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Cybercurrencies are most potent tool yet for tax avoidance

11 0 0
15.08.2021

By Chris Reed

Since cryptocurrencies debuted with Bitcoin in 2009, advocates have raved about their portability, their resistance to inflation and financial fraud, and the fact they aren't controlled by a government. Investopedia has the simplest explanation of how they work: "A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology ― a distributed ledger enforced by a disparate network of computers."

Their value is sustained by market demand, utility and relative scarcity ― the same as with gold in the pre-1971 era in which U.S. currency could be exchanged directly for the precious metal.

The virtual funds can be transferred directly from individuals to individuals without going through a financial institution or exchange. They were launched in 2009 by "Satoshi Nakamoto," a pseudonym for an individual or a group who still has not been firmly identified.

Cryptocurrencies are extraordinarily volatile, but as of this week were valued at $1.4 trillion in total holdings, according to Yahoo Finance. About half of that is in Bitcoin. Wait-and-hold investors have seen the value of a........

© The Korea Times


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