Here at Camuso CPA, we are happy to announce that we are offering cryptocurrency tax help in Charlotte. If you are new to the amazing trend that is cryptocurrency, you aren’t alone. The value of certain cryptocurrency has skyrocketed, and any opportunist should be glad to know more about this exciting digital currency. To help you understand this new form of currency, we have listed some facts about it here.
No Centralized Backing
Cryptocurrencies are unique from other types of currencies in that there is no bank, government, or country backing it to give it its value. Instead, cryptocurrencies rely on something called blockchains, which act as a decentralized infrastructure and give cryptocurrencies their value. It is this block chain technology, which also happens to be extremely secure, that has enticed many investors into using and trading in cryptocurrency.
King of the Hill
The term cryptocurrency covers a wide range of currencies. In fact, it covers more than 1,300 types of currency. However, not all cryptocurrencies are created equal. Bitcoin is by far the most profitable, with etherium and a few other types of cryptocurrency trailing behind. Bitcoin was the first cryptocurrency on the market, and makes up 54 percent of the estimated 589 billion dollar aggregate of total cryptocurrency value.
So how do these blockchains grow, and how are they verified? That job goes to cryptocurrency miners. These miners essentially use very high powered computers in order to solve convoluted math equations that both verify and log cryptocurrency transactions. The first person to verify and build on a section of a block chain is usually entitled to a reward in the form of either cyptocurrency or transaction fees, both within the blockchain.
We mentioned that blockchains make cryptocurrency decentralized. What that means for investors is that it is essentially as secure as money can be. There is no data center for cyber criminals to attack. Even though servers and personal computers around the world hold bits and pieces of blockchain information, none of them contain enough to cripple the network.
Unlike with most currencies around the world, which are subject to banking hours, cryptocurrency has miners working around the clock, so you can essentially verify a transaction any time. Additionally, since there is no middle man to pay for overseeing the transaction (instead relying on the block chain), transaction costs can actually be cheaper with cryptocurrency.
While cryptocurrencies are gaining popularity in most places around the world, in some countries they are outright banned due to their decentralized nature. Trading, making payments, or buying goods/services with cryptocurrency is illegal in Bolivia, Bangladesh, Nepal, Morocco, Ecuador, and Kyrgyzstan.
Hopefully this has helped to inform you about this exciting new world of digital currency. If you are looking for cryptocurrency tax help in Charlotte, Camuso CPA can help. For more information about our services, please do not hesitate to give us a call. One of our friendly and knowledgeable representatives will be happy to answer any questions that you may have.