Tom Lee Estimates BTC taxes are around 25 billion owed

Xester

hero member

Activity: 994

Merit: 544

Quote from: Crypto Piece on April 05, 2018, 02:57:53 PM

He also claims 1 billion in = 25 billion in added value to MC. So if we do the reverse and he is right on the 25 billion owed that should suck out close to 600+ billion in MC from all time highs. Which puts us at a low end of 175-250 Billion in total market cap. Kind of where we are now...

First and foremost let us clarify when we say total market cap. Market cap is computed by multiplying the current value of bitcoin to all bitcoins in circulation. So lets say bitcoin is 1 dollar right now and there are 17 million bitcoins right now in circulation so if we multiply we will have 17 million dollars in the market cap. But let us remember that bitcoin is volatile so that market cap value is constantly changing.

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: davis196 on April 06, 2018, 07:10:07 AM

Quote from: Crypto Piece on April 05, 2018, 02:57:53 PM

He also claims 1 billion in = 25 billion in added value to MC. So if we do the reverse and he is right on the 25 billion owed that should suck out close to 600+ billion in MC from all time highs. Which puts us at a low end of 175-250 Billion in total market cap. Kind of where we are now...

Who is Tom Lee and how can he prove his claim?

This is the guy and the interview
https://www.cnbc.com/2018/04/05/wall-streets-tom-lee-predicts-massive-outflow-from-cryptocurrencies-ahead-of-tax-day.html

As for his CV:
Thomas Lee, head of research at Fundstrat Global Advisors.

On a sidenote, he was telling on March 9 to buy bitcoin: (price ~ 9000)
https://www.cnbc.com/2018/03/09/wall-street-analyst-creates-new-index-that-says-when-to-buy-bitcoin.html
On Friday, Lee maintained his midyear bitcoin price target of $20,000 and year-end target of $25,000.

davis196

hero member

Activity: 3178

Merit: 937

Quote from: Crypto Piece on April 05, 2018, 02:57:53 PM

He also claims 1 billion in = 25 billion in added value to MC. So if we do the reverse and he is right on the 25 billion owed that should suck out close to 600+ billion in MC from all time highs. Which puts us at a low end of 175-250 Billion in total market cap. Kind of where we are now...

Who is Tom Lee and how can he prove his claim?I don`t believe that all the crypto traders around the world will pay all their taxes.I`ve never paid a single penny for my crypto profits and I don`t have any problems with the authorities in my country.The main reason behind the market cap fall is that a lot of investors left and there are no newbies coming in.That`s the result of 6 months endless FUD and more regulations.
I`m sure that many people ask themselves "is it legal to trade crypto in Japan and South Korea?".If yes,then when it will become illegal?

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: Crypto Piece on April 05, 2018, 02:57:53 PM

He also claims 1 billion in = 25 billion in added value to MC.

So if we do the reverse and he is right on the 25 billion owed that should suck out close to 600+ billion in MC from all time highs. Which puts us at a low end of 175-250 Billion in total market cap. Kind of where we are now...

Totally agree with what franky1 said , trying to estimate how much money where poured in coins to reach that market cap is futile and although the estimate of 1 to 25 might seem conservative but I would still put it lower.
There was an article that claimed a number of 3 millions coins haven't moved for 5 years and there is a possibility most of them are lost but they still make a huge chunk of the BTC mc.

And as taxes are owned only when you go out of crypto and exchange to fiat, with an average tax of 10% it would raise the bar amount to 250 billions that have been made by selling coins and have been withdrawn from exchnges?
Hard to believe it.
Especially while we're hovering at 6500.
Considering prior profits, a lot of people would be in red. Deeply in red with huge amounts.

franky1

legendary

Activity: 4424

Merit: 4794

you cannot base combined taxes by using the market cap

the market cap is a meaninglss number.
let me explain

if i make a coin with 1 trillion coin cap, and buy just 1 coin for $5
the market cap becomes $5trillion
yep market cap becomes $5trill even though only $5 was actually spent.

now if i sold that single coin for $6
the market cap becomes $6trillion
yep market cap becomes $6trill even though only $11 was actually spent.

now when it comes to taxes. i only gained $1, so 20% of $1 is 20cents... yp my tax bill is only 20cents
as for the other guy that bought my coin. he is currently at a tax deduct of $6 right now so he owes no tax

thus the whole markets tax is 20cents even though the cap suggests $6trillion(thus the op would wrongly suggest $1.2 trillion tax)
..

now back to the market cap of btc
when trades are done. the price moves not because ~17m coins are being traded at any time for th exact price. to then give the market a true value of bitcoin price * coin in circulation. instead the price moves because of small amounts of coins.

by this i mean there are no billions of fiat held in a bank to back up the market cap.
infact the entire market cap $amount can move by a trader simple having an order of say 0.001btc being traded

Crypto Piece

member

Activity: 166

Merit: 43

He also claims 1 billion in = 25 billion in added value to MC. So if we do the reverse and he is right on the 25 billion owed that should suck out close to 600+ billion in MC from all time highs. Which puts us at a low end of 175-250 Billion in total market cap. Kind of where we are now...

Topic: Tom Lee Estimates BTC taxes are around 25 billion owed (Read 155 times)