Quote Originally Posted by tforturton View Post
Long term forecast is that the price will double, but a lot depends on Ripple's SEC case, and whether or not governments decide to create their own digital currency. At the moment, they (the digital currencies) are all too unstable, and government backing would create a currency that would do the same job, but with a lot more stability. That would in effect make Bitcoin and it's like a bit redundant, though there are still people who would prefer to steer clear of taxable government currencies..
On the tax thing: the exchanges obviously report transactions to tax authorities and in the U.K. at least it’s treated as chargeable gains. But that is if I sell it. What if I spend it? Eg if I bought a Bitcoin at $0.10 back in 2010 and go and buy a Tesla with it when it reaches $60k. Have I realised the asset? Or does it roll into the base cost of the car? If the latter, then great as I don’t think cars are subject to cgt (as everyone would be claiming capital losses if they were!)