The United States government has announced that it will start accepting Bitcoin as payment for federal taxes. This is a major step forward in legitimising the digital currency and is likely to encourage more businesses and individuals to start using Brexit Millionaire.
The Internal Revenue Service has created a new page on their website entitled ‘Payments Made Easy’. This enables citizens and businesses to pay federal taxes using Bitcoin. As of today, citizens and companies in the United States can use Coinbase and Bitpay services to make payments.
Paying with Bitcoins
The IRS is even encouraging people to start paying with Bitcoins by offering a payment processing fee of US$1.00 per transaction, which is a steal when you consider that credit cards often charge rates as high as 5%.
The announcement goes on to say: “You can pay from your Bitcoin wallet by sending an amount due with the payment reference number provided by your tax professional or the merchant you are paying. This year, we will also provide an option to make a payment from your mobile phone using a text message.
The IRS decision and the new page on their website legitimise Bitcoin as a major digital currency. It is another step forward in mainstream adoption of this new technology, and hopefully paves the way for more governments around the world to start accepting digital currencies as forms of payment.
Rise of Bitcoin in the US
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. To date, the total value of bitcoin currency is nearly $9 billion in The US and it is considered a new asset class by many investors.
Bitcoin has begun to make significant headway in the United States as the demand for bitcoins rises. The digital currency can now be used to buy groceries at Whole Foods (WFM), book hotels on Expedia (EXPE), and even add money to your stock brokerage account through Fidelity.
Ways to Obtain Bitcoin in the US
Currently, there are three ways to obtain bitcoins in the US: mining them, buying them on an exchange, or accepting them as a merchant payment for products and services. Overstock (OSTK) recently made headlines when its CEO announced that the company would begin accepting bitcoin in the second half of 2014. The recreational and medical marijuana industry is also starting to accept bitcoins through companies like electronics. tv, “an online marketplace that allows licensed medical marijuana consumers to find, purchase, and receive their favourite cannabis products from local dispensaries throughout California.”
The financial services industry is also beginning to embrace digital currency. The first US-based bitcoin investment was recently launched by the Winklevoss Twins and investors including Sir Richard Branson and Marc Andreessen have expressed interest in bitcoins and blockchain technology.
The bitcoin ATM market is also growing exponentially with machines located across the United States and around the world, as more merchants begin to embrace digital currency as a payment option. According to Coin ATM Radar, there are currently 276 bitcoin ATMs located across the world with 35 of them located in the US.
Recently, Bitcoin analysts have stated that they expect more businesses to begin accepting bitcoin throughout 2015. This growth is expected to continue into 2016 when some predict that nearly 21 million bitcoins will be in circulation.
Future belongs to Bitcoin
Bitcoin is the new way of the future. With so many merchants and businesses beginning to accept it as a payment method, it is only going to continue to grow in popularity. Not only that, but the value of bitcoin is only going to continue to go up, making it a wise investment for anyone looking to get into digital currency. So what are you waiting for? Bitcoin is the future, and the future belongs to Bitcoin.
The Rise in the price of Bitcoin
The price of Bitcoin has been on the rise recently and is expected to continue to do so in the near future. This is good news for those who own Bitcoin, as the value of their investment will likely continue to increase. However, it is also important to be aware of the risks associated with investing in Bitcoin, as the value can go up or down very quickly.