Bitcoin Really Is Money, Here's Why - Forbes

Digital Money :: cryptocurrency cryptocurrencies

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Mining Bitcoin

Bitcoin mining is analogous to the mining of gold, but its digital form. The process involves specialized computers solving algorithmic equations or hash functions. These problems help miners to confirm blocks of transactions held within the network. Bitcoin mining provides a reward for miners by paying out in Bitcoin in turn the miners confirm transactions on the blockchain. Miners introduce new Bitcoin into the network and also secure the system with transaction confirmation.
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Buy Bitcoin Paypal

Bit coin is a peer to peer transaction system created last year that uses trades to be, conducted by a digital money, the bit coin. Unlike monies given by states, Bit Coin is completely electronic and is separate of any state or market, without ties to some monetary authority, corporation, or business.
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Unless you have an understanding of monetary economics and the functioning of money as well as a computer science background, [bitcoin] is totally boring and beyond the scope of what most people find interesting.

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Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

We have to allow for parallel currencies.
submitted by the420chronicler to Bitcoin [link] [comments]

Money is a matter of functions four: What constitutes Bitcoin's validity as a valid currency

Money is a matter of functions four: What constitutes Bitcoin's validity as a valid currency submitted by ubuntu_mate to CryptoCurrency [link] [comments]

/u/admin_default on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

It’s not USD and it won’t be treated as such. Ever.
Bitcoin can function as a currency when the price stabilizes enough to be used for daily transactions. In that scenario, capital gains would so minimal that most people would even be required to pay taxes on them
admin_default
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/BeardPatrol on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

What is there to correct? All transactions are valued in USD for tax purposes. What alternative is there?
BeardPatrol
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/u/fnzystore on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

If bitcoin is nothing, you shouldn’t and cannot tax it.
fnzystore
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/u/enporter on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

Indeed but current mainstream access to it is through exchanges. You can say whatever you want just wait till you get that IRS letter. If you’re an exchange you can play by those rules or you leave for somewhere else.
enporter
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/Subfolded on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

But if you earn USD and buy with USD, you're not playing any market, and only subject to income tax and sales tax.
If you earn BTC and spend BTC, it's treated as if you sold for USD and bought in USD, which isn't the same and you're subject to capital gains that are calculated from a very difficult to derermine cost basis.
I agree the capital gains rule is going to be a nonstarter for use as a real currency and it needs to be corrected.
Subfolded
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/u/starameski on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

Thank you!! Yes, the sheople simply can’t understand Bitcoin. They are too brainwashed.
starameski
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/u/goblinscout on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

If you made money playing the currency market you would owe taxes on gains exactly the same.
goblinscout
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/nspaz72 on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

Just move to Mexico
nspaz72
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/u/Hammond-of-Texas on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

In Switzerland it's treated like money and you're only subject to wealth taxes if you have enough. But no taxes on gains.
Hammond-of-Texas
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/u/ElephantsAreHeavy on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

exchanging/bartering hotel rooms for visibility on social platforms. How is it any different than paying with bitcoin?
From IRS point of view they should tell how much hotel room cost, how much influencer asked for visibility... and tax them both.
Interesting point.
There is however a huge difference in investing in bitcoin and daytrading/speculating on the price vs using bitcoin as a currency. Everybody that is complaining here is not really using bitxoin as a currency. Once volatility tapers dows, capital gains will become very small and insignificant.
To be fair; in my opinion the law is clear, influencers have to pay their taxes. If I get a car for my job, I pay taxes on that, if they get a hotel room for their job, there should also be taxes paid on that. The same with tipped staff, they should declare everything. Too bad there is no traceable blockchain for that.
ElephantsAreHeavy
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/u/dalebewan on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

This may sound extreme, but there are other alternatives to where you live. That's not just an option for exchanges.
I've lived in 5 countries so far and would absolutely move again if the government of the country where I currently reside were to become as openly hostile to Bitcoin is as the US is.
dalebewan
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/bluethunder1985 on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

You mean host of solutions right
bluethunder1985
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/Subfolded on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

On one hand yes; I pay my cap gains, write off my mining rig, etc. In 2017 I treated BTC like a stock and the taxes made sense, but I sold it all off and started over by mining (income) and don't plan on selling, only "using", and so now the taxes dont seem like a good fit the intended purpose. Low volatility would make the different tax treatment (currency) an easier pill for IRS to swallow, but how could you define something so relative as volatility...
Subfolded
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/u/E-renter on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

Very good argument and definitely gets in the way of BTC as money. Needs to be fixed. Until that happens it still functions very well as digital gold.
E-renter
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/shanita10 on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

No doubt. They want to make tax compliance impossible for any retailer who accepts btc.
Ironically, what they are more likely to accomplish is reducing tax compliance.
shanita10
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/supergrass77 on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

I would imagine this is one of the ways they are trying to kill it
supergrass77
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/Subfolded on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

There is none yet. That's why this is so GD complicated, haha.
Subfolded
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/uTOxiOnSOm on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

Never happen. Usd keeps on getting created in larger and larger amounts. It's built in to the way that system works. There will always be more and more dollars chasing fewer and fewer (as they get lost) Bitcoin.
It'll never stabilize until it stabilizes to 0.
uTOxiOnSOm
submitted by highhighhopes101 to TalkativePeople [link] [comments]

/u/admin_default on Utility value of Bitcoin cannot function if it is treated as property by the IRS... it is money in every sense of the word and should be treated the same way as USD

If you made significant capital gains as many people have, it’s reasonable to be taxed on those when making purchases.
On the flip side, you can also claim a tax loss on bitcoin if the price declined.
Bitcoin can’t and won’t be treated as a privileged asset or a privileged currency that’s somehow exempt from taxes. That would introduce a host of other problems.
admin_default
submitted by highhighhopes101 to TalkativePeople [link] [comments]

The functions of money What is Bitcoin and how it works The Bitcoin Standard (Audiobook) by Saifedean Ammous Unpacking Bitcoin’s Social Contract  Mao Lal What is bitcoin? - automata (fintech startup)

Money serves three functions in an economy: medium of exchange, store of value, and unit of account. To be an effective medium of exchange, money must be acceptable in exchange for goods and services. Bitcoin can be used as a medium of exchange for a limited number of goods. The early coders who discussed and tested it had a grand vision. They saw Bitcoin supplanting government controlled money and financial systems. They believed it would unite the three main functions of money in one. It would be a store of value, since it’s capped at 21,000,000 BTC, and even unbanked people can use it. The Functions of Money 2 According to David Mayer’s, The Everything Economics Book, money has three main functions: a medium of exchange, store of value, and standard of value (Mayer 2010). Money is a medium of exchange because it is used in exchanged for goods or services. In the interest of receiving something, you must give something of the same value. functions of money served by the Bitcoin. When it comes to functions of money served by the Bitcoin, they include a store of value as well as a medium of exchange. According to Ajiboye (2019), Bitcoin functions as money as it is a medium of exchange; bitcoin can be transferred to other people or businesses and even international transactions. bitcoin may be the best form of money we have ever used. The table below represents how bitcoin and cryptocurrencies, in general, compare to gold and sovereign currency as money.. Note: This chart doesn’t take into account that bitcoin has fungibility issues which make both gold and fiat better in that particular category. This is a problem that could be solved in the future if the network

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The functions of money

- Therefore money was invented, with two primary functions 1) measure of valu. And 2) medium of exchange And three derivative functions: store of value, transfer of value and deferred payment. A short introduction to how Bitcoin Works. Want more? Check out my new in-depth course on the latest in Bitcoin, Blockchain, and a survey of the most exciting projects coming out (Ethereum, etc ... This short course will examine Islamic and various other economic principles as they relate to the function of money and more specifically decentralised cryptocurrencies such as Bitcoin. The Untold Truth About Money: How to Build Wealth From Nothing. ... How Bitcoin and Blockchains use Hash Functions - Duration: 5:55. ... 4:17. Crypto Expert Predicts Bitcoin Will Hit 100k - Robert ... The Functions of Money: 1. Medium of Exchange 2.Measure of Value 3. Store of Value An Economics Video Produced by Economics is HOT.

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