Let's talk about Cryptocurrencies

[PsYcNeT]

Originally Posted by karl262

There are stable coins that try to do that like tether. They just keep minting new coins to keep the value as close to 1 USD as possible, I would assume they can burn coins too but not sure.

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Yeah Tether and DAI use AI/smart ETH contracts to keep their value at $1 USD. They use some complicated collateral and token burning systems beyond minting to keep things as close as possible.

[Winsor_Pilates]

Originally Posted by Leondros

You would have to run the numbers in your situation but yes, you are deferring tax on a personal basis in your corporation until a time you pay out your dividends. This is advantageous if you can wait for a tax year where you are in a lower tax bracket. However your gains will be significant and taxed at a higher rate. Have your accountant run through both scenarios for you on paper.

You actually can run bitcoin through TFSA and RRSPs now that there are ETFs. I have a chunk of my TFSA in these.

Thanks.

Yeah, I've run all of this through my advisor and accountant and it's long term investments for me. It's definitely better in my corporate structure, I'm just bad with the details (which us why I hire the pros).

How has the ETF performed compared to Bitcoin?
Does it actually mirror the returns closely?
Does bitcoin dropping 7% today mean the ETF did as well?

[Leondros]

Originally Posted by Winsor_Pilates

Thanks.

Yeah, I've run all of this through my advisor and accountant and it's long term investments for me. It's definitely better in my corporate structure, I'm just bad with the details (which us why I hire the pros).

How has the ETF performed compared to Bitcoin?
Does it actually mirror the returns closely?
Does bitcoin dropping 7% today mean the ETF did as well?

The new ETFs, like BTCC (not GBTC - which is a trust) are tracking very close to the actual price of bitcoin at all times +/- 2%. They have finance people constantly adjusting their BTC holdings to track directly to the price. So the answer is they are effectively tracking the price.

GBTC however which is a trust and holds a lot of Bitcoin had many issues with tracking the actual price. Sometimes their premium to NAV was 30% higher than the actual BTC they owned. I think they are currently actually trading at a discount due to the fact that everyone is moving their holdings to the legit ETFs such as BTCC.

I haven't done such an analysis on a corporation vs sole proprietorship in over a decade when I get was getting my CA but it can vary on a case by case basis in addition to assumptions such as future tax brackets, market returns, income splitting assumptions and corporate tax rate assumptions.

[Raekwon]

I got out of BTCC-B.TO because it didn't seem to be in line with the price changes of bitcoin. It seemed to have panic drops and take too long to recover even when Bitcoin went back up to all time highs. Also I thought what is the point of a bitcoin ETF? you are investing in a money replacement with money to get back money you never hold actual bitcoin, if you want to invest in bitcoin just but bitcoin and then the value is always equal and you have the option to keep it digital or convert to fiat.

[Leondros]

Originally Posted by Raekwon

I got out of BTCC-B.TO because it didn't seem to be in line with the price changes of bitcoin. It seemed to have panic drops and take too long to recover even when Bitcoin went back up to all time highs. Also I thought what is the point of a bitcoin ETF? you are investing in a money replacement with money to get back money you never hold actual bitcoin, if you want to invest in bitcoin just but bitcoin and then the value is always equal and you have the option to keep it digital or convert to fiat.

The point is you can't hold physical bitcoin in an RRSP or TFSA which given the potential for massive gains, could be significant. Tax planning may not be in the front of many but with the article I posted above about the CRA cracking down, it should be.

[Leondros]

Originally Posted by Raekwon

I got out of BTCC-B.TO because it didn't seem to be in line with the price changes of bitcoin. It seemed to have panic drops and take too long to recover even when Bitcoin went back up to all time highs. Also I thought what is the point of a bitcoin ETF? you are investing in a money replacement with money to get back money you never hold actual bitcoin, if you want to invest in bitcoin just but bitcoin and then the value is always equal and you have the option to keep it digital or convert to fiat.

I was curious about this so I just pulled the BTCC data and BTC data in CAD and graphed the daily change. It looks pretty spot on plus or minus a percent.

https://ibb.co/BwfTdfX

[Winsor_Pilates]

Originally Posted by Raekwon

I got out of BTCC-B.TO because it didn't seem to be in line with the price changes of bitcoin. It seemed to have panic drops and take too long to recover even when Bitcoin went back up to all time highs. Also I thought what is the point of a bitcoin ETF? you are investing in a money replacement with money to get back money you never hold actual bitcoin, if you want to invest in bitcoin just but bitcoin and then the value is always equal and you have the option to keep it digital or convert to fiat.

Take our resident crypto mogul Dino for example.
His 700K increase would be tax free inside a TFSA.
If he sold his bitcoin today as is, he's paying capital gains on $350,000. So likely a $150,000 - $175,000 difference in his actual profit (correct me if I'm wrong accountants).

[Canadianman]

I'm a bit of a privacy hawk, and I started reading about monero today. That led me down a rabbit hole of other privacy-focused coins. Anyone ever heard of mobilecoin? It's fairly new, but given it is a mobile-focused coin (with the intent of it being easier to use than current coins), I thought it might be worth investing a few bucks into.


Anyone ever heard of it? Thoughts/discussion? Or just feel free to post telling me that it has no fundamental value and will crash to -$10,000 soon.

[karl262]

Originally Posted by PsYcNeT

Yeah Tether and DAI use AI/smart ETH contracts to keep their value at $1 USD. They use some complicated collateral and token burning systems beyond minting to keep things as close as possible.

They must not really be decentralized then if they can arbitrarily burn tokens, right? They could start burning their own tokens but can only do that for so long. Then burn tokens in private wallets? I'm not sure if there is really any point to tether, is it just used as a safe place to keep things in the crypto space during market corrections maybe?

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[Yoho]

Originally Posted by Winsor_Pilates

Take our resident crypto mogul Dino for example.
His 700K increase would be tax free inside a TFSA.
If he sold his bitcoin today as is, he's paying capital gains on $350,000. So likely a $150,000 - $175,000 difference in his actual profit (correct me if I'm wrong accountants).

Would love to see the TSFA that would turn $15000 into 700k in three years.

[1_Flames_Fan]

Originally Posted by Leondros

On a somewhat related note the CRA is going after crypto holders in Canada. I bet there are going to be a lot of audits and ultimately the hammer will come down on these people.

http://https://nationalpost.com/news/canada/major-canadian-cryptocurrency-marketplace-must-fork-over-details-of-thousands-of-clients-to-cra-court-rules

Yeah it's not ideal but still smarter to go with them instead of Quadrica

[dino7c]

Originally Posted by Winsor_Pilates

Take our resident crypto mogul Dino for example.
His 700K increase would be tax free inside a TFSA.
If he sold his bitcoin today as is, he's paying capital gains on $350,000. So likely a $150,000 - $175,000 difference in his actual profit (correct me if I'm wrong accountants).

Didn't I tell you guys I am moving to Switzerland?

[Leondros]

Originally Posted by Yoho

Would love to see the TSFA that would turn $15000 into 700k in three years.

There’s quite a few out there. There were some in the millions after 5 years.

https://financialpost.com/personal-f...ts-to-know-how

[Leondros]

Originally Posted by 1_Flames_Fan

Yeah it's not ideal but still smarter to go with them instead of Quadrica

Me and some buddies all lost some money on Quadriga. Some lost tens of thousands... lessons were learned.

[Wormius]

Was listening to some stories about the NFT artwork. Are these genuine or can anybody do a drawing and make a bit of money? Is this sort of the new “mining”?

[PsYcNeT]

Originally Posted by Wormius

Was listening to some stories about the NFT artwork. Are these genuine or can anybody do a drawing and make a bit of money? Is this sort of the new “mining”?

It's faddish, but there is some investment cost as Minting an NFT is proportionate to the file size. Minting a JPEG is like, ~50-200 USD in ETH.

A lot of artists are wrestling with the implications of jumping on what is obviously a bubble bandwagon and compromising their integrity. The "pay millions for a JPEG" stuff will probably be short lived, and most of the NFTs out there are illegal reproductions of artists work (but because it's crypto, it's near impossible to determine who put it up for sale/demand a takedown).

[1_Flames_Fan]

Originally Posted by Leondros

Me and some buddies all lost some money on Quadriga. Some lost tens of thousands... lessons were learned.

Yeah, I apologize for making light of that. I know that a lot of people lost a lot of money and had things gone differently I could very well have been one of them. I don't have any skin in the game on this either way but my personal opinion is Cotten faked his death to get out of it while the business was hemorrhaging money due to his shoddy business practices, embezzling, etc. Not sure if we will ever know the truth but I hope the investors succeed on their request to have the body exhumed. The whole situation is just to shady to believe....

[Winsor_Pilates]

What happened with Quadriga?
Is there similar risk with all of these other crypto exchanges or wallets?

One of the things that concerns me about getting into crypto is you seemingly putting your money into strange random companies but maybe it's more secure than I know?

[1_Flames_Fan]

Our own Matty Tkachuk the first NHL player to do an NFT. Donating 100% of the proceeds to Alberta Childrens Hospital and a childrens hospital in St. Louis. Winner also gets an autographed game used stick and an autographed jersey as well as a virtual or post game meet and greet. Pretty cool, way to go Matthew!!

https://www.sportsnet.ca/nhl/article...r-release-nft/

[Yoho]

https://twitter.com/user/status/1372203269804675072