I get all that. Say I own the Schedule C, and I own the contracts (these smart contracts are right to earn Ethereum through referral. The contracts are life time, I own it. Whether I want to continue with this business or not, it's there recorded on the block chain that I own this contracts, can't resell it.

I guess since there is no resell value, it would just have to be expensed, the contract price could depreciate or appreciate as people buy depending as it is tied to the market value of ETH. But the once I purchased, it's  a sunk cost. Smart contract are purchased in level 1 to 12, level 12 can cost $120 000. Level can be $28. (again depending on ETH price but this is close to approximation recently). 

The contracts would be asset in which case I can claim section 179?

Commissions earned = Schedule C

ETH sold at appreciated value = Schedule D (can this be linked to Schedule C)? The reason i was asking is if I have a capital lossl since there is capital loss limitation, i would want it to apply to ordinary gain in my schedule C. 

FYI, the company is Forsage if you want to look it up and if interested let me know.  It is sort of "mining" or earning  for ETH through referral base.

Thank you.