Are Cryptocurrencies “legal”?
The legal status of cryptocurrencies varies substantially from country to country and is still undefined or changing in many of them. While cryptocurrencies are legal in most countries, Iceland and Vietnam being an exception – Iceland mainly due to their freeze on foreign exchange, they are not free from regulations and restrictions.
China has banned financial institutions from handling bitcoins and Russia, while saying cryptocurrency is legal, has made it illegal to purchase goods with any currency other than Russian rubles.
In the U.S., the IRS has ruled that Bitcoin is to be treated as property for tax purposes, making Bitcoin subject to capital gains tax. The Financial Crimes Enforcement Network (FinCEN) has issued guidelines for cryptocurrencies.
The issued guidelines contain an important caveat for Bitcoin miners: it warns that anyone creating bitcoins and exchanging them for fiat currency are not necessarily beyond the reach of the law. It states:
“A person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter.”
Miners seem to fall into this category, which could theoretically make them liable for MTB classification. This is a bone of contention for bitcoin miners, who have asked for clarification. This issue has not been publicly addressed in a court of law to date.
As the popularity of and demand for online currencies increases since the inception of bitcoin in 2009, so do concerns that such an unregulated person to person global economy that cryptocurrency denominations offer may become threats to society as a whole.
Cryptocurrency networks display a marked lack of regulation that attracts many users who seek decentralized exchange and use of currency.
On August 6, 2013, Magistrate Judge Amos Mazzant of the Eastern District of Texas federal court ruled that because cryptocurrency (expressly bitcoin) can be used as money (it can be used to purchase goods and services, pay for individual living expenses, and exchanged for conventional currencies), it is a currency or form of money.
What is BITCOIN?
BITCOIN is a revolutionary concept: digital currency of a new era, product of an open-source project created by Japanese geek Satoshi Nakamoto, called “Bitcoin: A Peer-to-Peer Electronic Cash System”.
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy services, Cars or Trade Forex.
What you need to know about bitcoins.
For those that are wanting to claim Bitcoin, without initially spending any of their own funds up front to do, so it is also very possible to achieve. There are plenty of sites available that are called faucets just like this site, and in these faucets the end user can visit them daily to earn Bitcoins with.
Furthermore, just like our website here where you can earn free Bitcoins, there are also plenty of other online gaming portals that you can play games to earn Bitcoins with them too.
Bitcoin as a form of payment for products and services has seen growth, and merchants have an incentive to accept the digital currency because fees are lower than the 2-3% typically imposed by credit card processors. A Faucet gaves people free bitcoin. You can win bitcoin at a bitcoin faucet by solving things. To get free bitcoins or win free bitcoins you also can referrel with a multiplier of 0,2 to get free Satoshis for just placing a link.
When it comes to the currency term Bitcoin, for many people they at first might be overwhelmed with ways to get a hold of it. However, we hope our article has now cleared up some of the mystery you might have been experiencing about what you can do with it when you earn some Bitcoin.
Finally, we strongly encourage our readers to take hold of learning as much as they can about Bitcoin, and start on their own path to earning them.
Copyright © by Bearbitcoin, 2016