The Mining Play

Crypto Mining ⚒ & Trading

Quite a few post here since the last time i came, did some of you guys warmed up to crypto yet ?

Thanks. I’m by no means a millionaire with it though. I’ve always been a very small fish. Used GPU (graphics cards) mining machines until the ASIC made them unprofitable. Then been slowing switching to ASIC machines. Actually have one being shipped now. Should have it in a few days.

IMO, the crypto adoption will continue to happen over the decade. Just as technology has taken over other parts of our economy, everything from manufacturing to banking, IMO, it will continue to do so for finance and money. I really don’t feel the crypto ride and rise is over.

To those of you who have significant more trading experience and charting abilities than I feel you can apply those same skills to trading crypto. The largest coins BTC, ETH, LTC, etc are trading more market value than a lot of the largest stocks and stock markets. Plus they trade 24/7. BTC itself yesterday, traded $94 trillion in value. The volume and market share exists; but, so does the volatility. I, personally, don’t have the charting skills to daily/weekly/monthly determine where any given crypto value will go. I’m much better reading the longer term (3 month, 6 month, etc) trends based upon market adoption, technology changes, coin halving, difficulty increases, etc. For example the story I posted above showing a hedge fund purchased 3x the total coins mined in December during December, totaling 79,000. This indicates to me scarcity and indicted an imminent increase in value. And, sure enough, BTC went up. That hedge fund in less than two weeks increased they value by approx $10,000 per coin totalling approx $790M. If these hedge funds people who manage really wealthy people’s money see value in it, who am I to say they are wrong. I then spent some of my money on 1/4 to secure a used antminer S17E mining machine. Once I change the firmware, it should pump out–at current BTC prices–approx $26 per day. And it runs 24/7. And I do nothing except periodically check to make sure it hasn’t gone down (ie: power outage). And if BTC goes up, so does my profitability.

Money can be made in both mining and trading if you have the skill set. TraderRich, you have the skill set in trading, I’ve seen your posts over the years. Throw some money into Coinbase, verify your account and put your trading skills to work. I do not doubt you will make some money. If you want to do the slow and steady route (ie: turtle) don’t be afraid to ask questions. I can help with getting mining rigs up and running.

Either way, don’t believe you have missed the crypto boat. IMO it’s just getting started and interesting.

I appreciate the compliment. As a matter of fact, I have been paper trading the BTCUSD Bitstamp exchange. I have done quite well both scalping and swing trading, but then paper trading is a mere shadow of the real thing so I don’t put a whole lot of credence into those results. I’m sure I could trade it for real and perhaps I’ll dip my toe in, but after a decade of trading oil and other futures contracts, I think I’ve worked the desire for that kind of “excitement” out of my system. I’ll be sure to share any success or horror stories in the event I should change my mind. For now I’m happily on the sidelines cheering on my increasingly more wealthy friend, at the ready to offer my trading knowledge at any time he may request it.

Take care.

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Traderrich, I hope you were able to stay in and profit from BTC’s rise. I’ve done quite well with both BTC and ZEC. Still mining and still HODL!!

Congrats Jak. I’ve only been paper trading the chart, haven’t profited myself. Glad to know you’re doing well with it.

Hey Jak,

There’s a guy I know (not very well) who posts on another stock mssg board who is considering getting into crypto mining. Would you be open to having a conversation with him… give him a little basic education?

Sure. I’d be happy to speak with him. I am by no means the foremost expert on crypto, but I can definitely provide the knowledge I have.

I appreciate it. Apparently he wants to hold off on it because he’s got someone else he wants to talk with, so perhaps unnecessary. I’ll let you know if something changes, but I’m thinking this may have been a false alarm. :slight_smile:

This probably explains today’s jump in gold price:

Potentially. You had a bunch of FOMO going to push it to over $60k BTC. Lot of speculators. I’ve said before, it’s going to be volatile. With the quick rise which occurred, you knew a consolidation phase had to occur and it did. The question now, is where does it go from here. The constant harping about regulation, it’s not real, etc. has been priced in, IMO. I think now you will see regular continued buyers who will hold. A lot of the options, both long and short, have been cleared off the table. IMO, you should see a choppy but steady increase. I look at the fact gov’t are looking to add regulations as a boon. It legitimizes crypto and eases others’ fears of buying/getting into it.

The only reason gold has value is it is a finite resource and we (as a global people) have decided it has value. In and of itself, gold has no value. Crypto is a finite resource and we (as a global people) have decided it has value. It’s just a matter of time before more and more people get into crypto and the value will increase. It’s a lot easier than investing in a junior gold mining company (cough, cough, MDMN, cough, cough).

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Pretty damning comment from the Dogecoin creator.

“After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity,” he tweeted out on Wednesday afternoon.

You mean the guy that created that coin as a joke is skeptical? Color me shocked. “Right-wing, hyper-capitalistic”. LOL. The US drives roughly 6% of crypto adoption worldwide and is well behind countries like Nigeria, Vietnam and Turkey to name a few. His comments aren’t just off base. They’re asinine.

To each his own. The above statement could be made for anything which the global community holds as a store of value, when that thing first became available. Oil, gold, tulips, solar panels, little green rectangles w dead presidents on them, the automobile, water rights, online shopping, etc, etc. Disruptive methodologies always cause a negative reaction from those who have become comfortable and stuck in a rut. To those in the know, blockchain technology is hear to stay. Currently every major bank, industry, and governments utilize blockchain themselves and advises their wealthiest client about crypto purchasing and adoption. Blockchain Adoption by Industry | Deloitte US For example, Jamie Dimon, JPMorgan Chase CEO, has been one of the largest crypto critics, making the same or similar comments as those above, yet JPMorgan has it’s own crypto J.P. Morgan Creates Digital Coin for Payments and has adopted and advised clients on purchasing crypto What JPMorgan's New Fund Means for Bitcoin | The Motley Fool Why would he allow his multi trillion dollar bank to use, create, and advise its clients to purchase crypto if it was “a right wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity”? Don’t you think the Feds would be a little upset if JPMorgan chase acted in this way?

One must think for themselves and investigate their investments and new technologies before jumping in. I have, and I feel, for myself, we all will be using some form of digital currency in the near future. All the Countries Where Bitcoin Adoption Is Being Considered - The Street Crypto: Bitcoin and cryptocurrency news, advice, analysis and more and I wish I had done more investigation on MDMN and Les Price than I did before I jumped into MDMN, maybe I would have avoided Mr. Price’s efforts to amplify his own wealth through MDMN’s diminished regulatory oversight at the cost of mine.

IMO you can investigate crypto and claim your slice of the pie. Will you lose and make money, sure, just like regular investing; but, it you do it right and you do it before it becomes mainstream, you stand to make a lot more money than those you who get in after the rush. Or, you can sit back and watch, then five years from now wonder why you didn’t get in when you had the chance. Sorta like online shopping would never take over from brick and mortar. Nobody thought it would work. Amazon in 2002 was trading at $5 per share. If you had bought $10k (2000 shares) back then, it would be worth $7M today. Again, IMO, you need to do your own investigation and work at your own comfort level. I feel very comfortable with my mining and positions in crypto right now. If you have found something better, then good for you.

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Jake167
Agree, agree, agree… To each his own.
He’s a story ; I knew somebody who retired to Missouri to get away from the cold. They were in the back country, their shopping for goods was done in a little back country town.
In that town was a 4 checkout lane grocery store that had closed and been reopened by a fellow who not only sold groceries, but some merchandise the average Joe and family needed. Lawn tools, Oil and filters, some clothing, etc.
The owner would be there helping bag your purchases also, drove a old pickup truck. A friendly chap my friends said.
He’d ask if there was anything more he needed to stock, and to write it on a suggestion sheet at the check out counter.
He’d talked of buying more of these little closed stores and doing the same. People thought it was just a fad.
My people bought shares in his young company seeing it a good concept. It did good for them and family.
That man…

… Was Sam Walton.
My friends were …

… …My parents.
I learned a valuable lesson that. C.s.

Don’t be so fast to judge.

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Definitely disagree.

Best case scenario is that crypto simply morphs into something like conventional currency with just relatively minor boring fluctuations up/down with rates of returns no better than what currency traders see by trading the dollar. There is ZERO chance that it will ever be accepted as mainstream currency until it looses its volatility. If it looses its volatility, then exactly what appeal is there to invest in it long term? Short terms investments are no better than a coin toss/gambling.

Worse case is investors lose everything.

In any case-no worries…there are always more pyramid schemes to invest in…just make sure one gets in early.

ANECDOTE: A client came in the other day. He had been dabbling in crypto for a few years, immersed himself in it. He now has a TAX problem, because the approx. $30k he invested in ECOMI turned into about $50 Million, which he sold in the April timeframe. Understand this does not happen every day, but wow.

IMO, technology advances. It always has and it always will. We advanced from hitting each other with sticks to using remote controlled drones to deliver bombs a half a world away. Currency (ie: a store of value) evolved from the barter method. And, IMO currency will evolve and include electronic means and electronic currency. I have posted before that all currency, whether gold, little green rectangles, or glass beads, etc, all rely upon an agreed fiction between the parties choosing to hold the item as valuable and choosing to exchange it for other things. Nothing really has any value other than those things we need to keep ourselves alive. Everything else which has “value” relies upon each of us agreeing it has a value. It’s a fiction, an agreed delusion.

Currently, a very large portion of the world has decided crypto has “value” due to various factors, scarcity, no gov’t oversight, anonymity, etc. These people have agreed to a “value” of crypto. And, not only have the people agreed it has value, gov’ts have agreed it has value because they are looking to regulate it and monitor it. The value goes up and down, has volitile and stable periods. And, I hate to break it to you, but it already has entered the mainstream as currency, not to the level of the greenback, but it’s there. Search car dealers who are selling new and used car’s, a large number state on their web pages they accept crypto. Same for real estate transactions. Many brokerages allow you to deposit crypto into your accounts, sell it, or trade it. I guarantee you will have a BTC ATM within 20 miles of you or so if you live near a major urban area. IMO, crypto has entered mainstream, just on the lower end.

Using your analysis, every stock traded upon every stock exchange is a coin/toss gambling and a pyramid scheme. And you can’t argue that the stock is backed by a company’s assets or balance sheet. Why? Because all of those things only have value through the global people agreeing to the fiction they have value. Just like crypto. If a stock has a value that’s not based upon an agreed fiction of value, I’d like to see it. You also can’t argue that it’s a pyramid scheme because the stock market works the same way. People gain and lose fortunes everyday in the market. It’s their choice to “gamble” to try to make their fictional store of value (ie: stock certificate) increase. Sometimes they win, sometimes they lose. Stocks are just like crypto. No one builds their gains upon the contributions of others. They build their gains upon others making poor or uneducated decisions, and we have decided this is ok. If you make a uneducated or poor stock trade, you don’t have a recourse against the person who profited from your trade. With stock, when I invest, an earlier investor doesn’t take my money (ie: a pyramid scheme). Crypto is the same way. When someone makes a bad crypto trade, they lose money. However, the money used to purchase crypto or crypto options doesn’t go to pay an earlier investor (ie: a pyramid scheme). In fact, I mine cryto. I don’t put a single dollar of my own fictional greenbacks into purchasing crypto. I use computers to verify other’s transactions and I get a reward for doing so. Please explain to my how this is a pyramid scheme?

Just like coldsnow’s anecdote above, value accrues when people agreed it gives them something they desire. mrbubba’s friend sure would agree, as would I.

No one is trying to get you to invest money or mine crypto. Each to his own; however, I feel you should educate yourself more on crypto, it’s methods, rewards, and purpose before you make negative statements about it. A large chunk of the world, including many very wealthy people, businesses, and gov’t’s have embrace block chain technology and crypto. I find it very hard to believe Jamie Dimon, JP Morgan Chase, and all the others have been duped into a pyramid scheme.

To be honest, I wish I would have put all of the money I put in MDMN into crypto 10+ years ago. I would have retired earlier this year with that $50M+ reward just like mrbubba’s friend. I was earning my first fraction of a BTC when it was trading at $100. Oh well. I have learned lessons along the way, from crypto and MDMN and I am still in a better place than I was 10 years ago, and I plan to be in a much better place 10 years from now by using the lessons I have learned. I can only hope you can do the same and put yourself in a better position in the future with the lessons you have learned.

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Yes…I wish I put all my Medinah investment in crypto instead for sure.(or alternatively-never even heard of Medinah) But really, it is what I do with my money today and going forward that matters. For instance, I had a momentary lapse of judgement and was thinking about buying crypto back in April, would be in a big hole on it if I did. So far, I have underestimated how well cryptos would do; lets see about going forward.

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ANOTHER ANECDOTE: I have another client (I do tax work) that is a geek’s geek. He was telling me how he set himself up with computers to do blockchain auditing, saying that he invested between $50-100,000 in computer equipment and becoming a member of a “pool”. He says that his average DAILY earnings is 1,500.00 - and he has to do nothing to earn it.

Mike, you made a prudent move not buying back in the Spring; however, if you do some chart analysis and dig into the research about crypto, it’s current in a trading range of approx $30k to $40k, with decreasing price swings and volume. The HODL’s have been slowing acquiring during this dip and the number of BTC getting removed from exchanges and going into cold wallets (ie: those wallets not associated with a trading exchange) has increased. In other words, the BTC is going from traders hands to HODL’s hands. With the decreasing volume and volatility, BTC is looking for a breakout, either up or down. IMO, there is a large floor of options which exist below the $30k, meaning if it goes below $30k its not going far and it shouldn’t stay for long. On the other hand you don’t see much of any ceiling on the options until you get into the low $40k’s. Then there’s not much until you get close to $50k. I think the risk of downside has lessened versus the break to the upside. Bitcoin traders split on $40K chances as altcoins eye potential ‘80%–150%’ gains Not saying it’s going to go there anytime soon, but if you are looking to buy, you may not find prices at this level again once it breaks upwards. You may just have to HODL for a while. I don’t day trade anything, let alone crypto, so just HODL if you decide it’s right for you to buy. Just food for thought.

mrbubba, that’s what I do, mine, but not on his scale as you have to worry about the electric costs up front, and trust me they are hefty. Fortunately, I am able to run a few machines as a place which I don’t get charged for electric. Unfortunately, this sweet deal ends at the end of the year. Working with some other friends about finding an alternative place. But I mine and I make a fair amount per day, everyday, 24 hours a day.

Make sure your client knows to keep track of his crytpo transactions, including rewards from mining. The IRS now requires you to list your crypto rewards as income on the day you received the mining reward. I use Coinbase and they allow an export to an excel spreadsheet with the transactions. I then created a spreadsheet my self in which to paste this data. I then can keep track of my sales and calculate any capital gains.

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