The debate about whether cryptocurrency is money or not

ESSENTIALLY BITCOIN IS A COMPUTER PROGRAM, NOT MONEY OR ACTIVE

By Alex Vallenilla / @alexvallenilla

The debate unleashed on cryptocurrencies continues. The government of the United States has been taking interesting steps in the legal aspect, since this invention has come to change schemes in the economic, social and political performance of the whole world. On the legality of Bitcoin and the other cryptocurrencies, its detractors, have tried to create matrices of opinion on the use given to them, and it has been meant that it is a speculative bubble, a Ponzi pyramid, or simply a resource of criminals for the drug trade, arms and the payment of ransom kidnappings.

Earlier, an English study, refers to the size of the cryptocurrency market, still very small when compared to the global market of fiat currencies and the stock market and debt bonds, they are used in less volume for criminal purposes .

Economists who maintain a classic view of the operation of central banks ask about the support of cryptocurrencies. By calling these "money", has not been missing the signals and quite rightly from those seeking explanations to establish what is the value of a Bitcoin, if the fiduciary currencies, understood as the dollar, the euro and the In addition, they have the support of the economies of their countries and are regulated by their central banks.

It must be said before Bitcoin is considered money or an asset, that this is essentially a computer program. The use that is given to the code, according to the user, is what would give the characteristic to it. The cryptocurrencies as they are conceived by the informatics, they are not a property, they are not a currency, they are not an asset. It is in this that the debate develops, in how to qualify them.

The use of public and private keys that allow to protect the "tokens", helps that if these are used to represent an investment contract, then that "token" can be considered a stock market title, which is genuine from the moment in which It has been verified and confirmed by the "mining" process and is registered in the block chain.

The exchange that takes place between people, when cryptocurrencies are transferred, is essentially the sending and reception of computer data, of bits, verified by a whole network. Being safe, unique and supported by the entire system involved in the process, then there are those who have assigned a value or an index of a fiduciary currency and then becomes a derivative that has allowed to become a means of payment for consumer goods , whether physical or digital, which has been worth considering them as money. 02/03/2018