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By now, most people know what Bitcoin, or cryptocurrency, is. Some have even bought and sold a few and more impressively, some have found out how to turn cryptocurrencies into a business. Then, there are the “miners”.
The digital coin has revolutionised the world of finance. Designed to be transferred digitally between counterparties, cryptocurrencies are well suited to investors who are keen on technology and the currency markets. But what about the ‘lay person’? Many of us don’t know what cryptocurrency is and if there is a future in it.
Investment experts have often sceptically dismissed cryptocurrencies as excessively volatile. Technologists have described them as revolutionary. Who is correct? Will cryptocurrencies become a mainstream asset class?
Remarkably, since the introduction of cryptocurrency in 2009, the South African Revenue Services only as recently as April 2018 released a statement in which it noted its interpretation of cryptocurrency as an “asset of intangible nature” which is to be treated as gross income or alternatively as capital for income tax purposes.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?