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But what on earth is a digital commodity? I think the whole concept of digital commodity is nonsensical. A commodity is a product. Products are either consume
by lottin 3y ago
But what on earth is a digital commodity? I think the whole concept of digital commodity is nonsensical.
A commodity is a product. Products are either consumed or used as raw materials. A digital commodity is not a product. It can't be consumed or used, because it's entirely imaginary.
I think a better term is "abstract unit of account".
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- dcow 3y agoRespectfully, I think your understanding is behind the curve. Even the SEC says BTC itself is a commodity. You consume a BTC by using/trading it. You consume gold or maple syrup by using/trading it. Just because the uses are a little different doesn't mean it's incompatible with the definition of commodity. If I started using gold in a nonsensical way you wouldn't start saying "oh now it's a security", would you?
- mulmen 3y agoI think the hangup with BTC as a commodity is that I can make a loaf of bread with wheat and eat it and the amount of wheat in the world is depleted as a result. Similarly I can use gold to build a cell phone or some jewelry and while it is possible to recover it isn't as simple as trading BTC. How is a BTC consumed?
- scottiebarnes 3y agoThe majority of gold usage is in investment/central bank reserve. Technology applications are a fraction of the usage. Jewelry is a major usage, however part of the reason for its use in jewelry is a hybrid combination of its store of value properties (ex. in Indian culture afaik, gold jewelry plays a large part in passing down wealth, families gift gold jewelry at weddings etc.). So you consume bitcoin the same way a central bank consumes gold: by sitting on it, selling it when you need to, or buying more in times of expected turmoil. Bitcoin is far younger than gold (12 years vs thousands), so its obviously more volatile. https://www.statista.com/statistics/299609/gold-demand-by-industry-sector-share/ https://www.statista.com/statistics/299609/gold-demand-by-in...
- mulmen 3y agoTrading something doesn’t consume it. That’s a very confusing overloading of terminology.
- scottiebarnes 3y agoWell consumer comes from the base word consume, which by definition includes the buying of a good or service, which is essentially a trade. Consume: - eat, drink, or ingest (food or drink). - buy (goods or services). - use up (a resource). - (especially of a fire) completely destroy. - (of a feeling) absorb all of the attention and energy of (someone).
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- mulmen 3y agoI was asking an honest question but I don't like being trolled. Have a nice day.
- scottiebarnes 3y agoNot sure why you think you're being trolled. Have a good one.
- dcow 3y agoYou’re not bing trolled? Wat.
- skinnymuch 3y agoHow would you be trolled? You asked and you got answered. What are you disagreeing with?
- mulmen 3y agoNone of these responses answer the question.
- ryathal 3y agoBTC is consumed when someone forgets their password.
- jallen_dot_dev 3y agoTechnically the thing you hold and use is a transaction output, and once an unspent transaction output (UTXO) is spent it can't be spent again. So from that perspective it is consumed!
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- jpadkins 3y agoshaping gold into jewelry doesn't consume it. One of the reasons its been currency for 5k years is because you can melt it down and re-use it as coins or other jewelry etc. Gold isn't consumed, for the most part.
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- ethanbond 3y agoCommodities are usually raw/close-to-raw inputs into some process. Bitcoin doesn’t really meet that, but again the whole point is recent technological innovations haven’t really settled into the language yet. And again, that is by design of both the instruments themselves and the massive PR campaigns/grifts around them. The whole trick is attempting to position these things as “the half of the definition of commodity that means this has intrinsic value but not the other half of the definition which says it’s a raw input,” or “the half of the definition of a security that means You Can Make Money, but not the other half that says I can be regulated as someone selling a You Can Make Money instrument.”
- thisgoesnowhere 3y agoThis is my read as well. However,I think if you regulate the security like stuff in the same way we regulate existing financial instruments the whole thing collapses anyways, so who really cares what we call this specific coin.
- JumpinJack_Cash 3y agoYou can consume a Fortnite skin or a Call of Duty weapon. The point is that you cannot consume crypto, it's a problem which is understood inside the community, that's why the push for NFTs which started as legitimate art to enjoy on huge 8K screens or VR headsets but quickly ended up becoming Twitter avatars built for the purpose of trading and offloading to a bigger fool.
- dcow 3y agoYou consume it by trading it or, for a direct analog to your example, by showing off your wallet balance. Your Fortnite skin is no more consumable than a BTC. It just has a different value and use.
- JumpinJack_Cash 3y ago> > You consume it by trading Hence the SEC is right to clampdown on crypto for violations of securities law, in order to prevent bubbles that emerge when the only use for something is trading it for something else. We already have that, people who want to participate in that game know where to go, the stock market. > > for a direct analog to your example, by showing off your wallet balance That's the most circular thought I've ever heard.
- dcow 3y ago1st, you need to read up on how commodities and securities are regulated. 2nd, showing off your wallet balance is the same as showing off your NFT, and NFTs, digital skins, etc. are all obviously consumables.
- lottin 3y agoTrading a commodity doesn't consume it. If I trade a hamburger, the hamburger isn't consumed. It's only consumed when I eat it.