Cryptocurrencies, once again surging in popularity, have a unique tax treatment that every taxpayer dealing with cryptocurrency should be aware of.
t’s been more than 10-years since the advent of
bitcoin and the term “cryptocurrency” entered the
public consciousness. However, neither bitcoin
nor the many thousands of cryptocurrencies that have
followed have become widely used for payments.
Instead, people are more likely to use cryptocurrencies
as a speculative high-risk investment class.
Cryptocurrency is essentially a digital representation of
value that is neither issued by a central bank or a public
authority, and usually not attached to a national currency.
Cryptocurrency can be transferred, stored or traded