Software Provider (the “Company”) supports and sells computer software. The Company accepts… 1 answer below »
Software Provider (the “Company”) supports and sells computer software. The Company accepts
cryptocurrencies (e.g., Bitcoin, Ether, Ripple) as payment for the sale of its computer software.
The Company holds its cryptocurrencies partially for investment (e.g., expectation that they will
appreciate in value) and partially to use in the future to purchase goods or services.
Cryptocurrency is a new type of value and payment method that is different from fiat currency
(e.g., U.S. dollars and foreign currencies). Presently, cryptocurrencies have no government
backing or recognition by a central authority as legal tender. Their value is only supported by
supply and demand.
Cryptocurrencies do not have a physical form but exist as immutable distributed ledgers
(electronic records) maintained on public blockchains. They are different than electronic
instances of cash, such as an online bank account, in that they are not linked to a physical
Bitcoin and other similar “coins” use cryptography (e.g., use of codes to secure communications)
to control the security and creation of these coins, which led to the term “cryptocurrencies.”
There are other crypto-assets that are not cryptocurrencies, such as tokens. It is important to
distinguish between cryptocurrencies and tokens