Bitcoin, the digital currency, has been gaining traction among the tech crowd since 2009 and has blown up over the past year. Now, major retailers and even lemonade stands are starting to embrace Bitcoin.
Is bitcoin really money? Or is it a capital asset? How about a commodity? ? The IRS says it is studying the matter but has yet to issue any guidance. Until it does, it is anyone’s guess how bitcoin should be taxed.
Bitcoin, or digital currency, is an intriguing new possibility for investors. But because of the high volatility and lack of regulation at Bitcoin exchanges, you should only invest in Bitcoin with money you are fully prepared to lose.
A Tesla Model S has been purchased directly with Bitcoin, the electronic currency. The Tesla was purchased from a Lamborghini dealer in Longbeach, Calif.