In 2009, out of nowhere, an audacious idea emerged that might have seemed like pure science fiction: Bitcoin. Just think about it—a digital entity that doesn’t answer to any government, knows no central banks, yet spreads like a fresh breeze in a financial system that appeared unchangeable. Bitcoin appeared like a flash in the dark, carrying with it the promise of a financial revolution, a new way of thinking about money and economic freedom. But, as with all revolutions, it raised a sea of questions. What exactly is Bitcoin? Is it a currency, a commodity, or something entirely different—a technological hybrid the world has never seen before?
Bitcoin is tough to label. It’s not physical money you can hold in your hand, like the euro or the dollar, nor is it a tangible asset like gold. Rather, it’s a sort of ethereal creature that lives solely in the digital realm. It’s often called a cryptocurrency because it uses a secret language—cryptography—to protect transactions, making them as secure as hidden treasure. But although many consider it a form of money, the truth is that most countries don’t recognize it as legal tender. Bitcoin isn’t printed on paper, there’s no mint that coins it; it’s completely decentralized, as elusive as a breath of wind.
The magic of Bitcoin lies in its decentralization. Imagine a world with no supreme ruler, where no central bank dictates the rules. Bitcoin operates thanks to a global network of computers, all interconnected in a digital symphony that verifies and manages every transaction. This orchestra is conducted by the blockchain, a gigantic public ledger where every transaction is inscribed like a story in history books. But unlike a book kept in a library, the blockchain is distributed everywhere, so no one can alter it without everyone noticing. It’s like a great puzzle where each piece fits perfectly, but can’t be moved without destroying the entire image.
And so, Bitcoin finds itself suspended in this limbo—not entirely a currency, not entirely a commodity, but something altogether new that defies traditional definitions. For some, it’s an investment; for others, a secure and fast payment method; for still others, a way to transfer value across the web. However, the question of what Bitcoin truly is remains open, and the answers vary depending on the laws of each country.
In the United States, Bitcoin is viewed through a bifocal lens. On one hand, the Commodity Futures Trading Commission (CFTC) considers it a [commodity] (https://www.cftc.gov/PressRoom/PressReleases/7820-18) , like gold or oil; on the other, the Internal Revenue Service (IRS) treats it as a taxable asset, just like [property] (https://www.irs.gov/newsroom/tax-time-guide-irs-reminds-taxpayers-to-report-gig-economy-income-virtual-currency-transactions-foreign-source-income-and-assets) . In Europe, however, the European Union decided that Bitcoin transactions should not be taxed like other currencies, making it more akin to a payment method. In Japan, Bitcoin has been granted the status of legal currency, becoming a kind of new digital Yen.
Here’s where things get really interesting: what happens when someone profits from selling Bitcoin? This is where capital gains come into play. Imagine you have a box of candies. One day, you decide to trade one with a friend, but in return, you get a bigger, tastier candy. You’re happy, you made a good trade! In the adult world, when you profit by selling something for more than you paid, that profit is called a capital gain. And just like in the kids’ world, where you might have to share some of your candies with your parents, adults must give a part of their profit to the government in the form of taxes. This is what’s known as capital gains tax. So, if an adult sells Bitcoin and makes a profit, they have to give a portion of that gain to the government, thus contributing to improving everyone’s life by funding schools, roads, and public services.
However, Bitcoin doesn’t just exist in people’s digital wallets; it has found its way into courtrooms, raising complex and new [legal questions] (https://www.justice.gov/opa/pr/btc-e-operator-pleads-guilty-money-laundering-conspiracy) . Take the case of Silk Road, an illegal online market where Bitcoin was the main currency. Ross Ulbricht, the creator of Silk Road, was arrested and sentenced to life in prison, but the case raised crucial questions about privacy and the limits of government surveillance. Bitcoin has thus become a symbol of a larger struggle—between innovation and the law, between individual freedom and collective security.
But the challenges don’t end there. How do you manage the anonymity that is both one of Bitcoin’s most appreciated features and a thorn in the side of governments that fear its use for illegal activities? And how do you regulate it in a world where each country has its own laws, its own regulations, its own vision of the future? Some countries, like the United States, are trying to develop laws that protect investors and prevent fraud, while others, like China, have decided to ban it entirely. And let’s not forget the environmental impact of Bitcoin mining, a process that requires enormous amounts of energy, raising growing concerns in a world that desperately seeks to become more sustainable.
But despite all these challenges, Bitcoin is not just a technology. It’s a symbol, an invitation to rethink how we conceive of money, value, economic freedom, and justice. For those like me, who work in the legal field, Bitcoin is not just a subject of study; it’s a call to action. We cannot simply observe this revolution; we must be the custodians of justice and the builders of the future. The law is not just a set of rules; it’s a reflection of our deepest values, and Bitcoin challenges us to build a legal framework that nurtures human potential.
We are not alone in this journey. We are part of a global community of thinkers, innovators, and dreamers who believe in a better future—a future where technology doesn’t divide, but unites; where power is not concentrated, but shared; where every individual has the opportunity to realize their potential.
This is the world we want to build. A world where cryptocurrencies, blockchain, and other innovations are tools of freedom, justice, and progress for all. And so, with determination and hope, we look ahead. There’s still so much to explore, many questions to answer, and challenges to face. In the coming articles, we will continue this journey, exploring not only the laws that regulate this new world but also what it means to be human in a digital age.
So, we have a great responsability, we aren't customers but also builders of the future. Let us never forget the power and responsibility we hold in our hands because the future is not just a place we will visit; it is a world we will build together.
Credits: alla images uploaded from [Pixabay] (https://pixabay.com/it/)