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.
interesting...I say that if you purchased 1 BTC for $350, then bought something that cost $650 with that bitcoin, then yes, you had capital gains of $300, but if you bought miner for BTC, then you just spend your original $350, UNLESS you later sold your miner. Selling would close the "circle" of transactions back to cash.