Property or Currency? The Tax Dilemma Behind Bitcoin

As a result of monumental improvements in technology, a significant amount of currency is spent across the globe in daily transactions made on the internet. A recent trend in American culture is brick and mortar businesses shutting down in favor of online counterparts.1 Some of the many possible reasons behind this online movement may be a decrease in overhead, a convenience factor for consumers, and a drastically expanded market of consumers. In the third quarter of 2015, Americans spent an estimated $87.5 billion dollars on online shopping.2 These e-commerce transactions comprise an impressive 7.4% of total retail sales made in the United States.3 This figure has increased dramatically from the 2.6% of total retail sales made in the first quarter of 2006 and continues to steadily rise.4 Aside from the major financial implication from online purchases made in America, the global market for e-commerce is astronomical. Since it is next to impossible to pay on the internet with cash, bank-issued credit cards are the predominate method of payment. With credit cards, currency can be exchanged on the internet in the blink of an eye. However, there are several drawbacks associated with the global use of these credit cards including fees imposed by major credit card companies and the high risk of credit card fraud. With a continually growing global economy that is largely fueled by internet  transactions,  the  world  could  benefit  tremendously  from  a  safe  and inexpensive globally accepted method of payment