Do you have any sources for this kind of information? From everything that I have learned this is incorrect. I would not take what this user is saying as any kind of tax advice, because it doesn't seem to reference anything significant or be coming from an informed place. I've been wrong before, but I'm pretty sure that it is not considered income the moment it is mined. I think it becomes income once you exchange it for fiat, or goods with a referencable fiat value. Otherwise, it wouldn't make sense and they would be attempting to tax losses constantly. You can not be taxed for money you have not earned. If your business experiences a loss of 80% of it's earnings throughout the year, you are not expected to pay taxes on 100% of your earnings without considering the losses. Your taxable income is a product of gain/loss, from what I understand. You do not simply discredit your losses and tax yourself at the highest possible value. This isn't even what the IRS would suggest.