"Do I still use schedule C if my self employment income and expenses were in the form of bitcoin?"
Yes. The IRS has made that perfectly clear. What's somewhat unclear is whether the gain or loss you experience when you, in effect, "sell" the bitcoin in order to pay someone in bitcoin is "capital" or "ordinary" in character. The more conservative approach - from the standpoint of possible IRS "push back" - would be to keep a small cache of bitcoin as "operating" bitcoin to be used for paying subcontractors and then possibly a larger, separate and distinct cache of bitcoin as "capital" assets.
There's also the unsettled issue if bitcoin's hard fork and the resulting bitcoin cash received constitutes an income event or not.
Keep good records, including your translations of bitcoin into US currency.
Tom Young
