What are your views on digital currencies/mining?

HolgateCorner

Well-known member
The main exchange shares the details of UK nationals who have significant amounts in them and HMRC follow up accordingly

Our country is way ahead of the game in looking to arrange capital gains taxing compared to the rest of the world
I can’t imagine our country is ahead of anybody in taxing money made out of the markets but if you say so.
 

Emmersons_BrazillianDong

Well-known member
I can’t imagine our country is ahead of anybody in taxing money made out of the markets but if you say so.
They've taken a sensible stance that digital assets in whatever form are going to be with us in the future and are trying to take strides to ensure they get their share. Imminently sensible given the amounts that are possibly available.

You have to remember that there are many many new millionaires from all of this. As I recall, HMRC launched this back in 2017 ish.

A £5000 investment in around 2015 would be worth millions now and I know of one Boro electrician who made millions from Crypto currency.

Unfortunately I'm not going to be one of them but I'm glad that we're trying to get some of that into the public purse
 

Andy_W

Well-known member
There’s a good discipline in buying a house though for normal people, in that you have to pay the mortgage rather than frittering the money or you will lose it, it focuses people in on remaining in employment or progressing at work and you can improve a house to make it worth more. And it gives you somewhere to live.

Most people who buy flats as an investment get the renter to pay the mortgage.

So whichever way you do it, I think a house is a good investment.
Oh, it's better than spewing the cash, that's for sure, and for a lot of people it is just simpler, there's no denying that.

But for some, there are much better options in a flat housing market (or flat area), that's not likely to pick up and beat inflation. It could also drop a fair whack, with brexit or even in 10-30 years if those from the baby boom stop needing houses, and move into homes etc.

Investing 30k, compounding at 10% is 80k after 10 years, and it's 600k after 30 years. I doubt many will have that much capital in their house after those times, especially after you take out the stamp duty, fees, maintenance etc.
30k in the S&P 500 in 2010 would be worth about 120k now, that's without dividends (and most funds would hope to beat the S&P500).

Being a landlord isn't cut and dry, like a lot think it is either. It's good when markets are going up and houses increase in value but that is not a given forever.

I actually rented out a flat I owned, couldn't sell it, and needed a house, so had no choice. It lost about 20k in value in about 8 years (even more If you allow for inflation). All of that time it was mostly rented out, which covered the mortgage but didn't make anything, due to the decrease in value. What effectively happened is it cost the purchase, cost the sale, two sets of solicitors fees, a boiler, landlord insurance, maintenance. It's not a gain, or a big gain, not in this market and not compared to investing, it's not even close. Same with another house I own, I'm going to be better off selling it, than renting it out, as the return on investment in the markets is better than the return on the property in this area, even with someone else paying the mortgage.

I can also see some big problems coming with the interest-only landlords, or low deposit landlords, especially for our area.
 

Redwurzel

Well-known member
Ref - paying for a meal with Bitcoin in might be possible in theory but I have never heard of it happening. It takes a long time to process a Bitcoin transaction.

Ref - goldmining being sustainable - it wasn't sustainable on the scale of the 1849 Cailfornia gold rush - only a few percent made money and 90% left after a year or 2 and did something else.

Bitcoin and crytocurrencies are the currency of choice for criminals because it is completely anonymous unlike other forms of digital money. Physical cash is anonymous, but it has to presented in physical form.

Ref Capital Gains Tax its only paid on sales or death. Many investors have never sold or died in possession. They are siting on a paper profit.
 

Redwurzel

Well-known member
The thread is not about property, but I have noticed a lot of residential property is coming onto the market - where I live I have never seen as many new properties, some are private and some are social housing, some of convertions. There is also a mass of planning applications for new estates of all sizes. While Government incentives are been withdrawn. This all puts downward pressure on prices.
 

HolgateCorner

Well-known member
Oh, it's better than spewing the cash, that's for sure, and for a lot of people it is just simpler, there's no denying that.

But for some, there are much better options in a flat housing market (or flat area), that's not likely to pick up and beat inflation. It could also drop a fair whack, with brexit or even in 10-30 years if those from the baby boom stop needing houses, and move into homes etc.

Investing 30k, compounding at 10% is 80k after 10 years, and it's 600k after 30 years. I doubt many will have that much capital in their house after those times, especially after you take out the stamp duty, fees, maintenance etc.
30k in the S&P 500 in 2010 would be worth about 120k now, that's without dividends (and most funds would hope to beat the S&P500).

Being a landlord isn't cut and dry, like a lot think it is either. It's good when markets are going up and houses increase in value but that is not a given forever.

I actually rented out a flat I owned, couldn't sell it, and needed a house, so had no choice. It lost about 20k in value in about 8 years (even more If you allow for inflation). All of that time it was mostly rented out, which covered the mortgage but didn't make anything, due to the decrease in value. What effectively happened is it cost the purchase, cost the sale, two sets of solicitors fees, a boiler, landlord insurance, maintenance. It's not a gain, or a big gain, not in this market and not compared to investing, it's not even close. Same with another house I own, I'm going to be better off selling it, than renting it out, as the return on investment in the markets is better than the return on the property in this area, even with someone else paying the mortgage.

I can also see some big problems coming with the interest-only landlords, or low deposit landlords, especially for our area.
Fair comment, I agree that renting houses out is harder work than many people realise, I once rented a spare house out myself and it was nothing but hassle, no such thing as a free lunch in that respect.

I think for most ordinary people though, regardless of the house price market, they are better off accumulating equity in their own home rather than paying a lot of rent and getting nothing.
 

HolgateCorner

Well-known member
Because you buy and sell via a trading platform. All your transactions are recorded and if you withdraw you’ll likely do so into a bank account
Ok, I hope that is the case for everybody, but I suppose the tax evaders will use all kinds of offshore arrangements to avoid HMRC when they get their cash out.

I suppose long term the aim will be that you can actually buy and sell goods in the cryptocurrency and that’s when there will have to be some identity and regulation introduced, otherwise the world becomes tax free.
 

HolgateCorner

Well-known member
They've taken a sensible stance that digital assets in whatever form are going to be with us in the future and are trying to take strides to ensure they get their share. Imminently sensible given the amounts that are possibly available.

You have to remember that there are many many new millionaires from all of this. As I recall, HMRC launched this back in 2017 ish.

A £5000 investment in around 2015 would be worth millions now and I know of one Boro electrician who made millions from Crypto currency.

Unfortunately I'm not going to be one of them but I'm glad that we're trying to get some of that into the public purse
I hope you are right otherwise Rishi’s spending bills will never get paid off.
 

JL2020

Member
Crypto currency is the future of finance I think all of you will have one more chance to get on the train before prices get ridiculous.
I’m almost certain the SEC and other regulators are going to shut a lot of it down and cause a big shake out which will happen in the next few months. This is when you should jump in.
Don’t just concentrate on Bitcoin when there are so many better opportunities for a far better roi. QNT, Polkadot, Ocean, HBAR, Just to name a few.
Also move away from this mindset that crypto is just some shady criminal pump and dump thing, there are so many huge corporations all over crypto now. Don’t lose the chance to get into something being built from the ground up based on media scare stories and outdated opinions.
I’ve been on crypto since 2016, made (and lost) a lot of money and learnt a lot of lessons.
this is the first time it’s ever felt like it’s becoming mainstream and things really will start to take off. However I’m not sure I’d make any big buys at these prices best thing to do if you want to get in now is choose the projects you like and put small amounts in weekly.
Again look beyond Bitcoin, it has to go to almost $100k just to double your investment. Some of you who are used to traditional markets may think that’s good but to put things in perspective ive 10x my money on 2 different coins just last week. 10x gains in crypto are a weekly occurance you just have to find the right ones.
 

SilentProf

Active member
The Blockchain technology behind the currencies is where the real potential is. A lot of banks have been working on implementing it in recent years. It has the potential to revolutionise many industries and services.
 

asredastheycome

Well-known member
Mining is pointless unless you invest in major computer or mining gear which is very expensive and uses a lot of electricity.

There is so much more than bitcoin.

Join Binance which is by far the best exchange. At the moment you can transfer your spare cash from your bank account free.
Spare cash WTF is that I have never heard of it. :oops: :unsure::)
 

JL2020

Member
Look at all the talks from world leaders about making their own cbdc (central bank digital currencies), digital dollars running on blockchains, then you’ve got smart contracts and defi which has just started to develop along with NFTs. Anything and everything is being tokenised and the stuff that works will stick.
My own personal opinion is that fiat currency will be scrapped with a return to a bretton woods style system. With cbdc’s being backed by tokenised gold (or similar).

do you think things will carry on as normal? This whole clown show is going to collapse and I don’t even think the start is far off. March will once again be an interesting month financially.
JL - I am interested to know why you think "Crypto currency is the future of finance?
 

Nero

Well-known member
There’s a good discipline in buying a house though for normal people, in that you have to pay the mortgage rather than frittering the money or you will lose it, it focuses people in on remaining in employment or progressing at work and you can improve a house to make it worth more. And it gives you somewhere to live.

Most people who buy flats as an investment get the renter to pay the mortgage.

So whichever way you do it, I think a house is a good investment.
I think that is fundamentally wrong. One person benefitting from another in that way. The institution of private property is good, but it should be limited. Rentier economics creates massive inequality.

It's wrong that previously local authority homes are now owned by private landlords. The people in those houses often still receive benefits. Meaning the local authority is paying money for a house they use to own. It's madness.
 

HolgateCorner

Well-known member
I think that is fundamentally wrong. One person benefitting from another in that way. The institution of private property is good, but it should be limited. Rentier economics creates massive inequality.

It's wrong that previously local authority homes are now owned by private landlords. The people in those houses often still receive benefits. Meaning the local authority is paying money for a house they use to own. It's madness.
Can’t argue with any of that.
 

s!ovak

Active member
What are my views on digital currencies?

I would love to invest but I just don't know how to. When it comes to computers I'm not particularly techy savvy.

I opened an account with Coinbase the other day after reading that they're pretty secure. A day later I had an email from them saying my account had been hacked. Good job I hadn't got round to investing.

It's frustrating because I feel like it's passing me by when I want to jump on board with it.
 

FatCat

Well-known member
Ok, I hope that is the case for everybody, but I suppose the tax evaders will use all kinds of offshore arrangements to avoid HMRC when they get their cash out.

I suppose long term the aim will be that you can actually buy and sell goods in the cryptocurrency and that’s when there will have to be some identity and regulation introduced, otherwise the world becomes tax free.
I would expect that’s why gvt etc are getting on board - if you can’t beat them , join them is the attitude.
 

Emmersons_BrazillianDong

Well-known member
What are my views on digital currencies?

I would love to invest but I just don't know how to. When it comes to computers I'm not particularly techy savvy.

I opened an account with Coinbase the other day after reading that they're pretty secure. A day later I had an email from them saying my account had been hacked. Good job I hadn't got round to investing.

It's frustrating because I feel like it's passing me by when I want to jump on board with it.
That sounds bizarre. Are you sure it wasn't spam?

How would your account be compromised after such a short time?

Agree though it might not be a good idea to invest if you're not confident
 
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