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Topic: Bitcoin is treated a stock - page 3. (Read 2624 times)

legendary
Activity: 3038
Merit: 1169
March 06, 2017, 05:00:26 AM
#22
I thought at first that Bitcoin will be a currency to be used in the future. But from what I am seeing here is that it will be treated as a stock, it is even compared to gold. What do you guys think?

Just like other currency, commodities and stuff that can put your investment in, Bitcoin was really treated as one of the things that you can put some of your investments in, there are some profiting investment application that includes bitcoin in the lineup of commodities that you need to predict if it's value is going down or up.
legendary
Activity: 3430
Merit: 1280
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March 06, 2017, 03:49:40 AM
#21
I thought at first that Bitcoin will be a currency to be used in the future. But from what I am seeing here is that it will be treated as a stock, it is even compared to gold. What do you guys think?

Presently, Bitcoin is a financial asset

The word asset means that you use it to earn profits. In this aspect, it differs from, say, a house where you happen to live. But if you rent out your house, it will be an asset too (a tangible asset, more specifically). So the difference lies not in the nature of things themselves, but rather how you are going to use them. Financial here refers to the fact that the asset doesn't have intrinsic value (i.e. direct use or inherent utility outside of finances). In this way, fiat money can used as a financial asset as well. For example, you can trade currencies earning profits from exchange rate changes and volatility. On the other hand, gold can be used as an asset too ("buy low, sell high"), but it is not a financial asset since it has a lot of applications in various industries and as jewelry
hero member
Activity: 910
Merit: 501
March 06, 2017, 03:24:56 AM
#20
I thought at first that Bitcoin will be a currency to be used in the future. But from what I am seeing here is that it will be treated as a stock, it is even compared to gold. What do you guys think?
you are right. I don't know the rationality before people compared bitcoin with gold and now pushing for it to be  approve by Security and exchange commission (sec) to be trade like stock on American stock exchange market. Speculation has set their minds on ETF approval or not without thinking that treating bitcoin as stock will undermined it value as a currency.

You can look at bitcoin as an investment, even a stock, or it can be seen as a currency.
It has qualities of both. The definition what it is in the end lies with the governments, the courts or the central banks.
So it can be different in every country.
Users don't have much of a say how the definition will finally be. But it would be good to have one in order to give the people some security of how to handle it.
sr. member
Activity: 924
Merit: 260
March 06, 2017, 03:10:48 AM
#19
I thought at first that Bitcoin will be a currency to be used in the future. But from what I am seeing here is that it will be treated as a stock, it is even compared to gold. What do you guys think?
you are right. I don't know the rationality before people compared bitcoin with gold and now pushing for it to be  approve by Security and exchange commission (sec) to be trade like stock on American stock exchange market. Speculation has set their minds on ETF approval or not without thinking that treating bitcoin as stock will undermined it value as a currency.
legendary
Activity: 3458
Merit: 1960
Leading Crypto Sports Betting & Casino Platform
March 06, 2017, 02:55:43 AM
#18
In an environment when a new technology are introduced, some definitions and regulations will take some time to be properly defined and regulated. The problem with Bitcoin is, it has several "utilities" for which it can be applied and this makes it more complex.

You will have one country defining it as a commodity and another as a asset and some even a currency. So as time goes by, the regulation will catch up and the definitions will be clearly defined. ^smile^
legendary
Activity: 3472
Merit: 10611
March 06, 2017, 01:11:34 AM
#17
all the definitions and wordplay with "currency/commodity/asset/etc" aside, bitcoin was supposed to be a peer to peer digital money so it should be used as a currency too. but since it is still being adopted and price is rising because of the inflation people treat it as an investment.
aside from that not so many places accept bitcoin yet.
and on top of that with all the spam attacks and small block size it is turning into a hard thing to think of bitcoin as a currency.
legendary
Activity: 1218
Merit: 1006
March 06, 2017, 12:33:30 AM
#16
Bitcoin have zero inflation, its supply is limited just like gold or more than that so over time with increasing demand price of bitcoin will have steady rise so it is treated as trading assets just like gold. But it is more convenient than gold to send from one place to another as a form of payment so it can act like currency also.

Gold is still used as a form of payment, actually the fiat are backed by gold.
legendary
Activity: 2898
Merit: 1823
March 06, 2017, 12:32:27 AM
#15
I would say, in financial terms, bitcoin more closely resembles a commodity. I do believe it was designed to behave like digital gold so perhaps there should be no surprise there.
Now we can make big international remittances by sending bitcoin, rather than sending a shipment of gold!

EDIT: And bitcoin has an ISO currency code similar to gold, XBT rather than XAU.

nope a commodity is a raw material used to create other produce.
gold=jewellery +electronics
oil= fuel+plastic
wheat=bread+animal feed
beef=hamburgers+steak

bitcoin is an ASSET.
gold.. has 2 categories. as a raw material it is a commodity. but as a final product, it is an asset.

bitcoin resembles golds 'values' in its asset category market. not its commodity category market.

dont confuse bitcoin as a commodity by not understanding that gold sits on 2 markets.

EG
grannies gold necklace(asset) grannies necklace hold value that can be passed down to relatives or used for barter in pawn shops or between people privately, but has a different value than gold in commodity markets sold to industry.

Another point of view is Bitcoin is a ledger. The coin itself is not a coin but a part of the ledger that you control through the private keys you hold and have the responsibility of securing. From that definition Bitcoin can also be considered as a receivable.
hero member
Activity: 896
Merit: 500
March 06, 2017, 12:29:28 AM
#14
Yes, everyone has a different view with bitcoin. Indeed bitcoin could also be considered as a currency because it has features such as:

Instant transfers in a peer to peer.
Transfer to anywhere
The transfer fee is very small.
The transaction is irreversible, meaning that once transferred can not be undone.
Bitcoin transactions are anonymous.
Bitcoin is not controlled by agency or any government.
A limited amount

Features like that that make bitcoin considered as a currency because it can be used for transactions. But bitcoin can also be considered as a commodity because it is tradable and have active international markets. Maybe someone would consider bitcoin as a currency or commodity because of the way they use it.
legendary
Activity: 1302
Merit: 1018
Cashback 15%
March 05, 2017, 11:24:39 PM
#13
People do different types on how they gonna treat bitcoin some say its a currency,stock,commodity or any other terms but one thing is for sure bitcoin is really worth to hold because of its increasing prices.Its either a stock or whatsoever we do have still one aim.
sr. member
Activity: 476
Merit: 501
March 05, 2017, 11:11:40 PM
#12
@franky1, that is only one definition of commodity. Another one is (Oxford dictionary):

a useful or valuable thing

or in investment jargon:

More generally, a product which trades on a commodity exchange; this would also include foreign currencies and financial instruments and indexes.

In a lot of jurisdictions, I believe including the US and UK, bitcoin has been placed in the commodity asset class for legal and tax purposes.



hero member
Activity: 644
Merit: 500
Transact Safer / Chase Better
March 05, 2017, 10:49:57 PM
#11
When it comes to bitcoin many options will arise like payment method, commodity, legal currency. But when it comes to my consideration bitcoin should be like gold because gold has long term history and it has spread to worldwide. So if bitcoin becomes like gold then there will be the huge demand for bitcoin because the supply of bitcoin is less when compared to gold.
legendary
Activity: 4214
Merit: 4458
March 05, 2017, 10:47:19 PM
#10
I would say, in financial terms, bitcoin more closely resembles a commodity. I do believe it was designed to behave like digital gold so perhaps there should be no surprise there.
Now we can make big international remittances by sending bitcoin, rather than sending a shipment of gold!

EDIT: And bitcoin has an ISO currency code similar to gold, XBT rather than XAU.

nope a commodity is a raw material used to create other produce.
gold=jewellery +electronics
oil= fuel+plastic
wheat=bread+animal feed
beef=hamburgers+steak

bitcoin is an ASSET.
gold.. has 2 categories. as a raw material it is a commodity. but as a final product, it is an asset.

bitcoin resembles golds 'values' in its asset category market. not its commodity category market.

dont confuse bitcoin as a commodity by not understanding that gold sits on 2 markets.

EG
grannies gold necklace(asset) grannies necklace hold value that can be passed down to relatives or used for barter in pawn shops or between people privately, but has a different value than gold in commodity markets sold to industry.
member
Activity: 72
Merit: 10
March 05, 2017, 10:23:26 PM
#9
Bitcoin, and the altcoins, do not trade differently than fiat currencies. Price changes may be more volatile with cryptocurrencies (except for maybe in comparison to the Venezuelan bolívar), but trade the same nonetheless. I don't consider them stores of value.
hero member
Activity: 1148
Merit: 504
March 05, 2017, 10:18:59 PM
#8
Bitcoin is meant to be a payment method, a currency. Atleast that is what I understood when I read the whitepaper. But since it is fast acquiring value in exchange to fiat, it is a good store of value or investment. And that is what others are taking advantage right now.
hero member
Activity: 2604
Merit: 548
Vave.com - Crypto Casino
March 05, 2017, 09:49:17 PM
#7
Bitcoin is truly a store of value. Later on people started to adopt bitcoin which in turn increased the acceptance rate. Further the same served as a payment portal and as an alternate currency. Due to the potential now it has gained the ability to get used as a investment. Now based on the fluctuations similar to stock market users consider it as a stock.
hero member
Activity: 714
Merit: 500
March 05, 2017, 09:47:39 PM
#6
Bitcoin has a lot going for it as an investment option, even though the intention is for it to be a currency. It has not really took off as a virtual currency because it is not yet widely used, but as a form of investment, much like any other speculative investments in the market, I think it has more than lived up to expectations and still breaking new highs as of this writing. We can expect that more people are going to be more attracted to it as something to add in their portfolio because of the way it has outperformed most other existing investments available.
sr. member
Activity: 476
Merit: 501
March 05, 2017, 09:18:11 PM
#5
I would say, in financial terms, bitcoin more closely resembles a commodity. I do believe it was designed to behave like digital gold so perhaps there should be no surprise there.
Now we can make big international remittances by sending bitcoin, rather than sending a shipment of gold!

EDIT: And bitcoin has an ISO currency code similar to gold, XBT rather than XAU.
hero member
Activity: 1666
Merit: 502
March 05, 2017, 09:06:10 PM
#4
I thought at first that Bitcoin will be a currency to be used in the future. But from what I am seeing here is that it will be treated as a stock, it is even compared to gold. What do you guys think?
yeah i was thinking the same as you but because of the nature of decentral bitcoin where often occur price changes and the users often make bitcoin as an investment, though I didn't problem it but the value of bitcoin as a currency in the second place after the investment
sr. member
Activity: 423
Merit: 251
March 05, 2017, 08:19:34 PM
#3
If you think so for now this is true as well, because bitcoin is still a lot of countries that have not yet received it as a currency, and therefore most people use bitcoin as the shares traded in the market
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