Crypto

The days when cryptocurrencies were considered untamable assets operating outside the bounds of the financial system are gone. Having defined Bitcoin and other digital tokens as property, the IRS treats them as taxable assets like stocks, real estate, and other non-employment income.

Cryptocurrencies (or crypto) are a type of digital asset. Most cryptocurrencies rely on decentralized, distributed networks that use blockchain technology, an online ledger spread among a worldwide network of computers.

Proof of work, or PoW, is a program that prevents what’s known as double-spending. Without it, the blockchain wouldn’t function, and Bitcoin would be worthless.

Decentralized finance is an emerging alternative ecosystem of financial products, not operated or owned by a single or central organization.