Tuesday, July 9, 2019

Dips are illegal

CoinSheet #260

To try to be safe everywhere is to be strong nowhere.
— Winston S. Churchill (1874-1965)

Note from me

Lately I've been playing a game called Teamfight Tactics (basically a strategy card game), and I know some of you have been playing it too.

I'm going to be messing around with streaming so you're welcome to join and tune in.

I'll probably be playing with other folks who are in the crypto space so you'll be able to ask us questions and get answers as you send em'.

If you're into this kinda stuff, follow me on Twitch.

https://www.twitch.tv/generalsol

…on to the dips

Dips are illegal

And what I mean by that is that they should be illegal in your mind whenever you think of bitcoin. Think of it as adopting a type of mental model/framework that will save you a lot of money.

ESPECIALLY DURING THE EARLY STAGES OF A BULL MARKET.

I think trying to catch dips now is like trying to catch those dips in 2017 when bitcoin was ranging from 1.2k-3k.

Think of the bigger picture, and you'll probably be happier in 18-24 months.

I bring you headlines

Facebook approaches Bank of Thailand to discuss Libra.
India is skeptical about Facebook's Libra plans.
And China says Facebook's Libra must be under central bank oversight.
All while China is setting up plans for its own central cryptocurrency. *Yawn

IRS discusses investigating taxpayers who hold crypto

CryptoTaxGirl shared a presentation given to special agents in the IRS Criminal Investigation division that discussed investigating taxpayers who hold crypto.

Below are the summary tweets. (Full slides here)

Crypto Tax Girl@CryptoTaxGirl

The IRS plans to use interviews, open-source searches, electronic surveillance, social media searches, and Grand Jury subpoenas given to a variety of companies.

Crypto Tax Girl@CryptoTaxGirl

You would think that these subpoenas would be served to crypto exchanges, but the IRS plans on serving them to Apple, Google, and Microsoft in order to search through taxpayers' download history to see if they have ever downloaded cryptocurrency applications.

Crypto Tax Girl@CryptoTaxGirl

Another slide mentions that the agents should be sure not to notify the taxpayer about the obtainment of information regarding their use of bitcoin, because such notification could be detrimental to the investigation.

Crypto Tax Girl@CryptoTaxGirl

The IRS also plans on serving subpoenas to collect bank, credit card, and Paypal records. These records should be analyzed to determine if any payments in or out went to parties that can send or receive crypto.

Crypto Tax Girl@CryptoTaxGirl

The IRS also plans to review Facebook, Twitter, and other social media platforms to find publicly available BTC and ETH addresses.

Crypto Tax Girl@CryptoTaxGirl

There is a ton of other information in there about crypto in general, tracing transactions via the blockchain, limitations of the blockchain, etc. but what you need to know is that the IRS is working HARD to identify criminal tax cases involving cryptocurrency.

Crypto Tax Girl@CryptoTaxGirl

I pray that none of you reading this get audited, but after going through those slides, it wouldn't surprise me if some of you do. If you reported everything correctly already though, you have nothing to worry about. If you haven't, let me help you :)

Market Sentiment

Bitcoin

It looks like we broke out of a triangle and there is going to be some resistance around that macro 38.2% fib line.

But don't stare at it too long, because you'll blink, and bitcoin will be at 16k and targeting all-time-highs.

Bitcoin is as bullish as it can look. Even if we dip back down to 9k, bitcoin would still be super bullish.

(Weekly view below)

Most other technicals that I use (moving averages, TD, random oscillators, etc..) aren't interesting right now and there so I don't see value in adding them.

Also, because they might distract you from bitcoin.