... the value of bitcoin relative to dollars would always increase...
Also known as taxable capital gains.
Also known as taxable capital gains.
However, if he sells bitcoins in the future, he will be forced to pay capital gains taxes on the difference in price between when he received the bitcoins (and paid income tax then) and when he sells. If he sells at a loss, he can use his losses to offset his income tax.
This planet is in desperate need of a currency that can't be inflated by a select group of people not loyal to the interests of American Citizens. If a bitcoin ATM shows up nearby me, I would probably pay money just to help fund the cause.