Because the blow from the IRS -- which we all knew was coming sometime -- has now been dealt. What's more, the only more advantageous ruling they might possibly have rendered (at least in regards to users, rather than miners) would have been to rule it legal tender -- and we all know that was an infinitesimal possibility.

So now that the blow has been dealt, we might shake out a few weak hands. If the price drops to some level (let's be (anti)generous and say 50%), that is the point at which it will restart its steady climb in adoption - probably at about the same slope as before. We will have absorbed the blow, and they have no further blow to deal.

As for the mining ruling, yeah, that kinda sucks. IANAL, nor an accountant, but I do not see the logic in their ruling. I keep thinking about the contrast to mining physical gold, and the fact that inventories of such are not taxable until sold.

Here's the funny thing though. Rulings are merely administrative interpretations of the Regulations as encoded in the CFR. The Regulations, in turn, are the Commissioner's best effort at interpreting the Statutes as encoded within the USC. The USC is the best effort attempt at harmonizing all the bills that the Legislature passes. IOW, Rulings are not Law. They are three indirections removed from Law.

Further, Rulings are not binding - not even upon Inspectors, Auditors, nor the US Tax Court. And the US Tax Court is not really a court, as it is not a body according to Article III of the Constitution. US Tax Court is really an administrative tribunal. All decisions of the US Tax Court are appeal-able to a real Article III Federal Court.

I guess the last three paragraphs are just a long-winded way of saying that I expect the mining ruling to be overturned.

But don't listen to me - I'm just some random schmuck on the Interwebs.