Cryptocurrency and Bitcoin

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cryptocurrency like bitcoin and dogecoin

Cryptocurrencies were born in 20008 as a concept built around blockchain. Bitcoin was released in 2009, creating the first majorly used cryptocurrency. Cryptocurrencies are not backed by any government, and derive value from the complexity of “mining” new coins. The algorithm is designed to get more complex as each “coin” it found, causing the release of new bitcoins to slow down because of algorithmic complexity that outpaced computer development.

Gordon Moore, co-founder and former CEO of Intel, is most famous for coining “Moore’s Law.” Moore first observed in 1965 that every year the number of transistors on an integrated circuit was doubling, creating geometric growth in computing power. In 1975, it projected that they would double every two years, creating what would be known as Moore’s Law. The cryptocurrency algorithms take advantage of this fact, by making each coin sufficiently harder, while assuming the computer power will double every two years.

Bitcoin was originally a novelty, traded at were traded for pennies, where in 2010 two Papa John’s pizzas were purched for 10,000 Bitcoins, or $63 Million US Dollars at Bitcoin’s 2021 peak. Bitcoin later developed an unsavory reputation for anonymous transactions in black markets.

As the most famous cryptocurrency, Bitcoin gets the headlines, but the entire field creates interested tax and finance implications. The IRS doesn’t treat it as a currency, resulting in complex treatment for those using it as a currency. It is treated as a store of value, similar to how one would be taxed on gold that is purchased and sold.

Crypto Losses & Tax Deductions

By |2023-06-21T10:32:25-04:00June 21st, 2023|Categories: Web3 Wednesday|Tags: , , , , |

Cryptocurrencies have gained popularity as investment assets, but their market can sometimes result in losses. The good news is that these losses can potentially be used for tax deductions! Here's a short guide on how to claim tax deductions for crypto losses.

NFT Taxes

By |2023-04-06T11:52:33-04:00April 6th, 2023|Categories: Quickies with Bette|Tags: , , , |

The IRS has recently released new guidance on the tax treatment of NFTs, so today, I will discuss everything you need to know. Previously, NFTs were treated as any other crypto asset from a tax perspective, so short-term or long-term Capital Gains Tax would apply when you dispose of it by selling or trading it. This is still true, but under the new guidance, they may be deemed collectibles and taxed.

NFT Land Deeds in Minecraft?

By |2022-12-16T12:15:11-05:00July 13th, 2022|Categories: #FinanceFriday|Tags: , , , , |

Hi, I am Bette Hochberger, CPA, CGMA, and on today's Finance Friday, we have the founder of The UpLift World Metaverse, Corey Cottrell, joining us to discuss how NFTs might be a trillion-dollar industry.

Qualifying for a Loan as an Entrepreneur

By |2022-10-03T17:17:39-04:00July 6th, 2022|Categories: #FinanceFriday|Tags: , , , , |

Hi, welcome to #FinanceFriday. My name is Bette Hochberger, CPA, CGMA, and on today's episode, we have the lovely Cheryl Euart with Community Lending Powered by Lower, LLC. NMLS ID #1668094 joining us to discuss how you, as an entrepreneur, can qualify for a home loan without a w-2. This week was a bit different because I am on my way to New Jersey to visit my family. One of the perks of working remotely and in a cloud-based business is that I have an excellent work-life balance.

Crypto as Payment & TaxBit

By |2022-04-01T15:04:44-04:00April 1st, 2022|Categories: Press and Announcements|Tags: , , , , |

We are officially accepting cryptocurrency as a form of payment, in addition to the already taken fiat currency. Our firm knew that accepting cryptocurrency was the only natural next step after solidifying our relationship with TaxBit.

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