bitcoin is an innovative payment network and a new kind of money. but is it money? some call it a new form of virtual currency. others have lauded it as a new type of payment system. so what is it? and why does it matter?
what we call it may not matter much in casual conversation, but how it is categorized does have significant implications when it comes to regulation. If it is “money” or “currency,” then existing laws and regulations may apply to businesses and consumers who issue, sell, or transact with bitcoin. from banking laws to anti-money-laundering laws and tax regulations—whether these laws apply to the use of bitcoin depends on how bitcoin is classified.

at present there is no consensus as to what we should call bitcoin or how it should be defined for purposes of applying legal rules.  courts and regulators are coming up with different theories and classifications as a way of figuring out whether this new product/payment vehicle is or is not covered by different laws.but it is still unclear what is happening right now.