[rargulati]

For federal tax purposes, virtual currency is treated as property: https://www.irs.gov/pub/irs-drop/n-14-21.pdf

[mdorazio]

You seem to be misinterpreting what the IRS means by "property". It is equivalent to "asset", not to "land". It can mean land, but can also mean a stock, bond, capital good, etc. that you own. See [1] for example usage.

[1] https://www.irs.gov/taxtopics/tc703