while the concept behind is well intentioned and similar to what your stock broker does.  what we are discussing here is bitcoin as a CURRENCY (not a commodity that trades on the exchanges).

What that means is using it to buy milk down the street, and retails accepting it and give you milk. That was the goal of bitcoin ultimately and what all those payment processors like bitpay is build for.  

This IRS ruling essentially kill it in usa. It's the same as reporting every single penny you earned and spent as capital gains on your form. No business nor individual will accept that, that's why you dont see gold/silver coins/bars accepted as payment in walmart/target.  

There is unfortunately no way around this, unless IRS changes the ruling.