Digital currency or cryptocurrency – Oh god the internet search trend is booming for this term day by day . But there is a recent fluctuations in the Crypto market which makes the Crypto investors to dig deep about Crypto alternative investment . So here we will make a cross comparison between Cryptocurrencies Vs Stock Vs Share
You must have heard about Bitcoin. It is not an actual coin made of gold,but it is a digital currency and all of the digital currencies exist on Internet, i.e. electronically.
There is no state or central government governing this bitcoin. Neither it is authorized by anyone nor a regulatory body maintains it.
It is a digital currency that means it only exists electronically. Such kind of currency is called cryptocurrency and the way people mine that is called cryptography. This is a kind of investment like the equity market.
But if Cryptocurrencies Vs Stock Vs Share are to be compared, cryptocurrency has just come into boom so people still chose to invest in equity when it comes to Cryptocurrencies Vs Stock Vs Share.
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Trending Cryptocurrencies
Bitcoin has been into news for a long time now. But not everyone is buying it since it comes across to be the most expensive coin. There have also been words in the air of bitcoin being a bubble. Apart from bitcoin, there are other digital currencies which seem to be pocket friendly.
The top 2 picks other than Bitcoin would be:
⦁ Ethereum
While both of Ethereum and bitcoin are powered by a technology called Blockchain. Blockchain is like an online ledger that records every single transaction made. since cryptocurrency has no real physical existence, blockchain allows money to be tracked all over the web so it can’t be copied or counterfeited. Ether’s blockchain is called Ethereum and unlike Bitcoin’s blockchain it features a key technology known as ‘Smart Contract’. It not only transacts transactions, but programs them.
So Ethereum is stronger and quite more lucrative technology.
⦁ Ripple
The reason why ripple would grow is because it makes it possible for transactions between banks. Ripple would make it easy to make transactions since it is centralized.
While it literally takes 3-4 days for transactions to be completed, ripple would make it possible in 3-4 seconds.
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Pros and Cons of Investing in Cryptocurrencies
There might be the case that people won’t be relating much to cryptocurrency when it comes to Cryptocurrencies Vs Stock Vs Share but there is sure a lot of advantages of these digital coins over the stock market for any investment banker or commoner comparing Cryptocurrencies Vs Stock Vs Share.
Let’s discuss why is it in the lead:
Pros-
- Mutual exposure
- International Use
- Customer Anonymity
- No surprise fees or waiting period
- Improving reputation
- Transparent payments with no extra merchant charges
- Users can protect money with backup and encryption
Let’s talk about some downsides now:
Cons-
- Lack of acceptance
- List of investors still need to grow to benefit from network
- Consumer base
- Merchants and startups
But it still has value because they can be traded in exchange of money just like stocks and bonds . Like money it also has durability, fundability, scarcity, recognisability.
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Cryptocurrencies Vs Stock Vs Share
Coming to compare Cryptocurrencies Vs Stock Vs Share, there are a lot of difference, each has pros and cons of itself.
So, the differences in the crypto realm is that you don’t have intermediaries on your behalf and then engaging with an exchange. we have a broker if are trading forex or equity, you have some person who invests your money and the person is chargeable too.
On the other hand, again talking of Cryptocurrencies Vs Stock Vs Share, when we are investing in the cryptocurrency, you need not to pay any extra charges in any transactions or converting it to money since you were the sole investor and nobody else had a hand in it.
Also, raising one more point against Cryptocurrencies Vs Stock Vs Share, when you invest in a digital currency you are anonymous to everyone, any activity cannot be traced back to you while in the equity or forex market this is not the case.
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Is Cryptocurrency Legal
People are still unsure of bitcoins or any other digital currency as an investment option among Cryptocurrencies Vs Stock Vs Share is because the most common question asked i.e. is trading bitcoin legal? Does one need to get registered for it?
The bottom line to all of these questions is trading bitcoin is totally legal and is not illegal. Nothing more than selling pens and paper, bitcoin is considered as a personal property and one has an institutional right to sell personal property.
So cryptocurrency trading is legal in most of the countries but some countries are banning cryptocurrency . May be you should cross check whether cryptocurrency is legal in your country.
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Can you evade tax on Cryptocurrency
Cryptocurrencies such as bitcoins currently fall outside of the current regulations. It doesn’t mean that they are illegal, it just means they are unregulated and therefore outside of definition of currency, capital and assets and therefore outside of the law that governs them.
Since the value of bitcoin is not recognized by the government but only the users, in this regard it can be viewed as a commodity that has been given an arbitrary value by those who deal with it. Taxation of bitcoin therefore depends on this very classification. The CBOT has not issued any guidance from taxation perspective on it. But tax authorities in many countries such as UK, US and Australia treat bitcoins as capital assets in hands of investors with the sale resulting in the capital gain.
Talking of tax evading on cryptocurrency , there is no such bank which keeps bitcoin so there is no written record of which person would be having what number of coins, till then the person is anonymous to government since the purchase of bitcoin cannot be traced back.
Now if one is getting it converted into cash and a record is getting maintained for it, then he would have to pay tax over it, since now it is written and recorded and government has the proof. However, if one wants to avoid paying cash on it, they must exchange the coins in exchange of some commodity or asset such as a piece of land or gold. In short, if your spending isn’t getting recorded you don’t have to pay tax over it.
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Future of Cryptocurrency Predicted
The future of Cryptocurrencies seems so brought from the Cryptocurrency founders viewpoints but the present fall and rise is creating a confusion .
Future of Investment: Cryptocurrencies Vs Stock Vs Share
For someone to invest long term among Cryptocurrencies Vs Stock Vs Share, he has to learn to trade in equity market to finally be a pro at it and not face any loss. Investing in cryptocurrecy doesn’t include any middlemen, thus no brokerage charge as opposite to forex/equity market.
So hope this has given an insight on Cryptocurrencies Vs Stock Vs Share investments which would help you to take better investment decisions .
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