Advertisement:

As national fiat currencies slowly, but surely, fall by the wayside, or get outright replaced by digital currencies, its time to review the advantages of using Bitcoin as money going forward.

Get exclusive analysis of bitcoin and learn from our trading tutorials. Join Hacked.com for just $39 now.

moneyCurrency and money are not the same things, they just have many of the same properties. The textbook definition in your dictionary may even give credence to money being “stamped by public authority”. That’s interesting, given the fact that before there were governments creating paper currency people did exchange beads for feathers, or milk for eggs. There was barter, as currency, and Gold was real money for its ability to hold value since the dawn of time.

Currency is man-made to remove Gold as an independent, natural medium of exchange, to great effect. It takes power from the people and passes it to government in the form of “currency”. Money pre-dates government-created currency throughout the history of man, and their central banking system. If man only existed in the last three hundred years, currency as money would be fairly accurate, but overall, given definitions are incomplete. Knowing the difference between currency and money is important to your future, as the global economy becomes more and more unstable under a mountain of fiat-induced debt.

Money and currency are similar, but not the same

Both money and currency share many properties: They are both units of account (are numbered in value), a medium of accepted exchange and portable. They are both divisible (into smaller units of measure), durable (won’t physically turn to dust after a couple of days) and fungible (the value of the unit is the same for you as it is for me; has similar value here or there). What makes money different is it is also a store of value, meaning it will hold value, or grow, over a long period. Can you put it in a bank, safe deposit box, or under a mattress, save it, and it will retain its monetary value over time? Some currencies are better monies than others.

The Difference between Currency and Money

Many don’t understand the difference between currency and money, and which is which. For the sake of familiarity, let us use the U.S. Dollar, the world’s global reserve currency, the creme-de-la-creme, as an example. Is it currency and money, or just a currency? It is portable, fungible, durable, a unit of account, a medium of exchange and divisible into smaller units. Is it a store of value?


Advertisement:

Your government, particularly in the U.S., will use a national scale to show an annual inflation rate called a CPI (Consumer Price Index) to reflect the value of of money versus various goods and services. In the U.S., the government has a vested interest in keeping the rate of inflation at around 2%. Any fiat currency is built on trust in the currency since it isn’t actually backed by anything of intrinsic value. The problem with the government’s numbers is they tend to be fudged to reflect the desired result. If beef is going up in price at 20% a year, which it has done very recently, it is replaced in the CPI with something else that will get the numbers desired. Suffice to say, if your look at the factors that make up CPI or the inflation rate, the goods and services used has changed dramatically over the last generation. This has been to keep the 2% story alive and well. (Just don’t look behind the curtain too much.)

Also read: When the Dollar Collapses, which is Better Money, Gold or Bitcoin?

moneyPlus, you have the government on the hook for cost-of-living increases in many entitlement programs. And with more and more people dependent on the government, and the government over $18,000,000,000,000 in debt, showing the cost-of-living is stable helps the government immensely. Whether it is the truth or not is another story. Perianne Boring did a great article on this subject for Forbes last year if you want more detail on this topic. It explains how actual inflation, as of last year, was closer to 5% than 2%. A pretty big margin for error, I’d say. If you avoid the establishment narrative and do your own due diligence, it’s amazing what you can find out about how the economic world really turns.

So you can make a weak argument that Dollars are a kind of money but are just very “bad actors” as money unless you like losing value, consistently. The point is dollars are not an effective store of value because they lose value every year. Since the privately-owned and operated Federal Reserve took over national currency production in 1913, the U.S. Dollar has lost approximately 97% of its value. Many economic experts believe that it will continue doing what it has been doing for over a century, declining, until it reaches its true value of zero. Inflation means your dollar loses value every year, so how can it be a store of value? It cannot.

Bitcoin, or gold, in contrast, can be considered money in its truest definition. Bitcoin’s market value, in US Dollars, was about a five cents five years ago and is currently just under $250 USD. Critics love to bring up the peak of $1100 in November of 2013, but that was obviously a bubble created by Mt. Gox “Willy Bots” and China’s ability to buy Bitcoin before government intervention. Now that the market has corrected itself, Bitcoin has returned to its original trajectory it would’ve had if Mt. Gox hadn’t occurred. Its current value is well ahead of its value in October of 2013. The point is Bitcoin is anti-inflationary and is designed to be a store of value. It cannot be inflated to destroy its future value to pay for wars or debt. It is not debt-based, nor government controlled by a private subcontractor. It is governed by mathematic algorithms, and you know how many bitcoins there will be now and decades into the future.

Gold also has seen plenty of bubbles and market manipulation. It has been as high as $1900 USD or as low as under one thousand dollars over the last few years. Bitcoin certainly didn’t invent market bubbles and manipulation. Gold has been seen as money for thousands of years. The only real problem is making it divisible. It is somewhat difficult to mine and create coins and use them in the general exchange of goods and services. One nugget of gold is not worth the same as another nugget of Gold. You can make them all divisible and fungible, but it takes a government or a private company to do that. Gold is generally not circulated as money but held for overall investment value, and it has value as a useful metal in industrial capacities.

No currency or money has “intrinsic value”. We all give these things value or assign things value, based on our belief that we can exchange them now and in the future. Many have deep questions about how long Bitcoin will be around, as well as the U.S. Dollar. You may not want to invest, long-term, in currencies as much as you should in money. Money always beats currency over time, because of money’s definition as a store of value over time. Just look at Gold versus every paper currency that’s ever existed. Gold has remained valuable for thousands of years running. Gold is money; it’s just not very good at being money. Gold is a great investment, past, present, and in the future. Paper currencies of human history, not so much. Paper currencies have a very poor track record of lasting over time. The Dollar has been no different than any other fiat currency. The U.S. Military has just been able to “stretch the soup”, if you will. Nothing last forever in fiat currency.

Bitcoin has been declared dead over 50 times by the mainstream media, yet it has shown to be a great store of value if volatile. It is volatile while growing in relative value; upwardly volatile. Paper currencies, like the dollar, have shown volatility on a downward spiral over time. Just something you should think about.

If you haven’t already, Mike Maloney does a great job of going into detail about these key differences in this video, “The Hidden Secrets of Money”, Part one of a four-part series. Watching and subscribing to him would be a wise move to further your financial education, and understand where this all may lead, and where Bitcoin may fit into your future.

Which direction are your financial investments going?

Do you need more money, or are you happy with the state of your currency? Share above and comment below.

Advertisement:

Advertisement:

Posted by Evander Smart

Evander Smart wants to get you talking, get you thinking, get you learning about Bitcoin, "The Future of Money". He has two Bitcoin video training courses on Udemy.com called "Bitcoin for Beginners". Go to EvanderSmart.com to get the latest on Evander and the latest Bitcoin news.

51 Comments

  1. Black Dynamite! 27/07/2016 at 04:51

    He doesn’t get upset about Bitcoin deficiencies. He has always said Bitcoin is not perfect and will improve. He does get upset at trolls like you.
    BD

  2. Dimitri Andre 12/04/2015 at 22:53

  3. Eric Swank 09/04/2015 at 18:10

    I have become a believer jumping out on the limb, very shaky up here hold on tight. How will I spend bitcoins when the internet goes out…

  4. Hippasus, there is a difference between a healthy discussion and just calling someone names. Actually why argue at all ? Would it not be better to work constructively towards a better tomorrow ?

    But wait there is more, how due current power structures work ? How are current Goverments, banks and main stream media working together ? Just ask around on the street what people think of bitcoin…. I bet you’ll will not get a possive answer on that.

    Now if we leave out bitcoin and just focus on economics (neo classic) it seems like nobody can agree. Why not ? because it is void of reality. But we can all agree that 2+2=4 and that jumping of tall building (because of gratify) is not a good idea if you want to stay alive of course.

    In other words there is so much work ahead of us why do we want to waist time on people that are actually not provide sufficient input.

    Because what have you learned form Milly bitcoin ? other then you washed time on him.

  5. Read what Robert said. That is exactly what I am saying. Federal Reserve Notes WERE money up until 1972 when all ties to metal backing were taken away by Richard Nixon. After that inflation has spiraled out of control. It’s a hockey stick chart. BTW – it SHOULD take MANY more FRN’s to buy ONE (1) US dollar as the paper silver being traded on Comdex has NO silver to back it up. i.e. more in paper silver than there is in actual physical metal on the planet. BIG correction coming soon.

  6. Robert Lefebure 07/04/2015 at 17:56

    I believe he is saying the Currency Act Of 1792 is what created the “dollar” in statute and its definition has not been changed and it (the dollar) is still being minted and costs over 16 FRNs to buy one. Read Edwin Vieira’s “What Is A Dollar” for a great historical and legal discourse on it.

  7. Robert Lefebure 07/04/2015 at 17:51

    Good point and agreed … I’ll qualify my reuse of quote from now on that it should claim to be second step to wisdom at best. I’m finding I disagree with another renowned historical figure, Aristotle, when he says that good money must have intrinsic value. I don’t think there is such a thing as intrinsic value.

  8. fonestar wants one.

  9. Steve Rincon 07/04/2015 at 10:07

    “According the the Currency act of 1792 – it now takes just over 16 Federal Reserve Notes to buy 1 (one) US dollar?” The Federal Reserve didn’t even exist in 1792. LOL

  10. The fear of God is the beginning of wisdom – Proverbs 9:10.

  11. Robert Lefebure 06/04/2015 at 21:36

    Great reply and creedos for calling things as they are … the Federal Reserve Note is NOT a dollar but merely a fraudulent illusionary fake promise to pay one. A saying attributed to Confucius says “The beginning of wisdom is to call things by its proper name”. The opposite (i.e. foolishness) is to call something (a Federal Reserve Note) by another name (a dollar).

  12. Milly Bitcoin 06/04/2015 at 19:13

    I said if you are looking for definitions for money and currency he should seek out an academic reference. Instead he chose some kook because it fits into his agenda. That has nothing to do with whether it is an opinion piece. He gets the definitions wrong so the whole thing is wrong.

    Try listening to normal people like Jerry Brito instead of a collection of cultists who distort everything. Tim Swanson is another person who presents a healthy dose of skepticism but it comes from knowledge. Preston Byrne presents a true Libertarian argument instead of some kind of off-the-wall nonsense. Finally, take the Princeton U course. If you take that course you will see that most of cultists don’t understand the basic concepts of how mining and decentralization work.

  13. Can you even hear yourself, dude?

    “Many of the kooks that have been attracted to Bitcoin… go around saying everyone else is stupid.”

    “.. the people I am referring to do not have an education and are ignorant about most things.”

    “Andres Antonopoulos is.. somewhat of a cultist”

    “Jeffrey Tucker.. I disregard anything that comes from him or his web site.”

    “I didn’t say I was educated in economics.. Mike Maloney he runs a precious metal business and he is not an academic resource.”

    “There are so many things wrong with this “article” there is not enough space here.”

    There are so many things wrong with the comments you’ve posted, starting with the fact that this “article” is not presented as an academic paper, it’s filed under “Op-Ed”. Look up what that means.

  14. Underbridge 06/04/2015 at 18:57

    I agree. As Milly says, banning anyone who trolls against the bias of the forum would leave us all contemplating our navels in an echo box.
    I miss HarleyStrickly though… *sigh* . There was an *honest* troll for you.
    Myself, I’m happy to be a kook. But that guy over there, the tinfoilhatter… he’s a real nut job :)

  15. Rodrigo Fernandez 06/04/2015 at 13:39

    Never, of course. The control of money will slowly and unavoidably slip away from their hands and there is nothing they can do about it.

  16. Milly Bitcoin 06/04/2015 at 09:37

    Bill gates had an education unlike the kooks and nut jobs I am discussing. the people I am referring to do not have an education and are ignorant about most things. To compare them to Bill gates is beyond ridiculous. The core developers and most of the people actually doing the work do not agree with the nut jobs, these are people who have latched onto the technology because their agenda does not stand on its own merit. People like Gavin, Mike Hearn, and most of the other core developers don’t agree with the nonsense being spewed by the cultists.

    If you want to compare to some people who were around during the early Internet they are more like the people who used to claim there would be no advertising on the web because it was meant for research. Another group said the web was for freedom and they would attach child pornography to their usenet message to prove their point. Those kooks have faded back into the woodwork just like many of the Bitcoin kooks will do once Bitcoin takes off. The loonies are a huge drag on mass adoption but I think the technology will survive.

    In a way the nut jobs are doing a good job because they are keeping the price lower by scaring people away and they are giving more time to the developers to deal with scaling issues.

  17. Milly Bitcoin 06/04/2015 at 09:28

    There are some smart people involved in Bitcoin but that is not who I am referring to. Many of the kooks that have been attracted to Bitcoin are underemployed gamers who go around saying everyone else is stupid. They can be easily spotted by asking them about the message in the genesis block. If they have some complicated theory of how Satoshi has sent some kind of magical message promoting an agenda then you can safely ignore that person.

  18. Milly Bitcoin 06/04/2015 at 09:22

    Andres Antonopoulos is a good speaker about Bitcoin but he is somewhat of a cultist and he gets upset when people point out deficiencies in the protocol and he calls them “concern trolls.” “Trolls” is a term used by teenagers when someone says something they don’t agree with. Jeffrey Tucker is promoting an agenda, not Bitcoin, and I disregard anything that comes from him or his web site. In any case the discussion is about the definitions of “money” and “currency” and you don’t need a crypto expert for that.

  19. No I think it’s fine. We need conflicting viewpoints here for things to be healthy. While Milly might be a bit obtuse and over-willing in handing out the label of “kook” or “nut job” conflicting views are good for having a healthy discussion :)

    Besides those that had the vision to bring about revolutionary changes to society have pretty much always been called Kooks and nut jobs. Cars, electricity you name it. Look up the history of most revolutionary technological changes and you will find a general populace either completely ignorant or all to ready to label the early pushers of technological innovation as Kooks or nut jobs.

    So wear such a title with pride – you men and women of great vision!
    https://www.youtube.com/watch?v=lz6IQX7uDk4

  20. They may know more about general economic theory as well as the history of economics. Often times however revolutions in thinking come from actors outside of the camp of experts.
    That the majority holds an opinion, it doesn’t necessarily serve as a proof of that opinion (Just look at the history of fiat currencies) – it must be said that the majority’s opinion on cryptocurrencies may soon be that of your alleged “kooks” and “nut jobs”. For example Ecuador is dropping using the US dollar as their currency (the mighty US dollar – fiat reserve currency of the world) in order to use a crypto currency minted by the government that is based on the blockchain. Other countries governments are also considering taking moves to mint and use digital currencies. Just think of the data and control it would grant governments if they mint their own digital currency. They would be able to actually track how much currency is in circulation – a feat governments today are unable to do with paper money, they would be able to spot and shut down fraud with ease. The IRS and equivalent of each country would have a far easier time overseeing business operations and clamping down on tax evasion etc. Also for countries heavily in debt (pretty much every country) digital currencies may be seen as a way of softening their debt woes. Currently a number of countries are devaluing their currency so that their debt is effectively reduced. Switching to a new dgital currency not directly linked to the old might serve as a tool for those that would further seek to devalue their fiat currency and therefor effectively reduce the debt owed.

  21. It can be difficult to find sound opinions about blockchain based digital currencies as their such a recent phenomena. A number of so called experts, a number of PHD holding professors of economics have made a number of really off the mark predictions and statements about Bitcoin and digital currencies. Even Warren Buffet seems to have mis-characterized crypto currencies. The thing is when the internet protocol was being developed at it’s early stages there really weren’t alot of so called experts who’s opinions were sound. It was such a new invention with so much unrealized potential still left to be tapped as people understood how the internet protocol could be integrated into the world and vice versa.
    Bitcoin’s in a similar time I think. It’s difficult to imagine what might be done with the blockchain in the coming years, not just in currency as well.
    As for experts Andres Antonopoulos is sound and has a professional background that overlaps what the blockchain is technologically and the systems it has thus far fitted into. I’ve also found Jeffrey Tucker to be a very astute and entertaining speaker.
    Hope you chaps find these recommendations helpful ;)

  22. Milly Bitcoin 06/04/2015 at 05:46

    The articles are supposed to be about cryptocurrencies but they are about weird political agendas. You can listen to anyone you want, Alex Jones, the voices in your head, etc.

  23. Black Dynamite 06/04/2015 at 05:14

    So if you “aren’t educated in economics”, how are you calling the author ignorant? Where do you get off calling anybody ignorant about economics or money when you “aren’t educated”?

    If the author is so ignorant, why do you read his articles all the time?
    Oh…..
    BD

  24. Milly Bitcoin 06/04/2015 at 04:37

    I didn’t say I was educated in economics, I said to seek out educated people. In the case of Mile Maloney he runs a precious metal business and he is not an academic resource.

  25. Black Dynamite 06/04/2015 at 04:24

    And how are you “educated” while Mike Maloney is a “kook?
    You come off as the most ignorant person here.
    That seems to be your thing.
    BD

  26. Black Dynamite 06/04/2015 at 03:37

    Milli Bitcoin has “Troll Harder” license plates
    BD

  27. Black Dynamite 06/04/2015 at 03:36

    That is the first country of many to do full digital.
    You really thing a centralized government would ever have decentralized monetary systems?
    BD

  28. Milly Bitcoin 06/04/2015 at 03:34

    I am not talking about competing theories, I am talking about educated people versus ignorant cultists with no education who seek out kooks to justify their agenda.

  29. Black Dynamite 06/04/2015 at 02:39

    Were you always an angry loser? Or did you have to work at it?
    BD

  30. whoever wrote this article is an ignorant moron.

  31. Rodrigo Fernandez 06/04/2015 at 01:59

    “real economists”? are those the ones that do the money printing and work at the Fed, sucking up the people’s wealth?

    If you want to understand Economics, sound Austrian theory is the way to go.

  32. Rodrigo Fernandez 06/04/2015 at 01:45

    Who’s going to support Ecuador’s government digital money? That is a joke. The same dishonest fiat money but now without any paper? It will be cheaper for the politicians to manufacture. That’s the only advantage I see for that crazy project. Fiat will eventually fall, whether it is represented by paper or bytes.

  33. Milly Bitcoin 06/04/2015 at 00:28

    All economists do not have the same opinions. People who are educated in economics know more than people who haven’t.

  34. Dimitri Andre 06/04/2015 at 00:03

    And offer no real counter point besides insults lol

  35. Dimitri Andre 06/04/2015 at 00:00

    Those same economist who told us everything was fine before the crash of 08 or the same ones who said QE will promote employment and all that good stuff when they only made wall st richer thru cheap being thrown in the stock market despite the main st not improving at all. And you consider a successful business man that actually know how to find and produce value less credible than most economists that produce little to nothing and are wrong most of the time?? Please give me break Milly nonsense.

  36. Dimitri Andre 05/04/2015 at 23:47

    preach!!!

  37. Milly Bitcoin 05/04/2015 at 20:37

    You want an echo chamber of kooks so you can sit around giving each other compliments and discuss how the rest of the world is all stupid.

  38. Milly Bitcoin 05/04/2015 at 20:36

    I just comment on the small number of kooks and nut jobs who insist on using the Bitcoin technology to promote some wacky agenda. the agenda does not stand on its own merit which is why the kooks have to try to use the technology to get attention. These people routinely reject education and they reject anyone with credentials which is why nobody has a legitimate reply as to why they quote some kook with a Youtube video rather than a real economist who knows what they are talking about.

  39. Is gold money or property? It’s BOTH. it is a physical item that stores value. Tuck it under your mattress in 1920 and it has the same value today. You can buy a FINE suit of clothes with it. As far as Bitcoin, the purchasing power of that unit is still to be determined. It’s hovering at around $250 Fed notes.

    I see that it has taken up to 1200 Federal reserve notes to buy a bitcoin at times. It takes just OVER $250 Federal reserve notes to buy a bitcoin now too. It is not regulated or controlled by anyone. That is where the banks are screaming because it is direct competition to them and they have NO jurisdiction over it.

    Remember – According the the Currency act of 1792 – it now takes just over 16 Federal Reserve Notes to buy 1 (one) US dollar. (A federal Reserve Note is NOT 1 (one) US dollar. it is an iou, promissory note, check – pick a name – stating that the Federal Reserve OWES the bearer one (1) US dollar. Sad that it is worth so little. but that is what happens when prices of paper are manipulated for the benefit of those issuing that paper. I won’t go into the maipulaton of silver and gold pricing. Funny that there isn’t enough silver on the planet, mined or not, to cover all the silver contracts being traded right now.

    Bitcoin has none of that and are not taxable (unless you exchange them to FED notes – Capital Gains/losses) – The ONLY way to tell if Bitcoin is currency – Can you pay your INCOME taxes with it? Nope. Then it is NOT taxable as income or currency. If you buy a bitcoin for $100 FED notes and then sell it for $250 FED notes then you have a capital gain of $150 Fed notes and must pay income taxes on that IF you are a taxpayer. (A fed note is capital and you have gained some) but if you hold the coin – you owe nothing. They want you to BELIEVE that you do and will NOT correct you.

    It’s also interesting to realize that if you were to exchange your FED notes for US minted one ounce gold coins with a face value of $50, you would experience a capital LOSS of about $1150 FED notes. You see, the IRS will accept US minted gold coins to pay your taxes with. They are legal tender for the face value on the coin. It’s amazing how much $50 will buy you these days. (REAL dollars not these FED crap notes.)

    Another interesting thought is how exchanging your time for any kind of compensation = a taxable event. Does exchanging a $10 Fed Note for 2 $5 Fed notes qualify as a taxable event? No. What is the difference? You exchanged value for value. Or does the government OWN your time? They don’t own mine.

  40. I’ll guess to are right. I missed the point. Sorry. Neverless I meant what I stated. All the best

  41. Millys agenda seems to be; inject herself into every comment thread and call everyone else a biased kook and a conspiracy theorist in some egotistic attempt to claim the mantle of “adult in the room”.

  42. englishvinal 05/04/2015 at 18:37

    Rule of thumb….. be personally responsible for your own (each individual), activities…. including use, storage, and preservation of BitCoin.
    Do NOT run to a government for protection when you make decisions and commit acts that backfire on you. Example: storing your resources in a “wallet” that is hacked. There is a better way.

    People (human beings) should not have to CARE what “laws” governments put in place, or what terms/designations governments synthetically attach to BitCoin..(or any other digital money), and unless the individual gives over their control of their own freedom TO a government, there is no real reason to be concerned about what any government “decides” to label a BitCoin.

    If all the programmed dependency focused people roll over for this “I’m from the government, & I am here to HELP you” ploy…. and expect Big Daddy to compensate them for their own mistakes, then the freedom from the strangulation net of the bankster elites continues.

  43. Michael I believe your completely missing the point, Bret McDanel is talking about the power Government has over bitcoin. I continued on to that point out we have choice to either let them control it or go dark.

    You have been around the website for a while now just must have seen that regulation is taking place all over the world. Best example would be China’s acceptance and then implemented restrictions

  44. In my opinion there is no (economic) system which can holds for a long time. For the simply reason people can not be trust. You see it through whole history. That’s the main reason I like bitcoin. Because its a protocol NOT dependent on people but on mathematics. I prefer to take the risk of a failure or weakness in the protocol. Better that than make the mistake people made for years to trust some entity.

  45. There’s something wrong with Disqus as well. It should not allow “Milly Bitcoin” to post either.

  46. Thanks for putting that picture in perspective. I agree with you on that. That is why I believe it is best to bet on more then one outcome. Drawing this situation out very black and white.

    White would be enough Governments will the right this and let bitcoin do it’s think as it can and should. or the black one would be enough Governments will outright ban, cripple, render it simply not usable for what it has been created (My basic definition is that economy is a machine and currency/money is like oil in it) In case it will be black, anonymity coins are the way to go.

    Either way Nature is a dictatorship. Our current economic system is being controlled by sociopaths and psychopaths they have many tricks in their book, that the reason why they got on top and stay on top until the hole system is destroyed from the inside out. This because you can’t build something based on corruption, fraud, lies and so on.

    In short things will go boom and bust, as long as we have sociopaths and psychopaths running the show.

  47. Bret McDanel 05/04/2015 at 16:44

    Good semantic discussion however the courts globally are not so convinced. In the Netherlands there is an appeal to try to overturn the courts decision declaring bitcoin property. This one could go either way but it can harm those who trade bitcoins if it is property not money.

    In the US the situation is a bit more diverse. FINCEN and the Federal Reserve say bitcoin is property. The IRS says its either property or money depending on how its used. The Department of Justice says whatever is convenient at the time, for example the US Attorneys office says it is money for money laundering charges while the US Marshals office auctions it like property instead of disposing like money. The US federal courts however seem less split on the issue, however district court rulings are binding only on themselves and no other case. I have yet to see any appeal to either the circuit level or the supreme court regarding bitcoin’s status. For SEC laws, its money. For money laundering, its money. In fact I cannot recall a single US federal court case where bitcoin was not ruled as money in the courts.

    Being money is actually a good thing, at least in the US. That UCC lien issue from a couple weeks ago magically disappears if bitcoin is money not property. The tort of conversion when dealing with recovery of stolen coins also goes away (this is a good thing otherwise innocent 3rd parties can have to repay the stolen coins instead of just the thief). Tax rules are also simpler if it is money and treated as a foreign currency instead of as property.

    In the case in the Netherlands the issue is over the value of bitcoin. OVERSIMPLIFIED synopsis … A sells to B for price X. B takes delivery of the coins but does not pay A. A sues B. The value drops from $1200 to $250 by the time the case is heard. If bitcoin is property its just the current replacement value, so in this case $250. If bitcoin is money then the value is determined under different rules and in this case A gets $1200. This can affect some US decisions since there are similar rules for valuation as well.

    I am sure that there are many other places where the money vs property debate has just as many issues. It is actually vitally important that this be resolved, as nice as it is to live in an ivory tower and pretend that these things do not matter they actually do. The legal uncertainty has some implications for many. One off anecdotal evidence does not prove a point either (I am just preparing for the onslaught of internet comments because I dared to mention how a government can and does pass laws concerning what is and is not legal for those in its jurisdiction to do).

  48. Monopoly currency is source of wars and poverty without doubt because government can print as much as money they want, true thieve in this world.

  49. Black Dynamite 05/04/2015 at 15:08

    I think 5 years from now, all these fiat currencies will go pure digital, and their hustle will go online.
    Ecuador will be the first of many to leave paper currency behind. Deducting money from your account for taxes, cable, internet, parking tickets will be the way of the future. A digital hand will always be in your pocket!
    BD

  50. Milly Bitcoin 05/04/2015 at 14:20

    There are so many things wrong with this “article” there is not enough space here. You are just choosing definitions using your biases because you are promoting an agenda, not writing factual news stories. Try contacting real economists instead of seeking out kooks and conspiracy theorists (because they agree with your agenda) and you might do a little better.

  51. Great article. Also Mike Maloney is pretty sharp and definitely worth checking out.

Leave a reply

Your email address will not be published. Required fields are marked *