Bitcoins draw interest, but volatility and tax headaches linger

Consumers and businesses might have shown more interest in bitcoins, but there are major headaches all around for bitcoin companies, supporters.

Published Mon, Jan 12 2015 5:23 PM CST   |   Updated Tue, Nov 3 2020 12:11 PM CST

The bitcoin cryptocurrency endured highs and lows throughout 2014, with the bitcoin economy making progress - but valuation saw continued decline. Compared to other currencies, bitcoins suffered the worst, decreasing 67 percent throughout 2014, and is off to a turbulent start in 2015, cryptocurrency analysts noted.

Bitcoins draw interest, but volatility and tax headaches linger | TweakTown.com

Despite a volatile value, CoinDesk predicts there will be more than 140,000 merchants and retailers accepting bitcoin payments by the end of the year.

The IRS ruled in 2014 that bitcoins are property and not currency, which could cause major headaches for bitcoin owners. US taxpayers will need to be careful when filing their taxes, and since bitcoin value declined, likely won't have to pay any type of taxes for gains.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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