Baron's Crypto Trading Journal

The point of a wash sale is to capture losses for tax purposes and then repurchase that same amount again for future gain. So any short-term downside by a big seller would be eventually offset by the short-term upward price movement caused by the repurchase, so it balances back out. Therefore, the wash sale impact is not really something that's a major factor in my decisions, especially considering that the biggest crypto holders are not in a position of loss so they would have no incentive to do a wash sale in the first place.

 

There's nothing in that article that makes an argument against owning Bitcoin. All legit BTC transactions are recorded on the blockchain and that recording mechanism has been impeccable and accurate so far.

 

The volume that some of the offshore trading exchanges claim they are doing doesn't match up with the actual volume of recorded and traceable trades. I don't trade on any of those offshore exchanges anyway so I don't care what they claim or don't claim, and like I said, the only metrics that matter to me are the on-chain metrics, not random numbers that offshore exchanges claim. And the Bloomberg article is referring to wash sales of all crypto tokens on DECENTRALIZED exchanges. I don't trade crypto tokens using a DEX so none of that applies to me.

 

They are each slightly different at any given moment, but I'm sure the automated arb traders have that inefficiency pretty much in check.

In the case of BTC, it's the depth of the market. It's just too deep for a single user to manipulate much of anything.