Should Govt Treat Bitcoin as Property, Currency, or Something New.

[VivaMan]

Well OP u has spoken well . Government Adopting or treating Bitcoin as property, currency is necessary because it's a digital asset,  new around the world.

Briefly treating Bitcoin as property it will
Reflect that people buys and hold Bitcoin for long period of time as investment assets.
Give capital gain taxes. Examples buying Bitcoin for 100$ in 2026 and selling it back in 2028  as a Worth of 1000$.




Treating Bitcoin as Currency

Very reliable for payment's in all transactions globally.

Massively supporting innovation in digital commerce globally.


Although the Price is volatile, and it makes it hard to operate as static unit of account.

[knowngunman]

Because of these unique characteristics, some argue that Bitcoin deserves its own legal category, so what do you think bitcointalk forum members.

Do we expect all countries to unanimously agree on Bitcoin legal category? Is that even possible? As it is now, some countries remain neutral on its usage, others legalize it while several others restrict their citizens from using it.

Every country treat it based on their jurisdiction. It's much better to leave it the way it is now because I see any attempt to make such move would make things complicated. Satoshi described it as a electronic payment system. So every other interpretation is purely made up and government always view from point that benefit them. So they are welcome to categorised it anyway they want but they won't take the fact away. It's always beyond their control and manipulation.

[TheUltraElite]

It should be treated as a currency, just like any foreign currency or legal tender is treated.

How they treat is will ultimately depend on the financial heads of the country and how they wish to regulate it and so on. Still I would treat it in similar lines as gold if we dont like the currency angle.

Legal issues and all, brings in a lot of questions, I am no expert on this and I dont think governments are willing to get their hands dirty right away.

[ColdLava40]

Because of these unique characteristics, some argue that Bitcoin deserves its own legal category, so what do you think bitcointalk forum members.

Let’s discuss.

I think individual experiences with Bitcoin would define how we use and treat it.

Bitcoin was created to serve same purpose as money. It's a currency, but in the digital form. Till now, some government still phantom the idea behind this technology, but is there really much that's not obvious till now?

Bitcoin is being used today by many as a form of money, investment, asset, commodity and many more. We cannot simply categorize it under one of these. That's why I said from the start the it will depend on individual use case.

A legal category would be to call it a currency. Anything other than that should have no business with Bitcoin because it's not owned or controlled by the government of any country.

[Ucy]

I think the better decision for fiat system is treating it as property, so that people can only invest or own it rather than buy and sell with it within the system since Nations already have their own currencies. This will help prevent the need for governments to legalize and regulate it as currency in the system, ensuring that people keep and use it as currency in decentralized manner.
I'm more interested in Bitcoin becoming a peer-to-peer, decentralized, permissionless and trustless currency than having it controlled unilaterally. Safety/security measures should be mostly automated in this state, to prevent abuse/misuse, rather than via centralization.

[uchegod-21]

For me, I don't think the government has the capacity to create something new out of Bitcoin. Bitcoin was originally intended to be a currency; they should see Bitcoin as such, and since taxes are a major concern, they can continue with income taxes just as they do with fiat.

They are also at liberty to treat it as property. Bitcoin users are already treating it as such, so the government can come in from there. What I do not support is the government using its power to impose something new, all with the intention of exploiting Bitcoin users solely for tax purposes.

In general, how the government sees Bitcoin is not the main concern. They should create a friendly environment for Bitcoin users.

[Supreme Donvic]

Government are always interested in what they can benefit in every situation, concerning how the government should see Bitcoin they will only see Bitcoin in a way they can benefit from everyone called their citizens, so the government of any country wil always see Bitcoin in a way that will profit them which is seeing bitcoin as a property so that people can be paying tax while holding and transacting with Bitcoin and this is not suppose to be so because Bitcoin should not be seen as a property I believe it should be seen as something else because it does not really have the same characteristics with flat currency or ordinary property.

[Onyeeze]

Everyone who is a bitcoiner is having a mind for government to approve Bitcoin or to recognize Bitcoin as a currency as it was programmed by the people who invented Bitcoin, because if bitcoin should be recognized through government in another name without being a currency it will bring many doubt for bitcoin existence, so as we all know believe that bitcoin is a currency let it continue in such way especially when the government is generally accept Bitcoin as a legal tender, already people who are making use of Bitcoin they are using it as a currency and that is why I bitcoin continue to have traffics so anything more than currency in Bitcoin that will make bitcoin to lose relevance

[serjent05]

Some governments already recognize Bitcoin as currency, then if is recognized as a currency, obviously it will also get recognized as a property.  Although it would be too much for the government to acknowledge Bitcoin as a legal tender, I believe accepting it as a mode of payment, and recognizing it as an asset in some countries, is enough.  Bitcoin is created as an alternative to currency or an alternative way of making payment without intermediaries. The government recognizing it as an option or a mode of payment is enough for me.

[retreat]

In my country, the government has classified Bitcoin as a "digital commodity," effectively trading it as a commodity, but it remains illegal to use it for transactions. This allows the government to tax it as a taxable asset, while simultaneously limiting its use for payments. While this is beneficial from the government's perspective, it is not for Bitcoin, as it limits its use as a payment method in public places.

[Spaceman1000$]

The ideal thing would be treating it as currency just the same way as paper money because there will be no tax for bitcoin but it will be the same usual income tax based on how much we earn, but for this to happen, we also must be making in bitcoin and high volatility also makes it complicated to determine how much the tax should be.

That is why government treat ias asset and we are paying the capital gains, it doesn't matter the value as long as we made profits from selling it, and the tax will be levied depending on which bracket it comes under such as short/long term and within the exception if it is under a certain limit.

There's nothing wrong for for Bitcoin to be used as currency despite it volatility but the major problem is the kind of government institutions we have, it would be very difficult for them to outrightly adopt Bitcoin as a currency, this is majorly because of the fact that, The figures they rule out for economic activities and budgeting every year would be traced by individuals or people that want to see the transparency of the government, and we all know the shady dealings most of these government agencies are into, so adopting Bitcoin would be a very difficult task for them. I feel it will be ideal for Bitcoin to be an asset for either government or individuals, this is because it's has a system that cannot be controlled by the government which is a decentralized system, so individuals that want to financially strive without government being in control of your finances will utilize it too.

[Findingnemo]

~I feel it will be ideal for Bitcoin to be an asset for either government or individuals, this is because it's has a system that cannot be controlled by the government which is a decentralized system, so individuals that want to financially strive without government being in control of your finances will utilize it too.

In certain countries, selling an asset would become a taxable event and even the worse part, they will just apply flat tax whether you made profits or losses. So imagine every time you transfer X amount of bitcoin, then the government will consider it as selling and they demand 1% flat tax rate if they are considerate, then for every $100 transacted, there would be $1 tax paid to the government, which I don't want.

[Accardo]

On the perspective of a politician, bitcoin is a tool for winning election, government won't be needing bitcoin as a property, or currency, they only go for bitcoin to have the general community talking about them. After Donald J Trump assumed power, how many times have you caught him in a bitcoin conference again? These guys are only concerned about the affairs of the state and what threatens their mental peace. Bitcoin is far from it.

[Tungbulu]

On the perspective of a politician, bitcoin is a tool for winning election, government won't be needing bitcoin as a property, or currency, they only go for bitcoin to have the general community talking about them. After Donald J Trump assumed power, how many times have you caught him in a bitcoin conference again? These guys are only concerned about the affairs of the state and what threatens their mental peace. Bitcoin is far from it.

They just want power and don't really cared about the benefit of the people, though they may still be interested to be in charge of Bitcoin but for now, they are acting like they cared just to get people attention and this is why most people fall for their trap and after they have gotten what they want, that is when their true self will display. So, one should not take whatever thing they said about Bitcoin to heart, as they will still do what they likes when the time comes and one should be care not to fall a victim of their words, for the protection of your mental health.