Is Bitcoin Money?: Implications for Bitcoin Derivatives Regulation and Security Interest Treatment of Bitcoins Under Article 9 of the Uniform Commercial Code

23 Pages Posted: 21 Jun 2015

See all articles by John Michael Grant

John Michael Grant

New York University (NYU), School of Law, Students

Date Written: December 17, 2014

Abstract

This paper explores legal and economic issues related to a fascinating new technology called the blockchain protocol. The most popular and important blockchain commodity is currently bitcoin (Part I). Bitcoin is intuitively understood as a “virtual currency.” However, it is possible that bitcoin fails to meet an economist’s definition of money (Part II). In Part III, I survey the academic literature and conduct an empirical study of my own that compares bitcoin prices and other assets from July 12, 2013 until December 16, 2014. Ultimately, I conclude that bitcoin is not money and does not behave like money. Later, I analyze two potential legal questions connected to the question of whether bitcoin is money: how will bitcoin derivatives be regulated? (Part IV), and whether transferred bitcoins are free of security interests under Article 9 of the Uniform Commercial Code (Part V).

Keywords: bitcoin, derivatives, regulation, uniform commercial code, UCC, money, mpesa, currency, blockchain, Nakamoto

Suggested Citation

Grant, John Michael, Is Bitcoin Money?: Implications for Bitcoin Derivatives Regulation and Security Interest Treatment of Bitcoins Under Article 9 of the Uniform Commercial Code (December 17, 2014). Available at SSRN: https://ssrn.com/abstract=2619457 or http://dx.doi.org/10.2139/ssrn.2619457

John Michael Grant (Contact Author)

New York University (NYU), School of Law, Students ( email )

New York, NY
United States
8458252287 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
349
rank
83,208
Abstract Views
1,929
PlumX Metrics