Caution in the World of Bitcoin

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Bitcoin is an interesting phenomenon. I�ve actually read a number of the technical papers, a number of legal briefs on them. I�m not anti-bitcoin or [a] bitcoin basher. I don�t invest in them personally, I don�t recommend them to clients. I understand them technically. They seem to appeal to technophiles and libertarians.

The only thing I say to bitcoin people is, watch out for a couple of things. Number one, if you buy a bitcoin at one level and you redeem it for goods or services at a higher level, you have a taxable gain you have to put on your tax return. I daresay, very few people are doing that so they�ve all sort of become tax evaders.

And, a lot of people think if you�re in the bitcoin cloud the government is not watching, they are watching. So, consider the fact that you may be a tax evader and the government is looking over your shoulder, this will play out in time. So there is a little bit of caution in the bitcoin world.


- Source, Finance News Network:

http://www.finnewsnetwork.com.au/archives/finance_news_network25563.html

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