Cryptocurrencies, like Bitcoin, are not going to replace
traditional currencies any time soon, but a growing number of law
firms have begun to accept these currencies as payment from
clients. Before your firm accepts crypto payments, you need to
understand how these currencies work and some of the issues they
raise.
WHAT ARE CRYPTOCURRENCIES?
Cryptocurrency generally refers to a decentralized form of
digital currency. Bitcoin and Ethereum probably are the best known,
but dozens of others are out there, including Zcash, Ripple and
Litecoin.
Cryptocurrencies are virtual assets, with no physical form, and
deemed to be property by the IRS. Transfers are instant and tracked
in a blockchain ledger instead of with a bank within a centralized
banking authority (see, "What is Blockchain?" below).
