imgur: the simple image sharer
The country's Finance Ministry declared Bitcoin a "currency unit" and form of "private money."

Germany has become the first country to legally recognize the digital currency Bitcoin as a form of money. 

The country's Finance Ministry declared Bitcoin a "currency unit" and form of "private money" in a letter to member of parliament Frank Schaeffler. 

According to Die Welt, BTC's new status in Germany means the government can tax profits made by Bitcoin companies, but private individuals can spend the currency tax-free. 

The news is both good and bad for Bitcoin speculators. Although German recognition gives the currency more legitimacy, it could also open the door for greater regulation, something many Bitcoin enthusiasts actively oppose. Part of Bitcoin's allure is its lack of ties to any government. 

Although Germany's is the first national government to acknowledge Bitcoin as money, a federal judge in Texas ruled earlier this month that Bitcoin "is a currency or form of money" that could be subject to government regulation.

Whether it's even possible to regulate Bitcoin is another matter altogether. The stateless currency runs on peer-to-peer software with no central servers, and Bitcoin transactions are relatively anonymous.

Photo by illpig/Flickr, remix by Jay Hathaway

Promoted Stories Powered by Sharethrough
Samsung's response to a customer whose phone caught fire only made things worse
Damage control is a tricky thing: One wrong move can make a small crisis exponentially worse. Such is the case for Samsung, which moved to suppress YouTube evidence that its Galaxy S4 smartphone can catch fire for no reason at all, only to have the original poster call the company out for it in a second video that received five times as many views as the first.
New York considers new restrictions on Bitcoin
New York’s top banking regulator has issued subpoenas to two dozen Bitcoin companies, according to a report from the Wall Street Journal.
The Latest From Daily Dot Video

Pure, uncut internet. Straight to your inbox.

Thanks for subscribing to our newsletter!