Curious facts about Bitcoin
We have dedicated many articles to Bitcoin on this website, and rightly so, some will say. In any case, here is one more in which we collect curious data that has particularly caught our attention and that those interested in cryptocurrency will surely want to know.
Is bitcoin legit?
As far as we know, Bitcoin has not been made illegal by law in most territories. However, some territories (such as Argentina or Russia) severely restrict or prohibit foreign currencies. Other territories (such as Thailand) may limit licensing to certain entities such as Bitcoin exchanges.
Regulators in various territories are taking steps to provide individuals and businesses with rules on how to integrate this new technology into the regulated and conventional financial system. For example, the Financial Crimes Enforcement Network ( FinCEN ), an office of the United States Department of the Treasury, issued guidance on how they characterize certain activities involving virtual currencies.
How is Bitcoin taxed?
Bitcoin is not a fiat currency that is legal tender in any territory, but fiscal taxes often apply regardless of the medium used. There is a wide variety of legislation in different territories that could cause income, sales, payroll, capital gains or any other form of tax that arose with Bitcoin.
Can bitcoins ever be worth anything?
Yes. History is littered with currencies that failed and are no longer used, such as the German Mark during the Weimar Republic and, more recently, the Zimbabwean dollar. Although the failure of the previous currencies occurred due to hyperinflation, which is impossible for Bitcoin to happen, there is always the possibility of technical failures, competition between currencies, political problems, etc. As a basic rule of thumb, no currency should be considered free from failure or bad times. Bitcoin has proven to be trustworthy for years since its inception and has a lot of potential for further growth. Even so, no one is able to predict what his future will be.
Is Bitcoin totally virtual and immaterial?
Bitcoin is as virtual as the credit cards and banking networks that people use every day. Bitcoin can be used to pay online and in physical stores just like any other currency. Bitcoins can also be exchanged for a physical option such as Casascius coins , but paying with a mobile phone is usually easier. Bitcoin balances are stored on a huge network and cannot be fraudulently altered by anyone. In other words, Bitcoin users have sole control over their funds and bitcoins cannot vanish just because they are virtual.