[vijayboyapati]

This strikes me as the most expected outcome. They are essentially treating Bitcoin as gold (actually slightly better, since gold has a collectible tax rate of 28% which doesn't qualify for the long term capital gains rate). The trickiest and scariest consequence will be for miners, who might need to report taxes at the time their bitcoins were mined and at the current market rate. This will mean a lot of people will need to retroactively declare gains, many of which may not have been realized. For small mining operations likely the miners will avoid reporting and just sell for cash. But for large miners who will need to use the exchanges, this becomes a real issue. Consult an accountant!