IMO it is a currency-type liability (a la the bank deposits from which it is dervied) not a property-type liability (bailment)

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Who is the bank? Where is it deposited?

Where are your checking account balances located?

Again, it's not a bailment

I think it is more similar to a bailment because it is capable of exclusive possession and alienable.

This is true of deposits also. The difference is that in a bailment a specific piece of real property must be returned, while in a deposit it is a designated amount of property.

If Bitcoins are fungible, then the ledger entry is equivalent to deposit rather than bailment. If Bitcoins are not fungible, they are not money.

Deposits are a contract right though. If courts aren't willing to enforce them, they have no value. Specific money is capable of exclusive possession and alienable even though it is fungible. When I spend bitcoin I am spending specific bitcoin.

The "bank" is the issuer of the currency, of course: Satoshi Nakamoto.

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