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> Saying that "bitcoin is a commodity" means what exactly? It means that the government does not legally consider it any kind of currency, fiat or otherwise. I
by twblalock 9y ago
> Saying that "bitcoin is a commodity" means what exactly?
It means that the government does not legally consider it any kind of currency, fiat or otherwise. It's taxed like a commodity when you buy and sell it. It's not legal tender.
- SideburnsOfDoom 9y agoOk, so if we're saying "commodity" as in "not legally any kind of currency or legal tender" then that's a valid reason. If we're using "commodity" to refer to an useful substance like wheat or silver "a product of agriculture or mining" ( https://www.merriam-webster.com/dictionary/commodity https://www.merriam-webster.com/dictionary/commodity ) Then I would disagree, bitcoin does not fit this definition, the value of bitcoin is an agreement, nothing more. "Agreement" and "because we say so" seems a lot like fiat to me.
- _0ffh 9y agoExactly! Fiat money has value solely because the participants in the market agree that it does so. That's practically the definition. And it's exactly where most cryptocurrencies are at, except for those that are explicitly backed (like Royal Mint Gold is backed by, well, gold). Hence my original comment. But some people seem to think that down voting that comment will somehow change these facts. Oh well.