Let's say you have 100% of your net worth in bitcoin. If you buy a video game on the Steam Store using bitcoin, then you would owe capital gains tax to the IRS in USD, assuming your bitcoins had appreciated in value. In order to pay the tax, you would have to sell more bitcoin for USD, and then pay tax on that transaction. Wouldn’t this develop into a recursive pattern of needing to sell bitcoin for USD to payoff the capital gains tax?Example of a recursive selling iterations from paying 30% tax on $1 of appreciated bitcoin used in a purchase: $1->$0.30+$0.09+$0.027+$0.0081+$0.00=$0.43 instead of $0.30Is this really the case? I guess what I’m essentially asking is, what are the tax laws when you have zero USD in your accounts for paying taxes?Since bitcoin is not accepted for paying taxes, it would seem like the government would be forcing you to sell a commodity that you own. Are there any examples of this situation occurring outside of bitcoin?Sorry if this is completely wrong, and I just misunderstood something about tax law. via /r/Bitcoin http://bit.ly/2iEmc0c
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