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Bitcoin Ruled Legitimate Currency by Federal Judge
Posted by Sterling   @ 8/8/2013 9:12AM

During the trial of Trendon Shavers of Bitcoin Savings & Trust (BTCST), an accused cryptocurrency Ponzi Scheme, a federal judge on Tuesday (8/6/13) ruled that Bitcoin (BTC) should be considered by the court a legitimate currency.

Bitcoin is a currency or form of money.”- Judge Amos Mazzant for the Eastern District of Texas

BTCST had allegedly been scamming customers out of ~$4.5 million worth of the BTC cryptocurrency through an online hedge-fund he headed.

View Court Documents, hosted by Scribd.com

What Does This Mean for Bitcoin and other online currencies?

Most currencies are classified as a fiat currency, which usually means it is not backed by Gold. These currencies therefore are valued from people and governments confidence in it. Bitcoin has steadily been receiving popularity and confidence from individuals and companies worldwide, and now being discussed in many law makers across the globe. Recently, late July 2013, Thailand said simply Bitcoin is not a currency, which may have turned off people from started to buy, sell, and trade BTC.

Many believe regardless of what make a digital currency like Bitcoin to be it is a solid currency free from many flaws that governments push upon their own state currency; however, a US federal judge ruling Bitcoin a real currency couldn't hurt it. If anything this will increase exposure, popularity, and confidence in Bitcoin. This should therefore increase the value of Bitcoins and ripple confidence in other digital currencies; such as, Litecoin (LTC) and Feathercoin (FTC).

External links to sources:

Tags: Bitcoin, cryptocurrency, federal judge, BTC, ponzi scheme, LTC, Litecoin,
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