Cryptocurrencies such as Bitcoin have fascinated technologists and investors alike. They have become
prevalent, with over 2,000 Bitcoin-like cryptocurrencies now in use. Most jurisdictions have not regulated
cryptocurrencies. Whether existing regulations apply to cryptocurrency turns ultimately on if we classify
cryptocurrencies as ...
Cryptocurrencies such as Bitcoin have fascinated technologists and investors alike. They have become
prevalent, with over 2,000 Bitcoin-like cryptocurrencies now in use. Most jurisdictions have not regulated
cryptocurrencies. Whether existing regulations apply to cryptocurrency turns ultimately on if we classify
cryptocurrencies as currencies, securities, or derivatives, or a money services (transfer) vehicle. In this set
of exploratory analyses we seek to classify Bitcoin. We utilize a variety of methods to compare aspects of
its behavior to: currencies, asset classes such as derivatives, technology-based products and possible
technology-based products such as Ether and the security SPY, and speculative financial bubbles. We find
that Bitcoin's behavior more closely resembles a technology-based product, an emerging asset class, or a
bubble event, rather than a currency or a security; such that it is correct that existing currency and security
laws should not apply to cryptocurrencies.