Bitcoin was the first cryptocurrency, but it is not the only one out there. So what distinguishes alternative currencies from Bitcoin? And what purpose do these newer “altcoins” serve? Like Bitcoin, altcoins are based on mathematics. Unlike traditional currencies based on gold standards or fiat currencies that maintain their value…
All signs seem to point that digital currency is changing the way we bank. One example: according to the Millennial Disruption Index, 68% of millennials say that in 5 years, the way we access our money will be totally different, 70% say the way we pay for things will be…
The digital currency press has been buzzing about a recently issued Goldman Sachs report highlighting the emergence of digital currency businesses as a force to be reckoned with going forward. And the buzz is justified. This report is an important sign that digital currency is having a major impact on…
Bitcoin is built on a distributed consensus technology – the blockchain – which allows transactions to be verified and securely stored without a centralized authority authenticating the transactions. In its current form, the blockchain serves as a ledger for digital currency. However, developers with a sophisticated understanding of cryptography seek…
Given digital currency’s rocky relationship with the Chinese government over the past year or so, some observers have suggested that digital currency service providers, investors and consumers might shift their focus to Hong Kong. The recent bitcoin-related scandal involving MyCoin has challenged this premise, however, and has prompted many –…
Transferring money to someone in another country can be a long, expensive and risky process. The funds exchange hands multiple times before arriving at their destination, and with each exchange comes delays, more fees, and a higher risk that the funds will be misrouted or end up in the hands…
On December 12, 2014, in Treasury Decision 9706 (the “Treasury Decision”), the IRS and the Treasury Department finalized the regulations under Section 6038D of the Internal Revenue Code (“Code”). With respect to digital currencies, the Treasury Decision notes that the IRS is considering the proper treatment of digital currencies under…
In the effort to bring digital currencies into the mainstream, companies are making concerted efforts to let consumers know that they are operating by the rules and with regulators’ blessings. One such company recently announced a bitcoin exchange. The exchange allows users to trade bitcoins and plans to first focus…
Anyone unhappy with New York’s proposed digital currency regulations, should head West, at least for now. As of January 1, 2015, the use of digital currencies (along with reward cards, virtual tokens, and other forms of payment most people likely never knew were of questionable legality) is legal in California, and…
Since the turn of the century, exchange traded funds (ETFs) have grown from an industry of less than $100 billion to a $2 trillion behemoth. And as virtual currencies such as Bitcoin continue to permeate the mainstream — Overstock.com now accepts payment in Bitcoin, as do thousands of other online…