Saturday, December 2, 2023

How is Bitcoin (or crypto) any different than a stock?

Market Performance and Speculative Nature

One of the key parallels between Bitcoin and stocks lies in their market behavior. Much like stocks, Bitcoin's value is subject to the ebb and flow of market sentiment, driven more by speculative trading than intrinsic value. Investors in both arenas often make decisions based on anticipated price movements, contributing to the volatility witnessed in both markets.

Volatility as a Common Denominator

Bitcoin's reputation for extreme price volatility aligns it with stocks, which are also known for their price fluctuations. Both assets are susceptible to external factors such as regulatory developments, macroeconomic trends, and geopolitical events. This shared trait makes Bitcoin more akin to a high-risk, high-reward stock rather than a stable store of value.

Integration into Traditional Financial Markets

The integration of Bitcoin into traditional financial markets has been a significant factor in blurring the lines between cryptocurrencies and stocks. The introduction of Bitcoin futures contracts on mainstream exchanges and the development of investment products tied to its value make it more accessible to institutional and retail investors alike, contributing to its assimilation into the broader financial ecosystem.

Correlation with Traditional Markets

While some proponents initially touted Bitcoin as a non-correlated asset, evidence suggests a degree of correlation with traditional markets. During periods of economic uncertainty or financial crises, both Bitcoin and stocks have experienced simultaneous price movements, challenging the narrative of Bitcoin as an independent financial entity.

So explain to me. What about crypto or Bitcoin is different than any other stock? How is it supposed to be a "hedge" to inflation? How is it a "currency"? What makes it any other than a speculative asset and why do "smart" people pretend otherwise?


Owe IRS over 50k from 2021. Looking for advice

I was an early- ish investor into btc 2016-2017. Things really took off in 2021. I had mainly just bitcoin and ethereum. However in 2021 when everything went crazy. I would trade out btc and ethereum for a bunch of alt coins trying to follow the Bitcoin - big alts - small alts flow people talked about. I was inexperienced and did not understand the concept every time I did this it created a taxable event. I was under some stupid impression that you weren’t taxed until you cashed out in USD. So when the crash happened I watched my portfolio go from about 330k to about 40k. AMP and ALGO were 2 of my bigger casualties. I never sold or bought anything since I’m still holding. My portfolio sits right now at 80k. 50% is ETH and the rest is spread between. SOL, LINK, LTC, BTC, AVAX, ALGO, and AMP

I owe IRS over 50k from 2021. I would like to hear some sensible opinions from this forum on what you guys would do in my position. I was really hoping to hold all of it to another big bull run but obviously there is no guarantee this will happen. Should I just cash out 50k and pay the IRS. Maybe cash out half now ? 25k? Any opinions that are trying to help are welcome.


I think I found the origin of the bull/bear market no sense. I think he is getting Ads like this

https://i.redd.it/c78gsaeuux3c1.jpeg