Friday Finance 5/6/2022: Misguided Decisions
It is time again for another Finance Friday/Friday Finance. This is a series I started where I talk about random bits of financial stuff that I have seen, gathered, or experienced during the week. I hope as a reader you find it informational, entertaining, or both. I also hope it can generate some good discussion and edify the Leo community.
After a lighthearted journey yesterday into the world of aliens, it is time to get back to business. Today is Friday and of course that means finance.
It's a bit rough out there if you know what I mean. FED raise the interest rate by .5% or 50 bpm. Stocks went up, stocks came down, and crypto as we have seen lately followed suit. It wasn't a huge pump, so the fall to $36K doesn't feel quite so bad. It still sucks though.
Senators Senatoring
The first piece of Friday Finance I have for you today deals with US regulations on cryptocurrency. It's actually one of the few positive pieces of legislation I have seen lately as the government tries to figure out what it is going to do about this crazy Internet money thing.
Senator Lummis and Gillibrand:
"are proposing a tax exemption for up to a certain level of capital gains on cryptocurrencies"
This sounds pretty good at first, but then when you read the article you will find that the number they came up with for the exemption cap is $600. Of course it isn't set in stone, but golly gee, $600 is a pretty low number when you are talking about crypto currency. There are some people who make $600 per hour if not minute in interest on some of these platforms.
Don't get me wrong, I think their heart is in the right place. The one senator is from Wyoming, so you know she probably knows what's up when it comes to crypto.
One of the concerns they pointed out was a kid who owns $40 worth of crypto and plays a P2E game. They don't want him to have to pay taxes on his earnings. Like I said though, I think they are really out of the loop concerning the figures.
Sure, a kid might only be making $600 per year at current prices, but we see another bull run and more mainstream adoption of crypto and P2E, and that same kid could be making $6000 or $60,000 per year. Crazier things have happened!
Wikipedia says no to crypto
I'm actually a bit shocked I didn't see any other posts about this one this week. The news came out back on Monday and I was expecting my Leo Finance feed to get filled with posts about it. Maybe people just don't care... Maybe the posts were there but I missed them. Who knows.
So the TL:DR boils down to the company that owns Wikipedia has decided to stop taking donations in crypto due to the "environmental impact" and the damage it is doing to their reputation.
Here we go again with another group that clearly doesn't know the difference between proof of stake and proof of work. They clearly also don't realize how much carbon emissions the global banking system emits as a whole.
Apparently, this was a community driven decisions, which I think almost makes it worse.
When I read the article my thoughts went to Elon Musk and his Tweet after Twitter initially rejected his offer when he said something to the effect of "I guess we build our own".
I know there have been attempts to make a blockchain based Wikipedia in the past, but who knows if they will ever pick up traction or match the amount of information that is available on Wiki.
Either way, I think it is pretty sad and short sighted that they made this decision.
Pulling up stake
Just as many of the tech companies are waving bye bye to California and moving to greener pastures in Texas and Arizona, many crypto companies are calling Singapore quits.
While Singapore used to have fairly favorable crypto laws, things have shifted and many of the companies that used to call Singapore home are now moving to Dubai. From what I have seen, Dubai doesn't do anything small, and the same applies for the crypto sector which is apparently booming there.
Apparently, Singapore still claims to have a favorable stance on crypto (as long as you are an institutional investor), but their attitude towards retail investors is making the decision to move fairly easy for those institutions.
Though not altogether relevant for those of us who live in the US, I think it does set a precedent. Many of these companies can see where this is heading and they know what the public wants. If it takes moving countries to protect their profits and customer base, they are going to do it. No hesitation.
Sports Talk Social - @bozz.sports
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We should recognize how taxes can be used to grow the economy and also be fair to people i.e the crypto users. but it's the other way round most times
If this can be done, then we can at least endure for the time being, until we find a way out of their big pocket.
Wikipedia has a whole lot of information but I doubt they do about the crypto world. We need a decentralized wiki someday or maybe Hive can fill the gap.
I see no reason not to go for a better location if it brings growth.
We have companies here in Nigeria has moved to other countries to run their crypto operation in nearby countries after the government banned crypto last year. They can still manage their business and get paid in crypto but cash out in another currency.
This is how much power crypto is giving all small business owners. TOTAL FREEDOM
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If I am making a decent amount, I really don't have an issue paying taxes. I did it this past year in fact. It's just one of those inevitable's like death. I know there was a group called Everpedia that was working on something. I am not sure what ever happened to it.
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The money multiplier for the US Government is negative. This means that each dollar that goes in (via taxes) yields less than a dollar return. Thus economic growth is better served by being in the private sector which at least has a positive money multiplier.
I would presume most governments mirror the US in this regard.
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I skimmed that taxation article and the reporting is not very clear on the structure/intent. Hopefully what they’re actually proposing isn’t a yearly offset but actually a minimum threshold for the need to report individual transactions. I’ve heard similar calls for action in the past particularly for use cases like CoinBase linked debit cards, etc. where you’re supposed to report capital gains when purchasing a cup of coffee! If that’s the case the $600 limit would be totally solid.
Yes, I guess that makes sense, but they are going to need a lot more clarification before we get to that point. It's just funny because I feel like even the politicians who are pro crypto are just throwing darts at the board and seeing what sticks at this point.
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The politicians are completely insane.
They do not realize that their push to make most a criminal will end up causing further development of privacy features that they will have a tough time getting around.
My guess that is the next major area of focus by the geeks.
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It was a rocky couple of days. First of all total euphoria and then a surprising sell off. And that was just a 0,5% raise!
Yeah, no kidding. It's going to be interesting to see what happens when the recession finally gets here.
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its on its way.. a large employer nearby already announced 2k layoffs.
Great! :P
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Markets are just that. Do not put your emotions into them.
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i try not too. but you know how it is.
Love this little catch up on the latest and greatest I should wait with reading this till I have my first Friday Beer next time
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I can totally appreciate that. Once I get out of work I might have my own Friday Beer.
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All the while, we just keep building. That is the key to all this. Everyone can say no, for now. But in the end, that is like saying no to the Internet.
As for the Senators, build around them.
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Yeah, good points. I just keep showing up every day. Okay, almost every day.
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I hope more places become favorable to crypto because it's a business opportunity. Can it fail? Of course, it could but it doesn't matter because businesses are businesses. There are a lot of places that want them. It seems kind of dumb to push the companies out.
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I agree. I think there is going to be a time where a lot of people and places realize just how badly they messed up.
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It is all about control, everyone is scrambling wealth transfers, data transfers, the big reset is coming so they say and no one wants to be at the bottom.
The elites know they are losing the culture war which is why they are so blatent about their bollocks now before they use to at least try and hide it.
Awesome post @bozz came from Listnerds
!ALIVE
!CTP
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@bozz! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @benthomaswwd. (10/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
Thanks I appreciate the insight. Yeah, something is definitely on the horizon. We just need to get to it and get it behind us already.
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Your welcome @bozz yeah there is a lot of rumblings for sure just been preparing,being more self sufficient and stacking options offline and online. About all we can do till we know what dodgy crap they will try and pull next. 🤣 Would be nice to get it over with 😉 !ALIVE !CTP
@bozz! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @benthomaswwd. (20/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
The idea of creating a blockchain-based Wikipedia is neat!
- EvM
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Wikipedia, every teacher I had said if you quote wikipedia you will not pass! We could build an index on STEM and call it hivelexicon science has a complex concensus so constant updating and renogitiating of definitions would take a lot of space. But it is possible,,,
The framework is not that hard to do. Decentralized science.
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welldone brr..
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I hadn't heard about Wikipedia. That is a surprise to me. Wonder what the impact on the environment is to mine the metals used for hard currency?
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No kidding right!?