Cryptocurrency

Cryptocurrency is a currency which is not control by any government. It can be stored offline or online. This can help you transfer your wealth across border but also a storage of your wealth (instead of using gold or currency).

Just like the US dollars, cryptocurrency fluctuate relative to other currencies. However, the US government, through the central bank can print more US dollars, which means they can increase or decrease the value of US dollars as they see fit. However, the idea be hide cryptocurrency is that you can't "print" or "produce" more. Therefore, there is a limited amount.

Can we "trust" Cryptocurrency?

Ofcourse, a well known Cryptocurrency asset is Bitcoin, which was lauch in 2009 (which is more than 15 years ago). Therefore, it is not a "new" thing. There are other Cryptocurrency out there such as Ethereum and Dogecoin. However, Bitcoin is the most well known and have the longest history.

Previously, certain percentage of Bitcoin has been used to purchase illegal good and services. This was a popular payment method on the website "Silk Road website", which is now been closed. Cryptocurrency is continue to be regulated and recognised.

Certain countries still bans Bitcoin, but countries like El Salvador and acquire it as part of the their reserved. As at 2025, President Trump established the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile. Having the U.S purchasing Bitcoin certainly add legitimacy to it. Nonetheless, there are also nothing stopping the U.S from disposing all of it's Cryptocurrency as well.

The issue with Cryptocurrency is prices fluctuation. Therefore, if you invest all your money, then your wealth will be volatile. There are certain financial advisors who are willing to accept purchase Bitcoin and include it as part of the client portfolio. However, they are currently more conservative.

Can government tax Cryptocurrency?

In Australia, broadly speaking, capital gains from Cryptocurrency, if you dispose it for the purpose of investment (profit making), then capital gains will be taxed. However, if you use it as currency to buy good and services then this won't be taxed. However, the distinction between the 2 principle is relatively close. Therefore, you should speak with your trusted advisor to determine whether it will be subject to your income tax or not.

Conclusion

There is certainly a trend of investment into Bitcoin which has been popular over the passed couple of years as the prices has continue to increased.