My own point of view is that you are buying equipment to run a business. This business is "mining" bitcoins and your equipment is part of that business -- as are your electricity, commissions, and any other expenses. If you choose to depreciate it rather than expense it, then you only get a fractional deduction against income each year -- as a previous poster pointed out. If you take a section 179 deduction (in the US) for small business equipment you can deduct the total cost in the first year. Regardless, your income is business income and not a capital gain. Consequently, it gets taxed according to the structure of the business you have set up -- schedule C if you didn't bother to create a business for this. I do agree that whatever rationale you choose, you should pay taxes. Right or wrong regarding treatment, you won't be evading taxes -- which the IRS thinks poorly of.