Bitcoin is a denomination of currency that is anonymous asset. It may be moved around without leaving any real traces. Yet, this is not entirely correct. All the information about bitcoin transactions are always available in something called the public ledger. Every transaction needs to be part of this ledger to occur. However, the ledger is a statement of fact, not a record of your banking transactions. It merely verifies that a certain amount of cryptocurrency exists and that it has, for example, changed hands – or emerged into the world.
Anonymous digital currency?
Yes, in its original form, which is largely unchanged to this day, Bitcoin is an e-wallet that has been planned to be used as a form of payment method that will circumnavigate borders and politely ask regulators to keep their prying noses away. Bitcoin is also an interesting asset in its own right – people want to use it as a token of exchange, but they also put a great store by amassing this virtual token.
In a way, bitcoin is both currency token and a commodity, really?
Quite simply put – yes. It is a valuable asset that can play out right in the long-term, but it is also something you may want to keep clear of if things go amiss. For instance, people have been wagering their livelihoods on it, drawing money from the bank, mortgaging home just to be able to participate in this hit-or-miss craze around the cryptocurrency.
Is this a real currency?
No currency is real. We just put store by the currencies in terms of finances. Then the financial cogwheels of the world turn them around. We have long lost our ability to cover money with real world assets. Now, we only rely on our financial system. In the great scheme of things, money is absolutely empty concept. Some people are rewarded by virtue of their value while others just manage to find the best way of obtaining more.
Should I then buy Bitcoin?
It is your personal choice. I own a modicum of investment in Bitcoin, but that was money I had no other purpose for and could spare. Personally, I would never venture out to invest in Bitcoin en masse, hoping to turn a livelihood out of it. Putting your money in safe assets is crucial.
Can I avoid paying taxes on Bitcoin?
Yes, because right now nobody can prove that you own Bitcoin. However, as regulations tighten, things are likely to change. We at Coincomparator will like to see cryptocurrencies taxed. This is for the public good. We come from a rather more classic learning and that is why we believe spreading equal healthcare and education to all creates a continent that is homogenous in terms of skills, aptitudes and most importantly – opportunities.
And is the price going to go up?
Nobody could know the answer to that question and if they did, they wouldn’t let such knowledge on. There is a very simple reason why we cannot know – volatility. This currency is linked to unpredictable and sporadic outcomes. For this reason alone, you can not realistically expect things to be much more predictable ahead. To reiterate our advice, do not invest in cryptocurrencies unless you are prepared to live with the consequences.