I've been a firm HODLer believer since I got started with crypto (which is only a few months), but with the quick rise in BAT, I feel it's time for me to temporarily unload my holdings. This is my first time transferring an ERC-20 token to Gemini so I had to spend gas on the Ethereum network. A few takeaways:

• Gas is used to fuel all ERC-20 transfers
• You pay Gas in ETH, despite transferring ERC-20 tokens
• Gas prices fluctuate every single minute, so what you saw as "normal gas prices" when sending your transfer may change by the time it reaches the Ethereum network
• Failed transfers consume gas, but you still get to keep your ERC-20 (those don't leave your wallet)

Some helpful resources to find out how much gas to spend based on real world tracking:

https://etherscan.io/gastracker

https://www.ethgasstation.info/index.php

Jack Dorsey just tweeted a link to monitor the adoption rate of Taproot (a new protocol that is supposedly privacy oriented):

🟩 https://t.co/U8rJyyPED5

— jack (@jack) May 2, 2021

Berkshire Hathaway recently had their annual shareholder meeting. They weren't very bullish on Bitcoin this year despite the strong rally; it's interesting to see how much things have changed for Bitcoin since his 2018 interview when it entered "crypto winter" compared to today when several Fortune 500 companies have purchased Bitcoin. 

With taxes due soon, it occurred to me that the grand vision of cryptocurrencies one day replacing credit card payments is probably unlikely to happen in the near future. Each time someone pays using crypto, a taxable event is triggered (assuming the value of the crypto exceeds its cost basis). Why would someone want to incur an additional expense and headache just to pay for a coffee?

The IRS has setup a really simple to understand FAQ:

Q14.  Will I recognize a gain or loss if I pay someone with virtual currency for providing me with a service?

 A14.  Yes.  If you pay for a service using virtual currency that you hold as a capital asset, then you have exchanged a capital asset for that service and will have a capital gain or loss.  For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets.

I recently came across the Maker token because of a donation made by Vitalik, co-founder of Ethereum. In his donation, he transferred 100 ETH and 100 MKR to a fund setup to help with the COVID-19 situation in India. I think it's amazing that we have the ability to transfer vast amounts of wealth simply (and quickly) by the click of a button. 

I've been trying to understand more of what Maker (MKR) is and why it is so important. There's a lot of jargon tossed around and it can sound very confusing when you start hearing about governance, burning and collaterals. I think Coinbase does the best job in summarizing what Maker is and can be through a series of three short videos.

The token itself is very nascent (only a few years old). But I think it has a lot of room to grow as more users from all over the world, especially for users living in developing countries or countries with high inflation, begin to use the token. 

My simple takeaway is that Maker allows users to:

• Put up cryptocurrencies as collateral and receive DAI, which is pegged 1:1 to the USD, in return
• Repay the loan in DAI after a period of time
• Once repaid, the DAI is "burned" or removed from the system
• MKR creates DAI to ensure the 1:1 peg is maintained; or in some cases, MKR is burned to maintain the peg

The above is my understanding from watching a few learning videos, and I welcome any comments if I misunderstand or misstated anything. I am certain MKR today will look nothing like MKR in 5 years, and that is why I am excited about it. Holders of MKR can vote on its future as part of its governance protocol.