World Economy

Bitcoin an Official US Commodity

Bitcoin  an Official  US CommodityBitcoin  an Official  US Commodity

Bitcoin is to be classed as a commodity in the United States along with gold and oil, according to Commodity Futures Trading Commission, Euronews reported. It decision follows a clampdown on unregistered firms which trade derivatives of the crypto-currency. Bitcoin is a virtual currency that allows users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining. Many a bitcoin die-hard will say that the virtual currency is not only a currency, but also one of the few available for use that can’t be debased by greedy governments. It’s perhaps not surprising then, that the most powerful government in the world, at least when it comes to global finance, doesn’t even agree that bitcoin is a currency at all. The CFTC CEO, Francisco Riordan, said in a press release, “In this order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities.”