I'm currently paid 100% in Bitcoin through bitwage.co. I pay for as much as I can using bitcoins.
I think you are relying too heavily on bitwage.co. Most employers need a certain amount of notice in order to change where your direct deposit payment is sent to, so if/when bitwage.co runs into problems and/or turns into the next gox, you could potentially have two, or maybe even three pay periods worth of money sent to them depending on how quickly you can see they are having problems. I think it is good to use/spend your bitcoin as much as you can, however I don't think it is smart to entrust a third party with so much of your money as you are doing.
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I actively sell bitcoins on localbitcoins so I usually have plenty of cash for buying food and paying rent.
Our of curiosity, when you sell on LBC, are you able to get above market rates, or do you need to lose some amount to liquidity providers? As for taxes, yes I am avoiding taxes...legally. I live outside the US working for a US company. If you live outside the US for more than 330 days out of the year you qualify for the foreign earned income exclusion. This means that the first $100k of my salary is tax free and I can write off any housing costs. My situation is unique in that I work as a contractor for the US military so I do not have to pay taxes in the country I live in (I can even avoid paying VAT, but usually don't bother with the process).
You're wrong.
You're not avoiding them if you're not supposed to pay them. There's no tax avoidance in your case.
I will say you're in a very good position.
If you were an Italian citizen (and thank God for you you are not) they would be at your front door every single day.