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What about websites that offer credits? If Bitcoin is illegal, then so are stuff like Facebook Credits and Flattr for being alternate currencies.

• waterlesscloud 15y ago
  Or casinos. Both with the chips themselves and Player's Cards. Or Frequent Flier miles, which are so much of an alternate currency that the IRS taxes them at a certain point.
  • dangrossman 15y ago
    This exact argument was discussed in depth recently: http://news.ycombinator.com/item?id=2451302 http://news.ycombinator.com/item?id=2451302 Start treating those casino chips as currency and the government will step in and stop it.
    • krakensden 15y ago
      Just ask the e-gold guys: http://www.wired.com/threatlevel/2009/06/e-gold/ http://www.wired.com/threatlevel/2009/06/e-gold/ That was one of the things Neal Stephenson got right- you almost certainly need to hide inside a non-US sovereignty.
  • rprasad 15y ago
    Alternative currencies are fine, as long as they are not being represented as US currency. Most of the private currencies, including casino chips, are merely tokens of private contracts between the holder and the issuer. The issue with alternative currencies is primarily that of tax evasion. Income earned in any currency/denomination is taxable, and most users of alternative currencies underreport or do not report their income. This problem is especially prevalent where the currency's value is not tied 1:1 with the US dollar.