IRS Will Tax Bitcoin Transactions

The IRS has now stated formally that Bitcoin will be treated like property, not a currency, and any transaction worth over $600 that is conducted in Bitcoin will be considered taxable.

As stated on CNN Money, "That includes payments made with bitcoins, gains realized by investing in it, and income derived from producing them on your computer, a process known as 'mining.'"

Is this a step towards more formal regulations towards Bitcoin? Bitcoin originated in 2009 and has grown ever since. The currency started at $0.30 per Bitcoin, and has risen up to a high of $1216.73 per Bitcoin, in November 2013.

The price per Bitcoin is $582.00 USD at the time of this writing.

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