Wednesday, 17 January 2018

There are at least three ways, though only one of them looks rational today. First, you could mine your own bitcoins. Second, you could buy some from an exchange. Third, you could buy shares in a fund that has invested in bitcoins.

In one sense, the rave scene has always been encrypted. In its heyday, when news of illicit parties spread by word of mouth, you just needed to know the right people. But new technologies are adding another layer to this.

Bitcoin has defied financial gravity in 2017 but, in one respect, it’s just like any other investment: Uncle Sam expects a cut of the profits when you sell it. And starting in 2018 it will get a little harder to avoid paying up.

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