Bitcoin: Is It Currency, Capital, Or Just Crypto Curious?

By Opa – Crypto Curious and Loving Every Minute of It

So I was listening to Jack Mallers the other day—you know, the energetic young guy who talks like Bitcoin is the second coming of sliced bread—and he said something that got my old brain wheels turning. He said he had officially cut all ties with the U.S. dollar. I think He was saying he doesn’t own or hold any USD any longer.

Now, I’m not saying I’m ready to walk away from Uncle Sam’s green paper myself quite yet. After all, that’s still what the grocery store takes when I’m buying sardines and potato chips. But Jack’s comment did get me wondering: If Bitcoin is actually a currency—crypto currency—why do we treat it like a commodity, or worse, like some fancy collectible baseball card?

Let me explain.

Digital Gold

I’ve always thought of Bitcoin as “digital gold,” or maybe “digital real estate.” It’s valuable. It’s limited. It’s shiny in a high-tech kind of way. The IRS thinks so too—they tax you on your Bitcoin gains like it’s a capital asset. Sell a bit of it, and suddenly you’re handing over 20% or more like you just flipped a beachfront condo in Malibu.

But when I travel abroad and trade my dollars for euros or pesos or rubles (not recently, thank you very much), I don’t get a call from the IRS asking for a cut. That’s just considered a currency exchange, plain and simple. No capital gains form required.

Bitcoin For Beginners

So here’s my question: If Bitcoin is a currency, why are we taxing it like it’s a collectible coin collection from the Franklin Mint?

I know Congress is working on something called the Genius Act—and no, I didn’t make that up. I guess they’re hoping it sounds smarter than some of their previous ideas. But in all seriousness, if the U.S. government is building a Bitcoin Strategic Reserve, and holding stablecoins like some kind of high-tech Fort Knox, doesn’t that mean they see crypto as, well... money?

Look, I’m not a tax lawyer, a senator, or a blockchain wizard. I’m just Opa—an ordinary, old guy with a bucket hat, an iPad, and a curious mind. I’m not here to preach policy or pick fights. I’m here to ask questions and yes—learn in public (I have one or two embarrassing things that I have not told you about yet, but I promise that I will). And maybe even make you smile along the way.

Fraction Attraction

So what is Bitcoin, really?

• Is it digital gold?

• Is it a hedge against inflation?

• Is it a currency?

• Is it an investment?

• Or is it just something that makes the IRS scratch its head and say, “We’ll get back to you on that”?

All I know is this: when I trade my time, my money, or my love for something that holds value, I want it to grow. And whether we call it a coin, a token, a commodity, or a currency, Bitcoin is still the most exciting thing I’ve seen in decades.

Our Story

Let’s keep asking questions. Let’s keep learning. And let’s enjoy the ride—fraction by fraction, sat by sat, and coin by coin.

Our continued gratitude for all the help Dex has given us on this chapter of our life.

That’s our story, and we’re sticking to it. What’s your story going to be?