All these definitions are thanks to Wikipedia. A Cryptocurrency (Crypto-currency) is a digital asset designed to work as a medium of exchange, that uses strong cryptography to secure financial transactions, control the creation of additional units, and very the transfer of assets.
Bitcoin, Litecoin -- these are types of crypto-currencies.
Bitcoin is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.
Litecoin was an early bitcoin spinoff or altcoin. Litecoin is a peer-to-peer crypto currency and open-source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority.
It's all techie and complicated. Youtube videos by Andreas M. Antonopoulos are a good place to start. I tried to read his first book but it was too technical to be helpful.
There is a tax expert who specializes in Crypto currency tax preparation. Laura Walter calls herself the "Crypto Tax Girl". Her website is Crypto Tax Girl Website.
I'm at the point where I know the following:
- How crypto currency is taxed in the USA.
- How to do the accounting for buying and selling
- A crypto tax preparer I can refer you to
- How to setup your business to accept crypto currency
This is 100% more than I knew a month ago about this subject. Do you conduct business internationally? Is it time for your business to accept crypto currency? I could help you with that business feature. Just like I help clients find the best deal on a merchant account that links up with QuickBooks. And I am learning more every day!