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Genuine question: why is Bitcoin, for instance, not a currency? I understand it's obviously not a fiat currency, it's not backed by any state. Bitcoin is, thoug

Genuine question: why is Bitcoin, for instance, not a currency? I understand it's obviously not a fiat currency, it's not backed by any state. Bitcoin is, though, in circulation, is convertible into numerous goods and services, or can be used to stockpile value. Bitcoin is extremely volatile but I don't think that precludes it from being a currency.

nucatus 9y ago
In terms of currency, the bitcoin has the same attributes (all you have listed) like any other asset. The Apple stock, for instance, classifies for a currency in the same way the BTC does.
colorint 9y ago
Obviously words are a matter of intersubjectivity; we can only understand them from their use, so anything can be money if enough people call it that. If you want to understand why cryptocurrency is not a financial asset, that's because it's not a liability of its issuer. And of course, cryptocurrency is not state money because you can't use it to pay taxes. It seems to me to be most like a sort of nonconsumable commodity, which is strange enough.
nucatus 9y ago
Again, this can only work if a quite strong parallel economy develops, where everything is in BTC. Well, for that to exist, it needs to get to a comparable level of a real state economy, and this is pretty damn hard. That, in order for you to have a stable exchange rate when you need public services, like health services or to pay taxes. Otherwise, just having always to exchange your BTC in the de-facto currency so you can do your daily stuff, that is just not money. You can call it whatever else you want.
- cinquemb 9y ago
  >Again, this can only work if a quite strong parallel economy develops, where everything is in BTC. Well, for that to exist, it needs to get to a comparable level of a real state economy I think this is too absolutist. I don't think BTC or cryptocurrencies in general, to be successful, don't have to have do all of that __today__, or at all. They just have to chip away along the margins, as they have so far in order to become more attractive to people to use for exchanging goods/services. In the US, I could only pay for my electricity usage in USD, in Indonesia, I can use BTC. People speculating on BTC face similar risk considerations as people speculating on any asset. >That, in order for you to have a stable exchange rate when you need public services, like health services or to pay taxes… In any system of resource allocation, you need people to buy into it and stay invested, and as I can see, the balance sheets of "real state economies" are having a hard time getting people to stay invested through typical means that states have established channels. Unless one thinks that continuously selling T-notes to CB's or private investors by collateralizing ones taxation ability through typical channels, or CB's buying up all corporate stocks/bonds will be enough to win the hearts and minds in the long run… >Otherwise, just having always to exchange your BTC in the de-facto currency so you can do your daily stuff, that is just not money. You can call it whatever else you want. As an expat living abroad, this isn't really issue since I need to do it anyways to convert from whatever currency you have to what you need to use, and ones habbits are reaptible enough that you should be able to get a good guess to withdraw enough to cover a period of time to minimize the inconvience. And there's increasingly more options in how to go about this than there was say 5 years ago. I think there is more freedom by being able to be exposed to numerous amounts of currencies to be able acquire/leverage goods and services than just being locked into just one.

nucatus 9y ago

In terms of currency, the bitcoin has the same attributes (all you have listed) like any other asset. The Apple stock, for instance, classifies for a currency in the same way the BTC does.

colorint 9y ago

Obviously words are a matter of intersubjectivity; we can only understand them from their use, so anything can be money if enough people call it that. If you want to understand why cryptocurrency is not a financial asset, that's because it's not a liability of its issuer. And of course, cryptocurrency is not state money because you can't use it to pay taxes. It seems to me to be most like a sort of nonconsumable commodity, which is strange enough.

nucatus 9y ago

Again, this can only work if a quite strong parallel economy develops, where everything is in BTC. Well, for that to exist, it needs to get to a comparable level of a real state economy, and this is pretty damn hard. That, in order for you to have a stable exchange rate when you need public services, like health services or to pay taxes. Otherwise, just having always to exchange your BTC in the de-facto currency so you can do your daily stuff, that is just not money. You can call it whatever else you want.

cinquemb 9y ago
>Again, this can only work if a quite strong parallel economy develops, where everything is in BTC. Well, for that to exist, it needs to get to a comparable level of a real state economy I think this is too absolutist. I don't think BTC or cryptocurrencies in general, to be successful, don't have to have do all of that __today__, or at all. They just have to chip away along the margins, as they have so far in order to become more attractive to people to use for exchanging goods/services. In the US, I could only pay for my electricity usage in USD, in Indonesia, I can use BTC. People speculating on BTC face similar risk considerations as people speculating on any asset. >That, in order for you to have a stable exchange rate when you need public services, like health services or to pay taxes… In any system of resource allocation, you need people to buy into it and stay invested, and as I can see, the balance sheets of "real state economies" are having a hard time getting people to stay invested through typical means that states have established channels. Unless one thinks that continuously selling T-notes to CB's or private investors by collateralizing ones taxation ability through typical channels, or CB's buying up all corporate stocks/bonds will be enough to win the hearts and minds in the long run… >Otherwise, just having always to exchange your BTC in the de-facto currency so you can do your daily stuff, that is just not money. You can call it whatever else you want. As an expat living abroad, this isn't really issue since I need to do it anyways to convert from whatever currency you have to what you need to use, and ones habbits are reaptible enough that you should be able to get a good guess to withdraw enough to cover a period of time to minimize the inconvience. And there's increasingly more options in how to go about this than there was say 5 years ago. I think there is more freedom by being able to be exposed to numerous amounts of currencies to be able acquire/leverage goods and services than just being locked into just one.