Bitcoin is a currency, is virtual, as are all current currencies, none of them are money. Something can be both currency and money, but currency is not the same as money, currency misses the attribute of being a store of value. Why are today's currencies not money? they all perpetually lose value, based on debt and most are FIAT, while bitcoin is based on encryption. Bitcoin promoters like to equate bitcoins to gold(the whole "mining," etc. terminology,) one of the few things that qualifies as being money, but bitcoins being virtual, yeah, no. Historically, currencies were receipts for money, up until 1965, "federal" reserve(private banking cartel) notes, aka receipts, aka dollars, could be exchanged for money(gold, silver.) Bitcoins have the benefit of avoid being robbed by the banking system perpetually siphoning off purchasing power, but you're relying solely on encryption for safety, while "regular" currencies are backed by FIAT/government force, and money like gold is backed by intrinsic value and track record 7000 or so years, basically human recorded history in which money has never gone to zero, while all virtual currencies have.
Edited by keiths - 8/1/13 at 5:52am