how far is the proper definition for the "coin"?

[charlie137]

just finished reading fresh writeup from https://www.coindesk.com/owe-irs-crypto-crypto-trades/?utm_content=buffer7d164&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

somewhere in the middle i caught myself on complete dead end, trying to understand current classifications. but it feels like basic approach for the btc classification is failing at its foundation. cryptocurrency from the look of the backend code - is not what common user thinks. first you generate electricity. then you convert it into hash power. then you using hash power to move blocks on the chain, being rewarded for resources you spent for the task. just like petroleum (from the perspective of human species, its unlikely we will give this planet a chance to generate some of it again - so this is very close to btc supply limit) - coins are fossil fuel for the blockchain. am i getting it right?

[1715083894]

1715083894

[paulmaritz]

Important differences as per legal definitions. In short:

Coin = Government and/or central bank issued currency and/or money in the form of coins. Known as "legal tender" - must be accepted when offered as payment.

Token = Privately/publicly issued. Not issued by government or central bank. Not deemed "legal tender" - don't have to be accepted when offered as payment.

Thus, by using the terms "coin" or "coins" in reference to cryptos, we don't strengthen our legal case. The authorities will simply claim in court that we market, sell or support something that isn't legal tender - as legal tender. It boils down to fraud and more that they could potentially use against us.

Yet, I have seen that most people in this space simply don't care, despite the fact that the terms they use give the authorities ample ammunition to use against us.

[charlie137]

To my knowledge yeah you are getting it right. In fact you have described it pretty easy. But in the end, I’m not sure, probably you meant to say – Blockchain is fossil fuel to Coins, right?

i think cryptocurrency itself looks similar to oil. limited supply, price spread is huge. so maybe new classification for the market will help regulate it more efficiently and create safer environment.