IA News: Bitcoin, Ethereum, Cardano, Polkadot, Zilliqa, Elrond, Tax, Risk + SPX
Patreon.com/InvestAnswers
In today’s news, we cover Bitcoin and Bitcoin Dominance, AltCoin Season starring Ethereum, Cardano, Polkadot, Zilliqa, Elrond, Tax, Risk + SPX.
Disclaimer: This is not investment advice but it is Edutainment.
NEWS FLASH
0:00 Introduction
0:30 Miners Hodling
Heavy selling in Jan 2021
A little in Feb
Stopped in March
Accumulating in April
Supply shock forthcoming
1:30 Only 2.4M Coins In Circulation
Drainage accelerating
2:12 No longer too small
Now it is an asset class
Don’t waste your time reading the article, the answer is simple: yes
Bitcoin Too Big to Fail?
2:40 2T crypto mkt cap
Doubling in 90 days
Ether, Binance Coin, Polkadot, Tether & Cardano combined value = about $422 billion
BTC Dom 57% from near 73% in Jan
3:40 BTC Dominance Bitcoin Domination falling
Back to Sep levels
Is AltCoin season here…
Or not?
4:05 Michaël van de Poppe Max Price Targets Some are broad brush strokes
Do not trade based on this
Let’s look at Percentage Gainers
Price Now
Low End
High End
Bitcoin
$57,000.00
$350,000.00
$450,000.00
Ethereum
$2,100.00
$10,000.00
$17,500.00
Cardano
$1.18
$10.00
$20.00
Polkadot
$44.00
$250.00
$350.00
Zilliqa
$0.21
$5.00
$7.00
Elrond
$166.00
$500.00
$700.00
5:15 Michaël van de Poppe Max Price Targets Some PERCENTAGES
ETH and BTC returns are similar to DOT, slightly less than ADA and better than Elrond!
ALTCOINS
6:40 ETH vs ADA Beta Compared
Beta coefficient is a measure of an investment’s systematic risk
Standard deviation is a measure of an investment’s total risk – ie standard deviation measures the risk of individual crypto
8:27 Moon Coins may do well – but you have to look at relative risk
When you compare returns – considering the added risk it is dangerous to play the Alts
Moon Coins
9:08 Microstrategy After 30 days of lagging MSTR is back
BTC 25% gain over a month
MSTR 16% and catching up
Still buying DCA lacks
MSTR again + More BTC + JP Morgan Fund
10:30 Starbucks customers can now pay for items with Bitcoin
Bakkt digital wallet
500,000 users participated in testing before the launch
Not Just a Store of Value
11:40 Remember Taxes
IRS sees Bitcoin/Crypto as property
Exchanging, spending or selling Bitcoin is a taxable event
You have to recognize any capital gain or loss on the asset
12:20 IRS – 1040’s first page, it asks, “did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency in 2020?”
“creepy”
Now an asset class
12:58 You Think The Stock Market is Rising! Stocks aren’t “going up”, denominator, going down
Inflation eats FIAT and SPX
You need assets that grow faster than inflation
FIAT
INFLATION
14:00 Some of the Smartest Schools
With falling enrollment at least they have Bitcoin to fall back on!
14:30 Now you should be convinced: Suze Orman says buy BTC!
AOL Conference
15:00 Conclusions
Miners Hodling and BTC in circulation shrinking
BTC too big to fail now
2T Market Cap
BTC Dom back to Sep levels
Rem Risk and Return this Altcoin Season
MSTR at it again – DCA weak – 3BN profit made and JPM in
BTC not only a store of value – coffee
Remember taxes
Schools
Inflation and stock market
Want more?
(you know what to do!)