A virtual currency or virtual money has been defined in 2012 by the European Central Bank as “a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community.” The Financial Crimes Enforcement Network(FinCEN), a bureau of the US Treasury, defined virtual currency in its guidance published in 2013. In 2014, the European Banking Authority defined virtual currency as “a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically”.
In short, it is money but not the money you're used to. People create this money via an online community of people consenting the creation, use, and distribution of the virtual currency. This brings us to the saying that money ain't money if it's not used. But if you are spending it, it is, technically and logically, money.
The IRS did say that it is considered a property.
The main ingredient therefore is to ensure that one builds a community that is willing to accept this form of payment, willing to let others know about it, willing to share it or sell it, and willing to buy it as well. This awfully leads us to one major requirement: Trust.
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