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Is bitcoin a real currency

The fortunes of Bitcoins continue to fluctuate after the Norwegian government is bitcoin a real currency that is does not count as real money. The virtual currency has left governments throughout the world scratching their heads as it is not controlled by a government or any central bank.

But a government offical in Norway, Scandinavia’s richest nation, is the latest to express doubts over the legitimacy of Bitcoins. Bitcoins don’t fall under the usual definition of money or currency,’ Hans Christian Holte, director general of taxation in Norway, said. Instead, Norway will classify Bitcoins as an asset, subject to capital gains tax. We’ve done some assessments on what’s the right and sound way to handle this in the tax system,’ he added.

Paul Ehling, associate professor in the department of financial economics at the BI Norwegian Business School, said the government’s definition of money may be too restrictive, reports Bloomberg. Currency is any agreed upon means of exchanges of goods and services, so you could have some small stones, as used in history, and if it’s accepted by a sufficiently large population, then that’s enough,’ Ehling said. These days we do mean that a much larger group of people is willing to exchange goods or services for this currency. Would you like to pay by card or phone? The value of Bitcoins plunged earlier this month after the Chinese government questioned the legal status of the virtual currency. A joint statement from several Chinese official bodies such as the People’s Bank of China said Bitcoins are not a currency and cannot be used as a form of payment by any businesses or financial institutions. Bitcoin is a distributed peer-to-peer digital currency that functions without any central authority, such as the Bank of England.

The currency was launched in 2009 and is traded within a global network of computers. Bitcoins can be bought with near anonymity, which supporters say lowers fraud risk and increases privacy. But critics say that also makes Bitcoins a magnet for drug transactions, money-laundering and other illegal activities. 17 of currency four years ago. Germany said it will impose tax on the virtual currency. Bitcoins have also received several boosts in recent months with illegal trading platforms closed and the U.

Bitcoin is an open source, peer-to-peer payment network and digital currency introduced in 2008. The first step in owning and spending bitcoins is setting up a digital wallet. This is a piece of software that can be downloaded to your desktop, accessed online or used as an app. It contains a code for receiving bitcoins and a separate code for spending them.