What is a Bitcoin
Bitcoins are both a digital and crypto currency that was created in 2009. This currency was created by an unknown individual or group (a.k.a.: Satoshi Nakamoto). Many companies use this currency such as Walmart and Amazon.
Transactions are made without using banks. There are no fees and your anonymity is not compromised. Names of buyers and sellers are never used, only the bitcoin wallet ID. While your anonymity is secure it lets anything to be bought and sold without tracing the transaction back to the originator. That’s why bitcoins are the currency of choice for buying drugs and other illicit activities.
Why bit coins or so controversy
There are many reasons the bitcoin currency has become a media sensation. In 2009 if you made bitcoin investment when it was selling for less than $300 = 1 BTC. Today 2017 the Bitcoin exchange rate is1 BTC = around $14,000. Many people trading bitcoins have become millionaires. From 2011 two 2013 traders involved in criminal activities made bitcoins popular script by buying millions of dollars in bitcoins and transferring the bitcoins without law enforcement and tax departments.
Bitcoins are highly controversial because they remove the power of the central federal banks to make money while giving it to the general public. Bitcoin accounts can’t be frozen or examined by tax agents and the entire banking system as we know it is unnecessary. Bitcoins are beyond the control of all law enforcement agency and federal institutions.
The controversy over the bitcoins has diminished slightly since the United States IRS now considers that bitcoins are taxable as property of the taxpayer. March 25, 2014 the IRS published a guide on the changes to the USA tax code, also the IRS now accepts bitcoins as currency to fund your 401(k). If you Google IRS 401(k) there is a Myriad of articles on this subject. This article presents one government site title IRS Virtual Currency Guidance | Internal Revenue Service – IRS.gov