Why are "alternative currencies" illegal under US law? AFAIK the only thing that's illegal is refusing to accept US$ as payment if you accept something else. For example, people can spend foreign money (GBP, Euros, etc) inside the non-international parts of airports. Also, people can transfer their USD to foreign currency and vice versa over the internet and at banks. Is there something different about bitcoin than say zimbabwe dollars? If anything, they're probably safer. As an aside, USD are accepted many places outside of the US in lieu of the local currency. I imagine there would be similar laws in those countries, but yet it's acceptable there.
Jct: They're not. Ithaca Hours. Berkshares. Timedollars. Lots of legal models. What's illegal is making the tokens look like the real thing. Why else would he do it in such an illegal way as to incur the wrath of the government. I think Liberty Dollars was a Judas Goat effort to bring the government down on the whole alternative currency movement.
