How should Bitcoin and cryptocurrencies be taxed?

Andrea O'Sullivan

Source: Reason
by Andrea O’Sullivan

“The tax treatment of cryptocurrencies has been a persnickety affair. Long gone are the days when bitcoin users mistakenly believed that their experiment in monetary innovation would be free from the grabbing hands of the state. But cryptocurrencies’ unique properties and uses posed a dilemma for tax authorities seeking to outline a reasonable path for taxation of technologies like bitcoin. Thankfully, a new bill could rectify many of the early mistakes made with the tax treatment of cryptocurrencies.” [editor’s note: Cryptocurrencies SHOULDN’T be taxed. Neither should anything else – TLK]