The Bitcoin market
Bitcoin is a digital cryptocurrency, and the technology behind it, the Blockchain, is what made financial transactions without banks involvement possible. Bitcoin is considered as currency, mostly because you can acquire goods and services from businesses and retailers that accept it as a payment method.
The Blockchain technology implements the P2P network, and the Bitcoins are designed as open source, which makes them public and obtainable for everyone. With the introduction of the cryptocurrency concept in 2009, the Bitcoin market was born.
The nature of the Bitcoins has been the most influential factor in the snowballing demand on the market, and the Blockchain technology in itself has been instrumental in the creation of this novel financial instrument. The Bitcoin has transformed into more than just currency, and today, it’s an investment opportunity.
We live and work in a technological era of wireless communication and online transactions, and this way of life and the mobility of people and ideas is what’s going to be the fuel for the further expansion of the market.
Australian Taxation Office - Tax treatment of cryptocurrencies
In a general analysis of the Bitcoin market, the most significant threats are connected to the security of the coins and the increasing number of cyber criminality attacks. The regulation of the market and government control over the exchanges is another important question about the cryptocurrency realm. In Australia, the tax treatment of cryptocurrencies, according to the Australian Taxation Office, varies according to the following classifications:
- Bitcoin as an investment - You will pay tax on any capital gain (CGT discount if you hold on to the Bitcoin 12 months or more)
- Bitcoin as a personal use asset - Capital gains made from personal use assets acquired for less than $10,000 are disregarded for CGT purposes.
- Bitcoin for business transactions - The same treatment as a barter transaction (deduction based on the arm’s length value)
According to the Australian Taxation Office, you are required to keep records involving a transaction with Bitcoin (or any other cryptocurrency) with the date of the transaction, the value of the crypto-coin at the time of the purchase and the information for the other party.
“You can’t stop things like Bitcoin. It will be everywhere, and the world will have to readjust. World governments will have to readjust.”
- John McAfee, Computer programmer & Founder of the McAfee (antivirus software)
Since the Bitcoin was first introduced in 2009, it changed the way people could store value and transact with each other. Almost 10 years later, the Bitcoin and the Blockchain technology are on the forefront of a new industry that can alter the financial market, and it can impact other vital areas of everyday life (example: Ethereum smart contracts network).
The most prominent sign of the change that is yet to come is the legal framework drafted by the countries, along with the fact that some of them even started developing their crypto-coins. Venezuela already created a crypto-coin called Petro – PTR, and since April 2018, Sweden has announced the creation of a national virtual currency called the e-Krona. Riksbank – The Swedish Central Bank supports the idea, and they announced that the e-Korna would be equivalent to the traditional currency, except that it won’t be used for major transactions.
Every country is starting to craft its own policy regarding the cryptocurrency market, and that is a vibrant sign that the crypto-coins are only at the beginning of their rise.
The role of the coin exchange
The cryptocurrency industry is composed of many different groups and associations, each of them important for the development of the market in their unique function. The crypto-coin exchange is one of the crucial actors in the industry, as that they connect traders and set the reference price for the Bitcoin and other Altcoins. The value of any cryptocurrency is tied to the price it can reach on a virtual exchange platform.
Let’s talk numbers:
- Exchanges have the highest number of functioning units and employees in the cryptocurrency world.
- It’s a fact that 52 percent of small exchanges hold a formal government license in contrast to only 35 percent of large exchanges.
- Around 53 percent of exchanges support national currencies.
- The most supported fiat currencies are USD, EUR, JPY and CNY.
- The most supported cryptocurrency is the Bitcoin, followed by Ether (43 percent) and Litecoin (35 percent).
Exchanges were one of the first services to arise in the cryptocurrency business. The first exchange was founded in 2010 as a project to support traders to buy and sell Bitcoins on the market and to help establish a reference price for the Bitcoin.
Blockbid is the best Bitcoin exchange in Australia
If you are an Australian trader and you wish to trade AUD for BTC, you need a crypto exchange in Australia. It’s always easier to buy or sell any commodity in the local currency, rather than wasting time and money on additional conversions. Blockbid is the best Bitcoin exchange in Australia, which will provide you with the ultimate trading experience.
The design of the interface is simple, elegant and intuitive, appropriate for every level trader so that you can swiftly understand the basics. Previous experience with trading is not mandatory for you to comprehend trading on the virtual platform. Another essential feature of the Blockbid exchange is that it was designed to execute up to 1 million transactions per second, so you will not have to worry about speed and performance.
The most prominent feature, however, is that Blockbid will facilitate the trading of more crypto-coins on a single platform than any other exchange in the world. This will make a great deal of difference for traders that don’t want to change between exchanges all the time and are sensitive about the time-frame in which they want to exchange or buy/sell Altcoins. Most of the popular fiat currencies (AUD, EUR and USD) and crypto-coins are featured on the exchange, and the transaction fees are minimal, only 0.1 percent.
Cybersecurity insurance fully covers Blockbid, and the platform features an offline multi-signature hardware vault for crypto-assets. Blockbid is based in Melbourne, and thus is compliant with Australian cryptocurrency law. If you wish to become a part of the Bitcoin market, you should open an account.