Can I sell Bitcoin bought in 2014?
10 bitcoins are worth $60,000 dollars. How can this be?


Indeed, the price has skyrocketed recently, each bitcoin is worth around $6092.00 USD as of writing this answer, it's not a glitch.


  I am tempted to cash it out but feel this is illegal and the goverment is going to be on me.


It's not illegal to sell or buy bitcoins in most countries, see: https://en.m.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
You should probably just ensure you pay tax on the income.