The ROI with bitcoin purchases can depend on how you look at it. I purchased some S1s with bitcoins that I purchased at about $350. To keep the math simple, say the bitcoin value was $650 when I purchased an S1 at 1 BTC. Did the S1 cost me $350 or $650?

I feel that it only cost me $350 since that's what I paid for the 1 BTC.

For tax purposes, I'm using FIFO accounting similar to when opening and closing a stock "tax lot". But for tax purposes I'm not sure whether I should be taking a capital gain of $300 for when "I sold" the bitcoin and then claiming the S1 cost me $650.

Guess it depends on how the IRS treats. Will be fun at tax time.