Investing

The RFD - Cryptocurrency Mega Thread

Deal Fanatic
User avatar
Dec 14, 2010
7113 posts
9300 upvotes
CheapScotch wrote: Inflation is not relevant because it applies to all investments. This discussion is about risk-return tradeoff of CDIC insured deposits compared depositing Crypto to earn interest.

https://hbr.org/2021/02/what-happens-wh ... n-interest
Of course it’s relevant, it exists, it’s real, and should be taking into account because it affects purchase power. Opportunity cost should also be taken into account.

Keep protecting the status quo.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:
Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Deal Fanatic
User avatar
Dec 14, 2010
7113 posts
9300 upvotes
CheapScotch wrote: I mean it is not relevant when comparing investment A to investment B because it affects both investments. At the end of the day, you need to liquidate the investment to fiat to spend it. Whatever you invest in, you are going to "lose to inflation"
I don’t liquidate my crypto investment to spend it. I farm income, which goes to my Visa crypto card straight. The engine that produces income continues to chug along.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:
Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Sr. Member
User avatar
Mar 27, 2012
852 posts
158 upvotes
Baffin Island, NU
rodbarc wrote: I don’t liquidate my crypto investment to spend it. I farm income, which goes to my Visa crypto card straight. The engine that produces income continues to chug along.

Rod
This will be my next money machine :) just waiting for my Crypto.com Visa now so I can buy PIZZA using my daily crypto farming income!!!
Deal Addict
Jan 1, 2009
1093 posts
600 upvotes
CheapScotch wrote: Generally, yes. As far as I can tell, only way you would not is: 1) the purchasing power of fiat is not reduced by inflation or 2) you never liquidate your investment to fiat.
Bro your so far gone you don't even make sense anymore, I can at any point convert my savings account investment earning 8% in stablecoins into fiat cad $$$ to spend at any point without having to wait no more than 1min. LoL
Deal Fanatic
User avatar
Sep 1, 2013
6198 posts
762 upvotes
Nauth wrote: Bro your so far gone you don't even make sense anymore, I can at any point convert my savings account investment earning 8% in stablecoins into fiat cad $$$ to spend at any point without having to wait no more than 1min. LoL
But if there was inflation during the time you held your stablecoin "investment" (or any other investment for that matter), the CAD would have reduced purchasing power. Regardless of what your nominal return was on the investment, you still have lost out to inflation, just the same as if you had parked the CAD in a saving account.
Deal Fanatic
User avatar
Sep 1, 2013
6198 posts
762 upvotes
rodbarc wrote: Of course it’s relevant, it exists, it’s real, and should be taking into account because it affects purchase power.
Yes, inflation is real, but if affects purchasing power regardless of what you invest in, so it is not relevant in terms of choosing one investment over another.
rodbarc wrote: Opportunity cost should also be taken into account.
Agreed. What of it?
Deal Fanatic
User avatar
Sep 1, 2013
6198 posts
762 upvotes
rodbarc wrote: I don’t liquidate my crypto investment to spend it. I farm income, which goes to my Visa crypto card straight.
Yes, you are liquidating your Crypto

https://www.ratehub.ca/blog/crypto-visa ... ould-know/
You might think a Crypto Card would let you pay directly in cryptocurrencies like bitcoin with a simple swipe or tap, but in reality, there are a few extra steps involved.

In the case of the heavily-advertised Cryptodotcom Visa Cards, you’ll load Canadian dollars on the card and spend in Canadian dollars. While you can technically link cryptocurrencies via your digital wallet, you’ll need to convert (aka sell) the crypto to Canadian dollars using the Cryptodotcom app first before you can load it onto the card and spend it.

rodbarc wrote: The engine that produces income continues to chug along.
I am not saying that it can't be profitable, just that you are bearing considerably more risk vs. CDIC insured savings account to get these returns.
Banned
Apr 5, 2013
5810 posts
3019 upvotes
keenland
another weekend of ...cheapscotch comments..

inflation...hopefully investment beat infllation...DeFi does that..do your term deposits?

everything comes with risk..even your CDIC insured already have risk cost and insurance factored as an "all in" price...th e DeFi system is open and outline all costs as opposed to "all in" like the banks

did you buy your grandkids some BTC or will you have all the answers when they ask why didnt in 20 years...just like a little chunk of gold..just incase you were wrong about all this?..its still cheap and early relative to everything else..

...or will you still tow the line of governments (that betrayed you in your older years.)..you saved and were conservative and never exposed yourself to excessive risk and excess debt just in case something like a pandemic happens and the govt pisses on all the safe people and gives free money and causes financial turmoil; for years to come.

turmoil hasn't even started yet...only now am I starting to see a real drawdown of sales and services and wonder what is to come in the next year in my business..my employees are safe to June so far (fed programs)

btw, you know the answers to all your questions ,..you just ask to get a triggered response so you can give a triggered rebuttal...or am I wrong?
Deal Fanatic
User avatar
Dec 14, 2010
7113 posts
9300 upvotes
CheapScotch wrote: Yes, inflation is real, but if affects purchasing power regardless of what you invest in, so it is not relevant in terms of choosing one investment over another.
Yes it is, because if your “investment” doesn’t even cover keeping existing purchase power today, then it’s a losing proposition.

Your loss, not mine, if you think it’s not relevant to consider it when parking your money, never mind investing it for short term.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:
Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Deal Fanatic
User avatar
Dec 14, 2010
7113 posts
9300 upvotes
CheapScotch wrote: Yes, you are liquidating your Crypto

https://www.ratehub.ca/blog/crypto-visa ... ould-know/





I am not saying that it can't be profitable, just that you are bearing considerably more risk vs. CDIC insured savings account to get these returns.
I am converting my crypto income to my visa card but I am not liquidating my original crypto investment that produces income. It works like a dividend that can be spent perpetually because the interest continues to be generated through fees and liquidity that keeps growing on this space.

I disagree that I am bearing more risks when comparing a mechanism that is written on a safe piece of code written on a safe language that has billions of dollars versus a legacy mechanism that is guaranteed to lose to inflation with the perk of being guaranteed by CDIC. It’s a protection that one doesn’t at the cost of leaving you with less purchasing power than before.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:
Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Deal Addict
Jan 1, 2009
1093 posts
600 upvotes
CheapScotch wrote: But if there was inflation during the time you held your stablecoin "investment" (or any other investment for that matter), the CAD would have reduced purchasing power. Regardless of what your nominal return was on the investment, you still have lost out to inflation, just the same as if you had parked the CAD in a saving account.
I haven't lost to inflation if my stablecoins which is cad base is earning higher than inflation, I'm actually winning and can convert any time. Versus the alternative of keep just fiat cash in some fait savings account earning less than than my stable coins.
Banned
Apr 5, 2013
5810 posts
3019 upvotes
keenland
rodbarc wrote: I am converting my crypto income to my visa card but I am not liquidating my original crypto investment that produces income and continues to appreciate in value, better than any other asset class (store of wealth) . It works like a dividend that can be spent perpetually because the interest continues to be generated through fees and liquidity that keeps growing on this space.

I disagree that I am bearing more risks when comparing a mechanism that is written on a safe piece of code written on a safe language that has billions of dollars versus a legacy mechanism that is guaranteed to lose to inflation with the perk of being guaranteed by CDIC. It’s a protection that one doesn’t at the cost of leaving you with less purchasing power than before.


Rod
added
Sr. Member
User avatar
Mar 27, 2012
852 posts
158 upvotes
Baffin Island, NU
Man! you folks are making my head spin.

All I know is my DeFi and Crypto investment are giving me at least 2.XX% daily interest on my investment which for me is good enough to beat inflation, conventional FI's saving account, and high MER investment. Those 3 are good enough for me to take whatever risk Crypto Currency have.

Here is one reason why I'm bullish on crypto.com as a company and why I signed up on their Crypto Visa debit card >>> https://www.forbes.com/sites/ninabambys ... 122ad95c57
Deal Addict
Jul 11, 2007
1860 posts
889 upvotes
CheapScotch wrote: I mean it is not relevant when comparing investment A to investment B because it affects both investments. At the end of the day, you need to liquidate the investment to fiat to spend it. Whatever you invest in, you are going to "lose to inflation"
It's difficult to understand what you are trying to argue.

Swapping CAD to TCAD on many platforms will generate an APY from 10-14% typically.

Savings Account at best gets you close to 1.5% APY right now.

One is beating real inflation and the other isn't. There is also compounding effects both ways where if your return is beating inflation, it will compound and continue to beat it by even more. If your return is losing to inflation, your loss to inflation keeps compounding as well.
Deal Addict
Jan 28, 2009
2013 posts
613 upvotes
Calgary
crazy day for Mobilecoin ($MOB). Up over 100% for the day.
Deal Addict
Jan 11, 2010
1033 posts
391 upvotes
Regarding coinsquare and the CRA disclosure; if coinsquare was only used as a fiat ramp->bought coins->withdrew coins to wallet/ other exchange. No crypto-> fiat trading activity, technically shouldnt qualify as any capital gains right?

As per the tax rules
"tax consequences when you do any of the following:

-sell or make a gift of cryptocurrency
-trade or exchange cryptocurrency, including disposing of one cryptocurrency to get another cryptocurrency
-convert cryptocurrency to government-issued currency, such as Canadian dollars
-use cryptocurrency to buy goods or services"
Deal Fanatic
User avatar
Dec 14, 2010
7113 posts
9300 upvotes
It’s only a matter of time to have cryptocurrencies, specially stablecoins, as a parallel currency for everyday transactions.

Visa To Start Settling Transactions With Bitcoin Partners In USDC


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:
Investing strategy based on dividend growth

Trading strategy based on Graham principles.

Top

Thread Information

There are currently 2 users viewing this thread. (0 members and 2 guests)