Two big news item has rubbed the shine of Bitcoin. One, was the security flaw which meant that Bitcoins could be robbed, and, the second is the news that a judge in the US has declared Bitcoin a currency. This follows on from stirrings that the US regulatory body is looking to regulate Bitcoins.
With the regulation of Bitcoins, well that was going to happen sooner or later. It is the problem of the security fraud that creates sheer blind panic. Bitcoins were stolen because of a security breach via Android which gave the thief the ability to circumvent the security algorithm and take the coins. Now the whole concept of Bitcoins was that you could send or receive, but they could not be taken without consent. If the security side can be breached then the only thing that make Bitcoins unique is that you can use it for money laundering and other criminal activities, which will draw the attention from the authorities!
US magistrate judge Amos L.Mazzan has signed a paper saying that Bitcoin is a currency which will now bring it into the legal world making it open to legal judgement. Once it is open to legal judgement as a currency then all sorts of laws will apply to Bitcoins.
What should we do? Well I am still sitting on the fence but would love to get involved. So I will do any deal which is legal for Bitcoins. However, I will not purchase it with actual pounds until I can find a way of being certain that there will not be a clamp down on the virtual currency.