Are cryptocurrencies real money?

Although their name may have the word “coin” in it, cryptocurrencies are not considered real money, since they seek to separate themselves from their fiduciary counterpart.

Another characteristic of cryptocurrencies is that their value depends on their acceptance and the movements they have in the market.

Finally, it is digital money and it is stored digitally, so its regulations are also different in each country since they do not have a financial system that regulates bitcoin or these currencies, and even in some places, they have been considered illegal.

How are cryptocurrencies taxed?

This can be somewhat complicated to comment on since, as mentioned above, each country manifests them in different ways. If one thing is certain is that the purpose of cryptocurrencies is to be decentralized so as long as they remain in your digital wallet and through equally digital payments they do not present a real problem for taxpayers.

But this is different when we talk about withdrawals in the real world, many exchanges allow you to withdraw your cryptocurrencies to real currencies such as the dollar or the euro, so if one day you find yourself in the need to make a withdrawal, if it is very large it will be quite sure that you will have to find a way to declare it.

Many sites help you keep a record of your buying and selling transactions that can help you in case you are asked to make a declaration one day.

What can I buy with cryptocurrencies?

Nowadays it is easier to find things that can be paid for with cryptocurrencies we have a blog that talks about what we can buy with bitcoin, but below we leave a list of things you can buy with cryptocurrencies.

• Electronic products.
• Software services.
• Video games and entertainment.
• Flights and tourist experiences.
• Gift cards.
• Charitable causes.
• Restaurants

Conclusion:

It is clear to us that cryptocurrencies are not currencies or money that are related to the typical economies of the world

Some currencies like bitcoin have a behavior more like trading and when the major shareholders decide to withdraw from this market will be an imminent collapse, so it is important to be aware of the market and never invest what we can not afford to lose.

And finally, we can already use these non-real coins to buy real things and also to make withdrawals but it is important to keep in mind the regulations of our countries to not commit illegal things.