Are cryptocurrencies assets or currencies?

Are cryptocurrencies assets or currencies?

The original concept proposed by Satoshi Nakamoto is that Bitcoin is a new model of P2P (peer to peer) payment, where the users connect directly without the need of a centralized entity or bank to do the transactions, and the use of cryptography as a way to guarantee the veracity and security of the transaction. The concept was expanded to the acceptance of people and has worked as a novel model of electronic payments, without the need for cash and preserving the privacy of those who make transactions.

The whole model works good, but some of the old wolves of the current acquisitive system were not going to be left behind, to allow as a free way to replace the current economic system to the use of Bitcoin and other cryptocurrencies, so in several countries have been imposed regulations to the Bitcoin transactions, regulations ranging from the absolute prohibition of the use of Bitcoin, the restricted use by financial institutions or to the treatment of Bitcoin and other cryptocurrencies as virtual assets, to maintain a healthy distance with the system of that country.

Generally the lack of knowledge about how the ecosystem works, the distrust of the users caused due to hacking and fraud through the exchanges, as well as the resistance to the replacement of the current economic system, have taken these measures different countries. Another important point is that due to the anonymity in the transactions, the Bitcoin has been as a form of payment to the purchase of illegal merchandise in the black market and for doing money laundering and tax evasion operations. All these factors have influenced to the regulations of some countries, even the prohibitions.

So… Are they assets or currencies?

It depends on the country where you are. If you can legally perform transactions within the exchanges, They are assets when they are traded with other users. But if they also works as a form of legal payment in your country, they are also currencies (at least some classes or types of cryptocurrencies, for this case).

To give you an idea, we show you a list of countries where bitcoin is illegal and if you live in any of those countries you should avoid using Bitcoins and other cryptocurrencies: Algeria, Egypt, Morocco, Bolivia, Ecuador, Saudi Arabia, Bangladesh, China, Nepal and Pakistan.

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