Virtual Currency – Bitcoin and Others

Home/Tag:Virtual Currency - Bitcoin and Others

Virtual currencies are a variety of cryptographically generated virtual currencies. The most famous of these currencies is Bitcoin. Not backed by a government, they are seen as less real than government issues fiat currency, and taxed differently by the United States government.

Used to bypass countries with restrictive capital controls, engage in illicit business, or simply preserving anonymity for people in cashless transactions, virtual currencies are an unusual and interesting area of the tax code.

Ethereum has joined Bitcoin as the best known cryptocurrencies that create a method of storing values. Cryptocurrency uses algorithms that ensure scarcity to create value, often paired with an anonymous blockchain ledger to provide a degree of anonymity for its users.

In contrast to cryptocurrencies, other virtual currencies are owned by a singular company. Various online games have their own currency system that often has a value in the real world. There are open markets to acquire the various credits on various games. Roblox has become the most famous cyberworld to have a substantially real world value for the creatives within the game system.

The important part of the currency is the ability to use it in trade for goods and services throughout the economy. Bitcoin has a liquid market, making transfer into traditional currency a viable solution. Depending on the level of liquidity within the market, different virtual currencies have a different role to play within an economic portfolio.

The IRS does not consider these to be foreign currencies, so they are treated similarly to a stock or other asset with capital gains being taxed accordingly. Any inclusion in your wealth portfolio should examine the risk, growth potential, and tax impact of trading these virtual currencies on an open market.

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.

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.

Crypto Mining Business

By |2022-12-16T13:32:26-05:00November 10th, 2021|Categories: #TaxTipTuesday|Tags: , , , , , , |

On today's Tax Tip Tuesday, we're going to talk about your crypto mining business. I've been getting some calls, emails, et cetera, meetings with people setting up crypto mining businesses. Because why not?

Miami Crypto : What You Need to Know

By |2022-12-16T13:45:31-05:00August 31st, 2021|Categories: Quickies with Bette|Tags: , , , , , |

Other Miami crypto news, which is super exciting, MiamiCoin is the first city coin to come to market. Woo hoo, it's fantastic. It's like a Bitcoin and is on the Blockchain protocol, so whenever that coin is mined, a percentage, actually 30% of what's mined, goes to the city of Miami.

Is the Internet Broken?

By |2021-07-22T14:49:25-04:00July 22nd, 2021|Categories: Other Perspectives|Tags: , , , |

It's the end of the world as we know it, just kidding. A glitch in our internet infrastructure has caused many to panic, but I'm here to clear up any confusion about why this happened and discuss what Twitter is saying about it in this social media round-up.

Black-Owned Financial Groups

By |2021-06-18T20:29:12-04:00June 18th, 2021|Categories: Quickies with Bette|Tags: , , , , , |

In honor of Juneteenth, I want to highlight some amazing black-owned financial groups. The Black Angels Miami Investor group, black-owned banks and credit unions (and where to find them), and the Black Bitcoin Billionaire are doing so much for their communities. Let's get started.

Dogecoin – DogeDay & Elon Musk Recap

By |2021-06-03T01:41:47-04:00April 23rd, 2021|Categories: Other Perspectives|Tags: , , , |

Dogecoin, if you haven't heard of this fabled cryptocurrency, you've been living under a rock. I haven't been able to leave my house or check my phone without hearing about people's experiences with dogecoin. After hearing about people's gains after they invested in dogecoin, my interest was naturally peaked. I decided I would turn to Twitter to help answer some of my questions about this crypto and hopefully answer some of yours. Let's take a dive into this week's social media round-up.

Go to Top