Topic: Is Bitcoin money? - page 12. (Read 112095 times)

Bitcoin is something radically new. Nothing like Bitcoin has been possible until now. I would go so far as to consider it sui generis; "in its own class".  This makes it important to understand what Bitcoin actually is before we try to describe it to others.

We're getting a good handle on the code, and of course on Bitcoin's function and utility, but what words should we use to describe Bitcoin itself? There has been some debate in other threads [mostly my doing] over how it is like/not like money, cash, dollars, etc. I'd like to start this thread by focusing on the term "money", and play Devil's avocate by asking for your best arguments that Bitcoin IS money.

My legal dictionary states "In usual and ordinary acceptation it [money] means gold, silver, or paper money, used as c irculating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate." [cites omitted]

Wikipedia says "Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment." [cited omitted]

Webster's Online Dictionary defines money as:

• 1. The most common medium of exchange; functions as legal tender; "we tried to collect the money he owed us".
• 2. Wealth reckoned in terms of money; "all his money is in real estate".
• 3. The official currency issued by a government or national bank; "he changed his money into francs".
• 4. A piece of metal, as gold, silver, copper, etc., coined, or stamped, and issued by the sovereign authority as a medium of exchange in financial transactions between citizens and with government; also, any number of such pieces; coin.
• 5. Any written or stamped promise, certificate, or order, as a government note, a bank note, a certificate of deposit, etc., which is payable in standard coined money and is lawfully current in lieu of it; in a comprehensive sense, any currency usually and lawfully employed in buying and selling.
• 6. In general, wealth; property; as, he has much money in land, or in stocks; to make, or lose, money.

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I maintain that per these definitions, Bitcoin cannot possibly be described as "money". And further, I think that those who do describe Bitcoin as "money" are doing this community a disservice.

But that is just my point of view. Are there any that can convincingly argue otherwise, that Bitcoin IS money?

For most of us bitcoin is money. It is a digital money. It can be converted into a real money. It is used as medium of exchange so it is money. Every profit from every transaction in bitcoin  is money. But the main use of bitcoin is it is a decentralized payment system.

I also consider that bitcoin is money because like money, bitcoin is using for transaction. Bitcoin can be used for their daily expenses. Bitcoin is a form of money that can be used in online. As long as bitcoin has a value and can be used in any transaction, you can called it as a money.

This is the essence of our discussion: How can we guarantee payment?

The old way: Trade for something of value (silver, gold).

The crooked way: Use government chits, and the government will enforce the payment (U.S. dollar).

The Bitcoin way: Accounts are accurate, honest, and convenient (based on Math).

No one can phoney the books--the system Just Works. It's more voluntary than the other systems, yet has none of their drawbacks.

Note that Bitcoin is just a system of accounting, and could be used for purposes other than trade. To call it money, or cash, or "worth" something is to complicate it needlessly. If someone wants to trade bitcoins for Pesos, or for Yak fur, or just hold on to them, that is their free choice.

All trades are ENTIRELY SEPARATE FROM THE BITCOIN SYSTEM.

Keep it simple, people! There is no reason to put Bitcoin into the commercial arena, with the accompanying legal meathooks. There is no reason to call Bitcoin money, or cash, or to say Bitcoins are "worth" X number of dollars, because they're clearly not; Bitcoin is just a P2P, distributed accounting system. Nothing more.

Why ask for trouble, and invite the crooked Enforcers in where they don't belong? Bitcoin is NOT money, so don't call it that!

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Full disclosure: I am also fresno. I created the fresno persona to handle my political activities while I ran the Silverman site. Now that I am no longer exchanging Bitcoins as a business, "fresno" is no longer active.