"Notice 2014-21 (by IRS) provides that convertible virtual currency is treated as property for federal tax purposes and that general tax principles applicable to property transactions apply to transactions using convertible virtual currency. The Background section of Notice 2014-21 defines virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.
The IRS notice hereby declares that Virtual currencies including Bitcoin should be treated as property.
IRS (United States) isn't alone that treats Bitcoin as property for tax purposes. In fact, there are many other jurisdictions that treat it in the same way.
One of the key benifits, I think, for Bitcoin being treated as property is a legal protection. Property laws regarding ownership, transfer, and seizure have been around for centuries. If Bitcoin is considered a property, its legal status shall definitely make it more secure and trustworthy.
Well, I have pondered on this 'Bitcoin as property' narrative, I can't see any direct objection to this narrative. But if there's somthing that I am missing out, kindly guide me with your PoV about this topic and answer the following questions.
What do you think is the best classification for Bitcoin?
Do you think that classifying Bitcoin under property would help in forming regulations for Bitcoin?
Do you consider Bitcoin as a form of currency or store of value?
If you want to follow the topic and earn sats by participating in discussions, you can join me on Stackernews.com, a platform much similar to Publish0x.
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