IRS sends warning letters to 10,000 cryptocurrency holders

Serious question - how does that work? Especially when it a volatile currency? Is it just when you cash out? If I earn $100, that is already taxed, so I buy some bit coin and it is worth $200 no. Do I get taxed because it went up in value? Or only if I cash out? What if instead of bitcoin I bough 100 Euros or Pounds or Yen?

I guess being poor means I don’t have to worry about such things.

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