How to Buy Bitcoin in Canada

Bitcoin (BTC) Tl;dr

Founded: 2009

Founders: Satoshi Nakamoto

Website: https://bitcoin.org/

White Paper: https://bitcoin.org/en/bitcoin-paper

Cryptocurrency symbol: BTC

Coin limit: 21 million

Consensus mechanism: Proof-of-Work

Purpose: Cryptocurrency, payments, store of value

Other: Each Bitcoin is divisible into 100,000,000 satoshis. A Hard fork created Bitcoin Cash 2017 (which later split again into Bitcoin Cash and Bitcoin SV)

Financial Products: Futures, Options, Options on Futures, Greyscale Bitcoin Trust, 3iQ Bitcoin funds and 3iQ CoinShares ETFs in CAD and USD + more

What is Bitcoin?

Bitcoin is the first successful modern cryptocurrency. It is referred to as a store of value, digital gold, a currency and a financial revolution. Bitcoin was founded in 2009 with the release of a white paper. The founder, Satoshi Nakamoto, appears to be a pseudonym for a secretive individual or group. The true identity of Satoshi remains a mystery.

Bitcoin is a peer-to-peer, decentralized payment and clearing system driven by a software program. Bitcoin includes a native token called a Bitcoin, a ledger to track every Bitcoin over time and a reward system for clearing transactions and securing the network.

Bitcoin is an interaction between individuals, miners and the software across the world. Bitcoin started what is now a trillion-plus dollar industry that spans payments, DeFi, DEXs, smart contracts and numerous other decentralized concepts.

How does Bitcoin work?

Bitcoins are initially created and distributed by the software as a reward to miners. The reward offsets the expenditure of energy and computer power to secure the network. Bitcoin miners secure the network and compete to create blocks with transactions. This is called proof-of-work consensus.

Rewards are reduced by half every 210,000 blocks or approximately every 4 years. The latest halving was in May 2020, and the current reward is 6.25 Bitcoins.

Bitcoin was the first to demonstrate the efficacy of a fully operational decentralized international cryptocurrency system. One that is difficult for the government to control or shut down.

BTC Taxes

In Canada, Bitcoin is recognized as a commodity. The exchange of Bitcoin for any good, service or other tokens are considered barter for tax purposes

How to Buy Bitcoin in Canada

You can buy Bitcoin on a cryptocurrency trading platform or exchange and at a Bitcoin ATM. Individuals can also receive Bitcoins from other members on the Bitcoin network.

If you are a trader, you can also get Bitcoin exposure through a series of financial products. These include futures, options and Bitcoin trusts and ETFs.

Bitcoin can also be wrapped into a token for use in select DeFi projects.

Storing your Bitcoin can be done through a variety of wallet products.