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How does Crypto Currency works?


Thalia

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I'll send you a PO box number.  You put all your currency in plain brown envelopes, send it to that address, and I'll crypto it and send it back to you.

 

J/K.  I have no idea how it works.

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On 8/31/2018 at 11:27 PM, bcsapper said:

I'll send you a PO box number.  You put all your currency in plain brown envelopes, send it to that address, and I'll crypto it and send it back to you.

 

J/K.  I have no idea how it works.

You got me there. :) I was seriously reading it though. ;)

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Don't consider it an investment. Look at it like any other market. Only spend what you are willing to lose.  It takes some tech know how to make it all work for you. I am an IT professional of close to 20 yrs now and I don't touch any of that stuff.

Google : Webster Griffin Tarpley, Gerald Celente, Max Keiser

ohm on soundcloud.com

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  • 7 months later...

Direct investment in cryptocurrency is when you buy it at the initial minimum cost and wait a couple of years to have a profit))) You are already late for this train, now the last cars are just being sent. But you can trade in a crypto-exchange if you have a lot of money to buy the first cryptocurrency package. Do you know what Forex is? Here it will be the same. With the same risks.

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  • 1 month later...

Many poor answers here, which makes me question the intelligence of those who responded. I have been doing my own research, and this is my take on cryptos:

Cryptos offer another way to store value. Like gold became the standard centuries ago, and bank notes are the standard today, cryptos could become the standard of the future. The front runner being Bitcoin, because of its early adoption and proven ability to work.

The most interesting thing about cryptos is how they could create a shift in power!

Have a look at this simple guide, and try to think of the political implications of a decentralized system of exchange: https://www.upfolio.com/ultimate-bitcoin-guide

Cheers!

Edited by AsksWhy
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  • 2 months later...

Keep in mind that these cryptocurrencies are unregulated. No central bank to pass regulations to protect investors or the users of the respective currency. Do you really want to throw your money into something like that? You might as well be investing in a hedge fund in the 1920s.

YOu were right to ask people how it works to begin with, but I wouldn't start with a message board like this (despite the fact that I just answered you on it lol). Get a book on the subject.

Edited by JamesHackerMP

"We're not above nature, Mr Hacker, we're part of it. Men are animals, too!"

"I know that, I've just come from the House of Commons!"

[Yes, Minister]

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  • 2 years later...
On 8/31/2018 at 2:34 AM, Thalia said:

Can anyone explain to me how Crypto Currency works? I'm planning to invest and I need some details before iI Invests.

Go on YouTube, there are some good videos explaining it in detail.  I put $2000 dollars into Ethereum back in May and have doubled my money.  Although the market is really volatile.  For instance, Ethereum was at $6000 dollars last week, and this week it went down to $5000.  Now it's back up to $5200.  It usually rebounds within a week or two.

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  • 3 weeks later...
9 hours ago, August1991 said:

Agreed. It's a Ponzi scheme.

But when it collapses (and it will) should the US Fed bail the people out?

Why should they? 

Isn't the Hallmark of Crypto that it's unregulated? This is why Elon Musk and pump and dump Cryptos at will. Even on Saturday Night Live. 

 

I've talked to people who are into crypto that have multiple layers are IRL security to ensure their crypto can't be stolen. Like a code on paper that only the owner has access to. 

Edited by Boges
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On 12/23/2021 at 11:28 AM, Boges said:

Why should they? 

Isn't the Hallmark of Crypto that it's unregulated? This is why Elon Musk and pump and dump Cryptos at will. Even on Saturday Night Live. 

 

I've talked to people who are into crypto that have multiple layers are IRL security to ensure their crypto can't be stolen. Like a code on paper that only the owner has access to. 

Elon Musk doesn't pump and dump crypto at will.  You're talking like somebody that doesn't know anything about crypto at all.

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9 hours ago, Shady said:

You also have no idea what crypto is and what's behind it.

Like tulips centuries ago, crypto/bitcoin etc is another bubble.

====

The tulip bubble was based on ships/spices.

This crypto bubble has a similar real base in the Internet.

The fact of the matter is that like tulip bulbs: NFTs and Bitcoin, people are buying nothing. Like in 1928.  

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On 12/29/2021 at 8:46 AM, Boges said:

The Blockchain is some wildly inefficient and energy intensive way of determining ownership. Whoopdee! 

A blockchain is a method to register transactions.

If transactions are costless, why hold Bitcoin or any zero-interest currency?

By the logic of blockchain, no one would hold any crypto-currency since (eg. Bitcoin) offers no interest while holding it.

===

By the logic of blockchain, the price of Bitcoin should have jumped and now be going down depending on its possibility of becoming a reserve currency.

 

Edited by August1991
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BTW, Americans had various types of "bitcoins" between 1840 and 1910. It was complicated but it worked!

In Canada, we had one private Bitcoin until 1935.

====

IMHO, anyone buying a crypto-currency today is playing musical chairs - but when the music stops, there will be no chairs. 

Edited by August1991
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  • 4 weeks later...
On 8/31/2018 at 2:34 AM, Thalia said:

Can anyone explain to me how Crypto Currency works? I'm planning to invest and I need some details before iI Invests.

If a profit is realized after buying and selling a cryptocurrency, is the profit then taxed as a capital gain?  According to Revenue Canada it is.

Reporting as either income or capital gain

Generally, if disposing of cryptocurrency is part of a business, the profits you make on the disposition or sale are considered business income and not a capital gain. Buying a cryptocurrency with the intention of selling it for a profit may be treated as business income, even if it’s an isolated incident, because it could be considered an adventure or concern in the nature of trade.

If the sale of a cryptocurrency does not constitute carrying on a business, and the amount it sells for is more than the original purchase price or its adjusted cost base, then the taxpayer has realized a capital gain.

Capital gains from the sale of cryptocurrency are generally included in income for the year, but only half of the capital gain is subject to tax. This is called the taxable capital gain. Any capital losses resulting from the sale can only be offset against capital gains; you cannot use them to reduce income from other sources, such as employment income. You can carry forward your capital losses if you do not have any capital gains against which to offset those losses for the year or any of the preceding three years.

For more information on capital gains, see Guide T4037, Capital Gains.

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