My 12 year old made $1000 today selling "virtual items"

[wired]

And I have no idea what that means. He asked how he could invest in Ethereum. Banging my head against a wall over here.

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[IronMonster]

Sounds like you should just roll with it...

 

[The Heretic]

Cryptocurrency

 

[EPS]

My nephew and my brother in-law investment in bit coin I told them they are too late not to do it but they didn't invest much I said as soon as it shows a profit get out the romer is bit coin is going to bust

 

[EPS]

This is a odd thing I don't really understand all of it hell I can bearly work my smart phone but I do know they are TALKING about this like a off shore account so if you do make alot of money you may have to pay huge taxes in the future if you want to bring it back lol I DON'T KNOW SOMETHING LIKE THAT I'M NOT RICH AND NOT A LAWYER

 

[Member 34319]

If bit fails ether will likely go up as it is in line with the same systems but touts to be more open based. Bit supposedly fell under the control of centralized banks, therefore became as good as cash did, IE no accountability. The block chain became so difficult to mine for a reason, big banks didn't want folks creating anymore bit. Only they can create bit. Get the picture? Bit will fail once enough people jump ship realizing it is no longer absolutely open and transparent like it always claimed.

I'd say let the kid get into it, but teach him to understand hard currencies. IE physical currency (precious metals) will always be the hardest currency, until currency is made obsolete.

 

[EPS]

If bit fails ether will likely go up as it is in line with the same systems but touts to be more open based. Bit supposedly fell under the control of centralized banks, therefore became as good as cash did, IE no accountability. The block chain became so difficult to mine for a reason, big banks didn't want folks creating anymore bit. Only they can create bit. Get the picture? Bit will fail once enough people jump ship realizing it is no longer absolutely open and transparent like it always claimed.

I'd say let the kid get into it, but teach him to understand hard currencies. IE physical currency (precious metals) will always be the hardest currency, until currency is made obsolete.

I don't really understand it but like I said they invested a small amount I think less than a 1.000 bucks just to see

 

[Member 34319]

Bit and ether work off of keeping the books in order. If you verify the books, you are rewarded by doing so. That's called mining. There wasn't much involved when it all started. There was a designated amount of bit. That was it. Like saying there was only 100 dollars in existence. If you went to the extent to verify there was only 100 dollars or 1 dollar in 100 peoples hands you could create another penny for doing so. Sort of like that but much larger scale. You couldn't just print more dollars in this system. Everyone has access to the books. If you took the time, massive computing power and electricity, to verify the books on today's bitcoin market you are rewarded with more bitcoin. However there is really still only a certain amount of bitcoin available.

Why it is growing in value is simply supply and demand.

The demand is currently very high, there is not an unlimited amount of bit, so the dollar value is extremely stupid.

 

[L84Cabo]

And I have no idea what that means.

This should help you (below). In the gaming world there are all sorts of virtual things one acquires while playing games that will help you play better. For example, if you complete a quest you might get gold coins which you can then spend on better weapons. There's tons of this type of stuff out there and just depends on each individual game.

But as a result of this, a market has apparently developed for these "virtual items." People are looking to "level up" and it's faster to buy your way up the ladder, rather than work you way up by killing Orks...or something like that. But apparently they can be bought and sold somewhere on line...but this is about where my knowledge on this ends.

But...you probably want to sit down with your son and talk about some things. The interwebz can be a dangerous place so you and he want to be careful with who he is coming into contact with when he's selling stuff.

Also, if he seriously is making amounts like $1000, you can be the government is going to want their cut. There are likely tax consequences for this and you want to be sure the IRS doesn't come looking for their share...the bloodsuckers.

Lastly, please figure out how he's doing this and tell us. I could use an extra $1000 for a days work.

Buying and Selling Virtual Items on eBay

 

[Lasers]

This should help you (below). In the gaming world there are all sorts of virtual things one acquires while playing games that will help you play better. For example, if you complete a quest you might get gold coins which you can then spend on better weapons. There's tons of this type of stuff out there and just depends on each individual game.

But as a result of this, a market has apparently developed for these "virtual items." People are looking to "level up" and it's faster to buy your way up the ladder, rather than work you way up by killing Orks...or something like that. But apparently they can be bought and sold somewhere on line...but this is about where my knowledge on this ends.

But...you probably want to sit down with your son and talk about some things. The interwebz can be a dangerous place so you and he want to be careful with who he is coming into contact with when he's selling stuff.

Also, if he seriously is making amounts like $1000, you can be the government is going to want their cut. There are likely tax consequences for this and you want to be sure the IRS doesn't come looking for their share...the bloodsuckers.

Lastly, please figure out how he's doing this and tell us. I could use an extra $1000 for a days work.

Buying and Selling Virtual Items on eBay

Close,

The most valuable items don't help level up at all, but are purely cosmetic. Some of the most valuable items I own are just knife "skins" for CSGO (some worth over $1000) and a few in game coats for PUBG (one is currently worth $1700)... don't bother telling me how crazy that is, I know it first hand lol. I didn't spend that much on them, but got lucky and won them from a random item crate that was awarded in game. Hopefully (and especially likely unless he has access to your credit cards lol), that's how he got his as well.

Wired, if you want to chat, let me know. I'm not a "kid" by any means (few of my own) but I game and Stream and can probably give you a much better idea of what he got by finding out what game(s) he played or got the items on.

The main thing you want to be careful is are the predatory gambling sites that let you gamble your in game items in hopes of winning better ones. Several have been shut down and even some streamers guilted and shamed into quitting after it turned out they promoted the gambling site and were in on the scam and favored odds to those in the know.


I also hold a few crypto currencies and mine a few as well, so if he's wanting to get into that, I'd be happy to be a resource for you.

 

[Lasers]

This is a odd thing I don't really understand all of it hell I can bearly work my smart phone but I do know they are TALKING about this like a off shore account so if you do make alot of money you may have to pay huge taxes in the future if you want to bring it back lol I DON'T KNOW SOMETHING LIKE THAT I'M NOT RICH AND NOT A LAWYER

A few of my friends made 6 figures (or more) this year selling off bitcoins they've been holding since 2014 (when it was under $800).

They have an awesome accountant who is helping get the books in order, and uncle sam will be getting his share. It's really not worth anything until you monetize it (selling the coins on an exchange for actually USD), legally speaking (so I'm told) but like you IANAL.

 

[Stomper]

Sounds to me like it's just another "Cabage Patch Doll" fad like back in the 80/90's. Those stupid things cost $20 NIB, and all the lemmings would literally fight in the isles over them so they could either "possess" them or then sell them for $1,000's to the other lemmings....

 

[308]

The stock market bubble back in the 90s. A co-worker was maxing out as many credit cards as he could get his hands on buying tech stocks...doubling his money, paying off the cards and repeating the whole thing over and over. He made a ton. Then it went titzup.

 

[Oregonhunter5]

The stock market bubble back in the 90s. A co-worker was maxing out as many credit cards as he could get his hands on buying tech stocks...doubling his money, paying off the cards and repeating the whole thing over and over. He made a ton. Then it went titzup.

That's hilarious

 

[308]

That's hilarious

It worked well for him, but not for the others who saw his sucess and jumped in late to get their bitcoi...err, tech stock on.

 

[Oregonhunter5]

It worked well for him, but not for the others who saw his sucess and jumped in late to get their bitcoi...err, tech stock on.

Any idea what he made after the cards were paid off?

 

[308]

Any idea what he made after the cards were paid off?

No. He was head of our IT dept, and I just listened to his process but was not in a position to take such a risk myself

 

[Lazyfaire]

The stock market bubble back in the 90s. A co-worker was maxing out as many credit cards as he could get his hands on buying tech stocks...doubling his money, paying off the cards and repeating the whole thing over and over. He made a ton. Then it went titzup.

Problem as I see it is that people just want to win the lottery! These things only have value that others see in it. If they see value then they will buy it off of you at the price you want to sell it at. If they don't see the same value then as far as I am concerned you are holding a basket of motorcycle parts with no frame, engine or tires. Worth nothing to you or to a buyer. It'll have a big run-up and an even bigger fall off. Teapot Dome, 1929, Enron, etc. Losers will be the last ones to sell.

 

[wired]

I do have to say I like that kid a lot. I know you arent supposed to favor one of your kids over the others but that one is such a chip off the old block it isnt even funny.

Like my wife has said to me before in her best thick Russian accent " You are like Jew ".

 

[bolus]

Show him how much of that will have to go to taxes and crush his spirit mwhuahahaha!