The process starts with buying bitcoins. Bitcoins are then transffered into bitconnect coins which are lent out earning interest paid to the lender. Once interest payments are recieved (in the form of bitconnect coins) they can then be transfered back to bitcoin, and then back to USD. The issue I am having is I seem to be between several blurred lines. This situation doesn't seem to fit a capital gain/loss or an asset situation, as you are only using bitcoin and bitconnect coins to initiate and conclude the transactions and are not holding them. Makes me believe that it should be reported under interest gained. Is this correct?
