The taxation of what is called "mining" of crypto-currencies, such as bitcoin, begs a number of novel questions. Bitcoin and other crypto-currencies operate using the blockchain, which is essentially a heavily encrypted public ledger. Where bitcoin is transferred from one person to another, a transaction will be recorded on the blockchain. To make this change to the blockchain, complex algorithms must be solved, which require substantial computing power. In practice, specialised computers referred to as "mining rigs" are used by miners in an effort to increase the speed at which these transfers can be effected. These mining rigs provide most of the processing power utilised by the blockchain and are responsible for the verification of transactions, and the addition of new blocks. There are two incentives to become miners. First, any bitcoin user who uses bitcoin in a transaction will pay a small transaction fee that will be received by the miner processing that transaction. Second, ...

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