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.'

Is the IRS tracking bitcoin?

There is no question that regulation of Bitcoin is on the rise. The real question is how the IRS manages to track cryptocurrency – a commodity which is, after all, prized as much for the “anonymity” it affords as the profits it yields.

Will you have to tell the IRS about bitcoin in 2020?

Over the course of 2020, it’s price has risen by more than 150%. Just be aware that whether you mined, purchased or sold your share of Bitcoin this year – or any other cryptocurrency – you’ll have to tell the IRS when you file your taxes next spring.

What is Bitcoin Cash?

It arose out of a proposal aiming to solve scaling problems that had resulted in rising transaction costs and increasing transaction confirmation times. This version of Bitcoin began on August 1st, 2017. Read more: What is Bitcoin Cash? Was this helpful?