Bitcoin Price Dives After SEC Says Crypto Platforms Must Be Registered

rgMekanic

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Bitcoin fell up to 13% today down to $9,416 after the U.S Securities and Exchange Commission reiterated that online trading assets must register with the agency as exchanges according to a report from Bloomberg. Instead of registering with the SEC, some of the largest trading platforms like COinbase have money transmission licenses with separate states.

Good. The article also states that "Adding to concern is speculation that Asia-based Binance, one of the largest exchanges, has been hacked." We knew it would only be a matter of time before government got involved in the cryptocurrency market, and now it seems we are starting to see its early effects.

“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration,” the SEC said in the statement Wednesday.
 

spugm1r3

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It's not a huge leap to go from registration to taxation. Keep your eyes peeled.
 

pcgeekesq

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It's not a huge leap to go from registration to taxation. Keep your eyes peeled.
One primary purpose of registration is to make sure taxes aren't being evaded.
The other purpose is to track the flow of money to criminal enterprises.

But once the government is taxing and tracking transactions on an exchange, what's the point of moving crypto-currency on that exchange? Odds are most exchanges will go dark (as in, covert) since a major motive for using crypto-currencies is hiding the money.
(Another major motive is fleecing the gullible, but that's legal if you do it by the rules. :)
 

WhoMe

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The government wants to track and tax money ... ¯\_(ツ)_/¯ ... who knew?
I had to squint because at first I thought that symbol was a bat...put on todo list: see eye doctor. But yeah once real money started floating around this was inevitable. Any of those who thought they were getting tax free money (and there must be some otherwise why would the value fall) were deluding themselves or very naive.
 

Archaea

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rgMekanic

"Good" that bitcoin fell?

or "Good" that regulation is coming?

Sort of breaks the point and purpose of bitcoin's decentralized, government agnostic, for the people idealogy -- being regulated that is.
 
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Deleted member 126051

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rgMekanic
Sort of breaks the point and purpose of bitcoin's decentralized, government agnostic, for the people idealogy -- being regulated that is.
Sorry, but whoever actually thought every extant government was going to stay hands-off on ANY sort of value transaction?

"Yeah. We know lots of value is changing hands. Even actual money. But nah. We're just gonna stay TOTALLY hands-off! As is every other government on the planet..."

Well, let's say that Santa Claus and the Easter Bunny are more believable.
 

Archaea

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Sorry, but whoever actually thought every extant government was going to stay hands-off on ANY sort of value transaction?

"Yeah. We know lots of value is changing hands. Even actual money. But nah. We're just gonna stay TOTALLY hands-off! As is every other government on the planet..."

Well, let's say that Santa Claus and the Easter Bunny are more believable.
I blame the hundreds/thousands of altcoins, scamcoins, and pump and dumps for the chaos and manipulation that are making government feel they need to step in to protect the populous (and of course secure income)

It'd be interesting to see in an alternate reality, if there was ONLY bitcoin -- if the SEC would feel they needed to step in. Sure they wouldn't like that people started using it over traditional fiat --- but yeah -- the exchanges have pretty much killed the intent of bitcoin, IMO.
 

cdabc123

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Crypto just needs to die. Period.
it kinda cant. as long as someone believes in it somewhere on this planet it will exist. also do to the nature of it the bitcoin everyone has is pretty much impossible to destroy. the value can decrease alot (super strong resistance @ $5000) but cryptos really wont die.
 

DeathFromBelow

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it kinda cant. as long as someone believes in it somewhere on this planet it will exist. also do to the nature of it the bitcoin everyone has is pretty much impossible to destroy. the value can decrease alot (super strong resistance @ $5000) but cryptos really wont die.
I think its all running on hype. At some point the investor money supply will run out. I have yet to see an economically viable use of blockchains.

Blockchain based currencies have failed as currencies or have niche uses because of the massive volatility, slow networks, and fees. For data it seems like traditional databases are faster, cheaper, and more secure. Even in situations where a blockchain would make sense like multiple suppliers tracking parts or whatever I haven't seen it applied successfully.
 

HockeyJon

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I blame the hundreds/thousands of altcoins, scamcoins, and pump and dumps for the chaos and manipulation that are making government feel they need to step in to protect the populous (and of course secure income)

It'd be interesting to see in an alternate reality, if there was ONLY bitcoin -- if the SEC would feel they needed to step in. Sure they wouldn't like that people started using it over traditional fiat --- but yeah -- the exchanges have pretty much killed the intent of bitcoin, IMO.
Bitcoin sucks as a currency by design though. Volatility aside, the increasing complexity of calculations required has made it woefully inefficient, and this much vaunted "21 million" coin limit that's supposed to drive value via supply and demand makes little sense in a practical world, since the money supply has to increase as the world grows. The whole thing simply doesn't work. People keep putting value in Bitcoin merely because it's the "first mover" and they keep moving the goal post to redefine it into something they can make valuable (oh it's not a currency anymore because it's actually a store of value, or something). Cryptocurrencies are being traded more as commodities than currencies in today's market as it is.
 

collegeboy69us

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Your desire for crypto to die is about as likely as my desire for the NFL and other pointless organized sports to die off...

instead of wishing for dumb things, why not just enjoy your hobby and stop complaining?

Been in and out of it since the beginning and still making money.... the main problem is most people have a clue about how the crypto world works in general. Personally not a fan of bitcoin because it's old tech by today's standards in the crypto world. And anyone who thinks it's decentralized is fooling themselves. More than 51% of the hashing power is held by something like 3 tight knit groups in asia.
 

cdabc123

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I think its all running on hype. At some point the investor money supply will run out. I have yet to see an economically viable use of blockchains.

Blockchain based currencies have failed as currencies or have niche uses because of the massive volatility, slow networks, and fees. For data it seems like traditional databases are faster, cheaper, and more secure. Even in situations where a blockchain would make sense like multiple suppliers tracking parts or whatever I haven't seen it applied successfully.
dont fool yourself, for moving any decent sum of money crypto is SO much easier, not talking about bitcoin as it is honestly broken but i can send 1 mil+ through ether for a few bucks and have it arrive in 15 min. and avoid most of the bs of dealing with large summs of usd. even sending small sums is quite abit easier. most of my transactions with people i know are through crypto as paypal is a complete pita and there arnt many widly accepted alternitives. In addition it can make it really easy to exchange to whatever currency. all of my internatinal buying/selling is through crypto and they can trade the crypto for whatever on there end once again avoiding legal bs. as for its sucsess i cant predict the price nor can anyone else. I still dont belive the bubble hype for most as it likes to recover after a certain point every time. unforcuantly that point can be pretty low as crypto is undoughtably volitile.
 
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Your desire for crypto to die is about as likely as my desire for the NFL and other pointless organized sports to die off...

instead of wishing for dumb things, why not just enjoy your hobby and stop complaining?

Been in and out of it since the beginning and still making money.... the main problem is most people have a clue about how the crypto world works in general. Personally not a fan of bitcoin because it's old tech by today's standards in the crypto world. And anyone who thinks it's decentralized is fooling themselves. More than 51% of the hashing power is held by something like 3 tight knit groups in asia.
here's one for you - why does someone like you always have to complain about complainers? why not just enjoy YOUR hobby?
 
D

Deleted member 126051

Guest
I blame the hundreds/thousands of altcoins, scamcoins, and pump and dumps for the chaos and manipulation that are making government feel they need to step in to protect the populous (and of course secure income)

It'd be interesting to see in an alternate reality, if there was ONLY bitcoin -- if the SEC would feel they needed to step in. Sure they wouldn't like that people started using it over traditional fiat --- but yeah -- the exchanges have pretty much killed the intent of bitcoin, IMO.

Thing is, the second this took off, copycats and scams were guaranteed to happen.
Making it all but impossible for the government NOT to step in (and, incidentally, demand "their cut" for the "service").
 

BSmith

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They cannot toss enough regulations and taxes at the cryptocrap, as far as I am concerned. The more the better.
 

Darunion

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I have fun mining, doesn't make me rich but a couple 1080s earning their rent while the wife an I are at work isnt a bad deal. Since my purpose for the cards was gaming and not mining, my ROI is instant. Guy I know bought about 6 cards to mine and then all the currencies tanked so he ended up selling the cards for a small profit.

I keep trying to tell people it isn't about selling the gold, it's about selling the shovels.
 

jbc029

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I have fun mining, doesn't make me rich but a couple 1080s earning their rent while the wife an I are at work isnt a bad deal. Since my purpose for the cards was gaming and not mining, my ROI is instant. Guy I know bought about 6 cards to mine and then all the currencies tanked so he ended up selling the cards for a small profit.

I keep trying to tell people it isn't about selling the gold, it's about selling the shovels.
That's where I am right now. Just tossed all my old cards into an old rig and I leave the 390+FuryX mining 24/7 and when I want to game, I shut down the mining software on my 1700 and Vega64. When done gaming, turn it back on. Going to see if it's worth the hassle/noise in my basement. If not, I can still sell the old cards for what I paid for them years ago.
 

nysmo

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this much vaunted "21 million" coin limit that's supposed to drive value via supply and demand makes little sense in a practical world, since the money supply has to increase as the world grows.
wat? Are you advocating for inflation because people need currency artificially created ala the gov't printing billions of dollars per day?
 

Darunion

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That's where I am right now. Just tossed all my old cards into an old rig and I leave the 390+FuryX mining 24/7 and when I want to game, I shut down the mining software on my 1700 and Vega64. When done gaming, turn it back on. Going to see if it's worth the hassle/noise in my basement. If not, I can still sell the old cards for what I paid for them years ago.
Nice. So far I have used the funds generated to buy a new sound blaster card and a headset for my gaming pc. Even got the wife to turn the mining software back on when shes done gaming too :D
 

triwolf

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I have fun mining, doesn't make me rich but a couple 1080s earning their rent while the wife an I are at work isnt a bad deal. Since my purpose for the cards was gaming and not mining, my ROI is instant. Guy I know bought about 6 cards to mine and then all the currencies tanked so he ended up selling the cards for a small profit.

I keep trying to tell people it isn't about selling the gold, it's about selling the shovels.
There are still lots of profitable coins, was this during the last crypto crash before ethereum and other coin mining started to be profitable again about June 2017? Strange because if he thinks mining isn't profitable right now, he isn't looking at the right coins. My cards are all paid off and I am still making profit.
 

cdabc123

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There are still lots of profitable coins, was this during the last crypto crash before ethereum and other coin mining started to be profitable again about June 2017? Strange because if he thinks mining isn't profitable right now, he isn't looking at the right coins. My cards are all paid off and I am still making profit.
way before then. (mid 2016 ish) in november 2016 i was hitting a 3 month roi on all my cards (i bought ABUNCH of 290s @ 80 each :p )
 

griff30

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I love how many miners were complaining about taxes and how they can avoid them. Many of them in this forum too.
Regualte it, tax it, don't buy their used gear.
When their dreams of "Lamborghini" turn into "Maybe this can earn me a Snickers in a month", we will start to see hoarding of GPUs decline.
 

triwolf

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I love how many miners were complaining about taxes and how they can avoid them. Many of them in this forum too.
Regualte it, tax it, don't buy their used gear.
When their dreams of "Lamborghini" turn into "Maybe this can earn me a Snickers in a month", we will start to see hoarding of GPUs decline.
Death and taxes, unavoidable. If you make money you shouldn't worry about taxes. Still lots of haters want people making chicken feed? Too late, many of us already made plenty of money, any more is just icing on the cake.
 

triwolf

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way before then. (mid 2016 ish) in november 2016 i was hitting a 3 month roi on all my cards (i bought ABUNCH of 290s @ 80 each :p )
I guess he should have kept them mining, sometimes when you mine you only make $100 a month, but later that's $10,000 due to rising prices. Did he really make that much on selling the cards? He probably lost out bigtime.
 

cdabc123

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I guess he should have kept them mining, sometimes when you mine you only make $100 a month, but later that's $10,000 due to rising prices. Did he really make that much on selling the cards? He probably lost out bigtime.
i didnt buy from miners then i just went around on fourms picking up peoples unused cards
 

triwolf

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I love how many miners were complaining about taxes and how they can avoid them. Many of them in this forum too.
Regualte it, tax it, don't buy their used gear.
When their dreams of "Lamborghini" turn into "Maybe this can earn me a Snickers in a month", we will start to see hoarding of GPUs decline.
.
Just an FYI, newegg had 1080s, 1080ti, RX 580s for about $50 to $100 over MSRP this week, and you could mine and make that back in about two weeks. Do what you are continuing and complain though, it's not really even an argument any more. If you want a GPU there are so many choices even previous generation top end cards that are available all over the internet. But I know it's fun to blame miners, even if most of the problem is from RAM shortages and increases in demand for all computing devices.
 
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