Bitcoin’s $13.50 To $1,200 Eleven Month Climb—Now Taxes

ladder02 Dec 2013 / Forbes – Even if you weren’t intrigued by other aspects of the rock star digital currency, it’s hard to argue with over 5,000% appreciation in less than a year. The Wall Street Journal asked Should You Invest in Bitcoin? and printed a WSJ special section: “Bitcoin or Bust“. The conclusion: sure, why not buy and hold some?

It’s easy to see why. Only 11 months ago, Bitcoin was $13.50. Its meteoric rise is downright astounding even if the price has dipped a bit since its peak. It makes some worry this bubble will burst. Plus, Bitcoin thefts soar as online criminals target easy payday after currency’s value quadruples in the space of three weeks.

Adding to its cachet, the currency isn’t issued by any bank or government. It is mined using high powered computers doing what amounts to math. Once created, Bitcoins can be traded or used to purchase goods and services.

These days, if your digital wallet has Bitcoin in it, you can buy a lot more goods and services. There are debates about just how anonymous Bitcoin is, but it is clearly more anonymous than most currencies or other forms of payment. For that reason, it has featured in some illegal activities, including the now shuttered website Silk Road….. Read more

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