We would like to inform that Elixir Wealth Advisory now accepts Bitcoin, Ethereum and Bitcoin Cash payment methods on top of Visa, MasterCard and EFT cash deposits.
Bitcoin, Ethereum and Bitcoin Cash are cryptocurrencies – the new digital age of money built upon Blockchain technologies. We see this as the future of money versus the traditional fiat (paper/plastic printed money issued by governments all around the world). The basis of Blockchain technology is peer to peer interaction without middlemen such as banks or financial institutions. This helps to make the transfer of funds faster, more efficient, significantly less costly (amongst many other benefits). Blockchain technology will affect all industries and investments globally over the next 5 to 10 years.
Bitcoin was the first cryptocurrency issued on 3 January 2009 as a result of the problems and issues surrounding the Global Financial Crisis (GFC) and has taken a while for mass adoption to occur. It is our view that this shift is now happening (albeit at a more rapid pace). Bitcoin and other cryptocurrencies are coming of age and being accepted as part of the mainstream financial markets as well as the music industry and online/retail merchants. More on this via a separate article in time.
Bitcoin has a limited supply – current just under 17 million coins. It is designed to be deflationary (prices will consistently over time continue to increase) versus fiat currencies that are inflationary (value of the currency will always reduce in value due to the affects of inflation as governments print money to pay off debt, etc.).
The ATO (as with many other governments around the world that have accept cryptocurrencies), have classified them as an asset class, not a currency though they are traded like currencies. Bitcoin has a unique status as Gold 2.0. That is, due to its increasing adoption, usage and deflationary aspects, it is also seen as a new form of a global reserve currency.