Is Bitcoin Real Money? It Definitely is According to US Federal Judge

22nd September 2016

Is bitcoin real money? According to US Federal judge Alison Nathan it is definitely real money as it can be used as a payment method to purchase goods and services.

Image credit: Bitcoin Hub

“Is bitcoin real money” is a question which has bothered people who are fond of playing online games and purchase products via online shops. For many, bitcoins don’t have a real value as they don’t have physical presence. But what does the law say about the value of bitcoin?

The number of cryptocurrency users is increasing day by day as many services and goods can be easily purchased via internet. Considering the increasing interest in online gaming, cryptocurrencies will have a stronger place in the online market. It is hard to ignore the significance of cyrptocurrencies at this point as they have begun to take the place of fiat money.

Digital currencies are not only used for online purchases but also offline purposes such as fundraising. For instance, there was a fundraiser to raise $50,000 in Dogecoin to help the Jamaican Bobsled Team to participate in the Sochi Winter Olympics in 2014.

Apparently cyrptocurrencies function as a medium of exchange. Considering this fact, U.S. District Judge Alison Nathan in Manhattan didn’t accept Anthony Murgio’s, former Coin.mx operator, plea to dismiss money laundering charges. Murgio tried to dismiss the money laundering charges claiming that bitcoin doesn’t count as real money.

As a matter of fact, Murgio’s claims have a legal ground as previously a Miami judge ruled that bitcoin doesn’t qualify as real money. Nevertheless, it seems District Judge Nathan doesn’t agree with her colleague.

In her ruling Nathan wrote that “Bitcoins are funds within the plain meaning of that term. Bitcoins can be accepted as a payment for goods and services or bought directly from an exchange with a bank account. They therefore function as pecuniary resources and are used as a medium of exchange and a means of payment.”

The defense has a different answer to the question of “Is bitcoin real money?” Murgio’s lawyer Brian Klein strictly disagrees with the decision and aims to clear Murgio from the charges. Nevertheless, Murgio is facing six other criminal charges.

According to the latest bitcoin news, Former owner of Coin.mx an Israeli man named Gery Shalon and two others were charged with running a hacking scheme targeting dozens of companies including J.P. Morgan and exposing personal data of more than 100 million people.

Bitcoin can be converted into real money. Therefore, it is quite common among internet users. Cryptocurrency operators claim that digital currencies are safer than using fiat money as they are traceable through online footprint. If you are interested in bitcoin casino gambling, you can check the best bitcoin casinos directory.