Is Bitcoin a Currency or Commodity?

[bittenbob]

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.

[Elwar]

I do not care what you call it. As long as I can use it to buy things then that is all I need.

[BTCisthefuture]

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.

[Mike Christ]

I got an idea: let's get into an argument over semantics

[kjj]

Even if everyone votes that cats are dogs, that won't make it so.

[kokojie]

I believe it exhibits many of the characteristics of gold, which is both a commodity and currency, but nowadays more of a commodity.

[franky1]

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.

[Aldur1]

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.

[freedomno1]

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

[mintybits]

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...

[Brushan]

Bitcoin is Bitcoin. It has properties of a commodity, currency and a payment processor.

[BTCLuke]

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.

[Praxis]

I got an idea: let's get into an argument over semantics

Arguments over semantics are very important.
It's important to define what we mean with words exactly.

[acoindr]

You forgot a "both" option. What if you replaced bitcoin with gold in the question, as in has gold been a currency or commodity?

[superduh]

coining the term curmmodity(tm)

[Qwedcxza1]

No, I don't think it's a curmmodity, it's more like a commurency.

[chronocoin]

Glad to see "Commodity" is leading

[wopwop]

its an energy sink

[franky1]

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

[CasinoBit]

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.