Bitcoin is a Commodity according to SEC- Is this good or bad for Bitcoin?

[tread93]

I think it could potentially be both good and bad. Obviously its now labeled as a commodity rather than a currency which is counterproductive to Bitcoin's intended purpose for becoming a global currency- but isn't it that already basically, just without the title?

This move by the SEC could help to pave the way for a Bitcoin ETF for Grayscale as I would consider this progress at least in their effort to move the worlds largest Bitcoin Trust into the largest Bitcoin Exchange Traded Fund.

I still don't quite understand what the consequences of this label mean and how it will affect bitcoin long term. Note that they mentioned Bitcoin as the ONLY cryptocurrency to be considered as a commodity, so I wonder if eventually all others will be labeled as a security? I guess we shall see.

Feel free to post your thoughts below, i'm interested to see what people say about this.

Cheers,

TREAD

[SpenserReed]

I think it could potentially be both good and bad. Obviously its now labeled as a commodity rather than a currency which is counterproductive to Bitcoin's intended purpose for becoming a global currency- but isn't it that already basically, just without the title?

I think the main thing bitcoin needs is to be officially recognized, no matter what the status is. It will definitely give a big boost to the whole crypto market

[spectre71]

Welp, I guess it could be anything to anyone.

US doesn't determine it for everyone, that's the beauty of it.

[DooMAD]

Bitcoin is global, so people need to stop being so US-centric and focusing so much on the bureaucrats of one single nation.  Stop thinking in such limited terms.  Bitcoin doesn't recognise your antiquated notions of borders.  

[Sterbens]

I think it could potentially be both good and bad. Obviously its now labeled as a commodity rather than a currency which is counterproductive to Bitcoin's intended purpose for becoming a global currency- but isn't it that already basically, just without the title?

Well commodities according to the SEC because they want Bitcoin to stay on their radar. There is no need to stick to one point of view, it may not be entirely the same as what is seen from the eyes of Bitcoin users. For crypto users, it doesn't matter that Bitcoin is considered a commodity and the like, because the most important thing is that they are given the freedom to access their holdings without being restricted and prohibited. After all, there is nothing wrong with being a commodity.
According to Wikipedia In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

Doesn't that make sense enough?
The point is not a matter of theory, but rather the functions and benefits of Bitcoin having an output.

[OgNasty]

Any recognition or regulation of Bitcoin at this point is probably a positive development.  It will lead to more institutional investment and make 'price go up' which everyone loves.  I think this is a good path that we're on, which will eventually lead to us not having to give up our social security number to buy a burrito.  I've seen proposals already to recognize Bitcoin as a form of payment and make transactions under $500 tax free.  I think this is the sort of advancement Bitcoin needs before the masses can truly accept it.  Nobody wants to have to calculate their lunches into their tax return.

[avikz]

I believe any kind of recognition is good considering the turmoil we are going through. It doesn't necessarily change the way bitcoin works globally but it will pave some ways into the mainstream economy at least in US while the rest of the world still struggling to classify bitcoin.


Probably it will also help some fund houses to launch bitcoin backed ETFs or mutual fund schemes which will in turn increase the demand in the narket.

Btw, do you have any link to this news?

[Rruchi man]

Any recognition or regulation of Bitcoin at this point is probably a positive development.  It will lead to more institutional investment and make 'price go up' which everyone loves.

Yes, i quite agree with you, it all starts from somewhere. The SEC labelling Bitcoin as a commodity is still good being that it will increase acceptance. In a long run, those who have accepted it as a commodity will find out the real reason which it was created which is to serve as currency, and other alternative uses that hodlers have devised for it.

This new development by the SEC will also instill courage and eradicate fear from all those who formerly where becoming skeptical about the status of bitcoin and were selling off. Any positive news is good for the community at the moment.

[The Cryptovator]

Today SEC accepts Bitcoin as a commodity, and tomorrow might accept it as currency. Nothing is impossible in crypto by the way. Don't expect any centralized organization like SEC will accept Bitcoin as a currency so quickly. Any government won't like to counter their native currency with another other currency. But yea, those who know that Bitcoin isn't a competitor of native currency and realize the value of Bitcoin, they accept it. However, somehow SEC accepts it as a commodity, they don't attempt to ban it for US users lol.