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Why is blockchain considered a commodity?

Blockchain technology itself is not typically considered a commodity. However, the cryptocurrencies that often rely on blockchain technology as a way to enable secure and transparent transactions are sometimes classified as commodities.

Commodities are typically raw materials or primary agricultural products that are bought and sold on exchanges, such as gold, oil, or wheat. Cryptocurrencies are a more recent addition to the list of commodities, with some regulators classifying them as such due to their decentralized nature, limited supply, and the fact that they are traded on exchanges.

In the case of cryptocurrencies like Bitcoin, their limited supply (with a maximum of 21 million Bitcoins that can be created) and the fact that they are not tied to any physical asset or government, has led some regulatory bodies to classify them as commodities. This classification also means that cryptocurrencies can be subject to regulations similar to those applied to other commodities.

It is important to note, however, that the classification of cryptocurrencies as commodities is not universally accepted, and different jurisdictions may have different opinions on the matter. Additionally, not all cryptocurrencies are necessarily classified as commodities, and some may be considered securities or other types of assets.
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