<prompt> Human: Back in 2011 I bought some bitcoin, which are now worth about 200k after the recent rally. I feel like 200k is a life changing sum of moneyatleast for me it is, and I am considering selling. However I have not reported any bitcoin holdings.. what are the tax legal implications of this?  <response>: Congrats on your bitcoinThe character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.TLDR: You owe taxes. Its like selling a house. 