" The simplification which most of us probably want is simply to make it clear that holders of virtual currencies will be income taxed upon sale into fiat but not prior. "

This is not the simplification we want, unless you want to start being taxed on anything the government concludes has monetary value. Do you know how abusive self-employment taxes are?

This logic would justify taxing WoW Gold and Facebook Likes - both can be bought on the open market.

Capital gains with cost basis @ liquid cash value when received. Even THAT Is a huge compromise, because Steem Power is basically Reddit Karma - community charity/tipping.