What is bitcoin and how does it work?

What is Bitcoin? Bitcoin is the first and most widely recognized cryptocurrency. It enables peer-to-peer exchange of value in the digital realm through the use of a decentralized protocol, cryptography, and a mechanism to achieve global consensus on the state of a periodically updated public transaction ledger called a 'blockchain.'

What is BTC (BTC)?

BTC definition: What is Bitcoin? Bitcoin is a form of digital currency that aims to eliminate the need for central authorities such as banks or governments. Instead, Bitcoin uses blockchain technology to support peer-to-peer transactions between users on a decentralized network.

Is bitcoin considered a convertible currency?

Recently, the Internal Revenue Service (IRS) clarified the tax treatment of virtual currency transactions. Bitcoin is the most widely circulated digital currency or e-currency as of 2021. It's called a convertible virtual currency because it has an equivalent value in real currency.

Is bitcoin taxable as a capital asset?

Some employees are paid with Bitcoin, more than a few retailers accept Bitcoin as payment, and others hold the e-currency as a capital asset. Recently, the Internal Revenue Service (IRS) clarified the tax treatment of virtual currency transactions. Bitcoin is the most widely circulated digital currency or e-currency as of 2021.