For the first time ever, anyone can send or receive any amount of money with anyone.But it is also a form of currency since you can use it to purchase things online and is also given as a form of salary in online jobs.
Could a Bitcoin Exchange Be a Commodity Broker? – WeilThe people that care the most about these definitions are the people that insist on classifying everything, and they seem to believe that something cannot exist unless you can classify it.
Citron Compares Bitcoin To Other Commodity Trusts, Still
Bitcoin Soars to Record High: Fork, Futures and ETFsBitcoin is now classed as a commodity in the U.S. after a landmark case which opens the path for regulators to clamp down on cryptocurrency traders.
Currency can be made into a commodity and traded as such, though the converse is not always true, i.e. not every commodity can be made into a usable currency.Bitcoin was classed as a commodity in the U.S. in September 2015 by the Commodity Futures Trading Commission (CFTC), which started to clamp down on unregistered.Virtual currencies like bitcoin just came one step closer to legitimacy in the US.So says the Commodity Futures Trading Commission (CFTC), which on Thursday announced it had filed and settled charges against a Bitcoin exchange for facilitating the trading of option contracts on its platform.
CFTC: Bitcoin a “Commodity” Subject to Dodd-Frank SwapsJust to gain popularity and to compete the existing e-currency systems and fiats, bitcoin is also included with a characteristics of store of value.But the digital asset does possess characteristics of a commodity.
Request for Taxpayer Identification Number (TIN) and Certification.Virtual money is officially a commodity, just like crude oil or wheat.
Bitcoin is set to be given the same financial safeguards as traditional assets.Lowe, a bankruptcy court in San Francisco is being asked to determine whether bitcoin should be treated as a commodity or as U.S. currency.There is typically a base level of demand where its price is not expected to drop below a certain level (for example with Platinum, due to industrial demand), with the possible exception of structural changes to the local or global economy, or maybe even a black swan event.
Bitcoin Exchanges Note: Exchanges provide highly varying degrees of safety, security.Essentially, stores of value are items where the value does not decay over time, but can in fact also increase.
The rapid price swings in a short period of time suggests that bitcoin performs great as a commodity but not well as an asset for long-term investors.A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.The CFTC has confirmed that bitcoin and other digital currencies are commodities covered by the Commodity Exchange Act (CEA).As part of its first action against an unregistered bitcoin options.
The US Commodity Futures Trading Commission has ordered that bitcoin be treated as an official commodity and regulated accordingly.