What are cryptocurrencies – are they money?

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Governments want to know how to classify this instrument in order to regulate it and tax it accordingly. For now, there isn’t a unified understanding from different regulators on how to classify cryptos.

On a technical level, cryptocurrencies are tokens that encourage the use of blockchains to look after the network. These tokens are mined – or minted – as a reward for the creation of new blocks of transactions.

What are these tokens on an economic level? How do they stack up against the traditional definitions for money? Are cryptocurrencies a:

· Medium of exchange?
· Store of value?
· Unit of account?

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