It’s all fun and games until the IRS comes knocking at your door for failing to pay taxes on each and every cryptokitty transaction.
People thought blockchain and Bitcoin was a way to escape fiat...turns out mining is taxed as ordinary income, investing transactions as capital gains, and the IRS only accepts fiat.
People thought Ethereum smart contracts were a way to escape the legal system (the code being Law and all)...turns out people could’nt trust these smart contracts to do what they thought and were marketed to do (DAO); turns out the code isn’t the Law because the parties to the smart contracts could just fork and break the contract; and it turns out the SEC can actually regulate and prosecute ICOs that violate securities laws.
Who wants to file a tax return and pay ordinary income on every cryptokitty they birth or capital gains on every cryptokitty they sell?
Maybe I can get ahead of the ball and start offering “stripe atlas for self directed IRA LLCs for tax free cryptocoin/kitty trading”.