Investing in cryptocurrencies - what does the taxman need to know?
In as little as five years from the low point, Bitcoin has increased in value by a factor of 20 times, writes tax advisor Kieran Coughlan.
All that glitters isn’t gold as the old adage goes. When it comes to cryptocurrency, the rise of Bitcoin and, more recently, the Donald Trump Coin, the Melania Trump coin, and other “coins”, such as the DOGE coin and XRP, have made millionaires out of early adopters. But for many discerning investors, the risks outweigh the upside potential choosing instead to stick to the sidelines.
The risks with digital assets include an overpopulation of cryptocurrencies, the hacking of blockchain or digital wallets where such digital currencies are stored or the failure to get the currency recognised by mainstream regulators, central banks and retailers.
