Ten years, Bitcoin cryptocurrency is now old. But only the fireworks of 2017 put them on everyone's lips. Even today, the number of fans and supporters seems to be as high as that of critics. For while some consider cryptocurrency as the future of finance, its opponents see it as a frenzied casino capitalism in its most primitive form. At first, the returns of digital currencies were enormous. Today, the cryptocurrency market seems to have calmed down a bit. In this sense, the question arises as to whether medium-sized firms can benefit from it. And how legal are Bitcoin and Co.
Is cryptocurrency a currency?
A question that many will have to face in this context when it addresses this topic for the first time. The answer is simple: yes. The traditional means of payment, banknotes and coins that we know today, have experienced a colorful development over the past thousand years. So, in the beginning, raw materials and goods were traded, and then coins. After the use of precious metals such as silver and gold, paper money followed. This is then transformed into electronic money. The next step is the cryptocurrency known today. Nevertheless, many people are confused, which is quite normal for big changes.
Legality of digital currency in Germany
Anyone who wants to buy or use a cryptocurrency in this country can do so legally. However, Bitcoin and Co. are not. So, they can be paid with them – but they must not be accepted. In this respect, there is a big difference between euro banknotes and coins. These must be accepted as a means of payment when an agreement is reached. Therefore, paying with digital currency is considered a barter agreement, as in the past with commodities or commodities. Similarly, speculation with cryptocurrency is legal. However, it should be noted that income tax may have to be paid on income.
What digital currencies are available today?
In total, there are more than 1,500 different crypto-currencies in the world. The best known today is (BTC) Bitcoin. This represents the largest market share in the current day. Just behind, follow the second largest (ETH) Ethereum and the third (XRP) Ripple. The first alternative is ETH. Who wants to buy Ethereum, should deal explicitly with the subject. A good starting point for this is the wiki bit. Here you will find all legal and financial information about ETH, as well as a selection of brokers.
Regulation by the state
Due to the increased interest in cryptocurrency in general, international politics has focused on the subject last year. A state regulation has not been given so far. Because one of the signs of crypto-currencies is anonymity and operation without a fixed place. For example, the G20 states have already dealt with the regulation. Above all, framework conditions must provide security and provide fixed parameters in the sector, not only to customers, but also to critics.
Before entering the market, you must acquire as much knowledge as possible. Later, you will benefit. Because the beginning in Germany was relatively hesitant. In addition, efforts are still being made in this country to bridge the global divide. Nevertheless, there are more and more companies dedicated to the blockchain. That's the technology, the base behind the crypto-currencies.
It's time for the middle class to arm
The blockchain and cryptocurrencies will also experience massive growth in the future, according to experts. So it's already obvious to the middle class that it will not work without Bitcoin and Co. in the coming years. As a result, the major German banks began trading in the digital currency. Volkswagen automaker also incorporates Bitcoin into its system. There are also bank accounts that link the traditional currency to cryptocurrency. We can therefore assume that we will find in the proximity the global adequacy of digital money in applications. In this respect, the middle class is already well advised to prepare and take charge of the subject.
However, all cryptographic currencies are still very volatile. Thus, the price risk is great. The possibilities of action are still limited. In all likelihood, these points will soon change. In this regard, it is important to accept, accept and process the digital currency and blockchain, so that there is no way to catch up in the years to come.
The best dog: Bitcoin
Bitcoin is considered by many to be a refuge. Similar to what happened in the past with gold in precious metal. Similarly, cryptocurrency was 140% higher at the beginning of the year. However, many people still care about Bitcoin as an independent asset class, but their price history is relatively short. As a result, fluctuations are significant, with which even medium-sized companies must first learn how to manage. The strongest in this context in the world are certainly Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash. Together, they account for 80% of the market capitalization of the crypto-currencies of the world. The most interesting currently, however, is Ethereum. This is due to most digital actions (tokens), for which this is the norm.