Because it is a brand-new sort of property that is autonomous, impersonal, and apolitical, bitcoin has a monetary value.
First and foremost, bitcoin is a form of independent property, not money. Actually, the fact that it is property gives it monetary value. Because it is property rather than money, bitcoin can be owned. Property thus has the upper hand. Semantics? We shall see.
What are Ownership And Property, Respectively
Objects like real estate, televisions, vehicles, sandwiches, and chairs are examples of things that are property.
Some things aren’t, including Jupiter, the English language, the weather, and algebra.
Owning anything is having control over how it is used, consumed, or disposed of. Property can be owned.
Application of Property Ownership Law
Ownership of property is typically enforced, either through actual force or the threat of it. A television is yours because law enforcement authorities will require anyone who uses it without your permission to give up their usage of it. The possibility that they will be forced to return it and penalized for having taken it deters them from stealing your television.
We have laws that specify how you can become the owner of property as well as how the government will uphold that ownership.
Some types of property, like homes and cars, come with built-in technologies, such as keys and locks, to make it difficult for anyone to attempt to take them from you in the first place. However, in the end, you must rely on the legitimacy and strength of the legal system to defend your ownership. And if your property rights are violated, you must depend on the legal system to uphold them.
Ownership of Bitcoin is Special
Similar to other property, the owner is the only one who may decide how to utilize bitcoin. However, bitcoin possesses a special quality that no other type of property has ever had. Bitcoin ownership is independent of national laws and law enforcement. Even law enforcement authorities are unable to confiscate Bitcoin due to built-in technology that makes it impossible for anyone to take it from you by force. The first unseizable asset in history, bitcoin cannot be seized by either law enforcement or criminals.
Perfectly Transportable Asset
Since it is available everywhere on Earth, bitcoin is a truly global currency. Bitcoin can be owned like property with its use being exclusively decided by its rightful owner, even in places where there is no law enforcement or where governments themselves violate property ownership.
This demonstrates that bitcoin is entirely transferable in addition to being unseizable. You may carry it with you wherever you go and send it to everyone in the world. Without having to “carry” your bitcoin with you, you can travel anywhere and cross any country, and you can get it whenever you want to use it wherever you are.
An Indestructible Asset
In addition to being backed up and stored in various locations, bitcoin is also property. If you kept your bitcoin keys in your home, you could also keep extra copies of them somewhere else, unlike your home, which will be lost if it is destroyed by fire. Even if your house burns down, you can still use those coins if you find those keys in any of those locations.
Bitcoins are fundamentally immovable property. This is due to the fact that, despite the fact that bitcoins themselves are present in tens of thousands of locations worldwide, only those who possess the necessary keys are able to utilise them.
Property That is Incredibly Rare And Simple To Authenticate
Finally, because of how bitcoins are created, the supply is knowable, unquestionably, and provably finite, so it is always possible to determine how many bitcoins are currently in circulation and that there will never be more than 21 million.
The authenticity of bitcoins can also be easily determined. Unlike a false banknote or coin, you cannot pass off a phoney bitcoin without quickly and automatically getting caught in the act.
While there are other genuinely rare items, including those that are one of a kind, they are not completely portable, unbreakable, easily authenticated, or indestructible.
Ideal Real Estate for Money
Together with these additional characteristics, Bitcoin’s rarity and simplicity of verification make it a sort of asset that is ideal for usage as money.
Bitcoin is the ideal currency for trading for other goods. Money is, after all, a commodity that you exchange for other goods that you intend to utilize in some way rather than something you consume.
Ownership Responsibilities of Bitcoin
Due to the aforementioned factors, there are two distinct obligations that come with owning this particular type of property.
An owner of bitcoins must first take care not to lose their keys. Bitcoins itself cannot ever be spent if keys are lost yet the currency itself is still there. No government or law enforcement organization can step in to provide assistance. Keys lost can never be recovered.
Second, a bitcoin owner must prevent anyone from copying the keys required to use their currency. If your keys are stolen, the person who finds them owns your coins and is free to use them. Coins cannot be refunded after being used. In Bitcoin, there are no take-backs. Transactions using bitcoin are final.
You may pay a business to manage your bitcoins on your behalf. Lots of people do. However, if someone else is holding your bitcoins on your behalf, then, by the laws of Bitcoin, they are the ones who actually own the bitcoins. What you possess in that situation is a legal contract with that business, one that can be enforced by the legal system of the jurisdiction in which they do business. Then, as far as you’re concerned, this is just like owning any other type of property, and you don’t gain anything from it or assume any obligations specific to owning bitcoin.
A Trustless Type Of Property Ownership, Holding Bitcoin Directly Carries Responsibility
There are other companies that offer “partial” custody, in which case they will produce one or more keys required to help you move your coins or all the keys required to move your coins in the event that you pass away and wish the keys to go to your heirs.
Bitcoin is property, but unlike any other kind of property on Earth, it has special, strong, and responsibility-requiring characteristics.
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