Is Bitcoin Legal in Australia? Bitcoin 101 for Beginners

Bitcoin is an online currency that has taken the world by storm. It is a decentralised cryptocurrency that can purchase goods and services online. Unlike traditional currencies, Bitcoin is not regulated by governments or banks.  myetherwallet 訪問我的錢包

Australia is one of the most Bitcoin-friendly countries in the world. Australia has the third-highest rate of crypto ownership at 17.8%, beating out countries such as Indonesia and Hong Kong.

Bitcoin is a well-known choice for people who want to avoid government control and surveillance. So , is Bitcoin legal in Australia? Read on to find out. 

Understanding Bitcoin Legality in Australia

Many people in Australia wonder if Bitcoin is a legitimate form of currency. Because the government does not regulate, there is a question of whether it’s legal to use. 

Bitcoin is legal in Australia. In March 2014, the Australian Taxation Office (ATO) declared Bitcoin is a commodity, not a currency. The ATO continues to monitor and regulate digital currencies in Australia.

Since 2017, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has regulated digital currency exchanges in Australia. Digital currencies are now subject to the same anti-money laundering and counter-terrorism financing regulations as traditional financial services.

Buying Bitcoin in Australia

According to a survey conducted in 2020, around 74 per cent of the respondents in Australia who owned cryptocurrency held Bitcoin. It is twice the number of people who held Ethereum and a third more than those who owned Litecoin.

The popularity of Bitcoin in Australia has made it one of the easiest countries to buy Bitcoin. Several exchanges allow Australians to purchase Bitcoin and other cryptocurrencies. These platforms offer competitive exchange rates for Bitcoin transactions.

How is it Created? 

As a decentralised digital currency, bitcoin was created by Satoshi Nakamoto in 2009 and released as open-source software in 2010. Bitcoin is developed in a process called mining. Miners are rewarded with cryptos for verifying and committing transactions to the blockchain. 

Mining requires high-grade hardware and software. It is also a complex and expensive process that consumes a lot of electricity. Miners are rewarded with new Bitcoin every time they verify a block. The total supply is limited to 21 million coins, meaning that only around 2 million Bitcoins are left to be mined. 

Bitcoin Mining in Australia

Australia has one of the largest concentrations of Bitcoin miners in the world. Several companies have established mining farms across the country. Australia has a friendly business climate and low electricity costs, making it ideal to mine Bitcoin.

Here’s how mining works:

-A user installs special software on their computer to mine Bitcoin

-The software uses the computer’s processing power to solve complex mathematical problems

-Mining pools collect the data from each computer and combine it with other computers in the pool

-A miner is rewarded with new Bitcoin when they solve a problem and verify a block

The Bitcoin is then divided among the miners in the pool according to their contribution to solving the problem.

How Are Bitcoins Stored?

Bitcoin can be stored in a digital wallet. A digital wallet is a software program that stores the public and private keys needed to send and receive Bitcoin. The wallet tracks your Bitcoin balance and sends the information to the blockchain.

The digital wallet also allows you to send and receive payments using Bitcoin. There are several types of digital wallets available today. Some wallets allow you to store multiple cryptocurrencies, while others only support one type of digital currency.

Remember, Bitcoin is a volatile asset, and its value can go up or down quickly. So, it is essential to do your research before investing in Bitcoin.

Things to Consider When You Invest In Bitcoin:

  • Bitcoin is a new asset, and its value can be challenging to predict. It is essential to understand the factors that affect the price of Bitcoin before investing.
  • The price of Bitcoin is influenced by supply, demand, and market sentiment. It can be affected by media coverage or important events such as new products or regulations.
  • It is crucial to analyse the difference between buying and holding Bitcoin and trading Bitcoin. Buying Bitcoin means buying a coin and holding it for an extended period. Trading Bitcoin refers to buying and selling Bitcoin in short periods to make a profit.

How to Buy Bitcoin in Australia?

An exchange is a platform that allows you to buy and sell cryptocurrencies. You can use fiat money or another cryptocurrency to purchase Bitcoin. Exchanges offer many payment methods, including bank transfers, debit cards, and credit cards. They also offer a variety of altcoins, which are cryptocurrencies other than Bitcoin.

So, is Bitcoin Legal in Australia? Put simply, Yes. Bitcoin is legal in Australia. However, you must ensure you use a reputed website to buy or sell Bitcoin. 


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