Why treat bitcoin as money and not code/software?

[DannyHamilton]

Basically, every time a bank makes a loan, they create money out of thin air!

And every time a miner solves and broadcasts a block, they create money out of thin air!  So What?

[mateo]

I figure this is probably a great place to ask this question.

So I'm in the shower this morning, and it hits me: Bitcoin is just ones and zeroes. Sure it has lots of the features and benefits traditional currency can provide (and a whole lot more), but it's just code, right? So how come (besides the fact government just loves to steal) bitcoin is being treated like it's money and not software? Having someone sign an End User License Agreement would be a hell of a lot simpler than having to gather tons of information on them.

Then maybe I wouldn't have to drive to Canada to see a Robocoin kiosk in action.

(Yes I'm in NH, yes I know the Lamassu guys, but I still haven't seen one of their machines)

It can be. Anything can be a currency as long as it meets these criteria:

1. People believe it to have value.
2. It is easy to trade.
3. It's hard to counterfeit.

I think software only meets No. 2..

[Sovereign_Curtis]

I figure this is probably a great place to ask this question.

So I'm in the shower this morning, and it hits me: Bitcoin is just ones and zeroes. Sure it has lots of the features and benefits traditional currency can provide (and a whole lot more), but it's just code, right? So how come (besides the fact government just loves to steal) bitcoin is being treated like it's money and not software? Having someone sign an End User License Agreement would be a hell of a lot simpler than having to gather tons of information on them.

Then maybe I wouldn't have to drive to Canada to see a Robocoin kiosk in action.

(Yes I'm in NH, yes I know the Lamassu guys, but I still haven't seen one of their machines)

It can be. Anything can be a currency as long as it meets these criteria:

1. People believe it to have value.
2. It is easy to trade.
3. It's hard to counterfeit.

I think software only meets No. 2..

I'd say 1 and 2, but yea, not 3

[mindfulmojo]

Basically, every time a bank makes a loan, they create money out of thin air!

And every time a miner solves and broadcasts a block, they create money out of thin air!  So What?

Huge difference! There is a limited number of blocks, there is an unlimited supply of US dollars. 

I suggest everyone head over to: http://www.zerohedge.com/

[Rupture]

Why not treat money as paper?

[mindfulmojo]

Why not treat money as paper?

I think you need to change that question... Why treat paper as money? 

[DannyHamilton]

Basically, every time a bank makes a loan, they create money out of thin air!

And every time a miner solves and broadcasts a block, they create money out of thin air!  So What?

Huge difference! There is a limited number of blocks, there is an unlimited supply of US dollars. 

No, there is a limited number of bitcoins.  There is NOT a limited number of blocks.

So, the crazy thing isn't that money is "created out of thin air!", it's just that there isn't a limit on how much of it can be created that way?

[spartacus_]

Bitcoin is software and money also.

[MahaRamana]

By buying a bitcoin you buy a mean of exchange but also one of the only 21 millions coins that will ever exist and thus you "own" part of the bitcoin payment system.

See it as a currency, yes, but see it also as a share of a financial platform.

The owners of this platform will own 21 million coins. How much these coins are worth will depend on how useful the platform is to people and not just coin/share owners.

Bitcoin is not about investing, it's about facilitating transactions.

But if you want to have a share in that investment platform, you invest in a BC and hold it and thus hold a share of the platform.

It is not needed to own BC to use BC as a payment system. Transactions can be made from currency through exchange rate, these services already exist.

People who only want to use BC for transactions purposes will not buy and hold bitcoins but only convert in and from bitcoins.