Cryptocurrency, mining it, & its involvement in gaming

Blockchain... NFT... and (yes, you guessed it...) Square Enix!

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With the recent announcement of plans to implement crypto currency into its games, Square Enix has provided some context for interacting with crypto. Bitcoin? Ethereum?? Wtf's a "dogecoin"?

Well, this is all new to me as well. Here is a place where we can collectively discuss.

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Accounting for cryptocurrency is new... at least, it is to me. The tricky part? Its value today isn't what it was historically. That means the cryptocurrency you own that is on your balance sheet is not valued at its original price. It changed.

It's taxed funny, and accounting for the change in value involves capital gains tax.

When your bitcoin loses value, you get a tax write-off.

Well, accountants are busy. But it sounds complicated, and typically America's consumer doesn't want to go near anything that has that many caveats - he doesn't itemize, takes the standard deduction, and his capital gains and losses are handled by the tax professional and CPA.

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Here is a link to KPMG's (big 4 accounting firm) "Accounting for Cryptoassets". https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/04/cryptoassets-accounting-tax.pdf

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So, where am I going with this?

What in gadzooks is it doing on Jr.'s Xbox??? I'm sure it's fine, but is it going to ding my credit if Jr.'s Bitcoin wallet tanks?

Let's take a look.

 

What do you know about cryptocurrency?
Can you tell me where is the best place for a beginner to start?
How and where to invest money and how to learn how not to be at a loss?

 

Look into fiats

 

Well I know the difference between fiat money and regular money, I mean how do I keep track of the rise and fall of cryptocurrency.
Market analysis and so on)

 

I only know how to tax it.

When there is a gain, you experience a capital gains tax at the end of the year. When there is a loss, you get a write off for the amount of the loss. I don't know much else.
Except that it's volatile. If its value is in any way influenced by how much Shiba Inu Elon Musk has, then all Elon Musk needs to do to screw up your crypto wallet is buy or sell more Shiba Inu.
But that could make a ton of people very angry (if they even understand how that works).

 

If you got into bitcoin early you would be a miljonair(sigh) and the idear behind it was interesting.......... you can make shortterm money with all the BS they come up with atm(crypto/nfts/ bla bla). Nfts and current crypto are just pyramide schemes...........you can make money, make sure you get out in time.



As a gamer if you play mmorpg (gw2)....then crypto basicly was allready in excistence since forever.........



Mzzls

 

Wow Bitcoin at $16,000.00

 

I could post a million other vids................get out while you can and dont invest............



Mzzls

 

Crypto can be quite the puzzle, especially when it comes to accounting and taxation. The changing value and complex tax rules can be a headache. Thanks for sharing the link to KPMG's guide; that's a valuable resource.

 

Because capital gains are taxed and because cryptocurrency is so volatile and always changing in value, the use of a "wallet" to store and save cryptocurrency just defies logic to me. I have never used it, but if I were to use cryptocurrency I would imagine the best way would be to redeem for cash quickly any cryptocurrency so that it doesn't have time to appreciate or depreciate and in that way preserve its historical value and minimize risk and tax liability.

Spoiler: SEC Statement Dissenting

SEC.gov | Statement Dissenting from Approval of Proposed Rule Changes to List and Trade Spot Bitcoin Exchange-Traded Products

 

As for crypto in Jr.'s Xbox, it's likely just a fun addition to the gaming experience. The impact on your credit should be minimal, if any. Just make sure Jr. doesn't go all-in on crypto without understanding the risks.
If you ever decide to dive deeper into the crypto world, using a cryptomixer can help keep things private and secure.

 

Have you been Cryptojacked? Is someone using YOUR Computer to Mine HIS Cryptocurrencies?
https://dailycoin.com/how-to-tell-i...how-to-tell-if-you-have-a-bitcoin-miner-virus

 

I can make alot more on 2ndlife had i a pc mac or linux. They r and & ios unfriendly. Would be nice to build some cash on mobile. Eve online does have a lil brother. Aint tried it tho.

 

I tried EVE ONline once. I got bored with it real quick.
It turned out to be a more graphic intense version of the Old BBS Text Game, Tradewars.
It even kept some of the tricks and traps from Tradewars.

 

For all intents and purposes, my estimate is it's usually a risky investment. You can probably use all the data available on the internet to determine how to trade crypto for gains, and once you get the hang of it you could make it fun, or easier with AI.

It incurs a capital gain tax (assuming you are trading and based in the United States) and is more risky than traditional investment portfolios and diversification; even if you diversify your crypto purchases, you chance an unpredicted loss.

One example I saw today was on the Motley Fool, and was talking about Ethereum, which is a popular currency.

The value is down, so the article includes that it wouldn't be a bad time to invest. This is where they get it wrong. There are aspects of Ethereum that are left exposed to vulnerability. That is also true with other investments, which we saw in the financial failings of 2008 when the speculative housing bubble and subprime lending to buyers and borrowers with little credit at too-good-to-be-true and predatory.

Anyway, at that time even stable investments lost a lot; and some people lost everything. Sometimes it is better to leave the money in the bank. Other times, it's safe to do a little of both. The reality of smart investing takes into account a cost & benefit analysis and weighs risks and what-ifs.

The Motley Fool asks, "What if the owner...?" and goes into a hypothetical with more terms and buzzwords than I'm willing to commit to memory. The answer is a little like something I had hypothesized earlier in the thread.

It's a little like owning a majority share in a multi-million-dollar company; if one were to sell their share, the consequences are far reaching. Same thing with Ethereum. Ownership in the company would change. For Ethereum, value of the currency would change based on supply and demand. I'm not sure what typically happens to demand when a large amount of currency is sold, but my thinking is that demand decreases. That means the value of Ethereum decreases; dramatically so if the majority ownership decides to table.

 

From the first day I heard about them till today I fully feel its a scam! I would never buy or use it.

 

PayPal now has its own 'stablecoin', a cryptocurrency like any other but one that is not volatile but in fact the opposite; $10 of it can be bought and subsequently sold for the exact same amount.

Stablecoins: Definition, How They Work, and Types (investopedia.com)

 

Gaming and crypto............ i have played Guildwars(mmorpg) for years(1 and 2)...........ingame currency and economy(crypto)...... has been around for ages(Runescape/WoW/GW/ect)

Runescape is the onlyone you still can make some money on..........if you can beat the bots,lol.

Current games and Gambling/crypto...........lootboxes/currency/nft...................dont get scammed/burned

Mzzls