Cryptocurrency is generally not considered a functional currency because it lacks stability, widespread acceptance as a medium of exchange, and is not backed by a central authority or government. Instead, crypto behaves more like a speculative asset or digital commodity due to high volatility and limited use in daily transactions.
Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market. This is in contrast to national currencies, which get part of their value from being legislated as legal tender.
The IRS treats cryptocurrencies as property, not as a currency, meaning any transactions that use crypto will be subject to the capital gains tax rules.
As long as bitcoin remains highly volatile and subject to hefty transaction fees, it seems likely that it'll have only limited use as a medium of exchange, a unit of account, or a store of value. The volatility and limited use may make it unlikely that cryptocurrencies will become a reserve currency.
Whatever else is claimed about it, crypto is not a currency
What does Elon Musk say about crypto?
Despite this, Musk never entirely abandoned Bitcoin. He has repeatedly described himself as a supporter of “crypto in principle”, often distinguishing between its technological merits and its environmental footprint.
Taking a buy-and-hold position in Bitcoin five years ago would have delivered massive returns for investors. As of this writing, Bitcoin is up 962.3% over the period. That means that a $1,000 investment in the token made half a decade ago would now be worth more than $10,620.
Bill Gates has made it clear—he's not a fan of cryptocurrency. And he's not just skeptical; he flat-out thinks it has no value. "None," he told The New York Times in a January interview. That's a pretty bold stance coming from one of the most successful tech minds in history.
Key Points. Bullish price targets for Bitcion in 2030 range from $500,000 to over $1 million. If Bitcoin grows that much, a $1 investment today could be worth $5.75 or more in a few years. Although you won't get rich from $1 in Bitcoin, you could do well if you dollar-cost average into it.
4. Avoid what does not produce: A Warren Buffett Mantra. Buffett once said that if he owned all the Bitcoin in the world, he would not keep it because it does not do anything.
It depends. If you earn money from exchanging (trading or selling) coins and tokens, you might owe Capital Gains Tax. If you earn money from staking or mining crypto, you'll be liable to pay Income Tax on these profits, depending on what you make overall in a year.
And that's why the Oracle of Omaha doesn't own the asset. “If you told me you own all of the bitcoin in the world and you offered it to me for $25, I wouldn't take it because what would I do with it?” he asks. “I'd have to sell it back to you one way or another. It isn't going to do anything.”
Is Cryptocurrency Mentioned in Scripture? Since cryptocurrency was not developed as a concept until the late 1990s, and it wasn't invented until about a decade later, it is not mentioned in the Bible.
"That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy," Musk wrote on X.
There are now an estimated 241,700 individuals with crypto holdings worth $1 million or more, up 40% from last year, according to Henley & Partners and New World Wealth. There are 450 crypto centimillionaires, or those with crypto holdings of $100 million or more, and 36 crypto billionaires, according to the report.
In American president Donald Trump's first term, he had opposed cryptocurrency, calling it "not money" and "based on thin air". He had told Fox Business in 2021 that Bitcoin "seems like a scam" to compete with the U.S. dollar. In his second presidency, Trump campaigned for digital assets.
Taking a buy-and-hold position in Bitcoin five years ago would have delivered massive returns for investors. As of this writing, Bitcoin is up 962.3% over the period. That means that a $1,000 investment in the token made half a decade ago would now be worth more than $10,620.
When Bitcoin was just $900 per coin, Didi Taihuttu sold his 2,500 square-foot house, 3 cars, and all of his belongings and invested everything he had into Bitcoin. Today alongside his wife, 2 kids & full time nanny all travel the world together and live in exotic destinations.
In 2021, Musk publicly confirmed that he owned BTC, ETH, and DOGE. While there are other cryptocurrencies that use Musk's name and likeness, they are not associated with him in any way.
Edward Hadad, a certified financial planner at Financial Asset Management Corp., recommends that speculative assets like crypto or gold should not exceed more than 5% of a person's portfolio, regardless of market conditions.
Key Takeaways. The IRS treats cryptocurrency as property, meaning that when you buy, sell or exchange it, this counts as a taxable event and typically results in either a capital gain or loss. When you earn income from cryptocurrency activities, this is taxed as ordinary income.
