Over the last several years, virtual currency has become increasingly popular. Bitcoin is the most widely recognized form of virtual currency, also commonly referred to as digital, electronic or crypto currency. In late 2017 Bitcoin reached a value as high as almost $20,000 per coin. Most recently a new study claimed that Bitcoin's price was artificially inflated last year. Over the past month, bitcoin has lost roughly 25% of it's value. Many predict is to be the "currency of the future". But what are the tax consequences of these transactions?