@Skilo I hope you read that properly because they admit they can not afford to audit hardly anyone, so they only end up auditing businesses and such, so you as a buyer of bitcoin to make a profit off it, or using it to purchase with it to get a better leverage (buy bitcoin low and then spend it when it is worth more) don't have to report it, just do not get caught is the issue and since they can not track bitcoin wallets for squat, heck they can not track regular purchases with dollars for jack, then the only thing you have to worry about balancing on your taxes would be vehicle purchases medical bill payments, and real estate acquisitions. anything else you have a better chance of winning the lottery with out buying a ticket than you do getting audited and caught making a profit off bitcoin. and nothing says you have to cash out your coins. there are tons of market options where you can cash out when they are high and stand on a stable currency value like yuan till the market deflates then buy back in for more bitcoin than ever and wait for it to inflate in value again, to sell out once more lol.
I do believe it is deflating the purchases of bitcoin, but it is because people are not aware or not willing to gamble with those incredibly stacked in your favor odds against the IRS, is all. to bad for them, cause there are enough that are that it will still spring back some I suspect.
This is where anyone reading what I have to say, would benefit, do with your taxed income this:
Claim exempt. invest all money you would have had withheld on taxes otherwise, on something you can liquidate at the end of the year or start a home business with it that if it fails (ie you dont have as much to pay your taxes as you would have paid) you can claim it as a loss on your taxes and avoid paying them anyway. if your business involves a computer and power usage, as well as part of your home you can claim all that off on your taxes come the end of the year should they actually show up to do an audit (most are done by phone or email and are not nearly as invasive as people think, again unless you are a major business lol) so as it stands you get to keep your tax money and spend it on stuff you would probably want anyway, and maybe end up with a new form of income for the new year