, 2023-01-03 23:32:09,
Cryptocurrencies has grown from a niche technology with a tech-savvy user base to an entirely new asset class that has attracted investment from mainstream institutions.
You’ll often see cryptocurrencies criticized as a speculative asset, yet studies show that emerging markets in Africa, South America and Southeast Asia are increasingly using cryptocurrencies as an actual currency. For example, one out of three respondents in Nigeria indicated they own or use cryptocurrencies.
While much of the interest from North American and European investors are speculative, the steady growth in other markets demonstrates its practical use case for overcoming challenges with traditional fiat currencies. Additionally, next-generation cryptocurrencies like Ethereum and Cardano have enabled entirely new technologies with powerful use cases.
As adoption continues, investors are taking another look at cryptocurrencies as a valuable asset class with blue-sky potential.
However, anyone investing in cryptocurrencies should be well aware of the tax implications of investing in the asset class and transacting with it. Most countries have enacted some form of tax regulations similar to capital gains laws, which must be understood to avoid steep fines and other penalties.
How are cryptocurrencies taxed in the US?
The US was one of the first countries to enact cryptocurrency tax regulations, which closely mirror capital gains and income…
To read the original article from news.google.com, Click here