Will taxes be imposed on Bitcoin?

[witcher_sense]

Given the fact that bitcoin is a decentralized currency that is transferred through pseudo-anonymous addresses, its taxation is not a very easy task to achieve. It is no surprise that when the government can't effectively levy taxes, it usually results in higher rates of non-compliance. With bitcoin, things are even more interesting and exciting. The bitcoin blockchain is open and transparent, people can see where their taxes paid in bitcoin actually go. If taxes are being spent on war and destruction, people might start to avoid paying it wherever possible, they can start to question their government and constraints its bad intentions. Bitcoin will make governments more transparent and honest. If the government's intentions are good, people will be paying their taxes voluntarily like they do today.

[o_e_l_e_o]

in US all the exchanges are regulated and report the user activities to IRS

All centralized exchanges. If you don't want the government spying on you and your transactions, then use decentralized exchanges such as Bisq or LocalCryptos instead.

If taxes are being spent on war and destruction, people might start to avoid paying it wherever possible

In the US, we already spend more on our military than the next 11 countries combined, while also bankrupting people for getting cancer. Our taxes are already spent in the most moronic of ways, but almost everyone just pays them for fear of retribution. The government already knows they can do pretty much anything they like with your taxes, since they can just arrest you if you stop paying.