Bitcoin, Blockchain, Cryptocurrency. Have you heard of any of these? If so, you’re not alone. If not, you’re alone. The world of digital currency is a relatively new concept that emerged about ten years ago and is now taking off. So let’s define the terms.
Cryptocurrency is a digital currency that is designed to be extremely secure and does not use any centralized bank.
Bitcoin is currently the most popular cryptocurrency on the market. The value went from 0.08 cents in 2010 to $11,735 today (as of August 2020). It’s easy to see how it’s gotten so much buzz in recent years.
Blockchain is the record-keeping system for Bitcoin and some other cryptocurrencies. This system also has the potential to be used by businesses for more accurate and fault-proof record-keeping.
So, what does all this mean? At the very least, it means to be on the lookout because these new phenomenons are here to stay. Many have compared it to the internet in the 80s. At first, it was like what’s this? But now, it’s part of our everyday life. How long will it take Blockchain and Cryptocurrency to get to that point? We don’t know, but it’s something to watch out for and keep in mind. So much so that the IRS’s 2019 tax forms have a question asking, have you purchased cryptocurrency during the tax year? It’s here to stay, and the government wants to make sure they get their proceeds. 😊
What should you do now? Consider acquiring some. Many buy cryptocurrencies as an asset or commodity, such as stock, and watch the value increase. I purchased a modest amount of Bitcoin early this year, and the value has now doubled. I view it as another asset added to my portfolio. Others may want to use it. Although the number of retailers that accept Bitcoin are limited, the number is expected to grow over time.
How to purchase it? The average consumer or investor doesn’t want to do the heavy lifting. A few companies have made the process easy for such ones. You can easily buy cryptocurrency, including Bitcoin, on the following apps: Cash App, Coin Base, and Robinhood. As always, do your research and make sure it’s a good fit for you. You’ve got this!
Until Next Time,
Crystal
Crystal Chantel is an accountant with well over a decade of experience in tax, finance, audit and accounting in New York and Florida. Each week in Money Talks, she’ll share her advice to help individuals to navigate their financial challenges! Looking for more advice? Check out her blog where she offers personalized business, tax, and self-care tips for Ma Bohne Readers! Just click the link above and send in your questions!