The virtual currency
Virtual currency is a form of currency or medium of exchange that is electronically created and stored it is defined by the us department of treasury as a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. I have been following the virtual currency (vc) debate and marketplace for some years now, and would like to share my observations as a person focused on economic realities, as well as my background in fraud investigations and computer science. In computing gross income, a taxpayer that receives virtual currency as payment for goods or services must include the fair market value (fmv) of the virtual currency (measured in us dollars) as of the date the virtual currency was received.
The virtual currency act explained the bill to revise portions of the banking act to account for changes to the economy per the growth of telecommunications technologies has been approved section 3 of this bill now includes wording on virtual currency and is being tentatively called the virtual currency act. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money that’s why it has become the currency of choice for people. The earliest reference and virtual currency that i knew of is linden dollars for the virtual world secondlife (see: economy of second life) everything in secondlife from mods, to rentals, to goods and services, are based on linden dollars.
Well, virtual currency is a digital representation of value that is neither issued by a central bank or a public authority nor necessarily attached to a fiat currency but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically. A virtual economy (or sometimes synthetic economy) is an emergent economy existing in a virtual world, usually exchanging virtual goods in the context of an internet game people enter these virtual economies for recreation and entertainment rather than necessity, which means that virtual economies lack the aspects of a real economy that are. Virtual world currencies circulate within internal virtual world communities accumulating fictional money helps improve one’s experience of the game, whether that be by acquiring accessories.
A “convertible” virtual currency is a virtual currency that has an equivalent value in real currency, or acts as a substitute for real currency it usually has a measurable value in real money and what. Virtual currency such as bitcoin is defined as a digital money (seward, 2013) in other word, it is transferred to person to person through internet without going to financial institution such as banks. Receiving virtual currency for transmission or transmitting virtual currency, except where the transaction is undertaken for non-financial purposes and does not involve the transfer of more than a nominal amount of virtual currency. Virtual currency, as generally defined, is a digital representation of value that functions in the same manner as a country’s traditional currency there are currently more than 1,500 known virtual currencies.
The virtual currency
Another stems from a great irony: the safest way to store virtual currency is offline, in computers unconnected to the internet to get its depositors bitcoin offline and then back on, coinbase. Virtual currency technologies are evolving rapidly and a currency used today could be obsolete tomorrow technical problems and glitches have not been uncommon with many types of virtual currency • value fluctuates for example, between march 2013 and march 2014, the value of the virtual currency bitcoin. Currency if the virtual currency business activity of the creditor is limited to enforcement of the security interest in compliance with article 9 of the uniform commercial code or of the lien in compliance with the law applicable to the lien. A virtual currency “miner” is computer hardware that runs special computer software to solve complex algorithms that validate groups of transactions in that virtual currency once a complex algorithm is solved, a unit of currency, such as a bitcoin, is awarded to the individual operating the miner.
This opinion raises the possibility of jurisdictional tension between the cftc and the sec, which has recently brought a number of civil enforcement actions against virtual currency issuers premised on the theory that the virtual currency in question is an unregistered security. In some environments, virtual currency operates like “real” currency -- ie, the coin and paper money of the united states or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance — but it does not have legal tender status in any.
Virtual currency bits and bob technically, the world's first fully fledged open-source virtual currency is a marvel it remains to be seen whether its economics make sense.  both the cftc and nfa use the term “virtual currency” many commentators use the term “cryptocurrency” the cftc takes the view that cryptocurrency is essentially a subset of virtual currency, noting that “one prominent type of virtual currency is cryptocurrency. Virtual currency, the measure of tax from the sale of the product is the amount allowed by the retailer in exchange for the virtual currency (generally, the retailer's advertised selling price of the. The risks of virtual currencies posted on july 16, 2014 by gao_watchblog in february 2014, the mt gox virtual currency exchange filed for bankruptcy, stating that a security breach resulted in the loss of bitcoins worth more than $460 million at the time.