NFT, Crypto – A New form of Money Explained

In 2022, almost 50% of Australians now own some type of Crypto currency.

Most of this might be just experimental, but behind all these activities is a real use case for Crypto currency.

Throughout history there have been many forms of “money”.

Roman soldiers used to receive their salary in salt. The word salary, comes from the latin for salarium “money used to buy salt”.

In Egypt, beer was used as a currency and even the cocoa bean was once used as money.

All of these were a means of transferring value between different activities or assets.

Now we have the first “electronic money” – crypto currency.

The basic concept is the same, to transfer value between activities or assets.

Will this new money disappear as the previous mentioned items did?

We will have to see what the future holds but  the more it becomes adopted around the world and the stronger the use case develops, the more likely it is to be around for a long time.

So we are going to look at the various aspects of this new money over a series of blogs to help you understand what is going on from a functionally perspective and a tax perspective.

Many people do not realise that they need to disclose their crypto activities in their tax returns even if no profit is made.

Even the ATO is learning and in many cases does not have a clear conclusion as to how to treat certain aspects of this world so we are all learning together.

Should you wish to discuss anything please contact us at questions@accoladeaccounting.com.au