.. but the moment you sell those 100 bitcoins for $800 you have to report that. Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.
I respectfully disagree. There is no requirement. We have been greatly deceived. Unfortunately I don't have much in the way of proof. I've personally operated outside the FR system and not paid income tax in years. I conclude that the IRS agrees with me since I have no legal issues.
Good luck with that if they ever catch on. Just because you haven't been audited yet means nothing. When you do get audited, enjoy the interest and penalties. There are thousands of people out they operating under the: "I haven't been taken to tax court yet, so I must not be doing anything wrong" theory. Ignorance won't get you off the hook. Make sure you hire a CPA experienced in audits, they'll save you a lot of money when the time comes.