Cryptocurrency is…complicated. You’ve definitely heard about it, and probably know someone who has either lost big or became an overnight millionaire because of it. Buzz words and terms get thrown around constantly like “blockchain” and “mining”, but what exactly is cryptocurrency? And why is IRS’ treatment of the new currency shrouded in so much mystery?
As a decentralized, virtual form of currency that only exists in the digital world, cryptocurrency is truly unique. There is no dealing with tangible crypto-dollars or crypto-cents, as well as no regulation or oversight by any national government or central bank.
Cryptocurrency exists in an exclusively virtual state and relies on a technology known as blockchain to keep it secure and transferrable. Cryptocurrencies are created through a “mining” process, whereby miners use powerful computers to authenticate transactions in a digital ledger of transactions. People can trade cryptocurrency […]