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Title: Is Bitcoin a Currency or Commodity? Post by: bittenbob on May 03, 2013, 02:26:04 AM I have seen this question pop up a lot lately and thought it would be interesting to run a poll to see what the public opinion is. I have stated publicly in my interview with Cliff Kule at http://www.cliffkule.com/2013/04/kule-interview-bitcoin-adam-harding.htm that I believe it is not a currency but a commodity with money like properties (similar to gold).
Please give your answers and explain your reasoning. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Elwar on May 03, 2013, 02:28:47 AM I do not care what you call it. As long as I can use it to buy things then that is all I need.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: BTCisthefuture on May 03, 2013, 03:14:37 AM As it stands right now it's much more a commodity than a currency.
Something that isn't stable in price isn't something people use as currency. Some bitcoin fans don't like to hear that because it's true that the ultimate goal is for BTC to be a currency, it's certainly not right now though. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Mike Christ on May 03, 2013, 03:18:52 AM I got an idea: let's get into an argument over semantics :P
Title: Re: Is Bitcoin a Currency or Commodity? Post by: kjj on May 03, 2013, 03:26:39 AM Even if everyone votes that cats are dogs, that won't make it so.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: kokojie on May 03, 2013, 03:31:03 AM I believe it exhibits many of the characteristics of gold, which is both a commodity and currency, but nowadays more of a commodity.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: franky1 on May 03, 2013, 03:46:43 AM money: is a item owned by government used in transactions (its laymens term for FIAT)
commody: a raw material used in the production of other materials/products that has a internationally recognised value and quality base. currency: anything used as a valued item in a transaction. bitcoins are not a commodity. you can not grind them down to make chocolate or bread. you cant melt them down to make electrical parts or jewellery. you cant cut them up to make beef steaks, or other meat products and you cant refine it to make car fuel or power generators. so now you know that bitcoin is not "money" as that term is reserved for fiat.. its not a commodity because of it having no other practical use, so that just leave the one thing that bitcoin is useful for.. currency. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Aldur1 on May 03, 2013, 08:25:31 AM I would say Bitcoins are more a store of value, in a Similar way to gold.
However as stated: money: is a item owned by government used in transactions (its laymens term for FIAT) commody: a raw material used in the production of other materials/products that has a internationally recognised value and quality base. currency: anything used as a valued item in a transaction. bitcoins are not a commodity. you can not grind them down to make chocolate or bread. you cant melt them down to make electrical parts or jewellery. you cant cut them up to make beef steaks, or other meat products and you cant refine it to make car fuel or power generators. so now you know that bitcoin is not "money" as that term is reserved for fiat.. its not a commodity because of it having no other practical use, so that just leave the one thing that bitcoin is useful for.. currency. Bitcoins cannot be turned into anything else where as commodities are traditionally things that can be used to make other things. Therefore I put forward that it is simply a store of value, with the value being determined by supply and demand. Title: Re: Is Bitcoin a Currency or Commodity? Post by: freedomno1 on May 03, 2013, 08:34:26 AM An item that is used as a means of exchange by definition is a currency
However the bitcoin also contains elements of commodities Therefore it is both and a hybrid currency Title: Re: Is Bitcoin a Currency or Commodity? Post by: mintybits on May 03, 2013, 08:38:47 AM bitcoins are not a commodity. you can not grind them down to make chocolate or bread. you cant melt them down to make electrical parts or jewellery. you cant cut them up to make beef steaks, or other meat products and you cant refine it to make car fuel or power generators. Could you use bitcoin to buy say virtual cacao or wheat in an MMORPG then sell said bread or chocolate after crafting it and earn a profit from providing such a service? We do live in virtual times... Title: Re: Is Bitcoin a Currency or Commodity? Post by: Brushan on May 03, 2013, 09:06:54 AM Bitcoin is Bitcoin. It has properties of a commodity, currency and a payment processor.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: BTCLuke on May 03, 2013, 09:07:02 AM All actual currencies would fluctuate too if not artificially held steady by their government's GUNS.
Bitcoin is not held in place by deadly force. Therefore it will continue to be worth what the market demands of it forever. I'm OK with that; it will continue to get less volatile after a bit as more people use it as a currency too. Calling it a commodity is uniformed because it can't be used for anything else of value. (Don't give me that sending messages crap! I said of value!) Calling it a currency is correct, but also incomplete, because it includes a complete payment system. It's really a whole new thing... In my book it's better than either a currency or a commodity alone. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Praxis on May 03, 2013, 02:42:05 PM I got an idea: let's get into an argument over semantics :P Arguments over semantics are very important. It's important to define what we mean with words exactly. Title: Re: Is Bitcoin a Currency or Commodity? Post by: acoindr on May 03, 2013, 02:57:13 PM You forgot a "both" option. What if you replaced bitcoin with gold in the question, as in has gold been a currency or commodity?
Title: Re: Is Bitcoin a Currency or Commodity? Post by: superduh on May 03, 2013, 03:20:57 PM coining the term curmmodity(tm)
Title: Re: Is Bitcoin a Currency or Commodity? Post by: Qwedcxza1 on May 03, 2013, 04:37:21 PM No, I don't think it's a curmmodity, it's more like a commurency.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: chronocoin on May 04, 2013, 08:48:26 AM Glad to see "Commodity" is leading :)
Title: Re: Is Bitcoin a Currency or Commodity? Post by: wopwop on May 04, 2013, 09:49:21 AM its an energy sink
Title: Re: Is Bitcoin a Currency or Commodity? Post by: franky1 on May 04, 2013, 11:12:11 AM you guys still dont get it.
what comparisons in real life.... actual real life function does bitcoin have anything to do with gold. and please dont say because someone gave the name of the concept of creating coins "mining" because satoshi could have called it vectoring (due to the eliptic curve) and then people will start thinking.. hmm drawings.. hmm art.. oh it must be an asset.. it is NOT a commodity. it will not appear next to wheat, cattle or oil on the commodity columns of trading platforms. so get that out of your head. it may however appear in the forex columns and treated as a legit currency. however for tax purposes because of the actual ownership and store of value is much like antique/collectable art/coins it should be treated like an asset for tax purposes. atleast try understanding what a commodity is and realise you cant change the laws of physics, laws of tax, laws of intellect purely with enough votes on a bitcoin forum. P.S if you have never heard of the laws of intellect, here goes: 3 people with an IQ of 100 do not together become twice as smart as someone with a 150 IQ Title: Re: Is Bitcoin a Currency or Commodity? Post by: CasinoBit on May 04, 2013, 05:14:23 PM I have seen this question pop up a lot lately and thought it would be interesting to run a poll to see what the public opinion is. I have stated publicly in my interview with Cliff Kule at http://www.cliffkule.com/2013/04/kule-interview-bitcoin-adam-harding.htm that I believe it is not a currency but a commodity with money like properties (similar to gold). Please give your answers and explain your reasoning. To my knowledge bitcoin is defined as a commodity by most organizations pretty much except Paypal (it's against their TOS to sell alt currencies) and some banks. Title: Re: Is Bitcoin a Currency or Commodity? Post by: gollum on May 04, 2013, 05:25:37 PM Bitcoin is a fiat currency. In Hashrate We Trust.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: EndTheFed321 on May 04, 2013, 05:28:29 PM A currency
Title: Re: Is Bitcoin a Currency or Commodity? Post by: tjb0607 on May 04, 2013, 09:39:28 PM Bitcoin is Bitcoin. It has properties of a commodity, currency and a payment processor. +1. It's often compared to gold, fiat currencies like the USD, and PayPal. Classifying it as only one of those is improper. Title: Re: Is Bitcoin a Currency or Commodity? Post by: matt608 on May 04, 2013, 09:43:47 PM It cold be both or it could be neither.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: BitcoinUK on May 04, 2013, 10:07:22 PM I think many people want it to be a commodity purely because commodities can offer cheaper tax in some countries so they want everyone to agree that it is a commodity. but there is no physical or realistic reason why it is anything like a commodity. Its qualities are that of an asset (store of value owned in whole by the holder), its uses are that of a currency (anything used as a means of exchange).
It is not a share(% of a business), it is not money(Fiat), it is not a commodity(raw material). I see some have understood what a commodity is aldur1, franky1, EndtheFed, BTCLuke. But there is still a few people that for unknown reasons refuse to believe that bitcoin is not a commodity. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Mike Christ on May 04, 2013, 10:26:54 PM Quote In economics, a commodity is a marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services. Quote A currency (from Middle English curraunt, meaning in circulation) in the most specific use of the word refers to money in any form when in actual use or circulation, as a medium of exchange, especially circulating paper money. Unless Bitcoin's service of "being a currency" counts toward being a commodity, I think it's safe to say that it is, indeed, a currency. I don't think "wearing out computers" counts as a service people want. Title: Re: Is Bitcoin a Currency or Commodity? Post by: Jobe7 on May 04, 2013, 10:29:15 PM I lol'd.
Bitcoin doesn't give a flying monkey's shyte what you (or me, or anyone) define it as. It will still BE (operating as it does, and will) regardless of what we define it as. Perhaps people should stop trying to stick a label/definition on it? And maybe let it label itself as it defines itself, and then people will understand what it IS. If what I say is a bit.. meh.. then run this experiment. For yourself: Define money. Define commodity. Now try your hardest to use bitcoin (or imaginary bitcoin) in both definitions. And I bet that others would easily add more definitions. Perhaps to some its considered primarily a mathmatical delight and not seen as either, or from a programmer a new source code to build and extrapolate from. Though saying all this, my own personal opinion is both and more. And I re-iterate, rather than trying to stick a label on it, let it define its own label. Title: Re: Is Bitcoin a Currency or Commodity? Post by: yogi on May 04, 2013, 10:37:51 PM It's either a Commency or a Currodity, take your pick.
Title: Re: Is Bitcoin a Currency or Commodity? Post by: BitcoinUK on May 04, 2013, 11:00:50 PM And I re-iterate, rather than trying to stick a label on it, let it define its own label. and i lol too Bitcoin is not a sentient being with its own decision powers to name itself. Bitcoin is a tool used by people, so its the people using bitcoin that get to define it, I think that is what this thread is doing. So us, the community of bitcoin are defining it and by so many people making at least 6 threads on the same topic of defining it, then I think us, the bitcoin community do give a flying monkey's shyte. But at least a few smart people truly understand the difference of a commodity, money, currency, asset to distinguish what bitcoin is. both in form and function. form = asset function = currency Title: Re: Is Bitcoin a Currency or Commodity? Post by: edd on May 05, 2013, 03:33:47 AM I try to avoid quoting myself but
I've been sitting on this for a while because I haven't wanted to get caught up in any of the currency versus commodity debates going on but I can hold my metaphorical tongue no longer. Bitcoin shares many of the traits displayed by money, currencies, commodities, stock, credits, and other exchangeable items that economic infrastructures are built around, however, it transcends them. The synergy Satoshi created by utilizing a hash based proof-of-work system verified by a peer-to-peer network is not adequately described by any of the previous terms in their current incarnations. Consequently, new rules, laws, business etiquette, security measures, etc. will all have to be built from the ground up, free from the old, cumbersome restrictions and antiquated mentalities lingering in this brave, new world. This manifestation of an intangible, archtypal ideal is giving us glimpses through doors that even the least cynical of us have always believed to be locked. Even if Bitcoin does die, it has opened my eyes to wondrous possibilities that will live at least as long as I do. And that, my friends, is how Bitcoin won my admiration and continues to enthrall me to this day. https://bitcointalk.org/index.php?topic=49460 Title: Re: Is Bitcoin a Currency or Commodity? Post by: BTC Books on May 05, 2013, 03:39:49 AM To everyone who understands the historical basis for my question: it is also the answer, as you know.
Is light a particle or a wave? Title: Re: Is Bitcoin a Currency or Commodity? Post by: lixiaolai on May 05, 2013, 04:27:53 AM I'm always amazed by people who cannot accept the fact that all currencies are commodities, while people are buying and selling currencies all the time.
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