The City of Miami is moving forward to establish itself as a world leader in cryptocurrencies.
In fact, Mayor Francis Suarez announced in an interview with CoinDeskTV last November that he plans to create a digital wallet and distribute it to residents.
“We will be the first city in the United States to give Bitcoin yields as a direct dividend to residents,” Suarez said.
Miami also hosted the world’s largest cryptocurrency conference and launched its own digital currency, Miami Coin.
Although the city’s movements have been well received, many South Floridas are still confused by cryptocurrencies, NFTs, crypto mining, and all other concepts embedded in crypto poetry.
Now let’s dig deeper into all the cryptocurrencies for a better understanding.
Crypto Decoded 101: What is a cryptocurrency? How does it work?
Cryptocurrencies are popular all over the world, but many are still confused about it. The first episode of “CryptoDecoded”. Jose Sepulveda of NBC6 incorporates cryptoverses for better understanding.
Cryptocurrencies are a form of digital money that can be used on the Internet and are not supported by the central banking system, as the Federal Reserve does for the US dollar.
“Cryptocurrencies are actually backed by very complex technologies based on cryptography, and it’s not the country that says it’s worth it, it’s what it really adds to,” said Chris Davis, spokesman for Nerd Wallet. Says.
Bitcoin has become the first cryptocurrency on the market since its debut in 2009. It is also the most famous digital currency. Currently, there are thousands of alternative coins such as Ethereum, Litecoin, Dogecoin, Solana and more.
All transactions made using Bitcon or other “Alt-coin” are tracked on the blockchain, which records all transactions made using that cipher.
Transactions are not recorded in a single ledger, but are widely distributed across thousands of computers called blockchains.
Read the Crypto101 guide for more information.
Crypto Decoded 102: What is an NFT?
What is an NFT? How does it work? Digital artists and professionals classify NFTs and explain how to buy, sell and trade NFTs.
NFT is an acronym for non-fungible token.
Fungibility is the ability to convert to other commodities or assets of the same type, such as commodities, company stocks, precious metals, currencies, etc.
Money is a prime example of alternatives, such as the ability to convert a one-dollar note into a four-quarter or dime.
If something is not substitutable, it means it cannot be duplicated or replaced.
In general, NFTs are collectable, unique, and non-transferable. Transactions prove ownership of the art, so they get their value. If you own an NFT, you can keep or wait for the NFT to be evaluated before you can sell or trade.
Taken April 7, 2021, this photo shows blockchain entrepreneur Vignesh Sundaresan’s digital artwork titled “Everydays: The First 5,000 Days” by artist Beeple at his home in Singapore. ..
NFTs have become widespread and some are sold at high prices.
A 5,000 NFT collage by an artist known as Beeple sold for $ 69 million at a virtual auction last March. This is the third highest price ever achieved by the living artist of the world-famous auction house Christie’s.
Buyer Vignesh Sundaresen says he would have paid more for it, also passing by Monica’s Metakovan.
“This is an important part of art history, and sometimes it takes time for everyone to recognize these things.”
Vignesh Sundaresen
Read the NFT Guide for more information.
Crypto Decoded 103: Is Investing in Cryptocurrencies Safe?
Is Investing in Cryptocurrencies Safe? As digital money evolves, so does the way hackers do it.
Due to the uncertainty of cryptocurrencies, many investors are worried about jumping into the world of cryptocurrencies.
One of the biggest misconceptions is that transactions cannot be tracked anonymously.
However, cryptocurrencies can be vulnerable at three different levels: blockchain or network level, exchange level, and individual level.
“Currently, there are only two ways to break a cryptographic network,” said Leiaria, a professor of computer science at the University of Central Florida. “You have to break the protocol or hack 50% and one of the computers on your network. Both seem very difficult.”
Exchanges that work on these blockchains are more vulnerable because the code used to program the exchange is usually open source and hackers can exploit any vulnerabilities.
“”Whatever humans are making, other humans are making ways to hack them. “
Leiaria
The most common ways for individuals to have their cryptos stolen are through investment and business opportunity scams, especially through social media. However, there are ways to find them and avoid sacrificing them.
Digital money is a relatively new concept, and hackers and scammers are eager to exploit vulnerabilities at each level.
According to data compiled by NBC News, there will be more than 20 hacks in 2021 where at least $ 10 million of digital assets have been stolen from crypto exchanges or projects, of which at least six cases have more than $ 100 million in hackers. Stolen.
For more information, please read the Cryptographic Investment Guide.
Crypto Decoded 104: Is cryptocurrency taxed?
Digital money is not tax exempt. Cryptographic and tax experts will explain what you need to know and how to navigate the gray areas.
Cryptocurrencies are not backed by federal agencies or central banks, but that doesn’t mean you can keep your money without paying taxes.
Most cryptoverse scenarios have tax implications, including buying and selling digital currencies for profit. In some scenarios, these effects can be very complex and confusing.
Cryptocurrency accountant Carolina Martinez says digital currencies and taxes are confusing because they have a lot of gray areas when classifying.
For federal tax purposes, cryptocurrencies are treated as property. Like stocks, capital gains and losses are taxed.
During the 2021 tax season, the first page of Form 1040 will ask:
Domestic Revenue Service
Cryptocurrency experts say that most people involved in cryptocurrencies need to answer “yes”.
Read the Cryptocurrencies and Tax Guide for more information.
“CryptoDecoded” is an ongoing NBC6 South Florida Digital Series that explores and explains the unknowns of cryptocurrencies. Check out new episodes and explainers.
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