Bitcoin, the digital currency (that we've written about before) may have hit another snag in the road for those with dreams of seeing it as a popular/widely used currency.
The IRS has declared it as property rather than currency, therefore 'owners' will be required to pay capital gains taxes, and could paying as much as 43% in taxes. In other words, unless the IRS changes their decision, you likely won't ever be seeing Uncle Davis paying with Bitcoin at the local pub down the road. Could good ole' USD by way of a Visa or MasterCard still be his payment of choice in the future?
"This is especially true when it comes to Bitcoin micropayments, a long-held dream of the Bitcoin faithful – just imagine recording capital gains on 100 transactions a day." writes Kevin Roose.