Why do people claim cryptocurrencies aren’t an asset?

[truthofshunya]

I have had this debate with may different people from different walks of life. In many parts of the world, cryptocurrencies are considered an asset and most of us might be well aware of this too. However, there are many reasons it is still not considered an asset, many( especially regulators ) believe it to be mainly due to the lack of legal rights. This can probably change completely in the future when serious regulated players like Banks get involved. Governments surely see value in it, but they are still skeptical. I think this will change over the due course of time once crypto starts gaining more mainstream traction.

Another interesting approach I came across is trying to introduce a layer by leveraging Blockchains like Concordium which claim to have regulatory compliance and Identity verification at a protocol level. Attempts like this sure might give more confidence among banks to start cryptocurrency custodianship/ interaction. 

With the advent of such practices, cryptocurrency may start being viewed more seriously in the legal world and smart contracts can be legally enforced too. So cryptocurrencies can probably finally be seen as an asset even according to local laws of that particular country.

It isn't going to happen overnight, it sure will be a tough battle,but I see it as a sensible way forward. Is cryptocurrency legal in your country? What are your thoughts?

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[exstasie]

Let's look at how "asset" is conventionally defined:

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.

An economic resource is something that is scarce and has the ability to produce economic benefit by generating cash inflows or decreasing cash outflows.

Assets can be broadly categorized into short-term (or current) assets, fixed assets, financial investments, and intangible assets.

https://www.investopedia.com/terms/a/asset.asp

Even if local laws don't recognize cryptocurrency as a financial investment, it should be recognized an intangible asset, since it can be liquidated for cash value despite having no physical presence or official legal recognition.

That doesn't necessarily mean BTC holders have adequate legal rights (equal to regulated security or bond holders, for example) everywhere, but common sense tells me that is the direction things are headed. It just may take a decade or two for common sense regulation to take hold.

[BIT-BENDER]

Cryptocurrency is decentralized making the idea of it being a public recognized asset hard/un-sure, Bitcoin is by far the closest crypto-coin to sustained strength/accountability. what would be the value of your asset if you invest in a bad token/altcoin?  Ever heard Bitcoin or cryptocurrency anonymity? I don't think cryptocurrenc-ians care much about calculating of their asset or what people think of there crypto-coin as an asset.

it should be recognized an intangible asset, since it can be liquidated for cash value despite having no physical presence or official legal recognition

  This is true-for/applies-to Bitcoin et other value altcoin, but some token/altcoin has no or gone under conversion to cash, crypto-coin is in mass, Bitcoin to us is an asset, and maybe many alts, that leaves us to wonder what the others are?

[jackg]

No matter what you do therell always be someone who's either bitter they missed the boat or can't get over the initial learning curve (which is apparently difficult).

Legal enforcement of smart contracts I doubt will do very much, potentially greater understanding and education could go someway..

[pixie85]

Decentralization is probably the main reason why people don't see it as a real asset.

There are also secondary reasons like no tangibility and lack of any legal representation. There's no manufacturer, no owner, noone to talk to or take to court with bitcoin and it messes with heads of people who lived through most of their lives without ever using a computer.

[Upgrade00]

I personally do not like the idea of Bitcoin being classified under a particular context, as it can be limiting. Bitcoin represents different things to different people and can be utilized in a couple of ways; its speculative value makes it attractive as an asset which can be traded, its resistance to inflation and supply shocks makes it a possible hedge, it can also be used as a currency for transacting and making payments and is described as A Peer-to-Peer Electronic Cash System in Bitcoin's white paper.

Attempts like this sure might give more confidence among banks to start cryptocurrency custodianship/ interaction.  

Regulations of cryptocurrencies or its recognition by government agencies is not necessary for its growth. Bitcoin does not need Banks to function.

Is cryptocurrency legal in your country?

It was declared legal earlier this month after years of not being recognized. Although under the current legal stance, cryptocurrencies are considered to be securities until proven otherwise. So, sponsors or developers of various currencies are expected to prove that their projects are not securities. Bitcoin however lacks a centralized authority and would likely remain one.

[cabron]

Decentralization is probably the main reason why people don't see it as a real asset.

There are also secondary reasons like no tangibility and lack of any legal representation. There's no manufacturer, no owner, noone to talk to or take to court with bitcoin and it messes with heads of people who lived through most of their lives without ever using a computer.

They thought its just a child's play that its main purpose is for gambling just like the casino chips. But its been in a constant battle for it being an asset since even the congress/senate of different countries are already in the discussion about cryptocurrency and its tangibility. Some countries already have laws about crypto so its much like a good to go currency. It is just that its hard for people to learn about it because its new and not everyone is open about new technology as they are more used to fiat papers.

[Majharul Saiif]

Not all the people claim it. Yeah, it's harsh but true that maximum govt don't want to legalized Bitcoin as their own financial investment. Those people often claim it. But we the people who know crypto currency and have minimum knowledge about it, we don't claim that shit. Personally I strongly believe that Crypto currency will lead the world very soon and people will realized it in a while.

[ololajulo]

Can you provide medium that argued on the asset class of Bitcoin? Except the online or digital features attached to bitcoin that exempt it from the definition of Asset, I dont see any feature of asset that bitcoin does not have.

[Bitcoin577]

Now this mind set is going to change because in many countries authorities fixing tax on cryptocurrency's earning mean now they are feeling this is fact and its going to be big change in future so dealing with this in way of bringing this all in net is good so I am feeling this will change in next few years and they will treat this all like an asset.

[FlightyPouch]

People are quite intrigued with what bitcoin and crypto currencies right now. I guess the reason behind of that is because people have no jobs right now and some of my friends knew I have an investment which is bitcoin and people ask me how to earn it and where to buy it, that people grew and there are a lot of people asking me this month. It really takes time even though bitcoin is legal in our country for some years now, they are now just desperate to earn right now because of the limitations they had this pandemic.

[sunsilk]

Good point of discussion but as I read, I've seen OP is with the project of concordium. Anyway, as for determining if bitcoin is an asset class depends to the people looking at it. If those are the people from the finance industry, there's always the division who believe and classify it as an asset and there will be those that will say that it's not.

With the advent of such practices, cryptocurrency may start being viewed more seriously in the legal world and smart contracts can be legally enforced too. So cryptocurrencies can probably finally be seen as an asset even according to local laws of that particular country.

Some countries can actually acknowledge bitcoin as an asset and in fact, there were some that already did it.

[Salauddin1994]

Fiat currency can be an asset but cryptocurrency is not an asset nor does it support any strong asset so should cryptocurrency only have value as an asset-parallel currency? The opposing argument suggests that the currency must agree with some value. Non-collateral stable coins were created as a medium these digital currencies do not support any real-world or cryptocurrency assets instead expect certain users to maintain a certain value. Crypto is usually defined in terms of digital properties.

[Lorence.xD]

The fact that it provides financial sustenance is evident that bitcoin is an asset. I think the regulators problems does not make bitcoin an asset in the first place. Anything that someone owns with a value can be an asset, one example is real estate, this is not a tangible money but it is still considered an asset.

[bits4books]

Because everyone around you believes (or just heard about it) in the idea of "eternal growth" and that tomorrow any coin will be 100% more expensive than yesterday.
Hence the opinion that cryptocurrency is to buy and wait and not to dispose and trade.
I'm not sure if this is the right attitude or not. It would be much worse if all your respondents said that they do not know about cryptocurrencies/know that they can buy goods from the black market.
The adoption process is gradual and slow and you need to accept this and not convince everyone around you super aggressively in your position.

[AniviaBtc]

The fact that it provides financial sustenance is evident that bitcoin is an asset. I think the regulators problems does not make bitcoin an asset in the first place. Anything that someone owns with a value can be an asset, one example is real estate, this is not a tangible money but it is still considered an asset.

Maybe they are saying that bitcoin is not a real asset because it is not tangible and it is only regulated through digital platforms.

That mindset shouldn't be tolerated because we are experiencing development and advancement of technology in our society right now.

Bitcoin is an asset due to its value that can go up and down just like other assets like gold, immovable properties and etc. This can give you profit depending on how you manipulate it and utilize it in the market. Economic crisis can somehow lessen by this cryptocurrency due to cryptocurrency taxations but not all countries do allow the use of cryptocurrency in the market.

[adzino]

That is weird. I always hear the opposite. In fact you will see multiple threads over here and online articles that say bitcoin isn't a currency but is a form of assets. This claim can be backed by the fact that people tend to invest their money in bitcoin and store it for profit in the long run. They do this because they think it is a suitable "asset" and gives more profit in the long run when compared to assets such as "gold".

[Kong Hey Pakboy]

The fact that it provides financial sustenance is evident that bitcoin is an asset. I think the regulators problems does not make bitcoin an asset in the first place. Anything that someone owns with a value can be an asset, one example is real estate, this is not a tangible money but it is still considered an asset.

Maybe they are saying that bitcoin is not a real asset because it is not tangible and it is only regulated through digital platforms.

That mindset shouldn't be tolerated because we are experiencing development and advancement of technology in our society right now.

Bitcoin is an asset due to its value that can go up and down just like other assets like gold, immovable properties and etc. This can give you profit depending on how you manipulate it and utilize it in the market. Economic crisis can somehow lessen by this cryptocurrency due to cryptocurrency taxations but not all countries do allow the use of cryptocurrency in the market.

People do not consider bitcoin as an asset because it is not tangible such as gold, jewelry, oil, and physical money. However, it still has a value the same as gold, jewelry, oil, and physical cash depends on the law of supply and demand. Bitcoin is also used as a medium of exchange and used for payment in other countries. Even it is a decentralized virtual currency so that it is as an asset.

[atjiat]

That is weird. I always hear the opposite. In fact you will see multiple threads over here and online articles that say bitcoin isn't a currency but is a form of assets. This claim can be backed by the fact that people tend to invest their money in bitcoin and store it for profit in the long run. They do this because they think it is a suitable "asset" and gives more profit in the long run when compared to assets such as "gold".

I believe that this situation needs to be looked at based on how users use cryptocurrency and what goals they pursue in the cryptocurrency market. One way or another, due to the volatility of the cryptocurrency, people do not yet consider it as a safe storehouse of their savings, but nevertheless, it is the volatility of the cryptocurrency that makes it possible to make big money on trade and investments, and the indicators of these opportunities in the cryptocurrency market are much higher than even for example in the stock market. Based on this, in any case, cryptocurrency is an investment asset for every member of the community.

[coolcoinz]

Most people don't understand it. I don't even claim that I fully do because I'm not an expert in encryption protocols, hashes and all that math stuff. I don't even know most altcoins. There's so many of them that you have to be working with them every single day to keep track.
What I've noticed over the years is most people who are tech savvy and see the value in electronic money, domains, software, will value bitcoins, but people who are not tech savvy get repelled by technicalities and prefer to say "it's worthless shit" than admit they don't understand it and don't invest in things they know nothing about, which would be fair and honest.