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the ether (CRYPTO: ETH) The price has increased 3% in the last 24 hours. One Ether is currently trading for $ 3,617 (AU $ 4,888).
According to CoinMarketCap, the world’s number 2 cryptocurrency has a market capitalization of around 427 billion US dollars.
With today’s price gains, the Ethereum price has risen by 22% since the beginning of the new financial quarter on October 1 (Q2 FY22).
Now, cryptocurrencies don’t adhere to accounting standards and quarterly market updates like ASX companies do. At least not now.
But this is how the Ethereum price did in the last Q1 FY22, a quarter in which the S & P / ASX 200 index (ASX: XJO) increase by 0.4%.
How did the Ethereum price develop in Q1 FY22?
Crypto investors who bought Ether on July 1st and sold it on October 1st are unlikely to complain.
On July 1, the Ethereum price was $ 2,114. On October 1, it was trading for $ 2,967, which is a 40% gain.
Not that the token moved up in any straight line. The volatility that cryptos are known for has certainly been seen over the 3 months.
On July 20, the Ethereum price fell to $ 1,787. On September 6, it hit a quarterly high of $ 3,960. That is a price movement of more than 121%.
It also means that investors who bought at that high and sold on October 1st may have lost 25% of their investment.
Is ether like bitcoin?
Ether is like Bitcoin (CRYTPO: BTC), as both tokens rely on the blockchain. But from then on the 2 digital coins vary a lot.
Bitcoin is mainly used as an alternative to fiat currencies. You can use it to buy things from supporting vendors, send them to families or businesses overseas, or sit on them hoping they will increase in value.
Ethereum, on the other hand, has many real use cases.
Ray Brown, market analyst at Australian crypto and bitcoin exchange CoinSpot, said:
While Bitcoin functions primarily as a currency, Ethereum was designed as an “open source” network that provides a basis for other applications and smart contracts. Because of this, Ethereum provides the ideal environment for the thousands of other altcoins that have developed and scaled their own projects using the Ethereum blockchain.
Will the ATO know if I’ve benefited from the rising Ethereum price?
In short, yes they will.
As H&R Block Inc. (NYSE: HRB) Australian Tax Communications Director Mark Chapman told my foolish colleague Tony Yoo:
Cryptocurrency is not really anonymous. The ATO receives data from Australian Designated Service Providers (DSPs) that enable it to identify the cryptocurrency investor’s name, date of birth, addresses, ABN (if applicable), email address, contact phone numbers and social media accounts.
Whether you are making or losing money from the Ethereum price movements in the coming fiscal year, make sure you include this on your tax returns.