‘Bitcoin is Bitcoin’ — Jack Dorsey’s Square reports a three-fold increase in revenue from the world’s oldest cryptocurrency
- “Bitcoin is
Bitcoin,” tweeted Square and Twitter CEO Jack Dorseyhas his final word on the classification of the world’s very first cryptocurrency.
- Others, like Tyler Winklevoss and Hong Fang, believe that Bitcoin is a vehicle for change that will disrupt the status quo.
- Bitcoin’s classification is a hot topic because it will dictate how the cryptocurrency is regulated and taxed world over.
Bitcoin is Bitcoin.(and that’s all it needs to be)— jack (@jack) 1627916160000
Whether Bitcoin is a digital asset, a currency, a financial instrument, or property has been a hotly debated topic among regulators, governments and economists — and a consensus is yet to emerge.
I’m seeing this “#Bitcoin is digital real estate” analogy getting some traction, but it’s a bad one. Both are scarc… https://t.co/ZIVbigA18V— Michael Hartl (@mhartl) 1627918023000
The question of ‘what is Bitcoin’ has gained importance over the past decade as the cryptocurrency has gone from being a tool for the rebellious to something fund managers are adopting for diversification and countries like El Salvador are making legal tender.
Even Square’s $2.72 billion in
While Bitcoin revenue was $2.72 billion in the second quarter of 2021, up approximately 3x year over year, Bitcoin gross profit was only $55 million, or approximately 2% of Bitcoin revenue.
Bitcoin’s identity crisis
Bitcoin’s identity is an issue for the ages. And, its classification will dictate how it is regulated and taxed.
For instance, in the US, the Commodity Futures Trading Commission treats Bitcoin as a commodity while the Internal Revenue Service — the powerhouse behind taxation — treats it as a property.
In India, reports suggest that the government may classify Bitcoin as an asset class, which means its regulation will be overseen by the Securities and Exchange Board of India (SEBI).
Others, like Dorsey, believe that Bitcoin’s identity is a much bigger existential question. And, the general consensus is that it will create a shift in our current understanding of the financial system.
Bitcoin is the major unlock— Tyler Winklevoss (@tyler) 1627942389000
#bitcoin is our only peaceful exit to the status quo.— Hong Fang (Okcoin) (@hfangca) 1627936120000
Critics, like economist Peter Schiff, however don’t put too much stock in the power of Bitcoin.
@SpencerKSchiff @michael_saylor #Bitcoin is not a monetary good, because it's neither a good nor viable to use as money.— Peter Schiff (@PeterSchiff) 1627961228000
Regardless of where you fall on the scale, experts speculate that Bitcoin has become too big to fail. The total value that would get wiped out if Bitcoin were, somehow, to be banned or shut down.
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