Cryptocurrency is a digital or virtual form of currency that uses cryptography to secure financial transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional fiat currencies governments issue, cryptocurrencies operate on decentralised networks called blockchains. The most well-known cryptocurrency is Bitcoin, created in 2009 by an anonymous person or group, Satoshi Nakamoto. Bitcoin paved the way for the development of numerous other cryptocurrencies, collectively referred to as altcoins.
The cryptocurrency market is highly speculative, and investing in cryptocurrencies involves risks. Regulations and legal frameworks surrounding cryptocurrencies vary by country, and individuals should exercise caution and do thorough research before engaging in cryptocurrency-related activities.
In Australia, the tax treatment of cryptocurrency transactions is governed by the Australian Taxation Office (ATO).