Topic: Is bitcoin an asset or a currency? - page 9. (Read 1134 times)

A guy I know, who I will not call a friend as I don't like this dude but all of my friends, or many of my friends seem to (which I just can't seem to understand why) made fun of me in a group chat once for saying that it was important to use bitcoin as a currency.  I think it's ridiculous and short sided as hell if you don't think bitcoin is a currency or should be used as one. Bitcoin is both a currency and an asset.. it CAN be both and it IS both.

I also agree that the opinion that bitcoin is an asset or currency depends on the country we are in.
in some countries, bitcoin is prohibited as a currency, but is allowed as an investment asset, just like in mine. So, I treat bitcoin like any other asset that needs to be held long term, or traded.
in some countries like El Salvador, bitcoin is used as a legal payment alternative, so, I think a lot of people are using bitcoin as a currency there. however, what is special is, when the country legalizes bitcoin as a currency, then bitcoin can automatically be used as an asset.
Personally, I use bitcoin as a long term asset.

Correct, as others have pointed out, the owner decides what his or her Bitcoin is,
It can be stored until an opportune time when the owner decides what he/she wants
to do, trade, convert, sell, spend or exchange.

Tell El Salvador for example that Bitcoin is not currency
Tell Michael Saylor that his 91,579 Bitcoin are not an asset

If that happen then we don't have a choice but to hide but for sure there will be underground transaction towards that but we can expect that the rate is more higher due to that restriction they made but if we have long patience to hold and wait for everything will be in good shape again towards the government opening up their citizen to go on cryptocurrency again maybe by that time we can see bitcoin at more higher digits knowing bitcoin always show good progress every year pass.

For me, Bitcoin is more like gold. It is to be used to protect your wealth from asset seizure and inflation. The difference with gold is that Bitcoin is easier to store and even more easier to transfer. If needed gold can be used as a currency (gold coins, bars.etc). Due to the portability of Bitcoin, it is more convenient when compared to gold, to be used as a payment mode. In short, Bitcoin is suitable for multiple purposes - as a currency, as an asset and as a store of value. And it doesn't matter whether a government has awarded the status of legal tender to Bitcoin. Because the governments can't do anything about BTC. They can't control it.

If that is the case, we can keep bitcoin in our wallet without telling them that we have bitcoin or altcoin. We can hide it until the government allows us to use crypto again and I guess that at that time, the price of crypto will be so high. Chinese people can do this while waiting for the government policy to allow them to use crypto while they can browse the crypto price without doing anything.

Here's what Satoshi said in 2010 in a similar thread in this forum:


source: https://bitcointalksearch.org/topic/m.11403

Whatever it defines the individual, it could be an asset, currency, store of value, commodity.

So I guess there could be no arguments, the subject matter is open for debate and there is no right or wrong answer. And that is the beauty about bitcoin, it might be very volatile, but each and everyone of us here could treat it the way we like, no one is going to force you and change your stance about it.

Do you think exchanges operate in all countries. Most highly technologically inclined countries ban crypto as well as exchanges from operating. Exchange don't exist in all countries this will still bring you back to the limiting factor which your country will place on your free transaction with bitcoin or anyother crypto currency

Bitcoin is considered an asset would be better off. Everyone knows bitcoin as a financial investment industry. But being developed as a means of payment is also very attractive. It looks like bitcoin can be used as both.

But that's just stupid. Bitcoin was made to transcend pretty much everything that limits you when you use fiat, being somewhere where crypto is restricted isn't really an issue, since it's Bitcoin, you're not supposed to mind the country you're in. The mediums such as P2P exchanges don't really give a damn, you can access them and trade with crypto even if it isn't legalized in your country. It's you limiting yourself if you let such factors actually stop you from using Bitcoin.

The first thing to think about is that you need other people to agree with whatever you think Bitcoin is to be able to trade with it, and that can be different with different people all around the world.

This can be easily done in a peer to peer transaction. Both people agree to trade with Bitcoin. Done.

When you consider a larger group of people, then things get a bit more complicated, and that's when laws and regulations start to appear.

For example, since recently you can pay your taxes with Bitcoin in the canton of Zug in Switzerland. That's only possible because that group of people decided to treat Bitcoin as a legal tender to pay taxes.

A country is also basically a group of people, so when El Salvador decided to treat Bitcoin as legal tender, then the entire population there can use it for goods and services, and for paying debt.

In most countries though, Bitcoin is officially considered an asset.

Also, AFAIK, Bitcoin is not a currency anywhere, only legal tender in certain jurisdictions. That means that, for example, the IMF cannot buy Bitcoin directly, since it's not the currency of any government.

So, to answer your question, it depends. You need to take into account what the people that you're interacting with think of Bitcoin as well since by definition you need at least one other person to make a transaction with Bitcoin (other than moving between your own wallets)

Ofcourse, it can be both. It's even has Coin attached to its name and it's also a CryptoCurrency.

It's doesn't really depends on the two factors you mentioned, as it's a decentralized currency and should be used peer-to-peer whether it's banned or not. The ban does not affect your right to accept it if it's a good/safe currency and if you aren't misusing or abusing it.  That is how you could also treat gold, silver or other precious metals where they are banned. Most likely they ban you from using it within their system, but you have Natural Right to use them as long as they as safe and won't be abused/misused by you
Luckily, Bitcoin Network makes it easy for society to detect abuses.
So it's better to use Bitcoin in decentralized manner, outside of the system. Abuse/misuse can be prevented or minimize with its features. That's why it's important to maintain and improve on the features rather than making bad actors difficult to detect and leaving honest users vulnerable

By the way, fiat currencies aren't really stable especially long-term. They experience volatility too

Why not? If you can not do it directly, you can do it indirectly. The world now is flat and there are many ways you can trade your Bitcoin.

Although there are indirect ways, the best is waiting. If you see news like that, you can wait for months to see what will be actually implemented in your country.

Obviously you have to be bitcoin holder. If you borrow your money to buy bitcoin, you will be panic with news. You can not hold your bitcoin with unknown time and uncertainty about it in your country.

I think your debate with your friend will end endlessly because both of your opinions are basically right.  from my point of view, bitcoin is both (it is a currency as well as an investment asset)  

in my country bitcoin is considered and entered by the government as a commodity asset like gold but for me bitcoin is a currency too because I can spend it online if I meet a merchant who accepts payments via bitcoin..

If there is a ban on crypto currency in your country will you still trade it? Let's take China for example do they have exchanges there? Bitcoin only has value if it is legalized in your country aside that you can only store them in your cold wallet or hot wallet until you travel outside the country where you can exchange them for whatever value you choose

In our country bitcoin is only used as an asset because the government does not recognize bitcoin as a legal tender. You can only transact and invest but cannot be used as a means of payment. However, we always hope that bitcoin can be one step ahead like countries that have allowed it as a means of payment.

It might be both, because some governments have legalized bitcoin and have begun to utilize it as a payment method or currency. However, in nations where it has not yet been legalized, it might be a currency if it is used as a payment method. It might also be an asset because many people are investing in it and profiting from it. If it has a high value, you can call it an asset.

You decide, not your country, not your government.

You don't need to have legal tender to use Bitcoin or to trade Bitcoin. You can not do it officially without legal tender but there are many P2P exchanges can help you to buy or sell your Bitcoin. You can do it to get fiat from Bitcoin. In countries, Bitcoin is not legal tender with different restrictions, you can trade and in P2P trade, the information of a trade does not include it is a trade from fiat to Bitcoin or Bitcoin to fiat. You are safe on P2P exchanges

Asset or currency, you decide it with your perspective, not your government, your country.

I believe that you already explained it in my opinion. Seeing Bitcoin as an asset or a currency or even as both is relative. As you said, it depends on how you are able to use it, are you able to use it as a currency which I believe will be the bigger argument here in your respective location and as an Individual or not. Generally, I believe that Bitcoin is more of an asset than a currency even if it saves both purposes since I personally have not really used it for purchases that much. This will be a continuous debate since investors will relate to it differently.