Bitcoin (BTC) has been around for more than a decade. Up till now, the incessant struggle of bitcoin to get large-scale attraction has seen some success, however, there remain many thrones that still to be conquered by the largest cryptocurrency of the world. Although people are quite familiar with bitcoin, they haven’t conceptualized all the aspects associated with it.
Bitcoin is essentially not a stock. It is not a publicly traded company. You cannot buy shares of bitcoin and hence, it is not available on NYSE or NASDAQ or any other stock exchange. It is a digital currency with the trading symbol of “” on various cryptocurrency exchanges. It represents value in the digital space. The symbols BTC and XBT are also used as short for bitcoin and for ticker quite often.
At the moment of writing, one bitcoin (1 BTC) is worth $3,565. One can also buy a fraction of bitcoin. Satoshi is a unit of measure in the bitcoin space and 1 Satoshi is equal to 0.00000001 BTC. Cryptocurrency exchanges help one buy bitcoin in exchange for fiat but having a wallet is necessary to purchase bitcoins (BTC).
Bitcoin (BTC) can be traded as a CFD (Contract for Difference). It can also be traded through cryptocurrency exchanges and listed security such as an ETF, ETP, or trust. It can be exchanged for cash at various exchanges such as Coinbase and for other crypto assets at Binance etc. Bitcoin ATMs are gaining importance these days as they allow one to cash out BTC easily. Since banks do not support bitcoins, one cannot keep them in a bank account, but it is taxed by the government. Bitcoin losses are also tax deductible. Crypto transactions need to be reported for taxing purposes.
Bitcoin selling and purchasing can be done frequently in a day. Depending on gains made and time duration for holding, bitcoin (BTC) investments are taxed. If bitcoin is held longer than a year, capital gains tax ranging from 0 to 20 percent needs to be paid. IRS has even fetched the data of Coinbase users in the past for ensuring that all of them had paid their taxes. IRS also does get the report of Coinbase customers. Furthermore, the transactions linked to bitcoin can also be traced.
Different experts hold a different opinion regarding bitcoin being an investment. Some consider it a good investment while others don’t approve it at all. It sure is a risky investment as the market fluctuates too often. Volatile investments leave huge margins but they are risky. As the market is volatile, investing and withdrawing on right time has proven investing in bitcoin worthwhile. Buying bitcoin at a low price and selling it when the price gets high will make money for bitcoin holders. Besides that, people make money by mining bitcoin as well.
Regarding bitcoin’s usage, if it is not used for illegal activities and products such as narcotics etc. then it is completely safe to use. At the moment, bitcoin does not have a substantial impact on credit score. Apart from this, if managed properly, bitcoin is quite secure from hacks and thefts as well. Although the Bitcoin blockchain can be hacked, it is very difficult and expensive to do so. Bitcoins can also be bought anonymously through bitcoin ATMs, prepaid credit cards and some websites.
Bitcoin faucets, games, mining and affiliate programs are very common for earning free bitcoin (BTC). But there are a lot of scams floating around in this space. Many people have lost a lot of money in the search for free bitcoins. Stolen bitcoins can be traced but they can’t be recovered.
Bitcoin is not legal in all countries. It varies from country to country. Overall, the governmental acceptance of this crypto asset is very low. Although some places such as Ohio allow taxes to be paid while using bitcoin.