Cryptocurrency Taxation

1.

1、 Different definitions:

1. virtual currency:

virtual currency refers to non real currency

digital currency:

digital currency is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy

3. Cryptocurrency:

cryptocurrency is a kind of transaction medium that uses cryptography principles to ensure transaction security and control the creation of transaction units

4. Token (token):

a kind of article whose shape and size are similar to currency, but the scope of use is limited and has no currency effect, and its token is the homonym of token in English

Second, the characteristics are different:

1; It can also be said that virtual currency is personalized currency. In another way, it can also be called information currency

2. Digital currency:

is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities

Cryptocurrency:

cryptocurrency is based on the decentralized consensus mechanism, which is opposite to the banking and financial system relying on the centralized regulatory system

4. Token (token):

usually needs to be exchanged for money, used in shops, playgrounds, mass transportation and other places, as a voucher to use services and exchange goods

extended data

at present, digital currency is more like an investment proct, because it lacks a strong guarantee agency to maintain its price stability, and its role as a value measure has not yet appeared, so it can not be used as a means of payment. As an investment proct, digital currency cannot develop without trading platform, operating company and investment company

digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields except digital currency, which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market and financial stability

2. It's not illegal to issue digital currency in China. It doesn't need the next three years. Now people have already issued digital currency. For example, Ruitai, bitcoin, Yuanbao and sandcoin are all digital currencies issued by domestic companies. But if not

3.

Digital cryptocurrency is a kind of currency that is not issued by legal tender institutions and controlled by the central bank. It is based on the open source code of a group of equations calculated by computers all over the world, and is generated by a large number of calculation processing of computer graphics card and CPU. It uses the design of cryptography to ensure the security of all aspects of currency circulation

development materials:

1. definition of digital currency:

   digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English and the alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy< br />

   

4. To a certain extent. In fact, there is no such thing as legality or illegality in digital currency, only the degree of support from the state. Because even if it is defined as illegal, because of the decentralization of bitcoin and the anonymity of transactions, no institution can hold the traders responsible. When the government starts to collect taxes and realizes the tax dividend brought by virtual currency, the central government will directly recognize its legitimacy and regulate it, just like today's stock market trading. At present, the number of domestic exchanges that can log in for trading is also increasing, such as Qube and okex, and their trading types are also expanding rapidly.

5. Cryptocurrency is legal in China. Encrypted digital currency is a part of digital assets, and QQ, game accounts, game equipment are protected by law in China
encrypted digital currency generally refers to bitcoin, Ethereum, lightcoin, DCT and other open source currencies.

6. Different people have different opinions on this issue! A lot of people and the media questioned it. But there are still a lot of people playing. The yield of this kind of currency may be relatively high, but it is unreliable. It is suggested to invest in digital currencies such as bitcoin, Ruitai coin and Qianjin card.

7. Go to the blacksmith and buy a pickaxe... There's a chance that there's a mine in the mine or on the mountain. Just put a pickaxe in your backpack and you can mine without equipment

8. What is money? Money is the medium for the exchange of goods (including services). Now our currency is issued by a reputable bank, which is basically guaranteed by its reputation. As long as the users agree, then we can use it to trade. Currency has a certain value preserving property. After I change my labor / services / all my goods into currency, the bank guarantees that I can exchange it for something of almost equal value one day in the future. The premise of this guarantee is that banks will not issue new currencies indiscriminately and that everyone will trust it

in the past, we used precious metals as currency. Because precious metal proction is not high, the speed of new money increase is limited, and the economy is growing, the market needs more money to let the goods flow as much as possible. There is value when there is demand. In this sense, the value of precious metals in making other things is secondary. The economy needs money to circulate goods, and this demand is the main one. However, if the proction of precious metals is limited, and the precious metal currencies in circulation will withdraw from the market for various reasons, then even the newly made precious metal currencies have the same or even higher value

why does bitcoin keep its value? BTC (short for bitcoin) exists in a huge P2P network. Bitcoin group has recognized an algorithm. Under current conditions, only about 6 new BTCs will be generated per hour. At present, there are 50 new BTCs in each group. That is to say, in this world, only about 300 BTCs are generated per hour. This output will also be limited by the difficulty automatically adjusted by the network. You can't speed up money proction by modifying everyone's client algorithm and parameters (client is open source). Counterfeit currency will be discarded by the network (unless you can control most of the network nodes)

what is the value of BTC itself

the value of BTC is the trading channel itself. A new set of BTCs provides a mathematical guarantee to transfer old BTCs from one account to another. The price behind this security guarantee is a lot of computing power. It takes a lot of energy to proce such a safe passage, so the whole BTC user group will reward the mint (currently 50 BTC), which will become 25 BTC after December 2012, and it will be halved every four years

to put it simply, my understanding is that all BTCs in the world are generated by the energy of running computers. Their total value (up to now, there are about 12W groups of BTCs proced, 50 in each group, and the market price is about US $7.3), should be less than the total market value of consumed energy. However, I think most of the energy used to proce BTC is wasted resources< br />4