I don't think this is a problem, an in the scenario you described the person was taxed fairly.
All goods fluctuate in value with time. The fair value from the point of view of taxation is the value when you earned it, whether bitcoin or stock options (maybe with options it's timed at when you exercise, I'm not sure).
Imagine a person who earned $10,000 and chose to buy some stock with it, and then that stock crashed. Did that person get taxed on stock that was worthless? Of course not, they earned money (which was taxed) and chose to invest it in something risky. The person who chooses to keep their stock is no different. They could have chosen to sell, and avoid the risk.
Bitcoin is less liquid than stock, so it is harder for a bitcoin miner to avoid these risks. Nonetheless, that's not the government's fault. Paying tax is a cost of business.
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I don't think this is a problem, an in the scenario you described the person was taxed fairly.
All goods fluctuate in value with time. The fair value from the point of view of taxation is the value when you earned it, whether bitcoin or stock options (maybe with options it's timed at when you exercise, I'm not sure).
Imagine a person who earned $10,000 and chose to buy some stock with it, and then that stock crashed. Did that person get taxed on stock that was worthless? Of course not, they earned money (which was taxed) and chose to invest it in something risky. The person who chooses to keep their stock is no different. They could have chosen to sell, and avoid the risk.
Bitcoin is less liquid than stock, so it is harder for a bitcoin miner to avoid these risks. Nonetheless, that's not the government's fault. Paying tax is a cost of business.