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What Is Down Alternative and Who Should Buy It? Experts Explain (2025)
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What Is Down Alternative and Who Should Buy It? Experts Explain (2025)

by admin August 22, 2025


When shopping for new bedding, you’ll undoubtedly run into both natural down and materials described as down alternatives. This prompts a lot of questions. Is down or down alternative better? What are the differences between them? Why is one more expensive than the other? Which is easier to care for? Which is warmer? It can all be very confusing.

As evinced in our down comforter buying guide, not to mention other stories in our sleep directory, there are plenty of options for high-quality down and down alternative blankets. But which should you choose for a good night’s sleep? We spoke with textile and bedding experts to break it all down and help you decide.

What Is Down?

Down is an insulation made from the feathers of ducks or geese. Because of its unmatched warmth-to-weight ratio, it’s the preferred insulation for high-end applications like mountaineering jackets.

“Down is generally known for being fluffy, light, compressible, and naturally insulating while still maintaining its breathability,” says Parima Ijaz, founder at Pure Parima. The standard specification for down is fill power, which measures the volume in cubic inches that one ounce of down occupies. This helps indicate its fluffiness, weight, and loft, with higher fill power translating to better insulation and a lighter weight. The higher the fill power, the better it insulates, says Ijaz.

Down is frequently used in bedding pieces, including pillows, comforters, and mattress toppers. “When we think of high-end sleeping, we often think of down pillows, down comforters, and down mattress toppers,” says Andrew E. Colsky, founder of National Sleep Center. There are different kinds of down from different kinds of birds. For example, some blankets are made with goose down, and some are made with duck down. Goose down is usually fluffier and loftier; duck down is more affordable and can be smellier. If you’re shopping for down bedding, we recommend going with goose down or a blend of goose and duck to cut down on allergens and have a better, fluffier experience.

What Is Down Alternative?

Down alternative is made with synthetic materials—typically microfiber, polyester, or a blend. “It’s designed to mimic the plush, fluffy feel of traditional down at a lower price point,” says Byron Golub, vice president of product and merchandising at Saatva. “It will usually have a slightly heavier drape as compared to down,” says Ijaz. Golub adds that, “depending on the type of down alternative used, some are created for warmth, while others are engineered to be more breathable.”

Why Choose Down?

It’s hard to quantify, but down bedding products have a premium and luxurious feel. There’s a noticeable difference between similar comforters made with down and down alternatives. In my experience, the down comforter almost always feels better, with crisper and crinklier outer fabric, a fluffier and loftier warmth, and that classic high-end hotel feeling of sinking into a really nice bed. Even the best down alternative comforters I’ve tested haven’t felt as nice.

Quince

Premium Down Comforter

Feathered Friends

Bavarian 700 Down Comforter (Light)

Down products are often much more expensive than their down-alternative counterparts. This is because down is pricier than synthetic fibers, and “its construction requires down-proof textiles, which also tend to be more expensive as compared to non-down-proof fabrics,” according to Golub. That means a tighter weave to help prevent any stray feathers from coming loose or poking you in your sleep, but it’s also factored into the price of the bedding you’re buying. Your investment will last, though. Down products have a longer lifespan than down alternatives. Caring for down is often a more finicky and involved process compared to less expensive counterparts. Down comforters, for example, are usually supposed to be dry-cleaned or delicately washed, then fluffed frequently while drying. Drying often takes a long time, and you have to be careful to get it completely dry to prevent mildew. I recommend using a duvet cover if you’re sleeping with a down comforter.

Although down alternatives do a solid job of imitating the real deal, the comparison is more of an apples-to-oranges situation. To achieve the same warmth as a fluffy, lofty down comforter, you’ll need a much heavier-feeling down alternative. Down is just more breathable as a material.

Why Choose Down Alternative?

Hot sleepers might prefer a down alternative. “Synthetic down alternatives typically offer a cooler and more temperature-neutral sleeping experience when compared to natural down,” says Golub. It’s my experience that this is also true in its inverse: If you want to stay very warm without feeling weighed down too much, then true down may be a better option. Down alternative requires more fill material to achieve the same effect, which can result in feeling stuffy if you’re sleeping with a heavyweight or bulky blanket.

Wayfair Sleep

All-Season Down Alternative Comforter

Utopia Bedding

Down Alternative Comforter

Down alternative is generally more affordable than down, so it’s a better choice if you want a budget-friendly comparable experience. Down alternatives are also naturally hypoallergenic. If you’re particularly susceptible to allergies from dust mites, down alternative is worth considering since you can wash it more easily (though Golub says that “many down bedding pieces are also washed and treated to be hypoallergenic for sensitive sleepers.”) Double-check with your chosen bedding manufacturer to see if it lists any information about allergies. Down alternative can be easier to care for; usually, down alternative comforters are machine-washable and don’t require any special drying instructions (though you should always check the tag to be sure). Down alternative does feel less luxurious than true down, but if you don’t care about the utmost of high-end experiences, you likely won’t miss the difference.

FAQs

Is Down Alternative as Warm as Real Down?

AccordionItemContainerButton

Generally, no. Down is an excellent insulator. The feathers and feather clusters efficiently trap air, lending a warmer feel than synthetic alternatives. A down alternative comforter can be as warm as a down comforter, but the down alternative will be heavier, both because it takes more material to achieve the same effect and because it isn’t as fluffy or lofty.

How Do You Care for a Down Alternative Comforter?

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One of the upsides of down alternative comforters is that they’re generally easier to care for. You should check the tag and manufacturer instructions. Usually, you’ll put it in the washing machine on a delicate cycle using cold or warm water and a mild detergent. Then throw it in the dryer on low heat. Wool dryer balls can prevent clumping, as can manually fluffing the blanket throughout the drying cycle.

Meet the Experts

  • Parima Ijaz, Founder, CEO at Pure Parima
  • Andrew E. Colsky, JD, LLM, LPC, LMHC, Founder at National Sleep Center
  • Byron Golub, Vice President of Product and Merchandising at Saatva

Power up with unlimited access to WIRED. Get best-in-class reporting and exclusive subscriber content that’s too important to ignore. Subscribe Today.



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August 22, 2025 0 comments
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ASX probe into $164m project failure deepens, Australian regulators assemble panel of experts: report
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ASX probe into $164m project failure deepens, Australian regulators assemble panel of experts: report

by admin June 26, 2025



Australian Securities and Investments Commission appoints former central bank deputy governor to a three-member expert panel to investigate the ASX’s failed blockchain project worth over $160 million.

According to a recent report by Reuters, one of the members of the three-member expert panel is former central bank deputy governor Guy Debelle. The panel is tasked to investigate the Australian Securities Exchange’s failed blockchain project that was worth approximately $163.1 million.

Aside from Debelle, ASIC also appointed non-executive director of the Commonwealth Bank Rob Whitfield as panel chair. On the other hand, non-executive director of Australian firms AGL and Collins Foods, Christine Holman, will be joining the panel as a member.

According to ASIC, the inquiry panel will be asked to provide recommendations and identify any shortcomings or insufficiencies within the ASX management. These could include deficiencies in its governance, capability and risk management that could have led to the blockchain project failing.

Moreover, the panel is also expected to submit a report to the ASIC by March 31, 2026. The report should consist of the team’s findings and recommendations for further steps that regulators must take regarding the investigation.

In an emailed response to Reuters, ASX said that it would welcome the regulator’s announcement and vowed to engage “constructively” with the panel members throughout the investigation.

What was the failed ASX blockchain project?

ASX first began the project to revamp its current trading platform , which is known as the Clearing House Electronic Subregister System or CHESS, by incorporating back in 2015. Under the leadership of then-CEO Elmer Funke Kupper, ASX signed on New York-based startup Digital Asset Holdings to begin working on the blockchain-centered project.

However overtime, people involved in the project started pointing out concerns that digital assets at the time still lacked market support and that ASX had enlisted the help of the New York startup without properly testing the product’s scalability.

It wasn’t until November 2024 when the ASX decided to abandon the project entirely, stating “citing dysfunctional management, concerns about the product’s complexity and scalability, and difficulty finding experts to support it” as the reason behind the axing. The project was estimated to cost around 245 million AUD to $255 million AUD (around $164 million to $171 million).

According to Reuters, the project’s failure had fractured public trust in the stock exchange as more than a dozen brokers and other market participants and people directly involved in the blockchain project criticized it.



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June 26, 2025 0 comments
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$100 Trillion Crypto Boom? Experts Say It’s Closer Than You Think

by admin June 10, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Global Macro Investor’s head of research Julien Bittel used a marathon X thread on 9 June to stitch together what he calls “The Everything Code”―a demographic-debt-liquidity feedback loop that he believes will catapult the digital-asset complex from today’s roughly $3.5 trillion capitalization to $100 trillion within a decade.

Speaking against the backdrop of a crypto market that has already doubled since the start of 2024, Bittel lays the groundwork with a blunt diagnosis of the developed world’s labour market. “The labor force participation rate isn’t going to rise anytime soon – it’s set to keep declining over time. This is a structural problem,” he writes, adding that “humans are already being replaced by AI and robots at a staggering pace, and that shift is only just beginning. This is deflationary.” In his view, shrinking workforces meet unyielding entitlement promises in a cocktail that “reinforces the need for ongoing stimulus to keep the system afloat. Fewer workers. More tech. Same debts.”

Bittel’s next step is the fiscal arithmetic. With public and private liabilities already hovering near 120% of global GDP, “the only answer is more debt… That’s how the system survives,” he warns. Should growth sputter, “Debt-to-GDP is going to keep rising over time,” a trend he expects policymakers to absorb through monetary debasement rather than austerity.

Debasement, he reminds readers, is the hidden eight-percent annual loss of purchasing power that piles on top of headline inflation. “Cash has quietly become one of the riskiest assets out there,” Bittel argues, forcing savers to seek double-digit nominal returns simply to stand still.

The $100 Trillion Crypto Supercycle

From there the thread pivots to liquidity, the variable Bittel and GMI founder Raoul Pal have elevated to first-principles status. When GMI combines central-bank balance-sheet expansion with commercial-bank credit creation across major economies, the resulting “Total Liquidity” gauge explains about 90% of Bitcoin’s moves and 95% of the Nasdaq-100’s, he writes. “Fewer workers. More tech. Same debts,” means liquidity must keep rising to prevent a credit contraction, and that liquidity, in Bittel’s models, “is the tide that lifts scarce, risk-sensitive assets.”

Scarcity is the bridge to Bitcoin. “Bitcoin has been compounding purchasing power faster than any asset in human history—annualizing nearly 150 percent in excess of the debasement rate since 2010,” Bittel notes, while even the Nasdaq’s stellar 13 percent real return “is down 99.94 percent versus Bitcoin since the start of 2012. Shocking…” The superlatives serve a purpose: they frame Bitcoin as the only macro-scale antidote to the policy cocktail of demographic drag, rising leverage and forced liquidity.

All of that funnels into his headline projection. “We’re still in the early stages of a global race—a scramble by institutions, sovereigns, and individuals—to accumulate as much Bitcoin as possible,” Bittel writes. That scramble, he believes, will propel the crypto universe “from a $3 trillion asset class today to $100 trillion over the next seven to ten years.”

“The Banana Zone” | Source: X @BittelJulien

Doing the math, a jump from the current $3.55 trillion market capitalisation implies a 40% compound annual growth rate over a decade, or roughly 61% if the window compresses to seven years—both aggressive, but neither without precedent in earlier crypto cycles.

Bittel concedes the path will be “both incredibly challenging and unimaginably rewarding—the worst of times and the best of times,” but he insists Bitcoin is “part of the solution.” He and Pal have called the coming chase for scarce assets “the single greatest wealth-creation opportunity of our lifetimes,” and Bittel closes the thread by declaring that if GMI’s call plays out, it will be “remembered as the greatest macro trade of all time. This is The Everything Code.”

Pal, whose own presentation at Real Vision’s Sui Basecamp in May framed crypto as “a supermassive black hole that outperforms and sucks in every other asset,” reaches similar conclusions. He places Bitcoin in what he calls the “banana zone,” a reflexive phase in which expanding liquidity and herd behaviour interact to drive parabolic gains, with a cycle target of roughly $450,000 per coin. Pal’s estimates implies a Bitcoin capitalization only well above $40 trillion even without altcoins—complementing Bittel’s upper-bound scenario.

At press time, the total crypto market cap stood at $3.37 trillion.

Total crypto market cap, 1-week chart | Source: TOTAL on TradingView.com

Featured image created with DALL.E, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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June 10, 2025 0 comments
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‘Existential Crisis’: Bitcoin Quantum Computing Threat Is Fast Approaching, Experts Say

by admin June 3, 2025



In brief

  • Experts fear a quantum computer could one day be used to access billions of dollars of ancient Bitcoin.
  • That could result in an immediate drop in Bitcoin’s price during a so-called liquidation event.
  • There may be a solution, but time is running out, they say.

Some members of Bitcoin’s community are quick to shrug off advancements in quantum computing, but behind closed doors, influential cryptographers and business leaders are concerned about a potential catastrophe.

A computer strong enough to reverse engineer wallets’ private keys could one day disrupt Bitcoin’s market, flooding exchanges suddenly with ancient Bitcoin and sending prices spiraling, computer and security experts explained at a private luncheon last week—a short walk away from The Venetian’s cavernous Bitcoin 2025 conference rooms in Las Vegas.

Although the threat was once viewed as far-off, experts now believe that Bitcoin’s community has less than a decade, even a handful of years, to put contingency plans in place. Among those who advocated for preparedness, as opposed to industry-wide denial, was Jameson Lopp, CTO and co-founder of self-custody service Casa.

“It’s difficult to say that we have decades because it seems like the timelines are getting compressed,” he said. “The real question is: Can Bitcoin come together and find consensus on how to mitigate this threat before it really becomes an existential crisis?”



The luncheon at the Delilah at Wynn Las Vegas, a modern-day supper club, was hosted by Anduro, a multi-chain layer-2 network incubated by Bitcoin miner Marathon Digital, and Evertas, a crypto insurance company founded in 2017. The discussion was led by Anduro Senior Protocol Engineer Hunter Beast and Marathon Director of Engineering Michael B. Casey.

The event, which explored potential solutions, secured RSVPs from members of the U.S. Treasury, according to a person familiar with the matter. The Treasury was not in attendance, however, according to a separate person familiar with the matter.

“Liquidation event”

Companies including Google and Microsoft have invested billions of dollars in researching quantum computing, making it an effective space race among the world’s tech elite.

Using particles that can act like both individual units and waves simultaneously, their experimental machines are able to crunch complex calculations that would otherwise take today’s machines thousands of years. (An in-depth breakdown can be found here.)

Bitcoin is vulnerable to quantum computers that could reverse-engineer private keys, enabling a bad actor to steal assets belonging to Bitcoin’s pseudonymous creator Satoshi Nakamoto, leading exchanges, and abandoned coins mined by early network participants.

Last week, a research paper from Google posited that breaking the so-called RSA encryption backing the security of private keys might require 20 times fewer quantum resources than experts previously estimated. In theory, a public key is all that they would need.

Beast and Casey say that Bitcoin’s algorithms could be cracked with zero warning. And based on the network’s current structure, a bad actor would likely be incentivized to collect as many keys as they can before potentially accessing billions of dollars of Bitcoin in one fell swoop.

A study published by Deloitte found that 25% of Bitcoin’s circulating supply is vulnerable to quantum attacks because their associated wallets’ keys had been exposed. That sum, totaling 4 million Bitcoin at the time, is worth nearly $42 billion, based on current prices.

The reality is that an attacker would get far less. If algorithms backing Bitcoin are cracked, then it could immediately depress the asset’s price during a “liquidation event,” the experts said. 

To be sure, Bitcoin can be secured against quantum threats by moving funds to a wallet that hasn’t had its public key exposed yet. Nevertheless, that’s impossible for actors that have lost their keys, or impractical for exchanges that let the public make on-chain deposits.

“It’s a huge coordination problem,” Beast said, emphasizing that the community should be leaning towards “preparedness” as opposed to “denial.”

“Biggest short of all time”

At present, Bitcoin’s community would have two options if a quantum computing attack occurred: Absorb the market impact that quantum computers have on Bitcoin and move on, or start confiscating assets. The latter option, in many ways, would conflict with Bitcoin’s ethos as an asset specifically built for self-custody.

Beast is the author of BIP 360, a proposal aimed at introducing certain address types that leverage post-quantum cryptography. Because experts aren’t sure just how strong quantum computers could grow, the proposal features address types with varying levels of security.

According to Casa’s Lopp, quantum signature schemes “are massive in terms of data size,” and they would likely ignite “a version of the block size debate” that centered on Bitcoin’s transaction overall throughput. The debacle split Bitcoin’s community and ultimately led to the creation of Bitcoin Cash after years of acrimonious debate over Satoshi Nakamoto’s vision for the network.

Even then, Beast’s solution would require that Bitcoin owners move their assets to a new address type, from your average user to the biggest crypto exchange.

Casey’s solution, which has not been assigned a so-called BIP number that’s used to track proposed software changes, is aptly dubbed “hourglass.” He believes that it could stretch out the dilemma of quantum-accessed coins to eight months from a few hours.

There’s a certain type of Bitcoin address, named pay-to-public-key, or p2pk, that’s especially vulnerable to quantum attacks, he said. The format is outdated—most new wallets use hash-based signatures now—but it was standard for Satoshi Nakamoto and the first Bitcoin miners.

By limiting the number of transactions from p2pk addresses that can be included in one block, Casey said the community would have more time to explore other solutions. As a pseudo-legitimate way to access coins, it may also encourage bad actors to target abandoned Bitcoin addresses—coins that nobody would end up missing—as opposed to real users.

What’s more, the network would have a better way of assessing how many actors have access to strong quantum computers. If only one p2pk-based transaction was allowed per block, attackers would have to bid against each other to get their transaction included. In theory, that could dampen the market impact, as those fees are awarded to Bitcoin miners.

As Bitcoin’s community mulls solutions to a seemingly inevitable threat, Project 11 is among those involved, offering a Bitcoin bounty to anyone that’s able to break a “toy version” of algorithms underlying the network and $2 trillion worth of assets.

“Bitcoiners do not want to hear this story,” Alex Pruden, a Project 11 co-founder and former U.S. army infantry and special operations officer, said during the event’s Q&A portion.

Amid the jargon, one Wall Street veteran and mathematician, however, floated a more personal solution in the event that a quantum computing attack depresses Bitcoin’s price.

“Open the biggest short of all time on Hyperliquid,” he said, referring to the rapidly rising decentralized exchange.

Edited by James Rubin

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



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June 3, 2025 0 comments
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Buy a Burger With Bitcoin? Beware the Tax Risks, Experts Warn

by admin May 24, 2025



In brief

  • Steak ‘n Shake recently began accepting Bitcoin as a form of payment.
  • Using cryptocurrencies to purchase goods and services has tax implications, experts told Decrypt.
  • U.S. taxpayers are responsible for reporting their crypto-denominated purchases—no matter how big or small—to the IRS.

Bitcoiners can now buy burgers, fries and other beef tallow-fried goodies at Steak ‘n Shake locations in the U.S. after the fast casual chain earlier this month announced it would accept the cryptocurrency as payment. 

But customers better hang on to their receipts.

Crypto-denominated purchases—even those as small as a $14 combo meal or a $3 Sprite paid for in Bitcoin—are taxable events, experts told Decrypt.

That means Steak ‘n Shake customers who plan to splash satoshis on treats like cheeseburgers or milkshakes should plan to log and pay taxes on every one of their Bitcoin purchases come next April—lest they risk running into trouble with the Internal Revenue Service.

Decrypt spoke with two experts who dissected the tax implications of paying in Bitcoin at RFK Jr.’s favorite burger joint. Here’s what you need to know: 

How are Bitcoin transactions taxed?

Bitcoin and other cryptocurrencies fall under the same category as stocks, bonds, and other long-term investments that may or may not generate income, according to the IRS. And like other capital assets, they are completely taxable.

Cryptocurrencies are “all treated as property… not as currency,” said Lawrence Zltakin, vice president of tax at Coinbase. “So effectively, any use of Bitcoin for any purpose is treated as a taxable transaction.”

That means token holders are responsible for paying taxes on crypto-denominated transactions, including something as small as a Steak ‘n Shake burger bought with Bitcoin.



When a taxpayer buys and sells Bitcoin (or any cryptocurrency), they must calculate the difference between the price at which the asset was purchased and its current market value, Zlatkin explained. The result of that difference is the capital gain or loss, and taxpayers must give a percentage of that amount to the IRS. 

“If I buy $100 worth of Bitcoin, and it appreciates to say $300 and I use the full amount to purchase a pair of jeans… there’s $200 in [capital] gain,” Zlatkin said. “It’s as though you’ve disposed of property initially worth $100 and sold it for $300.”

How do I calculate such taxes?

There are a few methods for calculating taxes on crypto-related transactions, including purchases made with digital assets, Lorenzo Abbatiello, founder of Lorenzo Tax, told Decrypt.

The standard method called “first in, first out” is exactly as it sounds: The first Bitcoin (or other tokens) the taxpayer buys are treated as the first ones to be sold for tax-reporting purposes. That means that one would value their taxable transactions using the price at which they bought the oldest tokens in their portfolio.  

“That’s what the IRS prefers you to do,” Abbatiello explained. But, he helps his clients pick the accounting method that is most suitable for their specific financial situations.

“Last year, the IRS wanted you to actually take a screenshot of all your [cost] basis of all the different Bitcoin or crypto that you purchased, choose a methodology, [and] actually sign it like a whole contract,” Abbatiello said. “They’re starting to tighten the belt on all this crypto stuff.”

“You need to choose a methodology and actually stick to it,” he added, explaining that taxpayers should pick just one method of calculating their crypto-related taxes, and use it throughout all their reports for the year. 

For help with calculating taxes, several types of software are available to track digital assets transactions and calculate taxes owed for the year. And, of course, certified accountants who specialize in crypto taxes are always available to assist token holders big and small, Abbatiello said. 

Will the IRS really come after me? 

The IRS usually does not audit tax payers for small discrepancies in their filings, including omissions of small taxable events like a $15 fast-food purchase denominated in Bitcoin. 

Importantly, the federal agency’s enforcement power depends on the size of its ranks and resources—both of which were recently cut by Elon Musk’s DOGE, or the Department of Government Efficiency, according to a May 2 report from the Treasury Inspector General for Tax Administration.

“Now, with Trump coming in, he’s really shaking up the system, so [the current rules] might be kiboshed in the future,” Abbatiello said. That means the IRS might exercise less oversight of tax filings or create less stringent requirements for taxpayers in the near future.

But according to Zlatkin, taxpayers should still keep in mind the risks of not fully reporting all their tax liabilities. “So, is the government going to catch you? The answer is likely no,” he said. 

However, centralized exchanges such as Coinbase and Kraken will be required to report more of their users’ transaction data to the IRS, beginning next year. 

“And if you dispose of even a small component of your Bitcoin amount… that is going to be reported to the government,” Zlatkin said. 

Isn’t it kind of ridiculous to have to track such small transactions?

That depends on who you ask.

Coinbase’s team is pushing federal officials to introduce a de minimis exemption for cryptocurrency “microtransactions,” or goods-and-services transactions that fall under something like a $300 reporting threshold. 

“De minimis means small… something that’s not meaningful, so it should not be reported,” Zlatkin explained.

But overhauling the rules has proved challenging, “we’ve gotten some sympathy in different sectors of Congress, but [the de minimis exemption] is not the rule currently,” he said. 

If such a reporting rule were passed, then crypto holders wouldn’t be responsible for tracking and reporting their $20 Steak ‘n Shake dinner to the IRS. However, they would still have to report more expensive transactions—say, a purchase of a $400 pair of jeans, made via Bitcoin. 

Can I buy goods and services with crypto without being taxed?

Yes, but don’t bank on buying your burger with Bitcoin. Instead, you’d be better off using stablecoins, Abbatiello and Zlatkin told Decrypt. 

Using a stablecoin such as USDC isn’t a taxable event. That’s because stablecoins pegged one-to-one to the U.S. dollar have a fixed value—their value doesn’t go up or down, so its holders don’t incur gains or losses.

However, if you swap Bitcoin or another cryptocurrency for stablecoins, with the idea of using the latter for purchasing goods or services, you will incur some tax liability. 

“The actual conversion [from a token such as Bitcoin or Ethereum to a stablecoin] itself is a taxable transaction,” Zlatkin said, “so you’re not avoiding it.” 

Edited by James Rubin

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



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May 24, 2025 0 comments
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Buy a Burger With Bitcoin? Beware the Tax Risks, Experts Warn

by admin May 24, 2025



In brief

  • Steak ‘n Shake recently began accepting Bitcoin as a form of payment.
  • Using cryptocurrencies to purchase goods and services has tax implications, experts told Decrypt.
  • U.S. taxpayers are responsible for reporting their crypto-denominated purchases—no matter how big or small—to the IRS.

Bitcoiners can now buy burgers, fries and other beef tallow-fried goodies at Steak ‘n Shake locations in the U.S. after the fast casual chain earlier this month announced it would accept the cryptocurrency as payment. 

But customers better hang on to their receipts.

Crypto-denominated purchases—even those as small as a $14 combo meal or a $3 Sprite paid for in Bitcoin—are taxable events, experts told Decrypt.

That means Steak ‘n Shake customers who plan to splash satoshis on treats like cheeseburgers or milkshakes should plan to log and pay taxes on every one of their Bitcoin purchases come next April—lest they risk running into trouble with the Internal Revenue Service.

Decrypt spoke with two experts who dissected the tax implications of paying in Bitcoin at RFK Jr.’s favorite burger joint. Here’s what you need to know: 

How are Bitcoin transactions taxed?

Bitcoin and other cryptocurrencies fall under the same category as stocks, bonds, and other long-term investments that may or may not generate income, according to the IRS. And like other capital assets, they are completely taxable.

Cryptocurrencies are “all treated as property… not as currency,” said Lawrence Zltakin, vice president of tax at Coinbase. “So effectively, any use of Bitcoin for any purpose is treated as a taxable transaction.”

That means token holders are responsible for paying taxes on crypto-denominated transactions, including something as small as a Steak ‘n Shake burger bought with Bitcoin.



When a taxpayer buys and sells Bitcoin (or any cryptocurrency), they must calculate the difference between the price at which the asset was purchased and its current market value, Zlatkin explained. The result of that difference is the capital gain or loss, and taxpayers must give a percentage of that amount to the IRS. 

“If I buy $100 worth of Bitcoin, and it appreciates to say $300 and I use the full amount to purchase a pair of jeans… there’s $200 in [capital] gain,” Zlatkin said. “It’s as though you’ve disposed of property initially worth $100 and sold it for $300.”

How do I calculate such taxes?

There are a few methods for calculating taxes on crypto-related transactions, including purchases made with digital assets, Lorenzo Abbatiello, founder of Lorenzo Tax, told Decrypt.

The standard method called “first in, first out” is exactly as it sounds: The first Bitcoin (or other tokens) the taxpayer buys are treated as the first ones to be sold for tax-reporting purposes. That means that one would value their taxable transactions using the price at which they bought the oldest tokens in their portfolio.  

“That’s what the IRS prefers you to do,” Abbatiello explained. But, he helps his clients pick the accounting method that is most suitable for their specific financial situations.

“Last year, the IRS wanted you to actually take a screenshot of all your [cost] basis of all the different Bitcoin or crypto that you purchased, choose a methodology, [and] actually sign it like a whole contract,” Abbatiello said. “They’re starting to tighten the belt on all this crypto stuff.”

“You need to choose a methodology and actually stick to it,” he added, explaining that taxpayers should pick just one method of calculating their crypto-related taxes, and use it throughout all their reports for the year. 

For help with calculating taxes, several types of software are available to track digital assets transactions and calculate taxes owed for the year. And, of course, certified accountants who specialize in crypto taxes are always available to assist token holders big and small, Abbatiello said. 

Will the IRS really come after me? 

The IRS usually does not audit tax payers for small discrepancies in their filings, including omissions of small taxable events like a $15 fast-food purchase denominated in Bitcoin. 

Importantly, the federal agency’s enforcement power depends on the size of its ranks and resources—both of which were recently cut by Elon Musk’s DOGE, or the Department of Government Efficiency, according to a May 2 report from the Treasury Inspector General for Tax Administration.

“Now, with Trump coming in, he’s really shaking up the system, so [the current rules] might be kiboshed in the future,” Abbatiello said. That means the IRS might exercise less oversight of tax filings or create less stringent requirements for taxpayers in the near future.

But according to Zlatkin, taxpayers should still keep in mind the risks of not fully reporting all their tax liabilities. “So, is the government going to catch you? The answer is likely no,” he said. 

However, centralized exchanges such as Coinbase and Kraken will be required to report more of their users’ transaction data to the IRS, beginning next year. 

“And if you dispose of even a small component of your Bitcoin amount… that is going to be reported to the government,” Zlatkin said. 

Isn’t it kind of ridiculous to have to track such small transactions?

That depends on who you ask.

Coinbase’s team is pushing federal officials to introduce a de minimis exemption for cryptocurrency “microtransactions,” or goods-and-services transactions that fall under something like a $300 reporting threshold. 

“De minimis means small… something that’s not meaningful, so it should not be reported,” Zlatkin explained.

But overhauling the rules has proved challenging, “we’ve gotten some sympathy in different sectors of Congress, but [the de minimis exemption] is not the rule currently,” he said. 

If such a reporting rule were passed, then crypto holders wouldn’t be responsible for tracking and reporting their $20 Steak ‘n Shake dinner to the IRS. However, they would still have to report more expensive transactions—say, a purchase of a $400 pair of jeans, made via Bitcoin. 

Can I buy goods and services with crypto without being taxed?

Yes, but don’t bank on buying your burger with Bitcoin. Instead, you’d be better off using stablecoins, Abbatiello and Zlatkin told Decrypt. 

Using a stablecoin such as USDC isn’t a taxable event. That’s because stablecoins pegged one-to-one to the U.S. dollar have a fixed value—their value doesn’t go up or down, so its holders don’t incur gains or losses.

However, if you swap Bitcoin or another cryptocurrency for stablecoins, with the idea of using the latter for purchasing goods or services, you will incur some tax liability. 

“The actual conversion [from a token such as Bitcoin or Ethereum to a stablecoin] itself is a taxable transaction,” Zlatkin said, “so you’re not avoiding it.” 

Edited by James Rubin

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