Yeah, well he bought the bitcoin a few years ago (think he put in $5k) and then took it out at like $120k to reinvest. Unfortunately, new investment didn't due so well and is now valued at $50k or so. But he owes like a lot in taxes from the 115k he got in income from selling his stock.

Also, he used all his savings to make the first investment (because his friends told him to do it). That was his first mistake.

It's the same when you earn interest on checking/savings accounts. You need to pay taxes on that but for some people (such as myself), you don't make enough in interest to be required to account for it. I probably made like $4 in interest last year because those types of accounts make like 1% on a good account.

Basic summary: If you are going to invest in things, don't do it half afrodonkey.