The Purpose of Blockchain and Cryptocurrency.

Cryptocurrencies are property. The IRS classifies digital assets as property. Categorizing digital assets in this way means that every sale, trade, or purchase using cryptocurrency is potentially taxable, and capital gains tax rates apply

Crypto regulations vary across the U.S. from state to state and even between federal agencies, which all have different ways of defining crypto that come with their own tax implications and laws. Investors should conduct their individual research to determine what crypto laws exist in their respective states.

Think of blockchain like an open book that keeps a record of all past financial transactions made by cryptocurrency holders. Every person’s coin purchase, sale, or cryptocurrency conversion, or coin swap is recorded on the blockchain. The trade gets written down in the book and that page is stapled shut so no one can change it. This page is called a "block." When a cryptocurrency (crypto) holder wants to buy or sell crypto, a block is added on the blockchain recording the transaction for all the world to see, each new block creates a chain. Think of it as if your checkbook was a public document, after every check is written, it is locked but publicly recorded. However, your name, address or personal information is not disclosed, it is all encrypted with numbers and alphabets. Crypto currency that is traded on the blockchain. It is money saved on the internet that can be spent like cash money with the use of a debit card. Crypto can also be converted into dollars and deposited in your bank account. Crypto is often purchased on platforms like Robinhood or Fidelity. This is like purchasing stock on an internet site because crypto can be bought and sold on these exchanges or platforms. Some of these platforms include Coinbase, Crypto.com, and Kucoin. All of these platforms offer debt cards like a bank.