So, you know that the IRS views cryptocurrency as an “asset.”
So, if you sell your Bitcoin at a profit, you have a capital gain that is taxable.
Recently, there was a rumor that virtual currency that you won in video games like Fortnite was also being considered by the Tax Man as cryptocurrency that would be taxable. Thus, making your Fortnite V-Bucks subject to capital gains, and creating a potential tax cheat in your 14 year old.
However, perhaps because someone in a white house uses “executive time” to play Roblox, the IRS issued a release stating that to avoid public confusion “Transacting in virtual currencies as part of a game that do not leave the game environment (virtual currencies that are not convertible) would not require a taxpayer to indicate this on their tax return.”
So, game players are safe for now.