* My line of thought was perhaps there's something written where it states that only the official currency is taxed.* That's true, but all those Bitcoins are g

* My line of thought was perhaps there's something written where it states that only the official currency is taxed.* That's true, but all those Bitcoins are getting converted into dollars/euro/yen/etc. at some point, so that's when the IRS (or tax agency) collects its due. Its like stocks. You pay capital gains taxes on stock when you cash them out dollars. I'd expect you would have to pay some sort of tax when you cash your Bitcoin out for dollars too.