Topic: Bitcoin should be viewed as a financial asset or currency? (Read 202 times)

I disagree that Bitcoin is either an asset or a currency.

Bitcoin more accurately resembles a commodity.

An asset: produces value
A currency: defined by governments
A commodity: a raw material

Bitcoin is "mined" like copper or gold.

   To my concept Bitcoin should be viewed both as an financial asset and currency too. It depends accordingly  how people uses bitcoin as an investment or currencies if we hold bitcoin and exchange it to spend for our future  it is an asset. And if you hold your bitcoin and exchange it to buy products for  daily life it is viewed as currency so Bitcoin should be viewed as a financial asset and as well as currency also.

It's both, basically. It is definitely a financial asset now as it stands against quite some worth.

It's totally a currency because an ever-increasing number of merchants have started accepting BTC as payments.

It is based on how you use Bitcoin that determines what it is. The first responder DannyHamilton has illustrated quite nicely what Bitcoin can be viewed as.

In the beginning bitcoin was created as a digital currency with no state boundary and trustless system
but as time goes by, people see the opportunity and start to view bitcoin as a digital asset to make money
though at the same time many people still use it to trade things by means as currency
this is the part that legalizing bitcoin is not as easy as flipping the coin
bitcoin as a currency would have different regulations than if it were treated as digital asset
so the answer to your question... currently, I can say bitcoin is viewed both as asset and currency

If I understand bitcoin right, it is really created to be a currency to be used in purchasing goods and services digitally but as of now if you look at how people treat bitcoin like most are buying and hodling bitcoin until reaching a certain price then bitcoin is not just a mere currency but also a form of investment, and investment is an asset.

The use determine the definition, like Danny said. The problem is that the governments definition would have a significant impact on your use. If Bitcoin is defined as a "commodity" and not as a currency by your government, then things become tricky.

How do you run a legal business as a merchant, when Bitcoin is not defined as a currency in your country? How do you explain this to the tax authorities? This can become a issue, when your books are being audited and you are primarily accepting a commodity as a currency for goods and services. 

Yes, I agree with your opinion. There is no distinction between asset and currency. I think I see bitcoin as an asset because I will not invest in it. Instead I would dig it or do the project to earn bitcoin. I think it is the safest and least risky method.

Well...IF you think BTC is gonna have 'legs' and last long term....you should treat it like a long-term asset

if you think it is gonna go tulips you should cash it out into currency (USD)

not exactly what you meant, but seriously

it has to at these prices be looked at like a financial asset.....the xfer fees are too high and limited number of vendors to see

it as a currency


On thing is for sure at my Tax Rate from Mining last year and likely this year it will be (40% IRS and 10% state taxes) or 50% taxes

either

1) the whole crypto universe is a bubble and tulip scam as 95% of  my friends and family say....or it wil be a long-term asset you can
take $$$ out of like any other long-term asset..stock/bond etc and ....let it build over time...take what you need...too much of a hit
on taxes if you play the windfall profits game and try to take it all out at once..ouch 50% hit on your stuff going POOF! you don't spend it
and you are 2x as rich! (it is all about protecting the ego)


it is one or the other

2) IF I TAKE ANY $$$ OUT AT ALL (this year or last) ONE HALF IS GONE ..that is a fact....any selling of crypto I lose 50% to the tax man

at my tax rate with mining and state taxes

So I can take a chance of losing it all (according to friends) or I know I can lose the 50% in the same manner ..by selling the crypto assets now (or some would say too early
and too much)

chump or champ ..in the future I will be in one camp or the other

so store of value is what I'd call my BTC and crypto assets ..currency..not so much


NOTE: I am in long-term HODL mode since 2013..just playing a 'what if' game above..but this is the kinda push back you get and will continue to get till BTC becomes boring

as hell and people turn you off when you talk about this (much like grain futures) ....when talking about the death of crypto is the same as talking about the elimination of the

income tax...well .....what I mean ...when neither seems likely, we likely will be safe and boring in the future (or a least a lot less FUD)

It totally depends on the person on how does he uses bitcoin or what does he plans to do with it. It is both, an asset and a currency. If you choose it to purchase goods(by converting it into local currency) and use it in day to day activities then it is a currency. And at the same time if you hold some, believing it'll make you profit in the future. Then it is a financial asset. But now, with the transaction fees so high people consider it using it as a financial asset more than use it as a currency. Considering the current situations it is more feasible to see bitcoin as a financial asset.

Bitcoin is both an asset and a currency.
It does one of these things better than the other. As an asset, it has performed much better than pretty much any financial asset over the past few years thus its position as a financial asset is unquestionable. In spite of its performance over the years, some people are still in denial. But any objective observer will acknowledge Bitcoins place as a financial asset.

Bitcoin also serves as a currency but it does not do this very well. It is slow to transact and expensive. Compared to transacting across international borders, Bitcoin does outperform traditional currencies and financial transaction services. It is outperformed by many more modern cryptocurrencies but that not mean it is not a currency. It is a currency, much better than many, but not the best.

as an financial asset probably yes.
but as an currency it a no. because some country is not accepting it as a money.
some banks on different countries still don't know what is bitcoin yet. i think think will come it will.

Bitcoin is mature for both though the reason behind bitcoin creation was to fix financial system but it was used at early as payment(currency) for online games,software etc. Now bitcoin has reached advanced stage in both financial asset and currency aspect.

Where Im from they are a legal asset.
If you use them as payment, like anything, it is measured in value in the local currencies legal system.

Yes.

When you hold bitcoin as an asset and exchange it for a local currency in order to spend it, then you are viewing it as an asset.

When you hold bitcoin as a currency and spend it to purchase products and services, then you are viewing it as a currency.

It is both.  It is neither.  It is something new that didn't exist before.  The way you should view it will depend on the way you plan to use it.

" Israel’s central bank said on Monday it would not recognise virtual currencies such as bitcoin as actual currency and that it was difficult to devise regulations to monitor the risks of such activity to the country’s banks and their clients."


Thus, Bitcoin should be viewed as a financial asset or currency?