How does Bitcoin compared to other assets?

Are you exploring Bitcoin and wondering if it can be used as an asset for payment? If you’re an office worker who has accumulated a significant amount of money and is considering investing in Bitcoin but is still unclear about it and confused because Vietnamese law does not support this type of currency, then this article of Rentfb will help you to clarify that. We will explore Bitcoin with you and compare Bitcoin compared to other assets. Stay tuned to learn more!

What is the Concept of Virtual Currency Bitcoin?

Up to now, the law has not provided a specific and official definition of Bitcoin. So what exactly is Bitcoin? Bitcoin can be understood as a type of virtual currency, also known as digital currency, issued in the form of open-source software. The special thing about Bitcoin is that it is not managed by any financial institution and is issued by software developers who also regularly control this system. Bitcoin is used and accepted for payment among members of a specific virtual community.
Bitcoin, born in 2009, is the world’s first electronic currency, laying the foundation for the development of the Crypto market we see today. It was issued by a mysterious figure with the pseudonym Satoshi Nakamoto. One of the prominent features of Bitcoin is its ability to be exchanged directly over the Internet without the need for any intermediary financial institution. Bitcoin also has other important features such as anonymity and fee-free transactions, contributing to creating a novel and unique financial system.

Bitcoin Compared to Other Assets

When comparing Bitcoin with other assets, we can see some distinct differences and standout advantages.

• Bitcoin is a decentralized digital currency, not controlled by any financial institution or government. This creates an independent financial system with a high level of globalization. Compared to traditional assets such as real estate, stocks, or gold, Bitcoin is not bound by local regulations and can be traded directly over the Internet without the intervention of intermediaries.
• Bitcoin has high liquidity, meaning it can be easily converted into cash or other assets without much difficulty. This is different from real estate, which has low liquidity due to the often complex and time-consuming buying, selling, and transferring process. Meanwhile, Bitcoin transactions can be completed in just a few minutes with much lower transaction costs than real estate transfers.
• Another important difference is the price volatility of Bitcoin. The value of Bitcoin can fluctuate sharply in a short time, which can bring great profit opportunities but also carries high risks. Compared to assets like gold or bonds, which tend to be more stable, Bitcoin has higher risk but also the potential for higher returns.

Bitcoin provides a high level of anonymity and security in transactions. Although not completely anonymous, Bitcoin allows users to conduct transactions without revealing personal identity. This is different from traditional assets, where transactions often require detailed information about the buyer and seller.

Is Bitcoin Considered an Asset in Vietnam?

Article 105 of the Civil Code 2015

According to Article 105 of the Civil Code 2015, assets are defined as follows:

• Assets include objects, money, valuable papers, and property rights.
• Assets include both real estate and movable property. Real estate and movable property can be existing assets and future assets.

Based on this regulation, assets include specific elements such as objects, money, valuable papers, and property rights. However, given Bitcoin’s peculiarities, it clearly is not an object in the traditional sense of assets.

Points a and dd, Clause 2, Article 6 of the Law on the State Bank of Vietnam 2010

• Foreign currencies or the common currency of Europe and other common currencies used in international and regional payments (hereinafter referred to as foreign currency);
• The currency of the Socialist Republic of Vietnam when transferred into and out of the territory of Vietnam or used in international payments.

Article 16 of the Law on the State Bank of Vietnam 2010 on the unit of currency

The unit of currency of the Socialist Republic of Vietnam is ‘Dong’, the national symbol is ‘đ’, the international symbol is ‘VND’, one dong is divided into ten hào, and one hào is divided into ten xu.
According to these regulations, Bitcoin is not recognized as foreign currency, nor is it foreign exchange because Vietnamese law does not recognize Bitcoin as legal currency. Therefore, Bitcoin cannot be considered money under Vietnamese law.

Clause 8, Article 6 of the Law on the State Bank of Vietnam 2010

Valuable papers are evidence of the debt repayment obligation between the issuer of the valuable papers and the holder of the valuable papers within a specific period, interest payment conditions, and other conditions.
Based on this definition, Bitcoin does not meet the criteria of valuable papers because it is not evidence of a debt repayment obligation within a specific period or interest payment conditions.

According to Article 115 of the Civil Code 2015 on property rights

Property rights are rights that can be valued in money, including property rights to intellectual property objects, land use rights, and other property rights.
Bitcoin, issued as virtual currency, is not property rights under the legal definition, as it is not the right of any entity but an independent digital financial system.
From the above legal regulations, we can confirm that regardless of what Bitcoin is, it certainly is not considered an asset under Vietnamese law.
Therefore, to answer the question “What is Bitcoin?” Vietnamese law considers Bitcoin a type of virtual currency. This virtual currency is not recognized as a legal asset, and any use of Bitcoin for payment will be regarded as using an illegal payment method, which may be handled according to Vietnamese legal regulations.

Contact Info

Are you in need of Facebook advertising or need to rent a quality Facebook advertising account? Don’t worry! Rentfb is a unit specializing in providing reputable Facebook accounts, as well as direct advertising support. Provides all types of advertising accounts such as rent facebook ad account to help you reach and create fast conversions.

FAQ