Topic: How the government definition of Bitcoin, influence addoption. - page 2. (Read 244 times)

But this is the reality. How could you introducr Bitcoin into social and economic system of some country if you don't have support of government? Exactly government is the one that provided law and legal framework who enables that. And not every government is hostile to Bitcoin, that is wrong perception. I think that many governments are trying to find the way how to implement and adopt Bitcoin but not to distrub current system.

i wouldn't say that. the commodity vs currency distinction is more about determining which regulations/tax laws apply to bitcoin and which regulators have jurisdiction. eg the CFTC regulates bitcoin spot exchanges because their markets underlie regulated commodity futures like the CME bitcoin contracts. and the IRS treats bitcoin not as a currency, but "property".


actually i think most businesses use payment processors because they don't plan to hold the bitcoins---their vendors and overheads are paid in fiat. once that starts changing, they can start moving away from payment processors.

So we need the governments to change their outlook and legal mindset on Bitcoin before we can expect Bitcoin to get into the mainstream use? Well, frankly speaking that is a huge admittance that without the partnership with the government Bitcoin can not reach its full potential. Sadly, this is the big reality we are all facing no matter if this is not the way Bitcoin is supposed to be. Now, having said that, the problem is that we can never expect the government to easily grant this request...and why would they? There must be incentives enough for the government to change the status quo.

When we look at the laws and regulations on Crypto currencies of most governments, you will notice that their definition of Bitcoin is focused on Bitcoin as being a "Commodity" and not as Bitcoin being a "Currency". So legally most businesses are breaking the law, if they accept Bitcoin as a currency for services or products in their business.  

A lot of people find intuitive ways to bypass this definition and they use payment processors to convert Crypto currencies to Fiat, to adhere to these local laws.

Bitcoin will never reach it's full potential if businesses have to "bypass" laws and regulations to function as a true currency.    What needs to change, before Bitcoin can go mainstream, is for governments to acknowledge that Bitcoin can be a Commodity and a currency and that they can get both VAT and Capital gains taxes, if they open up the definition of Bitcoin to allow people to use it as a currency.  

The only reason why they are not doing this, is because they are protecting their own reserve currencies. Citizens needs to use their votes to put people in power that would allow Bitcoin as a global currency.

Governments all over the world are fighting to protect Fiat currencies and we know Fiat currencies are inherently flawed and doomed for failure.  

“According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

The average life expectancy for a fiat currency is 27 years, with the shortest life span being one month. Founded in 1694, the British pound Sterling is the oldest fiat currency in existence. At a ripe old age of 317 years it must be considered a highly successful fiat currency. However, success is relative. The British pound was defined as 12 ounces of silver, so it’s worth less than 1/200 or 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value.”

 - Source : https://www.dinardirham.com/the-rise-and-fall-of-fiat-currencies/