteric frontier. Chainlink (maybe Band Protocol?) seems to be setting up camp way ahead of others.

There was a good episode of Lex Fridman's podcast with Sergei Nazarov, from Chainlink, in which they discussed the potential of much of these things, possible integrations of machine learning. Imagine bots writing smart contracts between themselves. Or imagine natural language progressing compatibility within smart contracts.

 

[polystyle]

Still can't appreciate the granular technics, but oracles seem to be a real esoteric frontier. Chainlink (maybe Band Protocol?) seems to be setting up camp way ahead of others.

There was a good episode of Lex Fridman's podcast with Sergei Nazarov, from Chainlink, in which they discussed the potential of much of these things, possible integrations of machine learning. Imagine bots writing smart contracts between themselves. Or imagine natural language progressing compatibility within smart contracts.

Well yes . These are ways into other mech human. cyborg learning and thinking,
I guess it is the timing that has brought us to this moment where ppl are thinking forward again. Other systems so plainly needed right ?

 

[constant escape]

I think you're right. There is a refreshing explosion of utopian technical thought that crypto and DeFi seem to be occasioning. A sort of Bucky Fuller capitalism with communist sympathies that I, myself, I have learned to embrace.

In my case, a departure from anticapitalism. If you can't negate it, optimize it.

Among the more digitally literate, like yourself perhaps, I sense there is a killer combination of ambition and technical savviness that allows for substantive progress to be made rapidly. One of the recurring and resonating comments I've encountered a couple times is the observation that concepts move from whitepaper to prototype extraordinarily quickly in the crypto/blockchain/etc spaces.

 

[Leo]

In my case, a departure from anticapitalism. If you can't negate it, optimize it.

one for the Quote of the Day thread.

 

[polystyle]

I think you're right. There is a refreshing explosion of utopian technical thought that crypto and DeFi seem to be occasioning. A sort of Bucky Fuller capitalism with communist sympathies that I, myself, I have learned to embrace.

In my case, a departure from anticapitalism. If you can't negate it, optimize it.

Among the more digitally literate, like yourself perhaps, I sense there is a killer combination of ambition and technical savviness that allows for substantive progress to be made rapidly. One of the recurring and resonating comments I've encountered a couple times is the observation that concepts move from whitepaper to prototype extraordinarily quickly in the crypto/blockchain/etc spaces.

You can feel the breeze a blowing ...