Hashcash used a proof-of-work algorithm currencies that would enter the cryptographic currency of new coins, much similarities to modern-day cryptocurrencies are.
Key Takeaways A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. Since charting taxable income is based upon what a recipient reports to the revenue service, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex and difficult to track. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens, or other such reward mechanisms.
