Just a few months ago, Bitcoin was the darling of many techies. It was the darling of the stock market for a while. Now, it may as well be just a collector’s item.
According to the IRS, Bitcoins are just that, property, not currency. So Bitcoins aren’t fungible (Returnable or negotiable in any kind of substitution). For example, if something cost $100, giving the cashier 5 $20 is just as good as giving them a $100 bill. Or putting it on a charge card is just as good as giving them 5 $20 bills. But they are still subject to capital gains taxation. But the days of Bitcoin being the next big financial or technology based craze is almost over.
But as of now, Bitcoin can still be used. Contractors can be paid in this currency so long as they declare it’s fair market on the day of payment as part of gross income. No more sudden price increases afterwards. If consumers convert their Bitcoins to regular currency, you can report those gains to a single transaction. As far as miners are concerned, from here on out, they must include fair market value on the currency the day it is mined, and not wait around until it’s circulated for a higher or lower drive. So with all that being said, is Bitcoin even worth investing in?