Assets, Bitcoin

Is a Bitcoin Real Money?

A Bitcoin Is Not Real Money, It’s a Virtual Commodity

When it comes to Bitcoin, there seems to be a lot of confusion. Some people think it’s a currency, others believe it’s an investment, and still others think it’s a commodity.

So, what is Bitcoin? Well, the answer is a little bit of all three. Let’s take a closer look.

A Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

NOTE: Warning: Investing in Bitcoin is considered high risk and its value is subject to extreme volatility. There is no central bank or government backing of Bitcoin as a legal tender, so it may not be considered real money by some people or organizations. You should always do your own research before investing in any digital currency or asset.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

So, is a Bitcoin real money? That depends on your definition of money. Money is traditionally defined as a medium of exchange, a unit of account, and a store of value. By that definition, Bitcoin is not real money. It is not currently used as a medium of exchange for goods and services (although it can be used to purchase goods and services online).

And while it does have value – one Bitcoin was worth approximately $600 USD as of November 2017 – it is not currently used as a unit of account (although some businesses are beginning to price goods and services in Bitcoins). Finally, while Bitcoins can be stored on your computer or smartphone, they are not currently being used as a store of value (i.e., people are not saving Bitcoins like they would save dollars in a bank account).

So if Bitcoin isn’t real money, what is it? While it doesn’t meet the traditional definition of money, Bitcoin could be described as a virtual commodity. A commodity is defined as “a basic good used in commerce that is interchangeable with other commodities of the same type.

” commodities are often traded on exchanges; for example, oil or gold. Like other commodities, Bitcoin can be bought and sold on exchanges; however, unlike other commodities, Bitcoin is not physical – it exists only online.

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