Are cryptocurrency transactions taxable?

There’s been a lot of talk about cryptocurrencies or virtual currencies, including how much they’re worth and the transactions in which to buy them. What happens, though, when you sell them or use them to buy something? Do you have to worry about taxes?
Let’s look at some of the different applications of virtual currency.
The IRS has determined virtual currency is property. This means that gain or loss applies if the virtual currency is a capital asset in the hands of an invest