Classifying Bitcoin As a Financial Asset
Paleus:
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IT’S A CURRENCY… IT’S A COMMODITY… NO, IT’S CRYPTOCURRENCY
Cryptocurrency is a financial asset in a class of its own. In truth, it is a combination of all the aforementioned traditional assets: currency, commodity, and stock.
Cryptocurrency is not exclusively a currency because, as is with the bitcoin payment system, it represents a paradigm shift in our concept of money – one where there is no division between currency and the system which it flows through. Furthermore, the current rate of volatility of bitcoin makes it unsuitable as a sound form of money, although it has the potential to act as an remarkable monetary tool as stabilization continues to take effect.
Cryptocurrency is also not exclusively a commodity. In comparison to gold, bitcoin shares many characteristics of scarcity and indestructibility. However, it gains the potent attributes of perfect divisibility and high portability. Bitcoin may accurately be considered a form of digital gold.
Read the Full Article on Diginomics
cellard:
Bitcoin can be anything yo want.
Do you want a currency? it is a currency, you can exchange it for good and services.
An asset? you can treat it as a stock.
A savings fund? you can hold big term like gold.
Etc..
RustyNomad:
And this is the reason why its so confusing for many.
Many want to put bitcoin into a certain 'box' but bitcoin is not to be placed inside a specific box.
DaddyMonsi:
well at least bitcoin can help me boost my financial assets
but then again this is why bitcoin is unique in its own way
its unregulated yet one can purchase using it
PolarPoint:
I don't agree with the article that bitcoin is a stock, a share of ownership in this decentrailsed autonomous corporation. A real stock is a share of a company who has a business model and pays dividend. Bitcoin has no business model, do not make profits, and pays no dividend. Bitcoin is a very liquid commodity which functions like a currency.
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