‘Bitcoin is Bitcoin’ — Jack Dorsey’s Square reports a three-fold increase in revenue from the world’s oldest cryptocurrency

• “Bitcoin is Bitcoin,” tweeted Square and Twitter CEO Jack Dorsey has his final word on the classification of the world’s very first cryptocurrency.
• Others, like Tyler Winklevoss and Hong Fang, believe that Bitcoin is a vehicle for change that will disrupt the status quo.
• Bitcoin’s classification is a hot topic because it will dictate how the cryptocurrency is regulated and taxed world over.

“Bitcoin is Bitcoin, and that’s all it needs to be,” said Square and Twitter CEO Jack Dorsey on August 3 after earnings of his digital payments company showed that Bitcoin accounts for more than half of its revenue.


Whether Bitcoin is a digital asset, a currency, a financial instrument, or property has been a hotly debated topic among regulators, governments and economists — and a consensus is yet to emerge.


The question of ‘what is Bitcoin’ has gained importance over the past decade as the cryptocurrency has gone from being a tool for the rebellious to something fund managers are adopting for diversification and countries like El Salvador are making legal tender.

Even Square’s $2.72 billion in revenue from Bitcoin between the months of April to June this year is reflective of the cryptocurrency’s growth. It is triple the amount people were spending on the platform last year during the same period.


Bitcoin’s identity crisis

Bitcoin’s identity is an issue for the ages. And, its classification will dictate how it is regulated and taxed.

For instance, in the US, the Commodity Futures Trading Commission treats Bitcoin as a commodity while the Internal Revenue Service — the powerhouse behind taxation — treats it as a property.

In India, reports suggest that the government may classify Bitcoin as an asset class, which means its regulation will be overseen by the Securities and Exchange Board of India (SEBI).

Others, like Dorsey, believe that Bitcoin’s identity is a much bigger existential question. And, the general consensus is that it will create a shift in our current understanding of the financial system.


Tyler Winklevoss, crypto billionaire and founder of the crypto exchange Gemini, as well as the CEO of Okcoin, Hong Fang, believe that Bitcoin is going to unlock a new paradigm and disrupt the status quo as we know it.


Critics, like economist Peter Schiff, however don’t put too much stock in the power of Bitcoin.


Regardless of where you fall on the scale, experts speculate that Bitcoin has become too big to fail. The total value that would get wiped out if Bitcoin were, somehow, to be banned or shut down.

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