Virtual Currency

What is Virtual Currency?

A virtual currency (crypto asset) is a currency that is exchanged solely in the form of electronic data.

In other words, it is money in the form of data that does not exist in physical form.

There are four main characteristics of virtual currencies

It does not have the same enforcement power as legal tender, and is mainly used for transactions on the Internet.
There is no central administrator.
There is an issuance limit. e.g.) In Bitcoin, the maximum number of coins issued is set at 21 million.
Redeemable. →Can be bought and sold at the current market value at that time.

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Virtual currencies do not have a state or organization to manage them.

Therefore, they are managed by the following mechanism.

It is a mechanism called blockchain, in which transactions, called P2P (peer to peer), are monitored by all participants.

In addition, the price of virtual currency fluctuates according to supply and demand for the amount in circulation.

Virtual currencies have a variety of uses.

They are expected to develop further in the future.

Trading income from virtual currency is classified as miscellaneous income, so if your profit exceeds 200,000 yen, you will need to file an income tax return (for dependents, more than 330,000 yen).
In the case of multiple trades, income is calculated for each trade, and the total for the year is declared as the amount of income.

Virtual currency began in October 2008 when a man named Satoshi Nakamoto published a paper on Bitcoin.
In January 2009, Bitcoin was born, and in 2010, an exchange was established where Bitcoin could be exchanged.

Typical virtual currencies currently in circulation include

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