A Star Is Born? Take it easy, not so fast. Part 2

Every brave idea needs a brave one to express it.

Bitcoins brave idea is, No Middleman!, without brave one.

Spearheaded as a groundbreaking innovative idea, is that really the truth?

Bitcoin as digital currency, check? Yes, Bitcoin is the best known digital currency now. But is it really that innovative?

The answer is NO. In 1983, a research paper by Dabic Chaum introduced the idea of digital cash. In 1990 he founded DigiCash.

In 1998 we have PayPal. Other systems followed like E-gold was a digital gold currency operated by Gold & Silver Reserve Inc. Sounds familiar in today's Bitcoins discussions. (Wikipedia).

Bitcoin as decentralized system. Innovation check? Definitely yes! The first and most popular system is Bitcoin, a peer-to-peer electronic monetary system based on cryptography.

A cryptocurrency is a type of digital asset that relies on cryptography for chaining together digital signatures of asset transfers, peer-to-peer networking and decentralization. In some cases a proof-of-work or proof-of-stake scheme is used to create and manage the currency.

Bitcoin as currency? Partly it is currency, it is used for trading goods and services.

However, if Bitcoin falls under economic definition of money, it does not qualify as a currency, electronic money, or payment instrument from a legal perspective.

Indeed, the correct test to determine whether it is a currency was laid out by the Supreme Court in California Bankers Association vs Schulz, as follows:

„Currency is defined in the Secretar´s regulations as the 'coin and currency of the United States or of any other country, which circulate in and are customarily used and accepted as money in the country which issued."

Bitcoin is not issued nor sanctioned by the US, or by any government.As Bitcoin lacks the requirements of „legal tender" in all jurisdictions, it cannot qualify as a currency. Similarly, it does not fit the definition of „payment instrument" in Finland nor „electronic money" as defined by the European directive because the law stipulates that a payment must have an issuer responsible for its operation. Where are you Satoshi? (Journal of Business & Securities Law Vol 15 issue 2 Article 4)

Innovation as currency itself ? No, the world is full of currencies. Bitcoin just wants to replace others.

Security, store of value, anonymity and other criteria. How will Bitcoin assert itself there?

Stay tuned...