Bitcoin dismissed as currency by Norway

Chris Burns - Dec 16, 2013, 12:50pm CST
Bitcoin dismissed as currency by Norway

There’s a bit more doubt in the power of Bitcoin in the world today – just a bit less significant than the major announcement of China dismissing Bitcoin, but important nonetheless: Norway has stepped out. Making clear that they’ve got no intention of (immediately) allowing Bitcoin to jump in on their economy, the government of Norway has effectively disavowed the digital cash. Investors in Norway have taken note, without a doubt.

Speaking to the public this week, Hans Christian Holte, Norway’s director general of taxation, suggested that Bitcoin “doesn’t fall under the usual definition of money.” Holte continued by suggesting that Norway has “We’ve done some assessments on what’s the right and sound way to handle this in the tax system.” Instead they’ve come up with a short-term solution: treating Bitcoin like an asset.

When Bitcoin is treated like an asset, the country is able to tax it as they would any other product bought or sold in their borders. Currency is treated in a completely different way. Here the country is seeing the Bitcoin currency as something that’s mostly bought and sold as something valuable, not used as a currency as they see a currency in a traditional way.

With approximately 12 million Bitcoins out in the wild today, there’s still certainly a market for buying and selling them worldwide. With moves like China’s ousting and Norway’s current considerations in play, the coin’s worth will continue to fluctuate wildly. Have a peek at our recent Bitcoin timeline below to learn more, and let us know if you’ve been in the game for an extended period yourself!

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