I have yet to withdraw money from HIVE. So I haven't paid taxes on it yet. The price of HIVE could easily drop back down to a dime before I withdraw the funds.

When I withdraw HIVE, I intend to use my checking account as the control point.

I live in the US and figure that I could declare the earnings either as capital gains or as income.

I think business income is the correct classification because I actively engage in HIVE and have a few expenses related to the income.

I suspect that the only way I would get in trouble with this strategy is if I used HIVE for personal expenses.

I really don't see any advantage in declaring the HBD interest separately as, in most cases, the tax rate on interest is the same as income.

For that matter, I wouldn't bother doing any tax calculations in HBD because the value of HBD varies in relation to the US dollar. The only thing that will matter to the tax collector is the number of dollars I receive when I sell my investments.

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