BTC: Currency or Commodity?

Transcript

1. What is Bitcoin? Commodity or Currency?

2. About Me

3. What is a Commodity?

4. What is a Commodity? “From the taste of wheat it

   is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist.” - Karl Marx “A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.” - Investopedia

5. Why does a Commodity have Value? “From the taste of

   wheat it is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist.” - Karl Marx “A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.” - Investopedia

6. Why does a Commodity have Value?

7. Why does a Commodity have Value? “From the taste of

   wheat it is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist.” - Karl Marx “A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.” - Investopedia

8. What is a Currency?

9. What is a Currency? Currency is an intermediary store of

   value Instead of trading three chickens for a cow

10. What is a Currency? Currency is an intermediary store of

    value Instead of trading three chickens for a cow you trade three chickens for a currency for a cow. Once upon a time, that currency had intrinsic value, and was usually a commodity.

11. What is a Currency? Currency is an intermediary store of

    value Instead of trading three chickens for a cow (and needing that market to exist) you trade three chickens for a currency for a cow. Now, it has value because we say it does.

12. What is a Currency? Currency is an intermediary store of

    value Instead of trading three chickens for a cow (and needing that market to exist) you trade three chickens for a currency for a cow. Now, it has value because we say it does…

13. What is a Currency? Currency is an intermediary store of

    value Instead of trading three chickens for a cow (and needing that market to exist) you trade three chickens for a currency for a cow. Now, it has value because we say it does…

14. What is a Currency? Currency is an intermediary store of

    value Instead of trading three chickens for a cow (and needing that market to exist) you trade three chickens for a currency for a cow. Now, it has value because we say it does.

15. Which is BTC?

16. Which is BTC?

17. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • “Intangible asset” under the Personal Property Security Act ◦ Treated the same as patents, copyright, trademarks, etc. ◦ Gets complicated on native reserves - can’t be taxed by non-indians. Canada: 1 in 204 Commodity

18. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • It’s not a currency it’s a “digital means of payment” Japan: 1 in 59 Currency

19. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • Not illegal, but currency surrogate. • Central bank is categorically against regulating it as a currency. Russia: 1 in 52 Commodity

20. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • The U.S. Treasury classified bitcoin as a convertible decentralized virtual currency in 2013. • The Commodity Futures Trading Commission classified bitcoin as a commodity in September 2015. • Per IRS, bitcoin is taxed as a property. USA: 1 in 23 Both

21. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • Not legal tender • No businesses approved to use or trade. India: 1 in 6 Neither

22. Which is BTC? That depends where you’re at, and who

    you’re talking to. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory • Legal, for now, within the country though regulations in the pipeline for trading and mining • Illegal to convert yen to a foreign currency and move it out of the country (currency flight) China: 1 in 5 Currency

23. Which is BTC? In reality: • It’s not as pretty

    as Gold • It’s “mined” • it’s a store of value • it has limited availability • it’s difficult to find someone who accepts it at retail; • but easily converted to cash It most closely resembles Silver when compared to existing currencies and commodities.

24. Fini Questions? Comments? https://github.com/evandentremont evan@evandentremont.com