As a preliminary question, I consider it appropriate to ask ourselves what is a cryptocurrency? A cryptocurrency is a virtual currency, which is normally used by a decentralized network to execute transactions.

The cryptocurrency has just arrived in our lives, however, a significant part of the population does not know what a cryptocurrency is, what its risks are and what they are for. On the other hand, people who know them, or think they know them, often throw themselves into a kind of stock market gambling acquiring cryptocurrencies for their wallets without being truly aware of the dangers that this practice entails.

Within the framework of what was stated in the preceding paragraph, let us ask ourselves: what is the value of a certain cryptocurrency? From my point of view, making a valuation is very difficult, there are no tools or calculation methods as is the case with Listed companies, in fact, given the volatility that certain cryptocurrencies have suffered, it is only about expectations.

Is it risky to invest in cryptocurrencies? To answer this question I have to go to the aid resource «it depends», that’s right, investing in cryptocurrencies will depend on the moment in which we make our investment, we must consider and pay attention to the fact that steep climbs have led to considerable crashes.

Can I pay the electricity bill with cryptocurrencies? Go ahead, I don’t know anyone who has paid the electricity bill or any other bill with cryptocurrencies. Who I do know is people who have tried to speculate on this product and have lost part of their investment.

Are cryptocurrencies regulated? When people enjoy legal certainty, with efficient governments, a good regulatory framework for consumer protection, a well-established economic policy and institutional guarantees such as the Deposit Guarantee Fund for Credit Institutions, the anonymous and untraceable approach of cryptocurrencies has little to offer.

I think it is appropriate to make a mention of spanish Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism, whose article 1.5 establishes that:

  «Virtual currency will be understood as that digital representation of value not issued or guaranteed by a central bank or public authority, not necessarily associated with a legally established currency and that does not have the legal status of currency or money, but that is accepted as a means of exchange and can be transferred, stored or traded electronically».

But then is a cryptocurrency money? In my opinion, from a theoretical and legal point of view, cryptocurrencies are not money. Money fulfills three functions: firstly it is a medium of exchange because it is exchangeable for other goods and services, secondly, it is a unit of account because it determines the price of any good as a function of an amount of money and, thirdly, it is a depot place of value because we can save money to conserve wealth. In conclusion:

i) cryptocurrencies are not universally accepted as a unit of account and a means of payment;

ii) are priced in United States dollars or other fiat currencies;

iii) they are not understandable and are not available to everyone;

iv) they are not easy to use;

v) To be classified as money, it must be recognized by the States, which in turn would allow us to pay our obligations with this medium.

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