Quote from article:
Ulbricht’s legal team attempted to have his case dismissed in July on the grounds that bitcoins were not considered to be money by the IRS, but his bid was denied by US District Judge Katherine Forrest, saying that “Bitcoins carry value – that is their purpose and function – and act as a medium of exchange. Bitcoins may be exchanged for legal tender, be it US dollars, euros, or some other currency. Accordingly, [the defense’s] argument fails.”
Wow, so this is the governments official position.
This is the government's position in this specific case. This is a true statement. The public does give bitcon value. Bitcoin can be exchanged for fiat money.