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When did Bitcoin become a commodity | by Arnas Sinkevicius | Coinmonks | Aug, 2022

Bitcoin become a commodity

Bitcoin, the world’s most popular and valuable cryptocurrency, has been a commodity in at least one country since 2017.

On January 1st, 2017, Bitcoin became an officially recognized commodity under GATA regulations in Germany. This classification means that bitcoin can be traded on a German stock exchange as well as being taxed just like any other form of property or investment. As of this writing, over 200 companies offer crypto trading with Bitcoin on their platform which is still a fraction of the companies available in the United States. The world seems to have yet to catch up to cryptocurrencies but it appears that it may be starting soon with countries such as Japan and Singapore investing more time and resources into facilitating this new form of digital trade.

One thing is certain, the one who thought up Bitcoin has changed the world. Without Satoshi Nakamoto and his idea of the blockchain, we would be in a very different world today. Using blockchain technology as a mechanism for digital currency, Satoshi created a whole new way to trade goods and services on the internet. No longer did you need to be held back by borders and bank systems that could put an end to your international transaction. With this technology, these restrictions are eliminated and your money is safe because it’s held digitally.

That being said, how has this new form of currency gotten so big? Why is Bitcoin worth over $100 billion? What is it that makes this coin unique?
(Editor’s Note: This article was written by myself and a few other contributors)
One thing that sets Bitcoin apart from other currencies is the fact that it’s decentralized and not controlled or managed by banks or governments. You don’t need to have a bank account or use PayPal to have your Bitcoin wallet loaded with money. This means you can have an unlimited amount of funds and use these coins for everyday transactions.

Bitcoin is also a very easy way to make money. If you’re looking to get started with cryptocurrency, Bitcoin would be the best option because of its price and availability. You can use exchanges such as GDAX, Bitfinex, and Coinbase to purchase your first Bitcoin. These exchanges are secure and you can use them without being worried about theft or other security concerns.

But how did this currency gain so much value?
When cryptocurrencies were first created in 2009 by Satoshi Nakamoto, they weren’t worth much. Bitcoin at the time was worth pennies on the dollar compared to its current value of over $5,000 per coin. The value of Bitcoin went up every year and in less than a decade, it’s worth over $100 billion which is virtually unheard of for a currency. This price increase has left many cryptocurrency experts scratching their heads as to why so much value has been placed on this coin.

The answer may rest with the new evolution of cryptocurrency that is known as the blockchain, which is a public ledger of all crypto transactions. Blockchains are digital ledgers (i.e., databases) that are decentralized and safe from tampering or hacking. The result is that you can both track and transfer your funds in real-time rather than waiting days or even weeks for bank wires to be completed. All the fees you pay are included in the original cost of your coins which is why they can be so cheap.

Another similarity between Bitcoin and other major commodities like oil, gold, and silver is that they are all produced using a blockchain system. They are created using computers that use a mining process to verify transactions. The mining process involves generating new blocks of digits known as hashes which are then linked together to form a chain of blocks that get shorter and shorter until only one block remains. It’s this process of creating these hash chains which provides value for Bitcoin because it is used to make new coins.

The value of Bitcoin goes up when its demand increases, which is partially due to its ease of use. You could argue that people need Bitcoin to make purchases because almost half of all bitcoins exist in the wallets of users.

Bitcoin transactions are also very easy to execute because there are no third parties involved. It’s a peer-to-peer system where one person or group can exchange coins with another person or group without any financial institutions being involved. As a result, this makes for a very simple transaction because there is no red tape and no overhead costs associated with banking fees.

Another reason why Bitcoin is rising in value is because of its scarcity. There will only ever be 21 million bitcoins created and most estimates think that they will all be produced by 2041. This makes it a finite resource whereas fiat currencies or stocks can have their supply increased at any time. Many people prefer to use digital currency because it cannot be counterfeited or otherwise manipulated to create more money for governments and banks.

People also transfer their bitcoins internationally in a very easy way, which is another reason why the value continues to increase. Because these transactions are peer-to-peer, you don’t need to rely on currency exchanges or transfers through banks which would incur hefty fees and take days or weeks to complete the transaction. With Bitcoin, you can initiate your transactions within minutes, which means that you can spend and save funds with just a few clicks of the mouse.

There are many fiat currencies like the dollar and the Euro that are being forced to compete against Bitcoin. Some go as far as to say that traditional markets are being challenged by this new form of currency. This should give you an indication of why so many people have started thinking about Bitcoin in recent times. It’s also important to note that if a major currency falls, it can mean a good opportunity for something like Bitcoin to rise at a cheaper price and with more value before the same trend happens again.

There are no restrictions on the use of Bitcoin or other digital currencies. They can be bought, used for transactions, and traded just like standard stocks or bonds. You can also keep them or sell them when you want to make a profit from your investment. I would even argue that Bitcoin is much more stable than some other investments because any major movement in fiat currencies will always affect the value of Bitcoin which is why it’s a great place to start with cryptocurrency.

One thing you’ll notice about Bitcoin is that it’s not controlled by any centralized authority. This is one of the main reasons why Bitcoin prices have been rising. People don’t want their money to be controlled by a bank or any other institution that can easily manipulate the value of their wealth. This is why the demand for Bitcoin will continue to rise because it’s a source of wealth that can’t be influenced by government policies. If you withdraw all the money from your bank and convert it into Bitcoin, you’d be better insulated against any future economic crises.

The same is true with many other digital currencies including Ripple, Ethereum, and Litecoin which are also on the rise as a result of their increasing popularity. There are now dozens of cryptocurrencies available on exchanges and they continue to rise in value as well.

A lot of people are very hesitant when it comes to trading in Bitcoin and other cryptocurrencies because they don’t want to spend money on something that could lose a lot of its value overnight. However, I argue that this is the best thing about investing in digital currency because you don’t have any upfront costs when you buy it. There are no bank fees or transfer charges and you can keep what you want if the price goes down.

Many experts suggest that cryptocurrencies like Bitcoin will become more valuable than fiat currencies as time goes on. The simple reason behind this is that they have no interest costs, which means that they can continue to rise without the need for more economic stimulus policies.

This also means that Bitcoin has the potential to reduce global debts because it can be used to make international transactions in a very cost-effective way. As you can see, there are many different reasons why Bitcoin is on the rise and it will continue to do so in future years as global governments try to control its use to manipulate its value. This makes it a very interesting investment because you won’t be tied into any investments and you can keep what you want if its value goes down.

That’s my opinion on the subject of investing in Bitcoin and other cryptocurrencies. If you are interested in investing in digital currency, I’ve got some good news for you. There is a Bitcoin exchange that I use and have been using since January 2014. It’s called Bitonic and it has never let me down when I needed to make a trade. They have a very simple interface and the fees are very low. To get started, all you have to do is follow this link to register which only takes a few minutes to complete. It will also give you access to the full trading platform which includes buying and selling Bitcoin, Ethereum, Litecoin, Ripple, and others.

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