Is Bitcoin An Asset Or A Currency?

What is bitcoin?

Bitcoin is a great many things to a great many people but for those of us who are a little confused: which is it, an asset or a currency?

An asset is some kind of economic resource. It can be controlled or owned and it provides the owner with value, usually financial. A house is an asset. You can sell a house and get cash in return.

A currency is a system of money, a means of exchange. You used currency to buy a latte this morning, or so you could watch the latest season of Altered Carbon on Netflix

If it’s hard to tell the difference between the two, consider this. Assets tend to have a built-in promise of increased future value. A house tends to increase in value in time and thus, is an asset. It’s not very liquid, unlike cash, and therefore can’t really be thought of as currency.

Based on those definitions Bitcoin could be both a currency and an asset.  It was created to be a currency and you can certainly buy things with bitcoin. Not everyone accepts bitcoin at the moment but you can use bitcoin on major retailers like Overstock and Newegg, and even Expedia will accept your cryptocurrency in exchange for plane tickets.

[randad]

It is also an asset because you can sell your bitcoin and convert it to USD (or any other currency) whenever you like. It’s more liquid than something like a house and since its inception it’s tended to rise in value so that checks that off.

Naysayers and people playing devil’s advocate will say that bitcoin can’t be considered a currency because of its volatility. This cannot be over stated – bitcoin is very volatile. As the joke goes, what’s the best way to become a millionaire? Start out as a billionaire and invest all of your money in bitcoin. Just this year alone, bitcoin has bounced around between $17,000 and $6,000 per coin.

bitcoin-currency

Source: Crypto-news.net

But why can’t it be both?

It’s true; right now bitcoin isn’t really reliable as a currency. If you knew that the $5 you had today could be worth $50 in a week you wouldn’t be incentivized to spend your money. It would be the opposite in fact; you’d want to hoard your cash. However bitcoin is just a baby and it’s just going through growing pains as currency. When it eventually settles down, it will be a currency.

It’s not a clear-cut asset either, like a house or gold. Gold holds its value but it’s not easy to liquidate a position in gold like it is (comparatively) in bitcoin. Bitcoin is rising in value because it’s being adopted by more and more people. We’ll only know what it truly is when it’s done growing.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)



Comments are closed.