32 ms·

Respectfully, 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 g

by dcow 3y ago

Respectfully, 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 ago
I 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 ago
  The 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 ago
    Trading something doesn’t consume it. That’s a very confusing overloading of terminology.
    - scottiebarnes 3y ago
      Well 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).
      - deleted 3y ago
        [deleted]
      - mulmen 3y ago
        I was asking an honest question but I don't like being trolled. Have a nice day.
        scottiebarnes 3y ago
        Not sure why you think you're being trolled. Have a good one.
        dcow 3y ago
        You’re not bing trolled? Wat.
        skinnymuch 3y ago
        How would you be trolled? You asked and you got answered. What are you disagreeing with?
        mulmen 3y ago
        None of these responses answer the question.
- ryathal 3y ago
  BTC is consumed when someone forgets their password.
- jallen_dot_dev 3y ago
  Technically 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!
- deleted 3y ago
  [deleted]
- jpadkins 3y ago
  shaping 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.
  - deleted 3y ago
    [deleted]
ethanbond 3y ago
Commodities 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 ago
  This 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.

by dcow 3y ago

mulmen 3y ago

I 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 ago
The 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 ago
  Trading something doesn’t consume it. That’s a very confusing overloading of terminology.
  - scottiebarnes 3y ago
    Well 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).
    - deleted 3y ago
      [deleted]
    - mulmen 3y ago
      I was asking an honest question but I don't like being trolled. Have a nice day.
      - scottiebarnes 3y ago
        Not sure why you think you're being trolled. Have a good one.
      - dcow 3y ago
        You’re not bing trolled? Wat.
      - skinnymuch 3y ago
        How would you be trolled? You asked and you got answered. What are you disagreeing with?
        mulmen 3y ago
        None of these responses answer the question.
ryathal 3y ago
BTC is consumed when someone forgets their password.
jallen_dot_dev 3y ago
Technically 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!
deleted 3y ago
[deleted]
jpadkins 3y ago
shaping 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.
- deleted 3y ago
  [deleted]

ethanbond 3y ago

Commodities 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 ago
This 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.