If you do, how do you figure out if the investment appreciated or depreciated?
I mean, if I use BTC as a currency to buy things, I don't understand how I would evaluate every purchase at the end of the year to figure out whether I owe capital gains.
I mean, if I use BTC as a currency to buy things, I don't understand how I would evaluate every purchase at the end of the year to figure out whether I owe capital gains.
It's not that hard, but takes some work and skill - it may be prudent to hire a certified accountant to do that for you properly.
In any case, the fact that in some circumstances the reporting is labor-intensive, or expensive, or unclear isn't a valid excuse to not do it. You can ask IRS or a CPA for assistance, and if you do your best then even if IRS eventually disagrees with something, then it's going to just be a correction (which may go in both directions).