There are many Bitcoin supporters who believe the future lies in digital currency. Many of those who support Bitcoin believe that a much faster, low-cost payment system makes life easier when it comes to transactions worldwide. Bitcoin can be exchanged with traditional currencies, even if it is not supported by any government or central bank. In fact, Bitcoin's exchange rate against the dollar attracts potential investors and traders interested in currency games. Indeed, one of the main reasons for the growth of digital currencies like Bitcoin is that they provide mobility as an alternative to official currencies and traditional commodities such as gold. The IRS stated in March 2014 that all virtual currencies, including bitcoins, will be taxed as property rather than currency. The gains or losses from bitcoins held as capital are treated as capital gain or loss while bitcoins held as inventory cause the usual profit or loss. On the other hand, the sale of bitcoins that you mine or purchase or the use of bitcoins to pay for goods / services are examples of transactions that can be taxed. The principle of buy low and sell high applies to bitcoins as well as manyother types of assets. The most popular way to save bitcoins is to buy it on a Bitcoin exchange. However there are many other ways to earn and own bitcoins.