Bitcoin is the investment of the future, or that is what many supporters would lead you to believe.
Many individuals endorse bitcoin believing that it is the future, with fast, low-fee payment systems for transactions supported across the entire globe.
Despite the fact that bitcoin itself is not endorsed by any government, it can still be exchanged for traditional currencies. This is why it has become an appealing investment to a lot of people.
Due to this high level of popularity that bitcoin gathered throughout the years, even in 2014, the IRS stated that all of the virtual currencies, including bitcoins, would be taxed as property and not currency.
Gains or losses from bitcoins will also be held as capital and realized as capital gains or losses. While bitcoin is held in inventory, it will incur ordinary gains or losses.
The idea behind buying low and selling high applies to bitcoin as-well, and the most popular ways to purchase bitcoin include bitcoin exchanges, but there are also other ways to earn and own bitcoin.
A fork that refers to a blockchain is typically defined as a blockchain that is split into two paths forward. Accidental forks occur as part of the mining process and they can happen when two miners find a block at a similar point in time.
The network briefly forks and this fork is resolved by the software that automatically chooses the longest chain. This in turn leads to the orphaning of the extra blocks that are added to the shorter chain, the ones which were dropped by the longer chain.
Bitcoin Faucets Explained
When it comes to a bitcoin faucet, it is a reward system that is in the form of a website or a software application that can dispense rewards in the form of a satoshi that is worth a hundredth of a millionth BTC in order for visitors to claim in exchange for completing a captcha or task that is fully described on the website or software application.
There are also faucets that can dispense alternative cryptocurrencies.
The first bitcoin faucet to ever exist was, coincidentally, named The Bitcoin Faucet and was originally developed by Gavin Andresen in 2010.
Some would say that Bitcoin is very definitely the future of money.