What is Bitcoin?
Bitcoin is basically one of the cryptocurrency or you can say a digital currency. This currency works on cryptography for generation and regulation of units of currency. Bitcoin is also known as the decentralized digital currency. It is one of the most famous and oldest cryptocurrency. There are many exchanges through which you can do all the transactions related to bitcoin. The Internal Revenue Service declared that bitcoin is a type of property like stocks. There are certain taxes that are to be implied on bitcoins. Right now around 40% of the world’s population think that bitcoin is a world-changing technology. From a recent research, it is founded that around 44% of the people who own bitcoin are worried about the security of the investment they have done in form of bitcoins. Here are some of the things you need to know before investing in Bitcoins
A world of its own
Digital coins are said to be a safe investment as it does not have any relation to the stock market. Chris Burniske is the co-author of Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond. He stated that the increased market in bitcoin does mean that the condition will remain same in 2018. It is said that a very intense change will occur in the world by bitcoins. Almost every central bank has a different team to handle the transaction that is done in form of bitcoins or any other cryptocurrency.
Ben Bernanke said that bitcoin is the dream of government as all the transaction are secure and under control. He also said that Bitcoin can be long-term promise only and only if innovations become faster and secure. Right at this moments every few people are paying taxes on cryptocurrency loss and gain. When IRS called for information about bitcoins near about 800 people informed that they are having cryptocurrencies. IRS declared that gain and loss taxes will be applied to individual’s capital gain rate and can vary from person to person.
There is no security on bitcoins provided by anyone like banks and credit cards provide security to your accounts. Mike Belshe is the co-founder of BitGo. He said that people who own bitcoins are the people who can secure them as they have their own keys. This security issue is not only in the case of bitcoins but this is the most terrific thing about all the cryptocurrencies. People sometimes become over smart and end up forgetting the complicated passwords they set for their account. In this case, people end up losing the assets they have. He also suggested for using Coinbase for the exchange of cryptocurrency.
This exchange is capable of holding your bitcoins on your behalf and will return them back to you when you will ask. There are some other companies who also assure better care of bitcoins. BitGo is one of them. This provides some additional functionalities as well. BitGo provides a “Key Card” to the users which they can use in case they forget their password.
The people who are having a large number of bitcoins have to face the problem of security. There are some of the service providers who can hold the cryptocurrency assets. Kingdon Trust is one such platform. Many other such platforms will be created in upcoming years.
Uncertainty isn’t always bad
There was a certified financial planner Erika Safran who is also the founder of Safran Wealth Advisors. She was asked to make an investment of 100,000 dollars in bitcoins. At that time she was very uncertain as she was totally unaware of the currency. But now she has million dollars and also she has also made her four other clients invest in bitcoins. It is always risky to design and define our future in the terms that we know in our present.
Bitcoins are becoming famous and also getting more expensive day by day. Maybe it can bring a great change in upcoming few years ar it can fall down.