Unless you altogether avoid the internet, you have probably heard of Bitcoin. That said, with all of the hype surrounding Bitcoin, Domenic Carosa and Dan Schatt’s team at Earnity believe there is a lot to learn about cryptocurrencies. Be sure to check out these top three things to know about Bitcoin before you get started:
- It is not entirely anonymous.
Bitcoin is not entirely anonymous because hackers and government agencies can track almost anything, including Bitcoin. So, if someone can connect multiple nodes to the Bitcoin network, the combined data collected from these nodes may be sufficient to determine where a transaction originated.
- Different countries view Bitcoin differently.
National governments do not typically regulate Bitcoin, which is one of the reasons it is so popular. However, Bitcoin’s laws range from receiving recognition as a legal currency to governments discouraging the use of crypto.
- There is a limited supply.
Satoshi Nakamoto only made a limited amount of Bitcoin — to be precise, 21 million. Over 16 million are currently in circulation, but more miners work on Bitcoin daily.
- It is not the only type of cyber currency.
Although Bitcoin receives the most attention in the media, it is not the only cyber currency in existence. The next most well-known crypto-currency is ether. However, unlike Bitcoin, it exists within the Ethereum network.
- You must report Bitcoin on your taxes.
The US government regards Bitcoin as a genuine currency. So, Bitcoin (and other cryptocurrencies) are capital assets, just like stocks and bonds. As a result, if you don’t account for it in the same way you make your other investments, you could receive charges for tax evasion.
Be sure to check out the Earnity platform. Dan Schatt and Domenic Carosa are changing the face of crypto with their new exchange.