@Rick19744
Thanks for your reply. Some confusion: on your last bullet point, technically I didn't turn my virtual currency into real currency to then purchase a watch. I exchanged my virtual currency for the watch that my friend bought using his credit card. I'm not sure if that's an important distinction or not.
I'm also not sure why it matters whether the watch is personal-use property (let's just assume it is personal-use property) because I'm only asking about deducting the loss on my virtual currency that I used to acquire a "good", with that "good" being a watch.
