There is a critical difference between "currency" and"money" here. Bitcoin is not currency but it is very hard to argue it is not "money". As for Bitcoin being a commodity possibly but is more along the lines of a virtual equivalent to a precious metal for example gold than say a regular commodity for example lead.

I prefer to read the actual legislation which is why I posted the link to Canadian Excise Tax Act that applies to the GST. There is a critical difference between "money" and "currency" here as Bitcoin clearly qualifies as "money" but is not "currency".

Sales taxes such as GST or VAT are a far greater threat to Bitcoin if it is not treated as "money" that anti money laundering laws will ever be. Paying an extra 5% - 20% (VAT, GST) or more on each Bitcoin transaction will kill Bitcoin in no time. On the other hand requiring  the reporting of "large" Bitcon transactions to the government will have a minimal if any impact on Bitcoin. Most people do not live in the United States with its lack of VAT/GST style of sales taxes.

It is much better for Bitcoin to be treated as money since that would avoid the payment of VAT (European Union) or GST (Canada, Australia) etc. Treating Bitcoin as money actually makes a lot of sense given its purpose and use.

First the disclaimer: I am not a lawyer

The question here is whether Bitcoin is subject to the Good and Services Tax (GST) in Canada. The GST is the Canadian version of a value added tax.  The relevant legislation is the Excise Tax Act http://laws-lois.justice.gc.ca/eng/acts/E-15/page-94.html#h-71. It may come down to whether Bitocin is considered "money" which is defined in the act as follows:


There is probably a good case here under "and other similar instrument" for the position that Bitcoin is "money" and therefore not subject to the GST, given that its purpose is its use a medium of exchange in trade.

But can one open a Paypal account without a credit card or with say a FICO score of 350? Seriously people who cannot get a credit card and or have poor credit are a huge market for Bitcoin, and for an online merchant accepting Bitcoin means reaching a customer base they could not reach beforehand.

It is possible but I suspect unlikely. A more likely scenario is that Bitcoin would be treated as foreign cash or gold requiring the reporting of transactions with a value over a certain amount say 10,000 USD under anti money laundering laws.

I would argue that Bitcoin actually caters to the poor. Try buying something online without a credit card. Poor people who cannot qualify for a credit card can use cash for in person transactions; however until Bitcoin came along there is no real, cost effective, international alternative for online transactions for those that are too poor to obtain a credit card.

For starters: The problem of making a small international payment online lets say 20 USD in a cost effective manner without

1) The sender needing a credit card
2) The recipient needing a merchant account

I am sure other members can come up with other solutions, but to me this one is huge.

There is a list of bitcoin exchanges on http://bitcoinwatch.com/. Some are international and others are not. The choice depends on where one lives. I use https://www.cavirtex.com/ here in Canada. As for PayPal not a good choice. The chargeback risk to the seller is too high and in any case bitcoin will likely not be in compliance with their TOS.

Well I finally decided to join after lurking for a few months. As for experience I do own some BTC and have just started BTC mining in a pool.