I don't know that that's an accurate way of putting it.

Legally speaking, I don't know what governments will think. However, if past precedent is any consideration, then the use of bitcoins should be treated no differently than barter.

I can go to bitcoinstore.com right now and buy a laptop with bitcoins. How is it really any different than if I paid them in eggs from my chickens? You may not accept eggs as a medium of exchange, but bitcoinstore.com might. See what I mean?

Now, will governments tolerate bitcoins just as they tolerate barter exchange? That remains to be seen, but bitcoin sure does present unique challenges.

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Posted by LSURussian

Member since Feb 2005

126966 posts

Posted on 3/8/13 at 2:21 pm to WikiTiger

quote:
the use of bitcoins should be treated no differently than barter.

Barter transactions are taxable from both a federal income tax and sales tax (in most states) standpoint.

Failure to report barter transactions is considered tax fraud.

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Posted by el duderino III

People's Republic of Austin

Member since Jul 2011

2385 posts

Posted on 3/8/13 at 2:26 pm to WikiTiger

and before you try, no, the much higher price of BTC relative to the last time we discussed it is not evidence of it's legitimacy as an alternative currency. It is actually evidence of the exact opposite. It's doing exactly what i said it would do. more and more people are buying them and not using them, they are buying them and hoarding them with the expectation that the price will go up - and everyone hoarding them results in exactly that. until it stops going up, everyone jumps off the bandwagon/panics/etc, and bitcoin turns into the currency version of beanie babies and every other bubble overnight.

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Posted by TigerDeBaiter

Member since Dec 2010

10268 posts

Posted on 3/8/13 at 2:52 pm to WikiTiger

What I meant was, it's not a profitable endeavor, as far as taxes are concerned.

I was being a jackass, I'll admit that.