The market for crypto platforms is changing at an incredible rate. Regulatory pressure, changes in the regulatory environment, cyber attacks, the fluctuation of Bitcoin rates, unscrupulous attempts to close the volume of operations to attract the ICO, and now the IEO projects, all contribute to changes in the balance of power in the crypto market.
It is also known as digital cash, cryptocurrency, international payment network, the Internet of money – but whatever it is called, Bitcoin is a revolution that is changing the way everyone sees and uses money.
The good thing about Bitcoin is that it does not require central servers or third-party clearing houses to settle transactions: all payments are equal to equal (P2P) and are settled in about 10 minutes, unlike credit card payments, it may take weeks or months to finally settle.
All Bitcoin transactions are recorded permanently in a distributed ledger called “blockchain”, which is shared between all the “miners” and “nodes” of Bitcoin worldwide and is publicly visible. These miners and nodes verify transactions and keep the network secure. For the electricity they use to do this, miners are rewarded with new bitcoins with each 10-minute block (the reward is currently 12.5 BTC per block).
The Bitcoin protocol is also limited to 21 million bitcoins, which means you can’t create more than that. This means that no central bank, individual or government can come and simply “print” more bitcoins when it suits them. In this sense, Bitcoin is a deflationary currency and, as such, is likely to increase its value based solely on this property. So claim your spot for good profit.
Advantages of cryptocurrencies
- The transactions with cryptocurrencies are instantaneous. A Bitcoin transaction, for example, is received in a few seconds and begins to be confirmed in the next 10 minutes, you have to wait 1 to 6 or more confirmations, depending on the quantity.
- Transactions with bitcoins or cryptocurrencies hide the user’s identity. The identity of that user is not known, unless he reveals it during a purchase or for other reasons. This is one of the reasons why good practices should be adopted, such as Bitcoin addresses being used only once.
- The system promotes transparency and unique records. The decentralized ledger or ledger allows you to freely access it, at any time, to verify cryptocurrency transactions that have been recorded and cannot be modified.
- The transactions made by these systems are safe because they cannot be reversed; They can only be refunded by the person receiving the payment. Bitcoin can detect typographical errors and will normally not allow you to send money by mistake to an invalid address. Another aspect of security is that a minimum of guarantees should be required of companies that accept deposits in cryptocurrencies (as in the case of exchanges ) to ensure there are no frauds, just as there are certain types of licenses that establish guarantees for companies that accept deposits in euros.
- The transactions with Bitcoins are taxable transactions and exempt from VAT. This is indicated by some responses from the Treasury to binding inquiries in 2015. They explain that “they must be understood as included in the concept other commercial effects”. This concept is closely linked to payment instruments that allow the transfer of money and, as such operations financial, must be exempt from the Tax.
- The sale of Bitcoin from entities dedicated to mining and the transmission of this cryptocurrency is also exempt from VAT. The reason is that the remuneration paid to the provider of the service is not the consideration for the service provided, as new Bitcoins are generated automatically by the network.
The miners themselves are subject to the personal income tax or corporate income tax in case of operating through a company. In 2016, the Treasury answered another binding question stating that they must be censored in section 831.9 of the IAE (other financial services not included elsewhere) and register for security. Exchange houses or exchanges, due to their ATM activity, sale and exchange of bitcoin for euros, were already subject to these taxes since 2015.
- It facilitates international transactions. The respect that Blockchain technology has earned from technological and financial companies, has made it possible for companies, financial institutions or people of different nationalities to operate and make electronic payments with the same virtual currency.