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ยป MISC Crypto Crew (MCC) Vol: XIII: Money printer goes brrrrrr, But Bitcoin doesnt
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post 1626690733 12-26-2020, 09:23 PM
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#2161
  1. Grinners
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Originally Posted By Serenadium
highly advise against doing this:

You'll suffer a grinners' decay of 47% after 9 iterations of 30% ATHs.

At $275,000, the grinner's decay is $3.9m compared to someone that just holds (for an initial investment of $1m).



My method is similar to the method someone mentioned earlier, only take out a % for life changing events (sick family member, something that will genuinely help you achieve self actualisation, cancer treatment etc).

My structure is as follows:
- 10% can be sold only for personal desires and ambitions of significance (i.e. exposure to something, filling a hole in life etc). Not bull**** purchases like cars or a wedding.
- 40% only for significant life changing events (i.e. I get prostate cancer or immediate family member gets a terminal illness).
- 50% to be unsold and taken to the grave. This seems irrational but it will be my BTC high score in life.
I wouldn't criticise anyone who chose that strategy.

Counter-point: My Bitcoin belief is as high as (almost) anyones. Having said that, there are risks to it.

Namely:

1) A Cryptographic break, that renders the UTXO set un-recoverable.
2) Significant damage to it's value if the market mis-allocates capital and dethrones Bitcoin (temporarily or permanently) through sheer ignorance.
3) Significant damage to it's value if large and collaborative government crackdowns are made.

The chance of any of these occurring is low, but it isn't 0.

In your example, a cryptographic break at $125,000 would see the full portfolio be worth $0, whereas the 'Grinners Decay' portfolio would be worth $930,000 (in other assets).
Alternatively, is Bitcoin doesn't break at $125,000, you would have $4.8mil of Bitcoin vs $3.5mil of Bitcoin and $930,000 worth of other assets.

Food for thought.
"Testosterone levels peak during a man's late 20's but decline soon after, decreasing about 1.5 percent per year after age 30. "

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post 1626691013 12-26-2020, 09:27 PM
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#2162
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Exit strategies are very personal. Unless they misalign with the desire/intention of the individual, they aren't "wrong".
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post 1626691813 12-26-2020, 09:38 PM
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So what happens if/when China creates a crypto tied to their massive gold holdings? They'll be able to track everything.
post 1626692243 12-26-2020, 09:43 PM
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#2164
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Originally Posted By Grinners
I wouldn't criticise anyone who chose that strategy.

Counter-point: My Bitcoin belief is as high as (almost) anyones. Having said that, there are risks to it.

Namely:

1) A Cryptographic break, that renders the UTXO set un-recoverable.
2) Significant damage to it's value if the market mis-allocates capital and dethrones Bitcoin (temporarily or permanently) through sheer ignorance.
3) Significant damage to it's value if large and collaborative government crackdowns are made.

The chance of any of these occurring is low, but it isn't 0.

In your example, a cryptographic break at $125,000 would see the full portfolio be worth $0, whereas the 'Grinners Decay' portfolio would be worth $930,000 (in other assets).
Alternatively, is Bitcoin doesn't break at $125,000, you would have $4.8mil of Bitcoin vs $3.5mil of Bitcoin and $930,000 worth of other assets.

Food for thought.
My views are those risks are becoming increasingly small:

1. the UTXO set is stored in every full node. If there is a cryptographic break, we can just fork to an iteration prior to the break to a resistant algorithm/consensus mechanism.
2. I am not sure this is possible anymore with institutions hoarding BTC in significant quantities over other cryptocurrency. With each passing day this happens, BTC becomes more lindy. The ETH world-computer narrative is the closest thing that may bring a temporal irrational overtaking of BTC in valuation, however despite:

1. ETH uses cases being at an all time high
2. Gas fees being at an all time high
3. Value locked on-chain being at an all time high
4. Hashrate being at an ATH
5. Staked ETH at an ATH
6. Grayscale ETH trust at an ATH

The price remains a small proportion of its ATH and the ETHBTC chart swan dives like any other alt. This suggests to me ETH has poor value capture and order is being restored (i.e. the emergence of a clear dominant non-sovereign SOV).

3. Perhaps but this seems increasingly unlikely with the mass products and services that have been permitted for so long (CEXs, ETFs, hedge fund purchases, VC purchases). There are also now a significant number of crypto friendly politicians and administrators in positions of significance (senate + sec board etc)

Bitcoin's SOV status is a schelling point and becomes more lindy with each passing day, so much so, that it now represents over 50% of my portfolio and I have no plans to sell (been dcaing at scale from $1800 to $6000).
post 1626692833 12-26-2020, 09:52 PM
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Originally Posted By Serenadium
My views are those risks are becoming increasingly small:

1. the UTXO set is stored in every full node. If there is a cryptographic break, we can just fork to an iteration prior to the break to a resistant algorithm/consensus mechanism.
2. I am not sure this is possible anymore with institutions hoarding BTC in significant quantities over other cryptocurrency. With each passing day this happens, BTC becomes more lindy. The ETH world-computer narrative is the closest thing that may bring a temporal irrational overtaking of BTC in valuation, however despite:

1. ETH uses cases being at an all time high
2. Gas fees being at an all time high
3. Value locked on-chain being at an all time high
4. Hashrate being at an ATH
5. Staked ETH at an ATH
6. Grayscale ETH trust at an ATH

The price remains a small proportion of its ATH and the ETHBTC chart swan dives like any other alt. This suggests to me ETH has poor value capture and order is being restored (i.e. the emergence of a clear dominant non-sovereign SOV).

3. Perhaps but this seems increasingly unlikely with the mass products and services that have been permitted for so long (CEXs, ETFs, hedge fund purchases, VC purchases). There are also now a significant number of crypto friendly politicians and administrators in positions of significance (senate + sec board etc)

Bitcoin's SOV status is a schelling point and becomes more lindy with each passing day, so much so, that it now represents over 50% of my portfolio and I have no plans to sell (been dcaing at scale from $1800 to $6000).
I agree almost entirely with everything you've said here.

Everyone has to decide on the appropriate allocations for themselves, as Lucifer said, and I'm sure our views are aligned 95%!
"Testosterone levels peak during a man's late 20's but decline soon after, decreasing about 1.5 percent per year after age 30. "

"Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense." - Buddha

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post 1626696953 12-26-2020, 10:59 PM
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#2166
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Originally Posted By Serenadium
My views are those risks are becoming increasingly small:

1. the UTXO set is stored in every full node. If there is a cryptographic break, we can just fork to an iteration prior to the break to a resistant algorithm/consensus mechanism.
2. I am not sure this is possible anymore with institutions hoarding BTC in significant quantities over other cryptocurrency. With each passing day this happens, BTC becomes more lindy. The ETH world-computer narrative is the closest thing that may bring a temporal irrational overtaking of BTC in valuation, however despite:

1. ETH uses cases being at an all time high
2. Gas fees being at an all time high
3. Value locked on-chain being at an all time high
4. Hashrate being at an ATH
5. Staked ETH at an ATH
6. Grayscale ETH trust at an ATH

The price remains a small proportion of its ATH and the ETHBTC chart swan dives like any other alt.This suggests to me ETH has poor value capture and order is being restored (i.e. the emergence of a clear dominant non-sovereign SOV).

3. Perhaps but this seems increasingly unlikely with the mass products and services that have been permitted for so long (CEXs, ETFs, hedge fund purchases, VC purchases). There are also now a significant number of crypto friendly politicians and administrators in positions of significance (senate + sec board etc)

Bitcoin's SOV status is a schelling point and becomes more lindy with each passing day, so much so, that it now represents over 50% of my portfolio and I have no plans to sell (been dcaing at scale from $1800 to $6000).
Eth is still in infancy. Remember bitcoin has had a 6/7 year headstart and people are finally wrapping their head around bitcoin, which is incredibly simple compared to ethereum. Half of the people in this thread probably dont wtf ethereum is/does, let alone normies. Right now for ethereum is like what 2011 was for bitcoin.
$0 or $1 million crypto crew
Ex-OMG crew
post 1626697253 12-26-2020, 11:05 PM
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#2167
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Originally Posted By johnnyboi123
so it begins...



27333 wtf man
post 1626698123 12-26-2020, 11:21 PM
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That feel when not enough bitcoin to have any real sort of exit strategy because my stack isn't worth enough.

Need another altseason
post 1626698183 12-26-2020, 11:22 PM
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No coiners and Xrp moon boys on suicide watch
post 1626698483 12-26-2020, 11:31 PM
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Fark I should've bought more. Please correct
post 1626698493 12-26-2020, 11:31 PM
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28k is imminent. This is crazy
โ˜ผ "Don't stop. Never quit. No excuses." โ˜ผ
PAD ID: Lux@BB/PF 359,050,270

Motorcycle crew
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Cryptocurrency crew
post 1626698593 12-26-2020, 11:33 PM
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#2172
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Right now I'm 64% BTC, 29% ETH. Which aligns to BTC dominance:

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post 1626698613 12-26-2020, 11:34 PM
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Originally Posted By Grinners
In your example, a cryptographic break at $125,000 would see the full portfolio be worth $0, whereas the 'Grinners Decay' portfolio would be worth $930,000 (in other assets).
Alternatively, is Bitcoin doesn't break at $125,000, you would have $4.8mil of Bitcoin vs $3.5mil of Bitcoin and $930,000 worth of other assets.

Food for thought.
Maintaining $930,000 worth of assets is also a big assumption (noting you are scaling in over time remember).

1. How do you know your stocks will maintain their value? there is a good argument to suggest stocks are in a bubble and notwithstanding that quantitative easing may further inflate the bubble, history often suggest there is a deflationary collapse prior to a return to the norm. Many of the companies also operate at very low P/E ratios or at a loss (Tesla), how do you know for certain they will appreciate?

2. If you reside in US or Australia, you need to pay a capital gains tax on your sell. Given you sized in significantly at the start of the year, a portion of the 5% you sold will be need to be declared 100% as income. Even if a CGT discount exists in your country, you are likely looking at a 15-25% tax on your overall gains. Someone that just holds BTC doesn't trigger CGT events and can cash out in a tax-friendly country once a certain NW is obtained (i.e. Singapore, Uruguay etc)

3. The 5% cash allocation will continue to be debased.
post 1626698753 12-26-2020, 11:37 PM
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Originally Posted By Serenadium
Maintaining $930,000 worth of assets is also a big assumption (noting you are scaling in over time remember).

1. How do you know your stocks will maintain their value? there is a good argument to suggest stocks are in a bubble and notwithstanding that quantitative easing may further inflate the bubble, history often suggest there is a deflationary collapse prior to a return to the norm. Many of the companies also operate at very low P/E ratios or at a loss (Tesla), how do you know for certain they will appreciate?

2. If you reside in US or Australia, you need to pay a capital gains tax on your sell. Given you sized in significantly at the start of the year, a portion of the 5% you sold will be need to be declared 100% as income. Even if a CGT discount exists in your country, you are likely looking at a 15-25% tax on your overall gains. Someone that just holds BTC doesn't trigger CGT events and can cash out in a tax-friendly country once a certain NW is obtained (i.e. Singapore, Uruguay etc)

3. The 5% cash allocation will continue to be debased.
You can't cash out in another country unless you want to give up that blue passport.
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post 1626699203 12-26-2020, 11:47 PM
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Originally Posted By Parkerscott
You can't cash out in another country unless you want to give up that blue passport.
I'm willing to give up my (blue) passport if it I can cash out tax free at certain countries.
post 1626699443 12-26-2020, 11:53 PM
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#2176
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Originally Posted By Serenadium
I'm willing to give up my (blue) passport if it I can cash out tax free at certain countries.
That would be the worst investment you ever make srs. Just bite the bullet and pay the LT. Im not a big fan of the trajectory the U.S. is headed, but renouncing citizenship for a couple milly is not worth it.
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post 1626699783 12-27-2020, 12:01 AM
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Originally Posted By Parkerscott
That would be the worst investment you ever make srs. Just bite the bullet and pay the LT. Im not a big fan of the trajectory the U.S. is headed, but renouncing citizenship for a couple milly is not worth it.
A couple milly??? Lol that's life changing. He could live like a king outside of the US
post 1626700193 12-27-2020, 12:14 AM
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#2178
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Originally Posted By Serenadium
I'm willing to give up my (blue) passport if it I can cash out tax free at certain countries.
We might be finding out soon that the lead (Pb) might be the most valuable passport of them all...
Originally Posted By Parkerscott
That would be the worst investment you ever make srs. Just bite thebullet and pay the LT. Im not a big fan of the trajectory the U.S. is headed, but renouncing citizenship for a couple milly is not worth it.
hehe
#
post 1626700743 12-27-2020, 12:30 AM
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Originally Posted By ghostfacedup
A couple milly??? Lol that's life changing. He could live like a king outside of the US
He could live like an alien outside of the US. Once you renounce theres no going back. I get the appeal of wanting to renounce for tax purposes, and I get that having a chit ton of cash can afford you a different life, but I personally don't think its worth it. A U.S passport gives you embassy access, longer foreign visas, access to the U.S. markets like land etc etc. It is an extremely huge decision and should not be made lightly even if you have $15m sitting in the bank.
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post 1626701713 12-27-2020, 01:09 AM
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Its ok bro my alts will recover. Its only a small dip before the big boys start sending these **** coins to all time highs.

post 1626701973 12-27-2020, 01:18 AM
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#2181
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Originally Posted By Parkerscott
You can't cash out in another country unless you want to give up that blue passport.
Where I live, crypto gains are tax free after 1 year of hodling. Main reason I haven't sold any in 2017.
How to lose fat for Noobs: http://forum.obnoxiousbrutes.com/showthread.php?t=129247741
post 1626702023 12-27-2020, 01:20 AM
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Originally Posted By Parkerscott
You can't cash out in another country unless you want to give up that blue passport.
Pretty sure youโ€™ll be stung by expatriation tax.
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post 1626702253 12-27-2020, 01:29 AM
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Originally Posted By Luc1fer
Pretty sure youโ€™ll be stung by expatriation tax.
pretty sure thats on taxes owed. So if I had already sold this year and tried to leave without paying my taxes for the 2020 tax year I would get slammed. If you had a crypto stash that had been cooking for 3 years, renounced, and then sold after renouncing then you are in the clear, but have to pay your next countries tax. I don't think its a quick process either, and you would need citizenship in a good country with lax crypto laws.
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post 1626705793 12-27-2020, 04:04 AM
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Would bitcoin cash rise on the back of BTC?
post 1626705953 12-27-2020, 04:14 AM
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Originally Posted By Gios
Would bitcoin cash rise on the back of BTC?
Likely no.
post 1626706173 12-27-2020, 04:22 AM
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28k breached. I'm going to coom.
post 1626706263 12-27-2020, 04:26 AM
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Originally Posted By entropy91
28k breached. I'm going to coom.
How to lose fat for Noobs: http://forum.obnoxiousbrutes.com/showthread.php?t=129247741
post 1626706443 12-27-2020, 04:37 AM
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never mind your
- religion
- beliefs
- principles
- values

None of these are important.

This is your god; take the step into infinity and recieve eternal bliss:

post 1626706663 12-27-2020, 04:47 AM
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looks like our man lowstrife has made it:

post 1626707243 12-27-2020, 05:11 AM
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Thank god, finally some fuarkin sellers
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