Bitcoin and Crypto Talk (Merged)(includes NFT)

People can avoid tax with fiat currency too. If you transact everything in cash dollars, and keep it out of regulated bank accounts, you can "avoid" tax.

But the risk is the same with crypto as it is with regular cash. There are ways that the IRS can discover taxable activity and there are penalties that can vary based on the behavior of the taxpayer. When the taxpayer is deliberately trying to hide taxable activity from the IRS, those penalties become most severe.

Are you arguing against government regulation of cryptocurrencies? It would seem to me that you are. Regulation is going to be needed as cryptocurrencies become more mainstream. It's mostly wealthy people involved in the upper echelons of these currencies and we all know what happens when the wealthy are involved in unregulated activities.