> Your original statement about bitcoin being a way of avoiding capital gains taxes is simply false for most people. Only if they decide to sell. Also, only i

> Your original statement about bitcoin being a way of avoiding capital gains taxes is simply false for most people. Only if they decide to sell. Also, only if they're not willing to do what it takes (i.e. move to a jurisdiction with no taxes on realized cap. gains and toss the US passport out the window for something better). Finally, you haven't addressed the "barter" case (trade BTC directly for goods). I'm sure the US has found a way to tax this on paper (the IRS seems to be the only functioning part of the US govt these days), the question of enforceability is a different one.