informa
/
News

Bitcoin Taxation: A Gift From The IRS And The Coffee Problem

Every bitcoin transaction requires a gain or loss calculation between acquired cost basis and the amount it was sold for. This is no problem for large blocks, but on everyday purchases, a gain or loss calculation on every $1.79 cup of coffee is a lot of calculating.

I heard about bitcoin at the end of 2013 when a friend asked me for advice on buying a computer to mine bitcoin. I had never heard of such a thing and I naturally thought they mixed up information and didn't know what they were talking about. My perpetual knowledge-seeking genes kicked in to find out more about the mysterious mining which has turned into the journey of a lifetime.

A knowledge-seeking journey
I'm a CPA, entrepreneur, and Certified Fraud Examiner who loves technology and challenging the status quo, so it didn't take long to find out that bitcoin and I were like long lost friends. A few years earlier, I founded invizibiz.biz, an accounting and business process outsourcing subscription service, bringing together the best technology to provide businesses with a 100% paperless, all-in-the-cloud, transparent, and accessible back-office solution. My fascination with bitcoin is a natural extension of my passion for technology and business.

It's important to think of bitcoin more as a technology with a first successful use case that happened to be a digital currency. Bitcoin is simultaneously a network, a protocol, and a medium of exchange where the capitalized version (Bitcoin) refers to the technology and the lower-case version (bitcoin) refers to the currency. This is worth repeating although it has been explained in many other articles.

Read the rest of this article on Wall Street & Technology.