According to § 2 of the Internal Revenue Service (IRS) Notice 2014-21, “that “convertible” virtual currency, (such as Bitcoin) is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, I operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction. (IRS, 2013) Also, see (Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies, 2013)