Germany’s finance ministry has recognized Bitcoin as legal tender in Germany, which is a highly popular virtual currency. While the intent is not for Bitcoin to compete against the Euro, the fact that it is being recognized as money is a huge step for the currency, and is likely to open the door to other major countries accepting the currency as legal tender. Of course, there will be forthcoming tax implications for profits realized in Bitcoin-related transactions, which are in the process of being implemented.
We previously wrote an article entitled “Is Bitcoin a Legitimate Alternative Currency to Gold?” concluding that it is not, but it is this writer’s opinion that the acceptance of Bitcoin as legal tender is a step in the right direction of providing alternatives other than government fiat issued currency.
Additional details on the recent announcement can be found at Zerohedge.com