Classifying Bitcoin As a Financial Asset

harrymmmm

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Quote from: PolarPoint on August 16, 2015, 04:24:41 PM

Quote from: Paleus on August 16, 2015, 02:26:02 PM

Bitcoin pays dividends in the capital gains of each unit of currency.
The business model is a trustless, electronic payment system.

Capital gains are not dividends. Dividends are shares of profits from the company. Capital gains are profit or loss only from the sale of the shares.

business model:
capital gain = profit = price (now) - price(when i bought it)
dividend = d/dt (price)

Snorek

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Quote from: PolarPoint on August 16, 2015, 01:01:39 PM

I don't agree with the article that bitcoin is a stock, a share of ownership in this decentrailsed autonomous corporation. A real stock is a share of a company who has a business model and pays dividend. Bitcoin has no business model, do not make profits, and pays no dividend. Bitcoin is a very liquid commodity which functions like a currency.

I think I share your opinion. The problem with Bitcoin is that it purpose is evolving, therefore we can call it many things. In the future in the world of mass adoption we will call it currency, now it is still asset and capital investment.

PolarPoint

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Quote from: Paleus on August 16, 2015, 02:26:02 PM

Bitcoin pays dividends in the capital gains of each unit of currency.
The business model is a trustless, electronic payment system.

Capital gains are not dividends. Dividends are shares of profits from the company. Capital gains are profit or loss only from the sale of the shares.

Paleus

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Quote from: PolarPoint on August 16, 2015, 01:01:39 PM

I don't agree with the article that bitcoin is a stock, a share of ownership in this decentrailsed autonomous corporation. A real stock is a share of a company who has a business model and pays dividend. Bitcoin has no business model, do not make profits, and pays no dividend. Bitcoin is a very liquid commodity which functions like a currency.

Bitcoin pays dividends in the capital gains of each unit of currency.

The business model is a trustless, electronic payment system.

PolarPoint

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Activity: 672

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I don't agree with the article that bitcoin is a stock, a share of ownership in this decentrailsed autonomous corporation. A real stock is a share of a company who has a business model and pays dividend. Bitcoin has no business model, do not make profits, and pays no dividend. Bitcoin is a very liquid commodity which functions like a currency.

DaddyMonsi

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well at least bitcoin can help me boost my financial assets
but then again this is why bitcoin is unique in its own way
its unregulated yet one can purchase using it

RustyNomad

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And this is the reason why its so confusing for many.

Many want to put bitcoin into a certain 'box' but bitcoin is not to be placed inside a specific box.

cellard

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Bitcoin can be anything yo want.
Do you want a currency? it is a currency, you can exchange it for good and services.
An asset? you can treat it as a stock.
A savings fund? you can hold big term like gold.
Etc..

Paleus

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IT’S A CURRENCY… IT’S A COMMODITY… NO, IT’S CRYPTOCURRENCY

Cryptocurrency is a financial asset in a class of its own. In truth, it is a combination of all the aforementioned traditional assets: currency, commodity, and stock.

Cryptocurrency is not exclusively a currency because, as is with the bitcoin payment system, it represents a paradigm shift in our concept of money – one where there is no division between currency and the system which it flows through. Furthermore, the current rate of volatility of bitcoin makes it unsuitable as a sound form of money, although it has the potential to act as an remarkable monetary tool as stabilization continues to take effect.

Cryptocurrency is also not exclusively a commodity. In comparison to gold, bitcoin shares many characteristics of scarcity and indestructibility. However, it gains the potent attributes of perfect divisibility and high portability. Bitcoin may accurately be considered a form of digital gold.

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Topic: Classifying Bitcoin As a Financial Asset (Read 573 times)