There are a lot of myths about cryptocurrency, and believing those myths could potentially get you into a lot of trouble, both financially and with the law. When cryptocurrency first became known to the general public it was because of its involvement with human trafficking and the drug trade. Because of this association there came to be this belief that you could use cryptocurrency to conduct trades without interference from the government. Unfortunately this isn’t accurate at all. While the Federal government doesn’t recognize cryptocurrency as currency, it does recognize it as property, and that property is taxable when you experience capital gains on it.
Contrary to popular belief, cryptocurrency IS regulated, you CANNOT do whatever you want with it, it is NOT completely anonymous, and yes, there probably IS a bubble forming right now. Cryptocurrency is growing and changing and while regulators don’t always know specifically how to deal with it, regulations are catching up.
There are more types of cryptocurrency than you think — it’s not just about Bitcoin. Etherium, Ripple, Monero, Litecoin, and many many more are gaining more attention daily. Even Dogecoin is making a serious comeback. Before you invest in any of these, learn more about cryptocurrency myths from this infographic.