Why crypto markets appear to dump instantly - a simple explanation of bots and stop losses

When there’s big dumps in the markets, you always hear things like, “a whale just dumped $XXX million dollars of bitcoin in 10 minutes!” That is almost never the case. It’s true there are usually large events that trigger it, but you need to understand how trading bots and stop losses work. A stop loss is a certain price at which a trader, usually with the assistance of a bot, will decide their losses are too much and will sell their crypto to prevent even greater losses.

For example let’s say bitcoin is at $45k, and a bot has a very conservative stop loss set for $43k. Then say there’s some price swings that bring the price down to $43k. The bot will now instantly dump its crypto to prevent further loss before the market goes down even further.

Now, let’s say there’s not just one bot, but thousands. And let’s say some bots have stop losses in the $44.9k range, and some in the $44.8k range, and so on, and so on. That small market swing which brought the price down to $43k just triggered hundreds or thousands of stop losses. So what happens if there’s not enough buyers to support all these bots selling? The price continues to drop, and it will drop until it finds enough buyers to support all of these sellers.

Remember these are bots. They are software programs that can trade instantly, so this massive sell-off and dump in the market happened in the span of just a few minutes. To untrained eyes it will look like an instant drop, which they conclude could only happen from a single massive sell, but that’s not he case.

Traders love times like this. They’re able to watch the buy and sell volume and estimate when the buying support will sustain the sellers, and that’s when they start buying. A lot of noobs see a giant red line in the charts and assume it’s a good time to buy. Don’t. Traders say, “don’t catch falling knives” because if the buyers aren’t yet supporting sellers, that red line is going to get a lot longer.

This is a super simple explanation, but you should at least be familiar with the concept if you’re going to dabble in crypto.

Good luck!

The "Anti-Fragile" thesis for Dogecoin...

Let's first begin by examining different attack vectors on a crypto and why Doge is quite resistant against these different fragility factors:

Technological competition

Currently we see many coins boasting tps rates in the thousands per second. This is concerning for any investment in the crypto space, as your investment gets diluted every day by 100 new distributed ledger technologies. This is worse than the internet bubble because everyone is trying to cash in on a new bubble based on a precedent in the early days of the internet. Competition is much more fierce as a result. Doge doesn't compete on the tech, so it's safe from this threat entirely.

Brand competition (this almost never used to be a big thing, until BTC, BCH, Bitcoin Gold, Bitcoin Diamond, and BSV)

Doge has no competing Doge's, and if it did would almost never be taken seriously as Doge is not basing its claim to fame on some technological dogma (in this case dogema).

Bitcoin has a very split up and fractured brand which spans across a bunch of communities. Ethereum has Ethereum Classic which haunts its long term claim to brand honesty and transparency. All of this dilution and fracturing inevitably takes away from the underlying brand. That can almost never be fixed as there will always be bad blood surrounding the brand.

​

Attacks on the Ledger

Here, every coin faces the same threat, and it only grows each day with new technologies like Quantum Computing. I call this a wash. But if it were to happen, something tells me Doge would survive it, and the whole world would simply hunt down the perpetrator rather quickly because everyone loves Doge and its community.

Leaders stepping down

Now this is interesting, as you could argue that BTC didn't really take off until Satoshi left. Which is kind of ironic. So i will consider leaders stepping down as somewhat of a good thing when it comes to currency. (Doge doesn't have a leader, as the man who made it sold all his Dogecoin for a used Honda Civic)

Leaders doing fraudulent things

We all know what happened with Litecoin, and i'm not calling Charlie Lee a fraud, however it was perceived that way by the crypto space, which has the same effect. The brand loses loyal followers, and loses value as a result. (Doge doesn't have a leader, as the man who made it sold all his Dogecoin for a used Honda Civic.)

Leaders integrity being attacked in various ways

Many leaders in the crypto space have various integrity issues, which doesn't need to be named. It has affected those brands as a result. (i'll say it again, because its quite funny... Doge doesn't have a leader, as the man who made it sold all his Dogecoin for a used Honda Civic)

Price manipulation

Many coins in the space suffer from price manipulation because of greed. Doge doesn't let you be greedy unless your crazy (like me). I want all of the Dogecoin, but it's likely i'm the only person that does...

Community dilution (forking a coin)

Doge has a strong community and any fork of the coin will likely fail as it's rather a bigger joke to fork a joke (in a bad way)

Brand Appeal losing value

This is quite simple. Doge's brand only grows as this has been proven through many market cycles. The Doge brand is socially scalable to the masses.

Resilience against pump and dumps

This has to do with Brand Appeal, and we already know Doge doesn't dump without pumping once again in the future like a phoenix from the ashes.

Patent trolling

This is quite funny, and i would pay to watch the movie that would be inevitably made after someone tries to come after Doge on such a claim. Good luck... (i'm not a fan of stealing others ideas, but Doge's claim to fame is not it's tech, and i'm sure it's tech will change quite easily if such a thing happened.)

​

It's quite clear what's happening here... Doge floats like a piece of wood in a flood... It's ironic that the Black Swan event could actually be the realization that Dogecoin is less fragile long term... It's quite miraculous in many ways, but if you believe in the Doge Side of the Force like i do, then you just know its exactly as it should be...

--Doge Sidious

https://preview.redd.it/hb6koovgxkh61.jpg?width=480&format=pjpg&auto=webp&s=99cb641dd6d72abdb3d12940ceefaa0d3f6c7437

PorcFest 2021 [XVIII] Mon Jun 21 - Sun Jun 27 (Lancaster NH)

The Porcupine Freedom Festival -- the only libertarian festival to defy the government lockup of 2020 -- will be taking place on the third week of June, Jun 21, 2021 - Jun 27, 2021 with thousands of porcupines from all over the world ... and you!

We'll have our typical great lineup of national speakers, but this year we'll be emphasizing building our porcupine community, as we spread the focus of the festival to you, the attendees. Attendees will be organizing lounges, and venues, and speeches, and workshops, and villages, and vending, and food, and services all throughout the campground, on a wide variety of liberty themes.

Details: The festival starts with you getting situated on Monday and meeting new and old friends. Tuesday features get-to-know-you events, as attendees, vendors, speakers, lounges, and venues introduce to one another. By Wednesday we're going strong with talks and discussions and activities.

This year on Wed night, our big show will be featuring the SoHo Forum, breaking out of of NYC to PorcFest, led by the insuppressible Gene Epstein and pitting Bitcoin against Fiat as the future of money. Thursday will cap off with a liberty comedy night with libertarian comedians. Friday night will feature dances and music, as well as parties, and Saturday will be our traditional cappers of a community pig roast, with our big contest one of you will be crowned Soap Box Idol for your three minute rant of an authoritarian insult of your choice, and the burning of the Porcupine.

Come and experience a week of "Liberty In Your Lifetime" in the Free State.

More Info: https://porcfest.com

This is why EIP 1559 is good- and why Vitalik, developers and most community members support it. If miners have a problem with it, then please argue your case in a livestream with the actual researchers and developers. I'll bring the popcorn.

What is EIP 1559

EIP 1559 is a proposal to reform the Ethereum fee market, with the following key changes:

• The current gas limit of 10 million is replaced by two values: a "long-term average target" (10 million), and a "hard per-block cap" (20 million)
• There is a BASEFEE (which is burned) which transactions are required to pay, which gets adjusted on a block-by-block basis with the goal of targeting a value so that average block gas usage remains around 10 million.

Essentially, instead of all of the short-term volatility in demand for transaction space within a block translating into volatility in transaction fees, some of the volatility instead translates into volatility in block size.

Why is EIP 1559 good?

Copying from an older post:

---

There are three major problems with the status quo of transaction fee markets:

• Mismatch between volatility of transaction fee levels and social cost of transactions: transaction fees on mature public blockchains, that have enough usage so that blocks are full, tend to be extremely volatile. On Ethereum, minimum fees are typically around 2 gwei (10⁹ gwei = 1 ETH), but sometimes go up to 20-50 gwei and have even on one occasion gone up to over 200 gwei: https://etherscan.io/chart/gasprice. This clearly creates many inefficiencies, because it's absurd to suggest that the cost incurred by the network from accepting one more transaction into a block actually is 100x more when gas prices are 200 gwei than when they are 2 gwei; in both cases, it's a difference between 8 million gas and 8.02 million gas.
• Inefficiencies of first price auctions: see https://ethresear.ch/t/first-and-second-price-auctions-and-improved-transaction-fee-markets/2410 for a detailed writeup. In short, the current approach, where transaction senders publish a transaction with a fee, miners choose the highest-paying transactions, and everyone pays what they bid, is well-known in mechanism design literature to be highly inefficient, and so complex fee estimation algorithms are required, and even these algorithms often end up not working very well, leading to frequent fee overpayment. See also https://blog.bitgo.com/the-challenges-of-bitcoin-transaction-fee-estimation-e47a64a61c72 for a Bitcoin core developer's description of the challenges involved in fee estimation in the status quo.
• Instability of blockchains with no block reward: in the long run, blockchains where there is no issuance (including Bitcoin and Zcash) at present intend to switch to rewarding miners entirely through transaction fees. However, there are known results showing that this likely leads to a lot of instability, incentivizing mining "sister blocks" that steal transaction fees, opening up much stronger selfish mining attack vectors, and more. There is at present no good mitigation for this.

EIP 1559 has these benefits:

• It mitigates the economic inefficiencies from social cost mismatch due to fee volatility. There is a fairly nuanced economic argument here; see particularly pages 16-20 of the paper linked in https://ethresear.ch/t/draft-position-paper-on-resource-pricing/2838 (though I recommend reading the whole paper) for a detailed argument of why this is the case. Intuitively, the adjusting fee mechanism works like a fixed fee in the short run and a cap in the long run, and it turns out that because of arguments from Martin Weitzman's 1974 paper fixed fees are likely better than a cap in the circumstances that basically all public blockchains are in today and will likely continue to be in.
• It replaces the auction with a fixed price sale (except during short periods where blocks fill up completely until fees catch up), eliminating first-price-auction inefficiencies and making fee estimation extremely simple: calculate the fee f for the next block, if you can afford it pay it, otherwise don't.
• It creates a mechanism similar to a permanent block reward (the 1/N coming from the pot), mitigating many of the instability issues with fee-only blockchains without requiring actual permanent issuance.

---

Another underrated benefit of EIP 1559 is that it makes gas prices securely measurable. Today, just looking at gas prices on chain and using them as an index is exploitable, because miners could include either very-low-fee or very-high-fee dummy transactions where the fee would go to themselves. But under EIP 1559, the BASEFEE can only be manipulated at high cost, as dummy transactions would requre even the miner to pay fees (that get burned).

Are current fee markets really that inefficient?

Yes. The difference between average gasprice and 10th percentile gasprice in a regular block is something like 3x for median and 5-8x for mean. People needlessly overpay massively.

Everyone who does not overpay suffers a delay of 1-2 minutes or even longer, and this delay does not actually benefit anyone; the total load to the chain is the same regardless of whether a given unit of load hits the chain at time N or time N + 60. There is no actual social benefit from participants "expressing a low time preference" in the fee market mechanism, at least under normal conditions; it is pure deadweight loss. We would all be better off if more transactions were just included immediately, which EIP 1559 allows.

Why not just use a second price(or kth price auction) to solve the first-price-auction inefficiencies?

Kth-price auctions (where everyone pays a gasprice equal to the lowest gasprice that was included in the block) are indeed "efficient" in a traditional economic analysis*, but have the flaw that they are vulnerable to collusion.

<small> * Yes of course technically you want to use the highest gasprice not included in the block; but in practice given that most ethereum blocks have hundreds of transactions the difference would be negligible.</small>

Might EIP 1559 run the risk of over-stressing nodes and miners during periods of high usage?

EIP 1559 can at most increase block size by 2x, even in the short term. Each "full block" (ie. a block whose gas is 2x the TARGET) increases the BASEFEE by 1.125x, so a series of constant full blocks will increase the gas price by a factor of 10 every ~20 blocks (~4.3 min on average). Hence, periods of heavy on-chain load will not realistically last longer than ~5 minutes.

Note that currently, periods of double load that last 5 minutes already happen by random chance roughly once per ~63888 blocks (~10 days) because of variance in the rate of block production. So the introduction of EIP 1559 would not bring in any unprecedented level of load to the system.

Additionally, the gas limit being only 10 million and not higher is justified to a large extent not by hard network limits (uncle rates are near historic lows, though risks to non-miner nodes such as bootstrap nodes, may be higher), but by concerns that are fundamentally long-term in character:

• Centralization risk of somewhat higher uncle rates: if uncle rates shoot up to 20%, that would disproportionately benefit well-connected large pools
• Limits to state size
• Difficulty of syncing after a short period offline

In all three of these cases, what matters is not the upper bound on capacity within a very short window of time, but rather the long-term average capacity. Uncle rates being 2% during odd hours and 18% during even hours would have the same effect on all three of the above, as uncle rates always being 10%. Because EIP 1559 still bounds the long-run gas usage to a ~10 million per block average, it does not affect the long-term average.

How would a spike of high usage look like under EIP 1559 compared to the status quo?

Consider a "mathematically ideal spike" (eg. this could happen in real life because of a sudden market event leading to many arbitrage opportunities on DEXes, bidding on liquidated CDPs, etc), where N * 10 million gas worth of transactions, each with a very very high gasprice, are all broadcasted.

Currently, this would lead to the following situation:

• The next N blocks are filled exclusively with new spiky transactions
• After that other transactions, as well as transactions that people send after the spike, get included in descending order of gasprice

An average "normal user" would have to wait more than N blocks.

Now, consider the situation under EIP 1559:

• The next N/2 blocks are filled exclusively with new spiky transactions, each with twice the normal amount of gas
• If all other transactions get sent with a gas price cap equal to the old gasprice, then the next N/2 blocks would be empty, and after that things would revert to normal. But realistically, higher-priority transactions would set higher gas price caps and get included first, and other transactions later.

An average "normal user" would have to wait somewhere between N/2 and more than N blocks.

Hence, even including the post-spike "recovery period" during which block capacity would be smaller than normal, most transactions get included sooner.

Here's a very rough simulation (there are lots of strange assumptions here, but modeling a full system that covers both supply/demand curves and waiting times is hard); spreadsheet source here.

Status quo:


EIP 1559:


What would EIP 1559 do under larger and more prolonged spikes (eg. day-long spikes)

Not much. The BASEFEE would rise and there would be a short period at the beginning where a few transactions get in faster, but after that the fee market would function just as it would under "ordinary" conditions, just at a higher fee level. The main benefit of EIP 1559 in spikes is that the harms from inefficiency of regular fee markets are magnified when fees are high, so having a functioning fee market becomes more important.

If the chain can handle 2x block size spikes, doesn't that mean the chain can handle just making all blocks 2x larger?

No. See this post for why:

https://notes.ethereum.org/@vbuterin/eip_1559_spikes

Why limit = target * 2? Why not 4? Or 8?

It could easily be higher than 2. The higher the limit/target ratio the greater the fee market efficiency benefits of EIP 1559. It depends on how severe the short term spikes are that we are willing to accept; 2x is fairly conservative. We could even launch EIP 1559 with a limit/target of 2 to start off, and increase it over time as we see the network functioning okay even under short-term spikes.

Why would miners include transactions at all?

The EIP includes a "tip" that transaction senders can include, that goes to the miner. The tip has two functions: first, if there are suddenly far more transactions than expected, miners will include transactions with higher tips first, so the fee-based prioritization mechanism exists as a backup. Second, it compensates miners for uncle risk (the increased risk their block will not be included in the main chain because adding one more transaction will slow it down).

The tip level that compensates for uncle risk has been calculated to be about 0.8 gwei (uncle blocks get on average a 1.67 ETH reward instead of the 2 ETH base, so that's a ~0.33 ETH = 330m gwei loss, 10 million gas blocks add ~0.025 to the uncle rate ckompared to empty blocks, so the expected cost of 1 gas is = 330m / 10m * 0.025 = 0.825 gwei) and miners do actually set about this value when the chain is empty.

This tip level is independent of the BASEFEE, so client implementations can confidently set 1-1.5 gwei and expect their transactions to be accepted.

How might wallets choose tips? Is there a risk of bidding wars for tips?

Wallets could simply choose tips by looking at what tips have been accepted on chain historically, and increasing their tip if they see that a transaction they send was not accepted immediately. Note that in "normal conditions" there is no incentive to set a tip higher than the bare minimum.

In cases of sudden congestion, tips do degrade into a bidding war; wallets can detect congestion, and in this case they could offer users the option of setting low or high priority for their transaction.

What is the escalator mechanism? How might the escalator mechanism be combined with EIP 1559?

The escalator mechanism is a different proposed transaction fee reform, where instead of specifying a single fee, users specify their fee as a function, usually with a beginning, an increase-per-block and a maximum, for example "5 gwei if this transaction is included in block 10123456, add 1 gwei for every block after that (eg. 8 gwei if included in block 10123459), up to a maximum of 100 gwei".

This would be four parameters: beginning fee, beginning block, per-block increment, max fee.

The goal is to be "safer" against mistakes in fee estimation, as if the fee turns out to be too low it would naturally rise over time until the transaction is included. In an EIP 1559 context, this could be used to set the tip. The fact that the tip would generally be in a constant range means that even a wallet using fixed parameters for the escalator would deliver reasonably good outcomes to users.

Won't miners have the incentive to collude to push down the BASEFEE by making all their blocks less than half full?

In general, the effectiveness of such strategies is limited, because unless truly almost everyone colludes, a transaction not included in one block will get included will just get included in the next block and so the effect of this action on the long-run BASEFEE will be negligible.

However, what miners can do is a kind of "monopoly pricing". Suppose transaction senders are willing to pay some extra fee to avoid getting delayed one block. Miners can refuse to include transactions that do not include some minimum tip T; they lose out on some fee revenue, but gain from senders increasing their fees if they value the extra probability you will be the next miner and include their transaction highly enough. This strategy is heavily tilted against the miner: they suffer the full cost of lost fee revenue, but gain only a small portion of the increased transaction fees that others send.

Note that even if a miner using such a strategy is successful, they will increase other miners' revenue more than it will increase their own revenue (as other miners free-ride on the higher tips due to your actions), so it is not a centralization vector.

This will not reduce BASEFEEs down to zero; rather, it will hit an equilibrium where BASEFEEs remain the bulk of the fee and tips take up the remainder. This is because unless miners are all colluding (in which case we have bigger problems), miners suffer the entire cost of not including transactions but gain only some of the benefit of tips being higher.

If the risk of miners deploying such a strategy is still deemed unacceptably high, we can direct some (eg. 50%) of the revenue from EIP 1559 into a pool from which a small percentage is drained every block to be added to the miners' block reward; this ensures miners benefit from the BASEFEE being high, further reducing the gains from such an attack.

Here is a proposed sketch of a change to the EIP to do this:

• Define the account 0x35 as FEE_SMOOTHING_BUFFER, and define FEE_SMOOTHING_CONSTANT = 8192
• Add an additional term to the block reward (added at the same time as the base block reward and uncle+nephew rewards). Let smoothing_reward = FEE_SMOOTHING_BUFFER.balance // FEE_SMOOTHING_CONSTANT. Transfer smoothing_reward wei from FEE_SMOOTHING_BUFFER to block.coinbase
• After applying the block rewards, 1/2 of EIP-1559 fees from that block (rounding down) get added to FEE_SMOOTHING_BUFFER's balance. The remainder (ie. 1/2 rounding up) gets burned.

Note that in a proof of stake context, it would be desirable to implement secret leader elections along with penalties for early revelation, to prevent validators from acquiring reputations as only accepting high tips and gaining the entire benefit of this themselves as transaction senders would know which validators are creating blocks soon.

Other resources

• The original paper: https://ethresear.ch/t/first-and-second-price-auctions-and-improved-transaction-fee-markets/2410
• ethresear.ch thread on Barnabe's simulations: https://ethresear.ch/t/eip-1559-simulations/7280
• Tim Roughgarden's report: http://timroughgarden.org/papers/eip1559.pdf

Ironic that Taleb has a blindspot to Btc as a black swan

https://twitter.com/nntaleb/status/1360926610392768514

https://preview.redd.it/nr6n9g6hdih61.png?width=1172&format=png&auto=webp&s=9d2388082084231d4ff06e1d222eab8a09dab4d4

Taleb, that guy who popularized the concept of the black swan (something highly unlikely, unpredictable, but yet that massively changes everyone's understanding of a given system).

Bitcoin is volatile even at "higher" prices because it is still insanely underpriced. It will only become less volatile after it matures. This maturation process involves reaching equilibrium with other global markets that are still overpriced. The monetary premium on the multi trillion dollar global equities market, $100T real estate, and $100T sovereign debt markets is all going to be at risk of collapsing into the event horizon of bitcoin.

After the monetary premiums of these markets flows into btc, it will become stable.

Btc is a blackswan that even Taleb himself can't grasp even though it's staring him in the face.

Also, using a funny-money fiat measuring stick to measure btc "volatility" is a non-starter. Btc is the least volatile system there is. Every 10 minutes, 6.15 new btc. Tick tock, next block, regardless of who's in office and what their desired monetary policy is.

He literally wrote the book on anti-fragility, and when the most salient real world example of antifragility (bitcoin) is there, he somehow can't find the mental framework to understand or appreciate it.

We're still early.

Institutional Investors Getting Their First Tattoo

I believe the psychology for institutional investors taking the plunge and adding Bitcoin to their balance sheets for the first time is the same as that for someone getting their first tattoo. I.e. there is a lot of hesitation at first but, after it's done, plans are soon made for a second. Jumping through the hoops necessary to get "permission" from boards, leadership, etc. is a real pain. But once that permission is established, those barriers are greatly reduced. Especially in a bull cycle. So we shouldn't view Tesla's $1.5B investment in bitcoin as a singular event within the company. A true headline would be "Tesla Makes First Investment of $1.5B in Bitcoin."

OLB group: 🔥 Fintech and Cryptocurrency opportunity

OLB Group (NASDAQ: OLB) Share Price: $8.40

• Freshly Listed in August 2020.

Industry: Fintech / Block-chain payments 

Revenue: 9.6M ttm

Assets: 15M

Debt: 7.5M 

Cash: 4.2M 

MC: 54.1 M 

S/O: 6.16 M 

Float 2.1 M 

Key holders:

• Insiders own 65.9% 

• Sabby Managment 5.75% 

Company Overview

The OLB Group, Inc. operates as a FinTech and payment facilitator company in the United States. It offers OmniSoft, a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and manage their retail businesses; eVance, a payment processing solution; SecurePay, a payment gateway and virtual terminal with proprietary business management tools; and CrowdPay.us, a white label capital raising platform. The company also operates ShopFast, a cloud-based omni-channel platform that enables consumers to purchase products and services from Websites of clients across variopus business sectors. In addition, it provides ecommerce development and consulting services. The company was founded in 1993 and is headquartered in New York, New York.

Investment Highlights

Established operational footprint in U.S. with $9.6M trailing 12-month revenue

Integrated products and services suite, a blend of Shopify (NASDAQ: SHOP) and Square (NYSE: SQ), with added features and benefits

Solutions used in 130+ industries across all 50 states

23.5M transactions processed in 2018 with a value of nearly $1B

8,500+ merchants use OLB Group’s services nationwide

Executing inorganic and organic growth strategy

Building a portfolio of merchants targeting SMBs; focusing on area of market not on the radar screen of large payment processors

Post-acquisition integration of cloud-based applications and services to increase revenue and profitability of each merchant

Organic growth strategy includes in-house sales and marketing in combination with referrals from small-bank partnerships

Network of integrated blue-chip partnerships

Secured industry-leading relationships with blue-chip partners in all facets of operations; current partnerships include: Visa/Mastercard, American Express, PayPal, Wells Fargo, Chase Paymentech, Elavon, US Bank, Fiserv First Data, Jack Henry & Associates, Vantiv Worldpay, iOS, Android, Microsoft, ControlScan, and more

Reasons why I like it: 

• Undiscovered fintech play that is in a hot sector.

• Stable, growing SaaS revenue

• Currently Cash Flow Positive 

• Forecasted EPS Positive Q4 2021 

• Estimated 30% growth in organic growth in 2021. 

• High Insider ownership 

• Explosive upside with low float

• Entered Cryptocurrency market with allowing merchants to accept them as payments. 

 Catalysts: 

1) Expansion Internationally. In negotiations with a potential European partner to distribute and sell their software.  

2) New Aquistions to accelerate growth - reported that they plan to do at least one in Q1/2021.

3) New Applications and services to fuel organic growth with its existing customers. 

4) Positive Q4 earnings. 

• In the Q&A interview in 0ctober 13, 2020 the company noted that they expect 10M revenue for 2020. This would lead to approximately 3-3.1M in revenue in Q4 and growth of ~30% Q/Q.

Valuation and upside potential: 

The stock is currently trading 7.6x ttm sales. With the FinTech industry average of approximately 10x. High growth companies in the space trade well above that. See $FTFT, it trades almost 800x P/S and stable megacap stocks, Square and PayPal trade 16x sales. 

With the company forcasted to reach at least 13M in revenue and EPS positive in 2021, I can see this trading easily 10-15x sales by the end of the year. That would equate to 130-195M market cap, or $21-31 per share. Thats 2.5-3.7X current price in less than 12 months. 

Resources: 

https://www.olbgroupinfo.com/

https://www.redchip.com/events/76/the-olb-group-webinar/OLB

https://youtu.be/gzcFc3pttQg

Tags: $BTC.X $ETH.X #Bitcoin #Cryptocurrency #Fintech #Investing #Stocks #stockstowatch #Nasdaq #Growthstocks

Coinbase Account Compromised WHILE IN ACCOUNT (Others as well) - Funds transferred soon as I logged in via 2FA. Coinbase support has gone silent. Detailed outline in post.

This is a very alarming situation and a serious warning to others that may be at risk, which still hasn't been resolved by Coinbase and appears to have been ignored now:

​

I, along with at least one other, have had our Coinbase accounts as soon as we logged into the site. Funds instantly have transferred to other wallets. Unfortunately, after my initial post here (link below), Coinbase has ignored all my emails since, when I started to probe further.

Here is the sequence of events:

On February 1st at 9:56 PST I logged into Coinbase and verified my login via 2FA. After a few seconds, I noticed my balance was decreasing. I refreshed, assuming it was a glitch. After refreshing again, I noticed it continued to decrease. I quickly realized that there were outbound transfers, which were confirmed by emails. I quickly logged changed my password, logged out, and called the Coinbase number to disable my account.

I viewed my email logs, to see Coinbase sent me transaction 3 separate transaction emails:

1st time-stamped 10:00 PST - Sending ETH balance to a wallet.
2nd time-stamped 10:01 PST - Sending LINK balance to same ETH wallet.
3rd time-stamped at 10:06 PST - Sending BTC balance to a wallet.

I emailed Coinbase support (see original thread link) and they started to reply, with the standard, basic emails directing me to change my password. The initial 2-3 replies were all ------within a 24-hour time frame.

I tracked the wallet addresses that the funds were transferred to, which both the ETH and BTC wallet showed were created on Jan 22nd. The BTC wallet on BitcoinWhosWho had another comment from a user which stated:
-----------

Scam Name
URL
Image
Date

Somehow got my funds after i deposited them into my Coinbase wallet.
Jan 29th, 21

-----------------

While waiting for Coinbase replies, I had a computer forensic professional review my computer for suspicious activity/logs, which were negative.

When Coinbase did reply, they sent the activity log, which showcased the transactions were actually not minutes apart, but all appeared to be instantaneous. Their logs also confirmed that the transfers were made from my computer/IP address. The logs provided showed (x'd out amounts and wallet ID's out for privacy):

2021-02-01 9:56 AM PST: a signin was completed
2021-02-01 9:56 AM PST: 2FA Authenticator security code was confirmed and verified
2021-02-01 9:56 AM PST: xxxx BTC was sent an external account at xxxxxxxxx
2021-02-01 9:56 AM PST: xxxxx LINK was sent an external account at xxxxxx
2021-02-01 9:56 AM PST: xxxxx ETH was sent an external account at xxxxx
2021-02-01 10:00 AM PST: Send money notification email sent to sender

This was the last update that Coinbase has provided me. My requests have been ignore since I've requested details on the timestamps, inquiring if they have down to the exact second that activity was made, as it's nearly impossible to manually signin, open 2FA, confirm 2FA code, open 3 separate crypto wallets and transfer to external wallets, all within 60 seconds (9:56 PST).

I've also been ignored inquiring if there is an open API's enabled on my account that may have triggered some sort of automated transfer triggered by a login. These requests have gone ignored and I've been told to login from a new computer, reset my computer, and I can see then any API's enabled....which means remaining funds that were in progress of me transferring into the account before I disabled it would now trigger and send as well, putting me in a lose/lose spot.

To confirm I've never spoken on the phone with anybody pretending to be Coinbase, nor have I given my credentials to anyone else (or did anyone else have access to my PC). The logs confirm they came from my PC/IP immediately after logging in, which appears to be the same as the other user's issue.

My account is still disabled with no responses from Coinbase. Please be warned that this could happen to you and I'm still trying to get answers and figure out what triggered this, given the sequence and the wallets the funds were sent to still appear to be hitting other accounts.

Why Zilliqa is A Super Crypto : A 2021 Year-To-Date Update

Hi Zilliqans,

Brace yourselves; this is a 10-15 minute read. To those who are too lazy to DYOR, well, I saved you a ton of time. To those who DYOR, in-depth, I trust this post gives you comfort that you are not alone in your continued excitement for Zilliqa’s growth and adoption in 2021.

A lot has happened in the past couple months for Zilliqa and the crypto market as a whole. I see a lot of new people around this subreddit and also a lot of HODLers not paying close attention or correctly unpacking the project’s growth and current status. Can’t blame the HODLers, a lot keeps happening for Zilliqa, weekly, so hard to keep up! For the newbies, where do you begin? Lots to read to keep up to date. Enjoy the high learning curve!

Below, is an update where I see some key developments, as they currently stand. As an investor, what I list below helps me sleep at night with my investment in Zilliqa. I hope it does for you all too. There’s so much to continue to look forward to for Zilliqa in 2021

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TLDR – Zilliqa is going to blow the crypto world’s mind in 2021. A melodramatic statement from me? Perhaps. Though, not improbable.

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Before you read further, I want to give you all some more high-level perspective. Once you finish reading all of this, let it sit in for a few minutes. Step back and ponder the vision (which is massive). See the forest for the trees. Don’t think about Zilliqa’s current price and volatility, think about where you see a project like this stacking up against all the others as all these developments continue to unfold in 2021. You’ll see why in 2021, and in years to come, this project is creating a deep and wide ecosystem. To say it is undervalued is a euphemism – (is a bit of a joke at this point). That said, the market is currently pricing it as it is, so be it.

​

Remember the famous quote by John Maynard Keynes, “The markets can remain irrational longer than you can stay solvent.” Remembering this quote always helps me keep my emotions more in check.

​

Now, lets jump into this:

1) The Governance Portal launched (as expected) in January.

It went live as expected – since Zilliqa always delivers (FYI for newbies - literally, since Zil's launch in early 2018, it has yet to not deliver on a project goal). Pretty astounding, I know. Okay here’s a little more on this one. gZil is the token that governs the portal and future path of Zilliqa. gZil is only minted for a one year period, October 2020 to October 2021. gZil launched with non-custodial staking back in October 2020. This is a big step forward for Zilliqa in terms of decentralisation of the blockchain. It still brings so much more than that. For example, you can use gZil to support ZilSwap. More on ZilSwap in point two below.

gZil will play an important role with the launch and incorporation of Pillar Protocol. Pillar Protocol will be implemented and used for stable coin issuance and will enable lending/liquidity providing as well. That protocol is planned for release around June 2021 or thereabouts. Lets not get hung up on the month of release as it could end up taking 1-2 more months past that. Who knows, but it will be launched thereabouts. Why does Pillar Protocol matter? It will further launch the Zilliqa blockchain into the stable coin market (beyond the already launched XGSD via Xfers) in a significant way and provide that additional use case for assets to be used as collateral for lending.

2) Launched ZilSwap: Launched end of last year in partnership with Switcheo. ZWAP token now live as of February 2021.

What is Zilswap? A Decentralised Exchange (DEX) powered by Zilliqa. The native ZWAP token launched 3 February 2021, to enable community decentralisation of management of the protocol and DEX. So why does ZilSwap matter for the Zilliqa blockchain? You can use ZilSwap to trade and provide liquidity/lending for assets.

Are you familiar with SushiSwap, Aave, UniSwap?

Think about that but powered by the Zilliqa Blockchain. Your imagination is going now isn’t it? What billionaire do you think is going to invest in Zil?

Jokes aside (cough cough, though is it?), yes, this is a big deal for Zilliqa ecosystem growth and use. At time of writing, there is currently a total value locked (TVL) of $14.7mm on ZilSwap. It is off to a good start, but it’s going to explode once people understand what it actual is and start using it more once the Zilliqa-powered Polynetwork bridge goes live. More on the Polynetwork bridge in point three.

Want to learn more about this? Switcheo wrote a blog on their website called “Introducing ZWAP, ZilSwap’s Governance Token.” It will take you 5-10 minutes to read. Worth it!

Don’t forget about ZilSwap 2.0 either. That is happening in the next few months as well. The timeframe isn’t set in stone, but we know that happens alongside the Polynetwork bridge launch. My prediction, ZilSwap 2.0 is launched around May or June 2021. This is also where all you token holders that never swapped from the old ERC-20 Zilliqa coins get another chance to swap your currently valueless/useless old Ethereum-based Zil tokens for the mainnet Zillqa tokens.

​

BTW: Can I just say, aren’t you all lucky (regardless of your circumstance for not swapping with a one year notice, lucky is the word). Make no mistake. A lot of other projects have never done something like this after a token swap window for a mainnet launch was completed. Be grateful and patient –and share your gratitude. I certainly would if I were in that position. But alas, a way to swap your tokens is coming. :)

​

3) Polynetwork Bridge (some refer to it as the ETH bridge) – Where does this stand?

For starters, this bridge being built on the Zilliqa blockchain will benefit much more than just ETH holders/users. It will allow users to “wrap” their ERC-20 coins. Additionally, other projects can benefit beyond Ethereum. For example, Bitcoin. Binance coin (bUSD) will also be brought to the Zilliqa chain circulating as a ZRC -2- BUSD coin (or zBUSD for short). Short answer as to why this is a big deal? Imagine being able to use ERC-20 projects for fraction of the costs of being on the Ethereum chain? Yes, a big benefit and big deal!

When are we expecting this to go live? A couple months back the Zilliqa team thought it was possible by end of Q1, but it is looking more like a testnet version will be available as early as April/May and more likely the mainnet version available late Q2. So, 2-3 months behind initial thoughts, but not concerning in the least. I’d be very happy to see this launch by June 2021. For those new to Zilliqa, don’t let this delay concern you. If we can even call it a delay. Zilliqa is one of the few projects that deliver on deadlines (which is a sad statement to even write). The team has been keeping this community up-to-date all along the way and was initially targeting an end of Q1 completion. Pretty much on track if they are currently saying they can launch a testnet version by April. Needing a couple extra months to mainnet launch this smoothly is the most important goal.

​

4) Black Swan Events? Lets have some fun here.

When we traditionally think of a Black Swan event, it implies a negative, unexpected market force that is beyond the realm of normal expectations. Emphasis on the “negative” part. Lets flip this on its head. Lets think of it like we can the word “volatility.” When most people think of volatility, in investing terms, they think negative downside price movement. However, volatility goes both ways, down and up.

So, where am I going with this? I’ll list a few potential, positive, Black Swan events that can catapult the price of Zilliqa this year. If any one or combination of these were to happen, I’ll feel bad for all the day traders trying to time market dips. FOMO and price movement will be so hard that anyone on the sidelines before an announcement like one of these happens will be left sitting in the dust.

​

So what are potential positive Black Swan events for Zilliqa in 2021?

-Any announcement of a large US exchange listing. Think Coinbase, Kraken, or Gemini. This makes it easier for US-based investors to buy/sell Zilliqa. There are some ways around this as a US investor to buy Zilliqa, currently, but they take effort and don’t provide tons more easy liquidity and interest in Zilliqa. Getting a simple on-ramp/off-ramp for US investors is very important for more user adoption and ecosystem growth. We know that the Zilliqa team has completed their Rosetta integration protocol and posted that on GitHub to enable Coinbase listing integration. At this point, it is up to Coinbase if/when they list Zilliqa. I believe that will happen in 2021. No clue as to timing, and none of us will know until it gets announced anyways.

-Xcademy is an interesting one to keep an eye out for. Talk about likely revolutionizing the way YouTubers and subscribers/fans interact and transact with YouTube. This project being powered by Zilliqa has HUGE potential in 2021 and beyond and I’ll be watching how this unfolds very closely. Any success with this will propel Zilliqa much higher. Imagine a scenario where a couple YouTube influencers start talking about their use and interaction with Xcademy? Again, imagine…. If you don’t know anything about this, Zilliqa recently tweeted a short video put together by Xcademy. Watch it. It is only a couple minutes of your time and worth it to understand it at a high-level.

-HG Exchange gaining more notoriety via an announcement of listing additional tokenised assets or large private/start-up companies throughout 2021. We know more will be announced later this year tied to HG Exchange. They already announced the tokenisation of rare single malt Scotch whiskies in January. More is expected to be announced throughout the year so we’ll see what happens there. Tokenising real-world assets is a big deal. I don’t get the sense that people understand how big of a deal it is that HG Exchange successfully launched one tokenisation so far.

-Zilliqa Capital announcing major investment/partnership with key investors and/or companies. Frankly, I expect something more to come of this throughout the year. It is a key pillar of Zilliqa’s ecosystem and user adoption roadmap, so I’ll be disappointed if the Zilliqa Capital team doesn’t secure some great announcements throughout 2021. Just sit back and be patient.

-Chamath Palihapitiya (a billionaire Silicon Valley Venture Capitalist) has been pitched a hedge fund DAO by the Zilliqa team. I know, this sounds crazy, but is not impossible. Those paying attention to Zilliqa the past month or so would recall that back on 30 January 2021, Zilliqa responded to a tweet from Chamath. The Zilliqa team suggested they could help power a hedge fund DAO. Chamath replied to that tweet saying he is interested and for the team to direct message him. Since then, the team sent across a proposal (Amrit publicly confirmed this). Who knows what happens from here. Imagine some sort of news like a partnership breaking in the coming months? Powerful for Zilliqa’s name and ecosystem, to say the least.

Okay, so we had some fun with these, the last one in particular. The first few are likely possible and the Xcademy, HG exchange and Zilliqa Capital ones will produce something this year. My key takeaway from the possibility with Chamath is that it shows me more and more people are paying attention to Zilliqa and will come to better understand its value and begin using Zilliqa to build and transact more.

There are a lot more developments and growth happening around areas like dApps powered by Zilliqa (such as Zeeves, Social Pay, ZilChess, RedChillies, Unstoppable Web, Package Portal, etc.), NFTs, and much more. However, I want to limit the post here, otherwise, this would be way too long.

I hope all of you reading this are as excited as I am for what Zilliqa will accomplish in 2021. I won’t go out and talk about price predictions here, but I’ll keep it simple. If you think Zilliqa being worth approximately $0.14 (at time of writing) is going to stick around as the next few months progress, you are mistaken.

If we even set aside price for a moment and think about what the Zilliqa blockchain will bring to the world, and in particular DeFi, it is exciting. Hats off to what this team and wider community has produced so far and what will happen this year and in the years to come!

I'm certainly long zilliqa. Lets all do our part to spread the word - AND TOGETHER BUILD ZILLIQA'S ECOSYSTEM.

How can I sell weed online?

On the off chance that you mean deals through the darknet, at that point read on. I don't have the foggiest idea how deals are led in spots it tends to be purchased legitimately. If it's not too much trouble, note I'm not excusing violating the law, simply depicting how individuals do it.

Above all else, a purchaser should secure cryptographic money. Bitcoin is the most widely recognized. There are different techniques for getting it. It tends to be purchased from clearnet sources, from bitcoin ATMs, or from getting them from people. A few techniques break the connection between a purchaser's character and the bitcoins they've purchased, while others don't. In the event that they have gotten it utilizing a Mastercard, for instance, they need to find a way to break that interface otherly. The individuals who don't hazard being gotten.

There are various sites on the darknet that sell drugs and additionally other unlawful products or administrations. To interface with them, individual requirements to associate with the pinnacle organization. It's conceivable to the interface by means of the peak program, however, for more prominent security, they frequently use something like the tails working framework, which adds additional layers of security severally. These locales normally expect clients to pursue accounts. They contain arrangements of items available to be purchased, alongside audits, costs, and different subtleties. To purchase something, somebody chooses a sum, sends the vendor their location, ideally scrambled with a PGP key, and moves the right sum in bitcoin or another digital currency.

Now and again, this is moved to the purchaser straightforwardly. In different cases, the cash is held by an outsider, regularly the site, until the item has been gotten.

Purchasing drugs online is a perilous business. While the individuals who keep up legitimate operational security infrequently get captured, the equivalent can't be said for the actual locales. They every now and again get brought somewhere near law requirement, or basically choose to steal away with the cash they hold. Since the deals are unlawful, there is zero chance of getting cashback. Also, keeping up appropriate operational security requires a ton of exertion; individuals regularly take easy routes and danger presenting themselves to pointless danger. The dangers additionally rely upon what nation you're requesting from, or to. There are likewise chances that medications will be debated, however, this can be alleviated by the framework of the audit and is by all accounts more uncommon than with road drugs. More Know

On Ethereum's Dominance - Consolidated Common Content from Contributors

Consolidated/paraphrased from various amazing contributors - this is not advice, but observation - If Passing On, No Need for Attribution, just happy to help as others have helped me

• Ethereum does much more than Bitcoin (not trashing papa Bitcoin, but Ethereum does more. Much Much more). This may not be bad. Being more conservative, less innovative, has perks. There's plenty of discussion on this theme I'll mention below.
• Ethereum's network effects as the dominant smart contract platform are overwhelming. All the things that make smart-blockchains cool are being done on Ethereum. There's no serious competition anymore; the evidence overwhelming:
  • Ethereum's momentum as the primary platform where crypto-assets are issued has grown over the last three years, with the share of the total token market cap constituted by Ethereum based tokens rising from 73.81% in July 2017, to 98.40% in July 2020 (source). The entire market has steadily converged on Ethereum as the settlement layer for crypto-assets and Ethereum's ERC20 token interface as its technology standard for digital assets.
  • Ethereum is the most utilized crypto platform in the world, with more fees being paid to Ethereum miners than any other project's. The dominance extends beyond just Ethereum, to Ethereum-based dApps, with seven of the next nine largest revenue earning crypto projects in the world being based on Ethereum, as this charts shows with all the projects highlighted in pink being Ethereum-based: https://cryptofees.info
  • All major DeFi applications operate on Ethereum. Tracked by DefiPulse. These DeFi apps are all interacting to create an increasingly sophisticated open financial system on Ethereum that gives the platform an increasingly insurmountable advantage over potential competitors.
  • All of the major stablecoins; Tether (USDT), USD Coin (USDC), True USD (TUSD), Binance USD (BUSD), and Paxos Standard (PAX), use the ERC20 standard.
• Beyond market adoption, the Ethereum development community is by far the largest in the cryptocurrency space, and its advantage over all other smart contract platforms has rapidly grown over the last three years:
  • Ethereum has an overwhelming lead over all other cryptocurrency and blockchain projects in the number of developers working on it according to the recently released Electric Capital Developer Report (2020). This lead is accelerating, with a 215% increase in the number of developers working on Ethereum since 2017, and with the number of monthly developers increasing by 300+ between Q3 2019 and Q3 2020, which bucked the downward trend seen in the rest of the cryptocurrency market. (source)
  • The overwhelming majority of Research and Development on blockchain scalability is being done on Ethereum-based projects (source). Groundbreaking scalability solutions that have recently launched on Ethereum Mainnet include Loopring and zkSync, which use zkRollUp technology to enable thousands of transactions per second to be processed on Ethereum layer 1: (source) The misinformation you'll hear too much
  • Ethereum's developer tool list outshines everything out there. Getting smart contract to work properly is complex, and there is no magic port that will can do that realistically (no matter what others might shill). These are years of tools from thousands of developers. Having smart contract functionality means little compared to the tool list needed to use it effectively.
  • Every other project still needs years to have all these tools, for what? A blockchain that has some trivial perk (assuming it's a perk). By the time they have these tools (years away) ETH 2.0 and a whole new paradigm of functionally will be in place. Again, there are thousands and thousand of ethereum developers, no other project comes close.
  • Note, there's some that think moving tokens (ERC20) from one blockchain to another is a big deal. It's not. There are no simple converters for the broader blockchain functionality. This is not a push button process. An ERC20 token is not the real world application being converted, it's just a simple token. Nothing special.
• ETH 2.0 model outshines all in the areas of decentralization. There's a lot of discussion about types of "Proof-of-Stake" (a validation method of the blockchain ledger). ETH 2.0 allows individuals to stake (validate) the ledger. Projects that claim to be cheaper/faster use delegators (cartels), often calling their method "Delegated" or "Dynamic" Proof-of-Stake (or other names), which essentially forces control of the chain in to groups, so for example, exchanges could assume control. ETH 2.0 stakers can opt in to join pools, but pools are not required. Got 32 ETH? You can stake as a individual.

Ethereum's supply (and other common new-person questions about ethereum)

• ETH is not capped, but restricted, capped is unlikely to be secure. Ethereum's monetary policy is best described as "minimum issuance to secure the network"
• ETH issuance and burn is more sophisticated than Bitcoin. Under EIP-1559, some ETH get's burned (removed), which is projected to be greater than issuance (created). Everything is about creating a stable network, rather than and arbitrary cap. Bitcoin IS inflationary, and will be until we're all dead. Ethereum has a true deflationary mechanism
• What I see - anyone saying that ETH isn't scarce or anyone saying a "hard cap" is healthy for blockchains:
  • doesn't understand math and securing blockchain systems
  • is purposely deceitful
  • trying to pitch their corpo-coin
• You might hear someone say "immutable" or "code is law" or similar topics, in references to Ethereum's early history. Young blockchains are technologies that often have issues that need sorted out to build trust. Bitcoin had a really bad event that had to be fixed (lots of bitcoins were generated by an exploit). But it got repaired. Ethereum had a similar event, and some will try to split hairs about how Ethereum's event was different. In the end, blockchains require trust or they will not be validated. In the end, Ethereum has garnered that trust, by devs, by investors, and just starting, industry.
• What about "eth-killer" (enter whatever) doing such and such?
  • The graveyard of "eth-killers" is VAST: ICX. QTUM. VET. ZIL. EOS. ONT. XTZ. IOTA. NEO. STRAT. AION, Rootstock, ETC (to name a few). We have a new wave of them now. My advice. Stop pretending you can "kill" Ethereum and starting thinking how you can contribute to the world Ethereum is creating.
  • But the gas-fees are too high... Yes, they are. Because the chain is being used. But L2 (above chain) solutions are already out (an example) for developers to start using. Plus other updates coming in a few months, such as EIP-1559, clients... this summer. FUDing gas costs now is justified, but don't think untested/unused projects have any edge, especially with upgrades on a functioning chain (Ethereum) are already here, with more coming.

More opinion, not advice

• The order of importance is Ethereum, Bitcoin than any of the players trying to innovate the space, which are overwhelmingly building on Ethereum.
• I no longer see any other independent blockchain as relevant compared to Ethereum. I did a few years ago, but many of those projects failed their vision, some disappointed greatly
• Ethereum 2.0 will easily cover my prior concerns. So to me, it's done - if blockchains have a future, it's Ethereum's future. (mostly)
• I do see plenty of interesting defi projects (on Ethereum, of course). They are all MUCH higher risk than Ethereum. itself.
• I have a minority opinion, it seems Bitcoin is irrelevant compared to Ethereum. It's more just name recognition.
  • Ethereum already does more than Bitcoin, including more transactions, but that's not the reason I see Bitcoin as irrelevant
  • The major valid argument supporting Bitcoin (compared to ETH) is that it is a simple blockchain. It remains a powerful upgrade to gold, a better store of value. Ethereum, while more capable, involves innovations, which adds potential risks. AND ETH 2.0 is not fully here yet
  • I do, somewhat, agree with the above argument, in the short term, but if ETH 2.0 works (and it seems it will) and it fully becomes a computer-ledger for the world (a bigger "what if" for all crypto), then ETH becomes a more fundamental resource to society than Bitcoin. ETH, then, is a better store of value. Bitcoin is irrelevant.
• Working together - I see it. Other chains will still be around in a couple of years. But to dethrone Ethereum, you need to do something absolutely unexpected, like turning a phone into a camera. Turning gold digital. Turning digital gold into an app store (Ethereum). What's next? Something HUGE, I suspect some day, but NOTHING I see now in this space is anything other than just a shadow/subordinate of Ethereum (in my opinion).

Crypto Taxation Question.

Hi everyone,

I have fairly recently started posting my education videos on LBRY/Odysee and have been receiving LBC for them. I am recording the amount of LBC received everyday and the value of LBC/$CAD at the end of everyday. How I currently plan on doing my future 2021 taxes is everyday take the amount of LBC earned that day times the value of LBC/$CAD at the end of that day, and add all the days up and this will be my business income for 2021.

Then when I want to withdraw those, I will send my LBC to an exchange, convert the ones I want to sell to say bitcoin (this is a taxable event as I understand it), so I take BTC's value - LBC's value (cost basis $0 (I think)), and that will be my capital's gains owed. Then repeat that last step for BTC-$CAD (will record any capital gains here however, it shouldn't be much as I would convert from LBC to $CAD as quick as possible. Ill refer to professionals down the road I just like staying ahead of these things and want to know if im on the right path with all of this.

Thank you for anyone who comments whose more knowledgeable about this then me!

LBRY Income/Tax Question

Hi everyone,

I have fairly recently started posting my education videos on LBRY/Odysee and have been receiving LBC for them. I am recording the amount of LBC received everyday and the value of LBC/$CAD at the end of everyday. How I currently plan on doing my future 2021 taxes is everyday take the amount of LBC earned that day times the value of LBC/$CAD at the end of that day, and add all the days up and this will be my business income for 2021.

Then when I want to withdraw those, I will send my LBC to an exchange, convert the ones I want to sell to say bitcoin (this is a taxable event as I understand it), so I take BTC's value - LBC's value (cost basis $0 (I think)), and that will be my capital's gains owed. Then repeat that last step for BTC-$CAD (will record any capital gains here however, it shouldn't be much as I would convert from LBC to $CAD as quick as possible. Ill refer to professionals down the road I just like staying ahead of these things and want to know if im on the right path with all of this.

​

Thank you for anyone who comments whose more knowledgeable about this then me!