Based on our country, you cannot actually get away from taxes in cryptocurrency conversion to fiats. How? Because if you have local exchanges, then that is the place where you need to convert your cryptocurrency. In this case, what you need is to pay transaction fees with taxes from conversions. What is good about it is that, if you have huge accumulation of cryptos, instead of converting, you could transact and pay in crypto without taxes.
What about peer to peer trades with a person from your country? He gives you cash, you send him Bitcoins. And you keep that cash at home, not deposit it to the bank because you might need to explain origin of money.
But I guess it's difficult to find buyer for large amounts of Bitcoins.
People who use to use people from local bitcoins might start a smaller group on social media so the people that bought in large amounts still are. Newer people will have a rougher time finding larger trades.
There is also the matter of safety and you risk being mugged or something. It probably won't happen but there is still that risk.
Dealing with taxes is annoying. There is no official law. How will taxation. I think it's best not to turn bitcoins into paper money. Direct trade with Bitcoin needs to become widespread. Bitcoin will take more place in our lives ...
Yes, we need direct trade to bypass these taxes. Depending on where you live some taxes are unrealistic and far too much. Other countries you feel ok paying tax since you get benefits like free health care and such. Unfortunately, not all countries are like that and often take advantage of the taxpayer.
