Federal Judge Rules that Bitcoin Is Money

A federal judge has ruled that bitcoin is money.  The suit before the court involves the case of Trendon Shavers, who is being prosecuted by the SEC for running what has been called a Bitcoin ponzi scheme.  In response to the SEC action, Shavers argued before the court that the SEC had no jurisdiction in the case because bitcoin is not money.  The court did not agree.  From the ruling:

First, the Court must determine whether the BTCST investments constitute an investment of money. It is clear that Bitcoin can be used as money. It can be used to purchase goods or services, and as Shavers stated, used to pay for individual living expenses. The only limitation of Bitcoin is that it is limited to those places that accept it as currency. However, it can also be exchanged for conventional currencies, such as the U.S. dollar, Euro, Yen, and Yuan. Therefore, Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money.

Ironically, both Bitcoin enthusiasts and detractors see this ruling as a evidence in favor of their own positions.  Enthusiasts state that rulings like this will make the crypto-currency more palatable to the economic mainstream, while its detractors state that this is one more nail in the Bitcoin coffin.  Of course, only time will tell.  But the ruling does not seem to have affected the price of Bitcoin, which is currently trading at just over $100 per BTC.

Source:http://blog.agupieware.com/2013/08/federal-judge-rules-that-bitcoin-is.html