May 28, 2021, 3:04:39 PM CDT
Five things to know about cryptocurrency
Over the past year, cryptocurrency has seen a boom in popularity. How crypto might change the world’s payment systems and contract methods are hot topics. You've heard it on the main stream news, lighting up social media and even on Saturday Night Live. But there are many misconceptions about what it is and what the future holds for currencies like bitcoin, Ethereum and dogecoin. Read below for the top five things you need to know about cryptocurrency.
What is cryptocurrency?
By definition, a cryptocurrency is a decentralized, digital asset acting as a medium of exchange that is secured by technology such as blockchain, which makes it impossible to counterfeit and provides a complete record of the history of each ‘coin’. The first decentralized cryptocurrency created was bitcoin, which was released in 2009.
How can you get cryptocurrency?
The easiest way to start buying or investing in cryptocurrency is by joining an online exchange platform such as Webull or Coinbase or opening a digital ‘wallet’ on a platform like Ledger or Trezor. Online exchanges allow you to trade cryptocurrency much like a stock, whereas wallets allow you to spend cryptocurrency at places that accept it and are often more secure.
What is cryptocurrency's appeal?
There are three main reasons cryptocurrency has gained appeal over the last decade.
- The decentralization of currency from governmental control means that it doesn’t rely on the success or failure of any nation-state or governing body for it to retain value.
- Its value and authenticity are secured through technology such as blockchain. A record of each unit’s creation and transaction history are kept in a block, which then becomes part of a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
- Many people see one cryptocurrency becoming a worldwide currency as our globe becomes increasingly digital and connected. As a result, investors are attempting to gain a stake in many different cryptocurrencies, betting on which one will be most accepted worldwide. Some investors also are interested in cryptocurrency in order to make quick profits through speculation and day trading.
What is cryptocurrency’s future?
Cryptocurrencies such as bitcoin, Ethereum and dogecoin saw incredible growth in the early parts of 2021 as more people became aware of their value as investments and their potential as a future global currency.
Much of the future success of cryptocurrency will rely on the degree to which governments and businesses buy into the legitimacy and staying power of certain coins.
How can cryptocurrency benefit Children’s Health?
At Children’s Health, we actively seek innovative ideas and technology to advance
medicine, deliver better outcomes and build a healthier future for our patients and children around the world. We also embrace innovation in philanthropy like accepting donations of cryptocurrencies.
Gifting crypto has benefits to both the donor and the nonprofit. Because cryptocurrency is considered property, it is not subject capital gain taxes and the Fair Market Value of the gift transfers to the organization. Not only does the donor receive a tax deduction equal to the fair market value to the donated cryptocurrency, the organization receives the Fair Market Value of the contribution, meaning a larger gift to charity.
We have many opportunities for those that enjoy cutting-edge technology and innovation to support through the latest currencies. If you are interested in donating your appreciated crypto or learning more, please contact Nicola Lawrence, Director of Legacy and Gift Planning, at email@example.com.
This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.