Cryptocurrencies made the headlines this week as they came under the scrutiny of US financial regulators. These regulators believe that trading in “coins” actually holds the same level of risk as trading on the stock market, a statement that has sent shockwaves through the digital currency industry. What all this comes down to is that these authorities believe that Bitcoins and all those digital currencies like them are “behaving more like an investment than simply a way to pay”.
This is a situation being closely monitored by the Bank of England but you may be wondering what on earth all this has to do with you. Well, cryptocurrencies are becoming increasingly common as a from of payment, expecially transnationally as it’s a form of payment that does not recognise boarders. If you work in the freelance world, then the chances are that you have already come across cryptocurrencies…and if you haven’t you most likely will in the next year or so.
However, as they are becoming more widely used I am being asked more and more just what is a cryptocurrency? Well here is my guide to what you need to know.