As someone who is currently undergoing a tax audit for a year in which I reported ~$20M in cryptocurrency trades but only realized about $10k in income from the

As someone who is currently undergoing a tax audit for a year in which I reported ~$20M in cryptocurrency trades but only realized about $10k in income from them, I can confirm that "fairness" does not appear to be a goal of the tax code. Cryptocurrency (and especially derivatives) really exposes some of the head-scratching aspects of the tax code around capital gains.