ATTY BING BETITA: DONE

Can bitcoin be treated as a commodity rather than a currency? Or should it be only considered as a
method of payment? Given our current laws such as the Central Banking Act, Manual on Regulation of
Banks and even the Article 12 of the 1987 constitution, is there a chance for it to be accepted?
Only duly issued Philippine currency and US dollars are considered as legal payment. Checks, credit
cards, other currency are subject to the acceptance of the seller. So "payment" depends on whether
the seller considers himself paid, but he has the right to insist that he be paid in cash.
>> Do you think bitcoin should be regulated in the Philippines? Why or why not? If ever regulated, do
you think that there will still be a demand for it?
bitcoins are sold to the public as an investment product, then it should be regulated to protect the
public. Demand will arise only if there is a market for it.

MR. SAM KADDOURA: DONE

What can you say about the bitcoin industry in the Philippines? From your perspective, is it already
widely accepted by the Filipino community?

-Bitcoin is still in its infancy. Here in the Philippines more and more people are learning about
it every day, but majority of Filipinos still resort to cash for their everyday transactions. It will
take a lot of trust and educating the market before we see any significant effect locally. As for
local businesses, there are a handful that have begun experimenting with accepting bitcoin for
payment, but so far no major industry players.
Do you think bitcoin should be regulated by the government? Why or why not?

-There are only a few countries that have drafted regulation on bitcoin. Regulation for bitcoin
has its benefits and overall, we view it as a favorable path as bitcoin evolves, but too much
regulation could hinder its development. We are hoping the Philippines recognizes the
potential of the technology and takes a reasonable approach to setting rules in place but not so
much as to deter the widespread use of it.
-In the event that it will be regulated, do you think there will still be a demand for it?

-The regulators are obviously a big piece in bitcoins adoption, but second to them will be the
financial institutions. Bitcoin is a potential disruptor to the status quo and established players
in the conservative world of finance will initially look down on bitcoin as an inferior and unsafe
alternative to fiat currency. But like any new technologies, there will always be skeptics
(remember how much criticism the internet and email got during its early stages now
Philippines is one of the top social media countries worldwide). The most likely scenario is that
bitcoin will be used on the back-end and Filipinos who are transacting online may not even
know they're sending money using bitcoin.
-How can you defy the notion that bitcoin is just a trend that will soon fade away?
-The price of bitcoin has been up and down since its inception in 2009. Many skeptics have claimed it
to be dead (or dying) on several occasions, yet it has defied all these claims and continues to be

explored by major banks and financial institutions all over the world. As of this writing, 1 BTC is worth
about P11,000. The fact that it has held this type of value says something about the resilience of this
new technology.
-Is bitcoin a commodity or a currency?
-It depends which country you're in! But some governments are ruling it a currency while others call it
property or a commodity. At the end of the day, bitcoin is software that because of its unique
characteristics, can be traded, transacted with, and stored. It's great to transact with because it can
be transferred quickly and securely, therefore if you use it more for purchasing everyday items, you
might view it as a currency. However, if you're looking at it simply as a way to store funds and protect
yourself from say a country's risk of default (i.e. Greece), it can be viewed as a commodity such as
gold, in that I would want to move all of my fiat currency into bitcoin to protect my assets.

Sam Kaddoura

Chief Financial Officer

MR. MIGUEL CUNETA: DONE
Hi! Here are the answers.

What can you say about the bitcoin industry in the Philippines? From
your perspective, is it already widely accepted by the Filipino
community?
The Bitcoin industry is one of the most active and thriving in the world.
This is a fact. In our almost two years in the industry, we have heard
people from places like the US and Canada, both much more
developed and advanced than the PH, that they are amazed at the
progress of our industry in terms of using bitcoin technology in realworld applications like remittance. Most of the world are still working
on ideas and potential bitcoin applications while we are already using it
to solve problems.
It is not widely accepted the the Filipino community simply because it
is not widely accepted anywhere in the world. There is an estimated 45 million active bitcoin wallets in the WORLD. This is similar to people
using the internet in 1992. It is a very small market and community but
is rapidly growing.
Do you think bitcoin should be regulated by the government? Why
or why not?
Bitcoin technology cannot be regulated by government because of the
nature of the technology itself. It is decentralized and distributed. We
believe bitcoin BUSINESSES should be regulated just like any other

business. This way consumers and even businesses can use it without
fear of the unknown - there will be clear guidance from the government
about the legality and legitimacy of the technology and businesses
that use it.
In the event that it will be regulated, do you think there will still be a
demand for it?
I believe there will be a bigger demand for it. A lot of people are afraid
to use it simply because of the uncertainty that comes with an
unregulated technology.
In relation to the question above, is bictoin LEGAL?
Yes very much so.
How can you defy the notion that bitcoin is just a trend that will soon
fade away?
In the past 2 years, almost 1 billion dollars in venture capital
investments went to bitcoin startup companies. Everyday, thousands
of engineers, developers, entrepreneurs, and even financial experts are
exploring way to use the technology in applications that we cannot
even imagine yet today. MIT has taken bitcoin core development under
its wing. You have 22 of the world's biggest banks learning about
blockchain technology and publishing research about it. The world now
knows how to make financial transactions without the need for thirdparty verification or permission from any authority- this cannot be
uninvented.
Is bitcoin a commodity or a currency?
It is both. Bitcoin as a technology can be classified as a new class on its
own, similar to how internet technology could have been classified as a
Media, Telecommunications, or even Publishing, because it was able to
do all those things at the same time. Bitcoin can
acts like a currency AND a commodity, as well as an asset, as
securities, stocks, etc.

RESPONSES ON PINOYEXCHANGE THREADS:

My post:

Hi everyone!
I have a concern regarding bitcoin (an online currency) and I am asking for your opinion on
whether it should be regulated in the country or whether its circulation is legal based on our
present law.
Any kind of response will be highly appreciated.
Thank you!

BY Agent_hitman
I think Bitcoin is also quite related to Litecoin mining, am I right? Correct me if I'm wrong.
The idea of the whole 'gimmick' I should say, is you'll be needing a powerful computer
hardwares, especially the GPU/Videocards in a farm set up, or in a traditional term for
enthusiasts "SLI/Crossfire". With more than 2 videocards and that's not cheap, really!
As a matter of fact some of the Youtube videos I've already seen doing this stuff were using
20-50 videocards, most of them are AMD brands which is cheaper compared to Nvidia of
course.
Though, honestly I still don't know how this 'gimmick' actually works. It still puzzles me on
how can they generate profit with just firing up those computers with a lot of videocards
running simultaneously in farm set up. I mean its really hard to grasp the whole concept of
this thing on how this actually an easy-moneythan any other physical jobs and how to know
how much you're earning every hour/daily/monthly and what are the rates.
Well I'm just curious because some of the American techies are already jumping ship to try
this thing. Though, I would like to think that Bit/Litecoin farming is an easy source of profit
that doesn't require much maintenance other than your PC or Videocards that's overheating
when overused
or maybe some of Muricans were just lazy to get a real job and this is the
alternative way to earn money for them?
However, the only downside that I can think of about this 'Gimmick' is the power consumption
and the all related maintenance and electric bill costs would be unparalleled. And you starting
to think if you ever get any profit from that after the expenses.

BY BeerhandBop
bit coin is an online currency that can be used in the real world to barter for goods and
services.

Agent_hitman replied:
I actually think the whole concept of Bitcoin is revolutionary and very cool. However,
unfortunately the US government is not yet recognizing the Bitcoin system as legal or
acceptable because they know that the operation is "Private" and there's no specific company
behind it even the rumored founder Mr. Nakamoto (not his real name I believe) is not clearly
involved in it, he actually denying it. Therefore it is not regulated by the existing law and the
sefish corrupt Government itself.
As a matter of fact I just watched some documentaries related to this matter on YT awhile
ago, and I found out that the Bitcoin is indeed a real threat to traditional banking and Bankers
feared it due to it's peer-to-peer system like on Torrents and the now defunct Napster. And
since there's no company behind this scheme, it's like a free banking in the sense that Bitcoin

is "Inflation proof" and the payment is"Irreversible".

And if we dig deep into this matter, we need to jump into more serious matter like the
Economics and other related to that stuff. Government are printing a lot money if needed and
from what I learned in my College days, the more money circulating in the economy, it can be
also bad as well, and vice versa. And if the Banks store more money in their volt and only
fewer institutions or people borrow the money, it could also be dangerous for the economy
because according to them if you have money don't just store it, you need to invest it, spend
it to bring it back to the circulation of the economy which of good course mandated by the
government's rules and so on...
Bitcoin on the other hand is the holy grail for the current generation. Because there's no
government controlling the system and even if they manage to track and arrest some of the
miners, they cant stop it's operation due to its centralization around the globe. However, how
it works physically is still a mindfvck for me, honestly.

By bentobear
bitcoin mining is selling your computer capacity online right? kung baga yung computing
capacity is being used for whatever purpose like a research facility needing more computers to
calculate something. it's also possible someone may use your computers for something illegal.
you are then paid in bitcoin for every time your computer is used to calculate something.
i think that's my basic understanding of the process.

By adore_geli
This is my understanding of BitCoin. Please correct me if I'm wrong.
You need a digital wallet (app) to store your BitCoins. If you have no plans of mining BitCoin
then your simple desktop and mobile will do.
Circulation is legal based on present law because it is not explicitly declared as illegal.
If you treat it as a currency, no one is stopping you from using a currency from Timbuktu in
the Philippines, so using BitCoin which is a currency is therefore permitted.
Regulation of BitCoin will make it more accessible but it will also defeat the features of the
cryptocurrency such as anonymity and it being tax-free.
From what I've read, BitCoin is used extensively in Argentina by taxi drivers and apartment
owners renting out their rooms or whole units to tourists.

By coderboi
Asking whether bitcoin is legal or not is the wrong question, because it is intended to
offer a better alternative to our current ideas of government.
Bitcoin and the blockchain technology associated with it is like the Internet in many ways.
They are both disruptive technologies that will ultimately CHANGE THE WAY THE WORLD
OPERATES.

Before the internet, heavy handed government censorship could be effective. Today,
governments find it far more difficult to keep citizens from knowing (often embarrassing)
information which they'd rather not reveal. (Don't forget how the Gutenberg press took a lot of
power away from the oppressive Catholic church of yore
-> https://en.wikipedia.org/wiki/Propag...he_Reformation )
Bitcoin's technology is intended to take the power to coin money away from
governments. WHY?Because governments cannot be trusted to safeguard its value! Ever
wonder why your money buys less and less every year? That is DELIBERATE GOVT POLICY!
The more enlightened governments will try to coexist with and even take advantage of bitcoin
and its blockchain technology, and try to get out of its way. The more repressive governments
will try to ban it and end up staying in the dark ages, to the detriment of their citizens.
Either way, just like the internet, it is here to stay, and it will have a huge influence on how
things will evolve going forward.
The old farts who are ossified, insecure and afraid of the future and wish to continue clinging
to old ideas will naturally hate and try to block bitcoin (and will come up with a thousand and
one silly and invalid excuses why it shouldn't be used). Those who can see where the future is
headed will embrace bitcoin and its blockchain technology.

adore_geli replied:
It is actually a valid question. One of BitCoin's disadvantages is its obscurity in many
geographies. I am midway between an anarcho-capitalist and minarchist, but I recognize that
regulation will enhance the ubiquity of BitCoin.

BitCoin is still a fiat currency. Unless it's backed by gold in some anonymous way it will remain
a pseudo-money since it cannot be a store of value.
I don't consider BitCoin as money, I consider it as an anonymous cost-effective payment
system.
This is too strong a description. BitCoin is a very volatile currency. Unless the BitCoin futures
markets offer at least a 3-year tenure, it will endure merely as the Dark Net's currency,
hipsters' currency in microbrew pubs, and black market currency for residents of despotic and
socialistic countries such as Argentina.