Forsage partners own smart contracts and through referrals , partners can earn Ethereum virtual currency. This would be a Schedule C, as it is actively recruiting and running a business, therefore, all their commission paid in ETH is taxable and subject to self employment income.  Am i correct? I read the FAQs in IRS about Virtual currency, just want to confirm here.

A partner can use those ETH commission to buy more contract in order to have more commission opportunities. 

I think there is 2 part to this, the commission earned as taxable income, and later on when ETH is converted to dollar or withdrawn, it will result in capital gains depending on basis and market value of ETH. 

Am I understanding this correctly?

If one individual owns $100 000 worth of ETH, a US resident, do they need to file FBAR?I don't follow the need for FBAR, is it because it is digital currency?

Smart contracts I think would be intangible assets and can be depreciated as such, can it qualify for section 179? I think it can, again, I am hoping to verify what others think of it. Thank you.

Sorry for the multiple questions, i wanted to keep this info in one file concerning Forsage smart contracts as it is growing rapidly here in US a lot needs a better understanding on tax consequences of this. Thanks