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No they aren't.
If they are, please cite the relevant legislation.
Canada's Currency Act, R.S.C., 1985, c. C-52

Some history is described here as well, mentioning the Act. It matches my description below, which explains that currencies of different countries are permitted in Canada, not just the CAD.

Under 'Accounts, Contracts and other Matters Relating to Money' there are two sections. One refers to public/government payments. The other is "Contracts, etc" which refers to private or commercial payments. I see three options listed, and the Act seems to say you must do one of these
  • pay in CAD, or
  • pay in the currency of another country, or
  • pay in a unit made up of two or more countries currencies
So for example, you could arrange for payments in USD (as I do in my business) or even in some unit computed from a mix of Dollars + Pounds + Yen.

But as far as I can tell, a business cannot demand payments in some made up thing like Bitcoin which is not the currency of a country. They can choose Australian Dollars, they can choose Swiss Francs. But they can't demand Bitcoin and refuse to accept normal currency.
 

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But as far as I can tell, a business cannot demand payments in some made up thing like Bitcoin which is not the currency of a country. They can choose Australian Dollars, they can choose Swiss Francs. But they can't demand Bitcoin and refuse to accept normal currency.
For debts and the fulfillment of contracts, yes.
The currency of Canada or if agreed to another country.

But I am under no obligation to enter into a contract with you for cash.
That's simply not in the law.

Many businesses do not accept physical currency.

I don't think it is good policy, however it isn't violating the currency laws.
 

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Debit and credit cards are paying in cash through an intermediary.

If your point is that a vendor doesn't have to accept physical cash.....paper dollars, that is correct but digital CAD is still CAD.
 

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It's up to the buyer and seller to agree on payment. The seller could ask for seashells if they wanted, but they probably wouldn't make too many sales.


Today, money is not just bank notes but takes many different forms: credit cards, debit cards, cheques, and contactless payments using mobile devices. You can pay with any of these forms of money, even though they are not considered “legal tender.” In fact, anything can be used if the buyer and seller agree on the form of payment. So “legal tender” has little impact on our everyday lives.

Transactions made not using a recognized currency are considered barter transactions:
ARCHIVED - Barter Transactions - Canada.ca
 

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I'm fine with the CRA treating digital assets, currencies, trades and yield as legitimate assets, currencies, trades and yield for tax purposes

However, you can't turn around and make a law that the same digital assets, currencies, trades and yield are illegitimate after taxing them. Again.. the USA had a law that required all transportation companies employed a veterinarian on staff even for their "horseless carriage" transportation business. Governments tend to be made up of older gentlemen who don't understand emerging technologies.

Thankfully people could still operate their horseless carriage automobiles long before the government adapted their silly laws
 

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I'm fine with the CRA treating digital assets, currencies, trades and yield as legitimate assets, currencies, trades and yield for tax purposes

However, you can't turn around and make a law that the same digital assets, currencies, trades and yield are illegitimate after taxing them. Again.. the USA had a law that required all transportation companies employed a veterinarian on staff even for their "horseless carriage" transportation business. Governments tend to be made up of older gentlemen who don't understand emerging technologies.

Thankfully people could still operate their horseless carriage automobiles long before the government adapted their silly laws
Sure you can, there is literally no limit to the power of government.
Which is why it is so important to have proper checks and balances.
 

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Sure you can, there is literally no limit to the power of government.
Which is why it is so important to have proper checks and balances.
The Biden administration has a few people who are very pro fintech and it's very possible the US will relax rules and allow adoption of various kooky payment alternatives.

His election was seen as a positive for crypto currencies and fintech in general. It looks like your buddies Biden and Harris may be the best thing ever, for your crypo koin passion.
 

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The Biden administration has a few people who are very pro fintech and it's very possible the US will relax rules and allow adoption of various kooky payment alternatives.

His election was seen as a positive for crypto currencies and fintech in general. It looks like your buddies Biden and Harris may be the best thing ever, for your crypo koin passion.
They're still moving forward with ID requirements, and many experts think they're only going to permit surveillance coins.
 

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Day 1: BTCC was the most traded ETF in Canada. Traded at about 2% premium to BTC.

Day 2: BTCC traded 26x volume of EBIT that launched only 24hrs later. Galaxy Digital files for BTCX

For once Canada is front running the US in something related to digital assets
 

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$421M AUM in its first 2 days

$10.51 NAV vs $10.55 CAD close
$10.57 NAV vs $10.57 USD close

Looks like they drop back to NAV towards the end of each day

Will be watching to see how EBIT compares (prospectus looks very similar)
 

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American regulators may not have approved them because Bitcoin ETFs have unique risks, since there are liquidity concerns, and the crypto coin markets themselves are somewhat suspect (may have fake trades, and may be manipulated). There are also unique risks of theft and total loss, unlike traditional stock, bond, or even commodity ETFs.

Canadian regulators may be looser and more permissive. I'm not sure that's necessarily a good thing.
 

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Canadian stock securities have loose regulations and pretty rampant manipulation. The US is one of the few countries in the world who will actually send people to serious jail time for financial crimes. Not surprising they are hesitant in allowing direct access to the bitcoin ponzi.
 

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Canadian stock securities have loose regulations and pretty rampant manipulation. The US is one of the few countries in the world who will actually send people to serious jail time for financial crimes. Not surprising they are hesitant in allowing direct access to the bitcoin ponzi.
Right, I agree. The US is one of the safest, best regulated markets in the world.

The Canadian regulatory approval is kind shady in this particular case. Usually ETFs file well in advance, publicly. In this case it appears that private conversations happened behind closed doors, so it was a less transparent regulator approval.

My Bay Street contacts were surprised when the ETF was approved. They said they didn't see it coming (nothing had been filed publicly), which is weird.
 

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No, bitcoin and fiat are both value based on a shared agreement of value.

Lots of people agree that $4 CDN is equal to a big mac, therefore it is.
Just like for a while we agreed that one btc was $5k, now we agree it's $50k.
Barrel of oil, Fortnite vbucks, share of Tesla stock, share of Gamestop stock, 1 hour of our ti
One small detail though... The value of Bitcoin is based on a shared agreement only between those who actually holds them.

Only about 5% of the Canadian population holds Bitcoin. They are the ones that agree with its valuation, not the other 95% of the population.

I don't hold Bitcoin because I don't agree with its current value and with its volatility. I don't hold shares of Tesla because I don't agree with its current value. Though I do hold CAD like 100% of the Canadian population. How CAD is valued depends on how good the Canadian economy is doing and that also depends on the government the Canadians have voted for. We have a consensus agreement and I'm pretty sure my CAD won't lose -50% tomorrow (as it won't gain +100% either). If I fear my CAD will be slowly devalued, I'm much more confident when using those CAD to buy stocks (companies) which are productive assets generating wealth.

Someone may disagree with the government's money printing, but I disagree even more with something that I can't value, that's highly speculative and that's highly volatile, held only by believers and speculators. All characteristics that CAD doesn't have.

When an non-productive asset that can't be valued soars too fast, at some point people who got rich holding it will sell to cash in to something safer and that leads to a bubble pop. If I had bought $100,000 of Bitcoin 2 years ago and it's now worth $1.5M, would I continue holding it? I'd sell it and retire. This kind of situation doesn't happen with my CAD.

I prefer the risk of missing out on this one than the FOMO.

Anyways, that's my uneducated opinion from someone who doesn't really understand Bitcoin, but that's still how I see it at the moment. I'm posting this to be challenged because I'm open-minded and I like adverse opinions.
 

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One small detail though... The value of Bitcoin is based on a shared agreement only between those who actually holds them.
Not really.
We generally view that the market value of something is what a buyer and seller are willing to exchange it for.
That's how we value stocks, bonds, currencies, commodities and all other products.

Bitcoin is valued the exact same way, the prospective buyers and recent sellers are also part of this.

Only about 5% of the Canadian population holds Bitcoin. They are the ones that agree with its valuation, not the other 95% of the population.
Just because you're a holder doesn't mean you agree with the valuation.
For example, during a hostile takeover, I have been forced to sell at much less than the value of the stock I held.
I'd say most holders of Bitcoin feel it is worth more than the current price, which is why they are holding it.

I don't hold Bitcoin because I don't agree with its current value and with its volatility. I don't hold shares of Tesla because I don't agree with its current value. Though I do hold CAD like 100% of the Canadian population. How CAD is valued depends on how good the Canadian economy is doing and that also depends on the government the Canadians have voted for. We have a consensus agreement and I'm pretty sure my CAD won't lose -50% tomorrow (as it won't gain +100% either). If I fear my CAD will be slowly devalued, I'm much more confident when using those CAD to buy stocks (companies) which are productive assets generating wealth.
I agree with your valuation on Bitcoin and Tesla.
However I hold CAD as a convenience. I fully expect CAD to dramatically fall in value over the next few years.

Someone may disagree with the government's money printing, but I disagree even more with something that I can't value, that's highly speculative and that's highly volatile, held only by believers and speculators. All characteristics that CAD doesn't have.
You just described stock investing for the vast majority of the population.

When an non-productive asset that can't be valued soars too fast, at some point people who got rich holding it will sell to cash in to something safer and that leads to a bubble pop. If I had bought $100,000 of Bitcoin 2 years ago and it's now worth $1.5M, would I continue holding it? I'd sell it and retire. This kind of situation doesn't happen with my CAD.
No the value of CAD is almost certainly going to drop over time.

I prefer the risk of missing out on this one than the FOMO.
Me too.
and if I change my mind, there will be plenty of time later.
I figured it out and bought Google, Apple and Amazon a bit later, and still made a lot of money.

Anyways, that's my uneducated opinion from someone who doesn't really understand Bitcoin, but that's still how I see it at the moment. I'm posting this to be challenged because I'm open-minded and I like adverse opinions.
My first rule of investing is
1. If you don't understand how an investment will make you money, don't invest in it.

I think cryptocurrencies have a value. I can't figure it out, because the market is still young.
I also agree it's simply a widely shared delusion that there is value.
However this is the same case for Fiat currency and Company stock.
If the shared "delusion of value" in a particular currency is high, it will have value, if it is low, it won't.
This holds true for Crypto and national currencies.
In some circumstances Canadian Tire money was considered as good as Canadian dollars, which I understand.


Governments and companies, can basically print however much new currency/stock they want, and there are few options to actually stop them.

That's one advantage of cryptocurrencies, they CAN'T do that, without the agreement of the market participants. To change the rules of a cryptocurrency requires people to stop using the old system and start using the new system.

Everyone can choose if they want to move to the new system, or stay on the old system.

Lets say someone wants to use a "new" version of bitcoin, people can stay on the current bitcoin or move to the new one.
What actually happens is that for a period of time, both "old" and "new" bitcoin will exist, and one may die out. This has already happened many times.

Mostly people agree and simply abandon the old one and move to the new one.
Occasionally people stick to the old one and they both exist going forward.


TLDR.
I like crypto technology, I think it has some real uses.
I think Bitcoin is the least interesting of the "mainstream" coins.
I have a very very small amount of crypto to understand it ( < $20 for educational purposes)
I can't value it, so I'm not investing in it. (My Rule #1 of investing)
 

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Not really.
We generally view that the market value of something is what a buyer and seller are willing to exchange it for.
But if Bitcoin is just a temporary hype between a small set of believers and speculators, won't that create a huge devaluation and liquidity problem if something turns South?

I mean, if I create a cryptocurrency by myself, then start building a hype with my 10 friends, which then create a hype with 100 people, then 1000 people and then once the valuation hype is crazy, I just sell all my holdings, I'm done with it and then those 1000 people start realizing it's worthless because nobody truely wants it anymore other than them, so it would slowly disappear from the lack of interest and lack of intrinsic value. It's even worse than gold because gold has many uses but a string of code has no other uses.

Isn't that a bit like with collectibles that once were highly valued and then became worthless?

At the moment, I'm very curious to know how much of Bitcoin's current value is due to the belief of a disruptive technology vs speculative greed.

I guess that's what creates the huge volatility in hype assets. It starts going up for the right reasons (valuation of a disruptive technology from believers) and as it continues going up, it starts getting pushed higher and higher for the bad reasons (greed, speculation, FOMO from gamblers) and then it pops.

I think the difference I see between stocks and Bitcoins is that stocks are productive assets. The company grows, they make more money, they create wealth and people buy into them to get their share of the profits. Bitcoin acts more like a commodity. A commodity that can't even be consumed. I know it's like paper money, but then the huge volatility and hype just kills its purpose as a currency.

That being said, I also like the tech and the idea and I also like blockchain even more.
 

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But if Bitcoin is just a temporary hype between a small set of believers and speculators, won't that create a huge devaluation and liquidity problem if something turns South?
Well if it isn't worth anything, then of course you'd see a massive drop in price, the sooner the better.

Isn't that a bit like with collectibles that once were highly valued and then became worthless?
The thing is, they only need to be highly valued by a tiny population to sustain their value.
There are only a limited number of people who will pay big money for Pokemon cards, Beanie Babies, or a Monet.

At the moment, I'm very curious to know how much of Bitcoin's current value is due to the belief of a disruptive technology vs speculative greed.
That's the $57k dollar question. (bitcoins price right now)

I think the difference I see between stocks and Bitcoins is that stocks are productive assets. The company grows, they make more money, they create wealth and people buy into them to get their share of the profits. Bitcoin acts more like a commodity. A commodity that can't even be consumed. I know it's like paper money, but then the huge volatility and hype just kills its purpose as a currency.

That being said, I also like the tech and the idea and I also like blockchain even more.
Well some stocks are productive assets, and some are junk.

I agree, bitcoin is more like a commodity. That's why I think it's one of the least interesting coins.

Platform technlologies like Ethereum are much more interesting, it's designed to be infrastructure and provide something of value.
I think there is a lot of value in Digital infrastructure.
 

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The thing is, they only need to be highly valued by a tiny population to sustain their value.
There are only a limited number of people who will pay big money for Pokemon cards, Beanie Babies, or a Monet.
That's true, but then it limits the adoption. I don't want to be paid in Pokemon cards as I don't want to be paid in Bitcoins. But, if I'm not wrong, the pro-Bitcoins would like to see a massive adoption.

I will be willing to use Bitcoins as a currency once it reduces its volatility and once I understand what can make its value slowly move up or down.
 

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That's true, but then it limits the adoption. I don't want to be paid in Pokemon cards as I don't want to be paid in Bitcoins. But, if I'm not wrong, the pro-Bitcoins would like to see a massive adoption.

I will be willing to use Bitcoins as a currency once it reduces its volatility and once I understand what can make its value slowly move up or down.
Limits adoption to people who are interested in using it, which is fine.
Many people don't adopt large numbers of things, for a long time many things we think of basic were not used by most people, and often were mocked.

Indoor plumbing, cell phones, email, credit cards, cars, handwashing.

I don't think Bitcoin is a good currency for everyday use. Quite simply, it isn't capable of fulfilling that role today.

That being said, Gold isn't a good currency for everyday use either.
 
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