Bitcoin Question

Shorter thoughts and general discussion of cryptocurrency related topics
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This forum is complementary to Bitcoin Thoughts and is a a place to discuss shorter thoughts about bitcoins, altcoins, and cryptocurrencies.

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Topics may include bitcoin prices, outlooks on altcoins, cryptocurrency development, economics, and more. Feel free to share outlooks on other things as long as the major focus is on cryptocurrencies. Announcement posts are prohibited in this forum; review the rules in the other Prohashing forums for the best place to post your announcement.
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Kavin
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Joined: Tue Mar 19, 2019 9:17 am
Location: Duluth

Bitcoin Question

Postby Kavin » Tue Mar 19, 2019 9:28 am

So yeah im a absolutely noob in bitcoin hehe
my question is: When i got bitcoins on my wallet and lets say i dont go on this wallet for 2 years will the bitcoins increase? So is this a way to investest (and yes i know it can fall lets say it wont fall)
ajs
Posts: 39
Joined: Sat Jun 16, 2018 2:43 pm

Re: Bitcoin Question

Postby ajs » Tue Mar 19, 2019 9:59 am

Kavin wrote:So yeah im a absolutely noob in bitcoin hehe
my question is: When i got bitcoins on my wallet and lets say i dont go on this wallet for 2 years will the bitcoins increase? So is this a way to investest (and yes i know it can fall lets say it wont fall)


Bitcoin does not pay dividends nor does it have staking, which works a bit like a dividend. The amount of coins in your wallet will be the same in 2 years. But the value of the coins will certainly not be. Some will say it will be worth nothing, other the moon, the reality is in between.

If you want investment like things that grow, look at coins that use Proof of Share (PoS) not Proof of Work (PoW) and then when you put them in your wallet, you delegate you votes and they pay you in coins. Not that many of these coins are not as solid as bitcoin.

https://stakingrewards.com

Etherium and Cardano will be staking shortly.
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CSZiggy
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Joined: Wed Jan 31, 2018 2:44 pm

Re: Bitcoin Question

Postby CSZiggy » Tue Mar 19, 2019 11:32 am

ajs wrote:Bitcoin does not pay dividends
But when you sell your bitcoins and turn them into fiat currency, it could trigger a dividends like sell short/long term capital gains event. Depending on which country you live in you would then be responsible for paying the taxes on the money you get when you sell the coins.

Unlike a bank wallet, cryptowallets do not provide interest-rate earnings.

There are some exchanges that allow shorting of cryptocurrency. If you put your bitcoins in and allow them to be used by traders you can get a bump in the number of coins you have as a type of interest payment for the traders being allowed to use your coins. There may be a term of time you have to agree to depending on the exchange(we give you 1% on top of your initial deposit if you agree to leave coins here for 6 months-type clauses).
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Steve Sokolowski
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Re: Bitcoin Question

Postby Steve Sokolowski » Tue Mar 19, 2019 12:04 pm

CSZiggy wrote:
ajs wrote:Bitcoin does not pay dividends
But when you sell your bitcoins and turn them into fiat currency, it could trigger a dividends like sell short/long term capital gains event. Depending on which country you live in you would then be responsible for paying the taxes on the money you get when you sell the coins.

Unlike a bank wallet, cryptowallets do not provide interest-rate earnings.

There are some exchanges that allow shorting of cryptocurrency. If you put your bitcoins in and allow them to be used by traders you can get a bump in the number of coins you have as a type of interest payment for the traders being allowed to use your coins. There may be a term of time you have to agree to depending on the exchange(we give you 1% on top of your initial deposit if you agree to leave coins here for 6 months-type clauses).


Note that if you do that, you can also lose money if the shorter is margin called and his orders are unable to be fulfilled with all the money he has. Some exchanges have "socialized losses" that cause everyone to lose money when that happens.
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CSZiggy
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Joined: Wed Jan 31, 2018 2:44 pm

Re: Bitcoin Question

Postby CSZiggy » Wed Mar 20, 2019 2:00 am

The ones I've seen require you to have a balance of double what you borrow against in order to put a short order in. It locks your balance so you are unable to trade/buy or withdraw it under the 2:1 ratio while you have a short order credited to your account. If it gets under a certain percent below the 50% balance the margin call is automatically triggered and you pay from your balance. Then if you want you can re-short with half of what you have left, rinse, repeat.

I've found one that requires 3:1 balance vs what you borrow to short, but not sure who would go with that one when others are offering only needing 2:1 in order to short.

I don't mind going long on the upswings, but finding the bottom on a short and having 2X the funds to even be able to do it means I dont play the short game very often.
brendann
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Joined: Sun Mar 31, 2019 4:05 pm

Re: Bitcoin Question

Postby brendann » Sun Mar 31, 2019 4:27 pm

If you are not experienced Cryptocurrency trader & just started trading in cryptocurrencies then I would not suggest buying bitcoin for short term because prices have been fluctuating regularly in the last couple of years but if you invest for a long time there are certain values of bitcoin and other cryptocurrencies because most powerful economics accept the digital currency and people also taking interest in crypto tradings.
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CSZiggy
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Re: Bitcoin Question

Postby CSZiggy » Sun Mar 31, 2019 5:27 pm

We weren't discussing the length of term of the purchase, but shorting or going long on the price with respects to trading.

@brendann I find it amusing you came on the forums to place an ad about crypto trading but seem to have no idea what shorting or going long means when it comes to trading. Thank you for your ad placement.
Juliia888
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Joined: Tue Apr 09, 2019 2:55 am

Re: Bitcoin Question

Postby Juliia888 » Tue Apr 09, 2019 3:38 am

You won't get any dividents if you just keep bitcoin in your wallet, and of course you can leave it for 2 years but it is very risky. You may become richer or lose your money, everything depends on the currency course

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