Bitcoin investors have bid up the price to an all-time high but its dramatic rise has meant early investors face large capital gains tax bill.
The price of of Bitcoin, the leading cryptocurrency, has hit of $37,000, double what they cost one month ago. However, the currency cannot be owned directly in traditional tax-efficient accounts such as Isa and pensions.
Gains made outside of such accounts are liable for capital gains tax which could eat up 10-20pc of the profits after a £12,300 allowance.
There are, however, a number of ways investors can track the value of Bitcoin and other cryptocurrencies via Isas and pensions. Telegraph Money takes you through the best options.
Bitcoin is “mined” by computers solving complex calculations which get gradually harder over time. There are currently 18.5m Bitcoins in circulation and the final ones are expected to be mined in 2140, meaning that there is still plenty of time for companies involved in the process to make a lot of money.
Argo Blockchain, listed on the London Stock Exchange, owns 16,000 computers working on these calculations. In 2020, it mined 2,465 Bitcoins. The share price has risen 1,600pc – or 17 times – in the past year.
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