What is Bitcoin and Cryptocurrency

BITCOIN

Blockchain And BILLIONS

If you don’t know about Bitcoin and blockchain, you should – especially if you want to accumulate wealth. Bitcoin is the virtual currency challenging governments, circumvent­ing banks and threatening to blow old­school currency out the water.

Just 10 years ago, Bitcoin was another office joke in the world. The rare few who took it seriously have made millions.

“One year and seven months ago. November 2015. That was the month I started with $260 and now it’s worth $2,800. A Bitcoin was $260. Exactly one year later that Bitcoin was $900. It grew over 300. Today it’s $2,800.”

This was the moneymaking turning point for communications and marketing employee Shire en Ramjoo who, at the age of 32, was so taken by Bitcoin she left her job in the bank to start her own consultancy, Liquid Crypto-Money.

From humble worldwide beginnings Bitcoin, a digital currency, otherwise known as cryptocurrency, was born from blockchain technology – a mass linking of computers. The midwives are an estimated 5.8 million users generating a market value of $27 billion, ”ReadMore”

 

 

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COIN COLLECTION?

Cryptocurrency, such as Bitcoin, is generated in the form of data strings. Only computers can solve the complex mathematical equations. For every completed equation, a coin is created and the coin that follows requires more data and processing power to add to the string,”ReadMore”

 

 

The Emperor’s NEW COINS

On April 24, Martin Koppelmann, 31, Stefan George, 29, and Matt Liston, 25, placed their laptops on a long wooden dining table ringed by high ­backed wooden chairs and three-armed candelabra at their Airbnb in Gibraltar. It was an old fashioned setting for a 21st­century moment.

The three were about to launch a Kickstarter-style crowd sale, based on a concept they’d been developing for two years: a user-driven prediction market based on a coming “Cambrian explosion of machine intelligence” called Gnosis.

Their goal: raise $12.5 million. But instead of dollars, they would accept money only in the form of a new cryptocurrency, Ether, that didn’t exist two years ago. It was a new form of crowdfunding called an “initial coin offering,” or ICO.”ReadMore”

 

 

 

THESE ARE THE TOP 25 OF THE 900+ CRYPTO-CURRENCIES AND CRYPTO-ASSETS RANKED BY MARKET CAP. MANY ARE WORTH EVEN MORE IF YOU INCLUDE THE TOTAL SUPPLY OF COINS THEY HAVE AUTHORIZED.

Coin/Token                                     Market Capl                                        YTD Return

Bitcoin                                             $40,520                                               260%

Since only 21 million will ever be produced, the original cryptocurrency is the best store of value but still very volatile.

Ethereum                                         $26,720                                               3,825%

A blockchain for “smart contracts” (programs that will execute contractual terms automatically), Ethereum launched the token craze.”ReadMore”

 

 

 

ARE CRYPTO RICHES TAX-FREE?

With billions being made in the crypto-bubble, Uncle Sam wants his cut. Getting his hands on it will be another matter.

In 2014, the IRS issued controversial guidance stating that U.S. taxpayers should treat digital currencies as capital assets, provided those currencies are convertible at some point into traditional cash. (In other words, play money in an online game doesn’t count.) The upside of capital-asset treatment is that anyone who sells a digital position he’s held for more than a year is taxed on his profit at the lower long-term capital gains rate-currently 0% to 20%. The downside is that traders who hold their positions for shorter periods are taxed on gains at ordinary federal income tax rates of up to 39.6%.

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