Question
Is bitcoin considered money according to Torah Law?
Answer
There is no Halachic objection to the recognition of a virtual currency - if it would be accepted as a currency by a state.
A currency which is publicly trusted and viewed as a means of payment, and an assessment unit may be considered Halachically as a currency even if it is not officially recognized by state authorities - at least in regard to payments etc.
The Bitcoin was not issued by a state, and has limited public trust. Therefore, in the current situation it is not recognized as a currency according to Jewish Law, but rather as a commodity or debt bond.
Source: Summary of Rabbi Shlomo Ishon’s article on the topic.
See (Hebrew): https://www.toraland.org.il/%D7%9E%D7%90%D7%9E%D7%A8%D7%99%D7%9D/%D7%9B%D7%9C%D7%9B%D7%9C%D7%94-%D7%95%D7%9E%D7%A9%D7%A4%D7%98/%D7%9B%D7%9C%D7%9B%D7%9C%D7%94-%D7%95%D7%94%D7%9C%D7%9B%D7%94/%D7%9E%D7%98%D7%91%D7%A2-%D7%95%D7%99%D7%A8%D7%98%D7%95%D7%90%D7%9C%D7%99-%D7%91%D7%99%D7%98%D7%A7%D7%95%D7%99%D7%9F-%D7%94%D7%90%D7%9D-%D7%A0%D7%97%D7%A9%D7%91-%D7%9E%D7%98%D7%91%D7%A2-%D7%A2%D7%A4%D7%99-%D7%94%D7%94%D7%9C%D7%9B%D7%94/#
