Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?
Income tax will be applicable on income whether its from cash or from crypto. If you trade your Bitcoin and get money in your account then definitely this is going to be taxed. But if your Bitcoins are on your wallet it not taxable as these are not reflecting in their actual values. Bitcoin in your wallet even if they are in N numbers are not counted in Income anywhere.