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The Blockchain Secure Your Online helping identity protection
Have you ever been the victim of identity theft? It is an ugly experience. Calling up credit card companies to change all your cards and dispute charges. Resetting passwords to all of your applications. Always worrying whether someone may call up your cell phone provider with your leaked information to commit a SIM porting hack, meaning they would have access to all of your text messages. Once someone has access to your texts this is the gateway to getting into many online services, even if you were being diligent and using two factor authentications.
It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost untraceable code, to track purchases and transfers.
Cryptography was born out of the need for secure communication in the Second World War. It has evolved in the digital era with elements of mathematical theory and computer science to become a way to secure communications, information and money online.
Many people use Bit coin as an investment, buying the crypto currency in an attempt to gain a profit on its fluctuation. Others view it simply as a new way of spending money. The number of places where you can spend your Bit coins is growing every day. Here is what you can spend your Bit coins on:
This decision became the birth of cryptocurrency. They are the missing piece Satoshi found to realize digital cash. The reason why is a bit technical and complex, but if you get it, you'll know more about cryptocurrencies than most people do. So, let's try to make it as easy as possible:
To realize digital cash you need a payment network with accounts, balances, and transaction. That's easy to understand. One major problem every payment network has to solve is to prevent the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps record about the balances.
you don't have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.
This means, you not only need to keep track of all your Altcoin trades, but you also need to take into account the price of Bitcoin when buying and selling.
Obviously, this makes things extremely complicated. You can have a bad trade, resulting in getting less Bit coin back than you invested, but being still, in theory, accountable to taxes, when the price of Bit coin did soar between your trades. So you lost money in trading but have to pay taxes for it.
At this moment you should accept the fact that crypto currencies are something new and that you are no expert in dealing with your financial authorities. Go for a tax consultant, educate her or him about crypto currencies and look forward to talking with confused financial authority officials.
And enjoy investing in cryptocurrencies.