The good news is that not only is Bitcoin legal in the USA and most other developed nations, but it is becoming a premier world trading currency. Companies from Microsoft and Starbucks to Wikipedia and more already accept Bitcoin as a legitimate currency.
Based on blockchain technology, which is widely touted as the currency of the future, Bitcoin is one of the original cryptocurrencies. It is also one of the largest, with a market cap of $814.7 billion, which is more than Tesla, Alibaba Group, or Berkshire Hathaway Investment Group.
Want to learn more about Bitcoin? Read on!
Is Bitcoin legit and safe?
Bitcoin is widely accepted and it is generally considered safe. That means that not only can you buy, sell, and trade Bitcoin like you would a stock or physical currency, but you can also use Bitcoin to pay for goods and services.
The technology of cryptocurrency is a digital representation of currency. It is sort of like electronic money that utilizes a peer-to-peer payment system. You can learn more about digital currency to understand how legit it really is. While it is completely independent from traditional banks and financial institutions, many of these institutions are adopting Bitcoin as part of their portfolio or offerings.
The only safety issue with Bitcoin and other cryptocurrencies is the risk of it being stolen or lost. Since it is deregulated, if you do not store it securely, you risk losing it. Just as you risk your computer being hacked if you do not properly protect it, your Bitcoin wallet can be hacked in a similar way.
To protect your cryptocurrency, become familiar with common online scams, use strong passwords, and keep a physical cryptocurrency wallet. You can learn more here about keeping your Bitcoin safe.
Interestingly enough, some young financial minds consider the technology behind cryptocurrency to generate value beyond the money made by great masterpieces. Because of the technology used for cryptocurrencies like Bitcoin, you will now even find Bitcoin art! For many in Gen X and Gen Z, this art technology is seen as the greatest value, with art created through this technology being sold for even more than traditional masterpieces.
So, to answer the question, “Is Bitcoin legit?” we say yes, it is safe. In fact, individuals and companies are pouring billions of dollars into it.
Can I safely make purchases with Bitcoin?
Yes, you can safely make purchases with Bitcoin. Unlike a credit card or cash, Bitcoin is sent with a secure code and routed through verification to the end user.
The actual process and user experience is like making a bank transfer in which you will need your own account number and the recipient’s account number. Although the technology is different, the user experience is similar.
Here is a list of businesses currently accepting Bitcoin. If you don’t see the business you’re looking for, keep checking the list because it is growing quickly. In the meantime, learn more about buying with Bitcoin.
Be careful and avoid sending Bitcoin to unknown accounts or responding to emails pretending to be well-known businesses. Be sure to verify with the company where you should send the payment so that you can avoid being scammed.
Is Bitcoin mining legal?
Yes, in the U.S. and other countries Bitcoin mining is legal. However, the U.S. is very lucky because Bitcoin and Bitcoin mining are both illegal in some countries, the most notable of which is China, but there are many others. Research the laws surrounding cryptocurrency and Bitcoin for your country before you try to purchase or mine Bitcoin.
Bitcoin mining requires fast computers and a tremendous amount of energy. It is done through long computer processes. The cost to mine one Bitcoin is about $8,500. With the price currently around $36,000 per Bitcoin, mining Bitcoin could be a lucrative gig.
However, the computer sophistication and difficulty of Bitcoin mining are still major deterrents for most people. The average user with a high-speed computer setup specifically for Bitcoin mining will take an average of three years to mine one Bitcoin.
For these reasons, for the average consumer, it makes more sense to invest in Bitcoin directly rather than trying to mine it. You can learn more here about buying Bitcoin.
Always follow tax guidelines
Bitcoin is safe and legal as long as you follow IRS virtual currency guidelines and claim your gains appropriately when filing your taxes. Bitcoin is also legal for small businesses and self-employed individuals, but the IRS has prepared specific guidelines and tax consequences.
Check out all of the information regarding Bitcoin’s legality from the IRS directly. This will ensure that you are in complete compliance with the IRS’ current standards. It will also help you better understand your tax liability.
Where can I legally buy and sell Bitcoin?
There is an increasing number of cryptocurrency exchanges. You will want to carefully review each exchange’s security features before you start to buy or sell. Some reputable platforms are Coinbase, Coinbase Pro, CoinMama, and Bisq. There are also more and more Bitcoin ATMs appearing everywhere, which makes it possible to easily buy and spend Bitcoin.
For the greatest security and ease of use, we recommend joining the MoneyLion Crypto waiting list to buy, sell, and earn cryptocurrencies like Bitcoin and Ethereum. Although MoneyLion crypto has not launched yet, you can reserve a spot on our waiting list and be the first to use the newest features. In the meantime, you can open a RoarMoney account.
Bitcoin and crypto are the way of the future
Once considered fringe, cryptocurrencies are now taking center stage in the financial world. You can buy, sell, and trade with them just like any other world currency, but they have many other benefits in terms of greater long-term security, as well as a peer-to-peer payment system that has garnered passionate enthusiasm and rapid growth.
Prepare for MoneyLion crypto as your all-in-one buy, sell, and trade solution by opening a RoarMoney account. You will gain the benefit of MoneyLion’s Instacash, spend report, and money tracker. Track and plan your finances now to do more with cryptocurrency and build your wealth for future goals and security!