Yes and even though I hate paying taxes it is the correct thing to do from capital gains.
Crypto is an asset so if you make profit on it, the gov is entitled to their share of your profit.
If you dont have very much income on the other hand, then I dont think you should have to pay if its your only source of income.
While I understand your point, I don't agree with it in full. There's more to it than just being entitled to gains. What about unrealized gains? Should they be entitled to them the way US government thinks it is? Here's an example. You bought bitcoins and forgot about them, because they were worth so little that you just didn't care.
5 years later you find out they are worth 100 times more, but you didn't take profits and you didn't report your gains. What should you do? Take profits now because you have to pay your taxes? Sell everything because the government wants their share and it wants it in fiat money? The government rarely looks at you with compassion. It doesn't care if it's your only source of income. It's income and income is taxable.
