Why Bitcoin Can No Longer Work as a Virtual Currency, in 1 Paragraph(m.theatlantic.com)
m.theatlantic.com
Why Bitcoin Can No Longer Work as a Virtual Currency, in 1 Paragraph
http://m.theatlantic.com/technology/archive/2014/03/why-bitcoin-can-no-longer-work-as-a-virtual-currency-in-1-paragraph/359648/
1 comments
I feel like a may be missing something, but don't these taxes only apply for people who cashing out to a USD? You can still buy things with Bitcoin (as a currency) directly and not pay any taxes to the US government. 1 BTC is still worth 1 BTC.
According to an interpretation of the ruling, you would have to pay, if the value of the Bitcoin you bought (presumably with USD) went up from when you bought it to when you used it to purchase a good:
"Under the ruling, purchasing a $2 cup of coffee with bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of income for the coffee shop."
http://www.npr.org/blogs/thetwo-way/2014/03/25/294364892/irs...
"Under the ruling, purchasing a $2 cup of coffee with bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of income for the coffee shop."
http://www.npr.org/blogs/thetwo-way/2014/03/25/294364892/irs...
You can, but it's tax evasion when you acquired the Bitcoin for less than its value when you bought something with it.