Bitcoin is a digital, decentralised, partially anonymous, alternative digital currency. It’s not backed by any government or other legal entity, and not redeemable for gold or other commodities. It relies on peer-to-peer networking and cryptography to maintain its integrity. Some argue that Bitcoin has many properties that could make it an ideal currency for mainstream consumers and merchants.

For example, bitcoins are highly liquid, have low transaction costs, can be used to send payments quickly across the internet, and can be used to make micropayments. This new alternative digital currency could also hold the key to allowing organisations such as Wikileaks, hated by governments, to receive donations and conduct business anonymously.

Although the Bitcoin economy is flourishing, Bitcoin users are anxious about Bitcoin’s legal status. It’s important to note that this varies from country to country. It’s largely still unregulated, with many governments still unsure on what steps to take and whether this currency is even worth paying attention to.

This  article examines a few relevant legal issues, such as the recent conviction of the Liberty Dollar creator, the Stamp Payments Act, and the Federal Securities Acts. Read the paper to find out more!