[PeterPrinciple]

Under the guidance, people spending bitcoin are liable to declare capital gains on any increase in value on those coins.

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The big assumption here is that there is only gains to be taxed. Nobody mentions losses. Personally I think this position is a good thing and bit coin enthusiasts can now have tax deductions also. The govt now shares in their risk and I think there will be more losses than gains. So in essence the govt is subsidizing this process.

[Errant]

So in essence the govt is subsidizing this process.

The government isn't subsidizing the process, the government is taking its cut out of any capital gains. In the case of a "loss" of some or all of you "capital", the government isn't going to be sending you a rebate...

If Freepers, "supposedly the cream of the crop" are dumbed down to think like this, I'm afraid we're doomed as a nation...