First of all, let’s define what crypto-currency is. Crypto-currency is the type of digital money, which uses the methods of cryptographic encoding. It is decentralized, unlike such electronic payment systems as PayPal, WebMoney, etc. It is not influenced by geopolitical and economic situation in the world. Transactions in crypto-currency are irreversible. Crypto-currency can be lost because of computer viruses or mechanical damage of data carriers.
As you can guess, first place goes to Bitcoin (BTC). This is the oldest known crypto-currency, introduced in 2009 by hacker (or group of hackers) Satoshi Nakamoto. What is interesting, the number of Bitcoins, that can be mined, is limited. Its algorithm allows produce 21 millions of Bitcoins, more than a half of this amount is already mined. In 2010, 10 thousand Bitcoins were paid for pizza delivery, which was around 25 dollars. These days, it’s around 10 million.
Second in popularity is Litecoin (LTC). If we call Bitcoin gold, then Litecoin is silver. Litecoin was introduced in 2011 by Charles Lee as an alternative and evolution of Bitcoin. The main difference from Bitcoin is the speed of generation – it is four times faster, than BTC. The number of Litecoins is limited as well, however, the general number of possible LTC mined is four times bigger than BTC.
Dogecoin (DOGE). This crypto-currency is based on Litecoin and was introduced in 2013 by Portland programmer Billy Marcus. It received its name in honor of the Internet meme Doge. If we compare Dogecoin with other crypto-currencies, the main peculiarity will be its fast production schedule. This currency grew its popularity as Internet tips. Dogecoin community is famous because of their charity – they have fundraised sufficient sums for the Jamaican Bobsled Team to enter Winter Olympic Games 2014 and then other sportsmen.
This ranking is not based on market capitalization of crypto-currency – the cap chart looks different and changes every month (Bitcoin, however, still takes the first place). This has been just the subjective ranking and a try to compare Bitcoin with other crypto-currencies.
EU Decided Not to Tax Bitcoin
Recently, European Court decided that crypto-currency transactions are not imposed for Value Added Tax (VAT). This decision automatically equates Bitcoin and other crypto-currencies to real money and creates the greater opportunities for its further development.
This decision didn’t come from scratch. This was expected after the growing interest to crypto-currency in Europe. Everything has started from Sweden, where the similar decision was made by the court as early as 2014 (however, Tax Service had appealed against it later). And in spring 2015 Great Britain, one of the biggest European financial centers, became interested in crypto-currencies.
In July 2015 Advocate General Julianne Kokot directed the suggestion of abolition of Bitcoin transaction taxation (VAT) to the EU. Since this instance has the highest legal power for EU countries, its decision is obligatory for the whole EU territory. According to this decision, in the near future some EU countries will have to amend their legislation.
Interesting is that Poland, Estonia and Germany have already set the regulatory rules of crypto-currency operations.
Thoughts concerning the EU Court decision differ, however, both financiers and IT-people agree that the precedent gives hope that Bitcoin will continue its gradual development and expansion.
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
