Once a fringe and esoteric asset class, virtual currencies are now part of the payments mainstream.<\/p>\n\n\n\n
In November 2024, Bitcoin surpassed the $100,000-per-coin milestone<\/a> for the first time in history. This was a figure thought impossible for a virtual currency whose value had fallen as low as $3,000 in 2019, and which was valued at a fraction of a dollar just a decade before that.<\/p>\n\n\n\n Merchants and banks are beginning to take notice. Today, roughly 10,000 businesses worldwide<\/a> accept virtual currencies as payment. US banks may soon be allowed to take custody of digital currencies on behalf of depositors, too.<\/p>\n\n\n [noun]\/v\u0259r \u2022 CH\u0259w \u2022 \u0259l \u2022 k\u0259r \u2022 \u0259n \u2022 s\u0113\/<\/p><\/div> Virtual currency, also known as virtual money, is an electronic representation of value that functions as a medium of exchange.<\/p><\/dd><\/div><\/dl>\n\n\n\n Virtual currency is an unregulated subset of digital currency issued and controlled by developers. Digital currency, on the other hand, is a broader term that includes virtual currency but also regulated forms of non-physical money, like central bank digital currencies (CBDCs), which stand in for traditional currency (like the US Dollar).<\/p>\n\n\n\n Although this distinction may seem pedantic, there are real-world consequences. For tax purposes, the IRS considers virtual currency to be property, rather than currency. This means that merchants who receive cryptocurrencies as payment may be engaging in taxable property transactions.<\/p>\n\n\n\n Accepting cryptocurrencies could let you capture a sizable and tech-savvy consumer base. Today, an estimated 17% of US adults<\/a> have invested in or used cryptocurrencies to purchase goods or services. Among young adults aged 18\u201329, this proportion is even greater, at 29%.<\/p>\n\n\n\n Beyond this, you could position yourself to take advantage of lower transaction fees compared to credit cards. Or, even minimize or eliminate chargebacks<\/a> altogether (more on these benefits later).<\/p>\n\n\n\nRecommended reading<\/h3><\/div>
What is Virtual Currency?<\/h2>\n\n\n\n
Types of Virtual Currencies<\/h2>\n\n\n\n