If it was an option in your country, would you pay your taxes with Bitcoin?
Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?
I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC
For me, this doesn't make sense at all, in a way that you are paying your tax with a cryptocoin. If you can cash your bitcoin, then why not cash it out and pay your tax. Its like your paying your tax with something that is just the same worth. Why complicate things? Just let them be.
That may make some sense after all
For example, when you receive the bulk of your income in bitcoins (e.g. run a Bitcoin casino). In that case, you would have to exchange your bitcoins to fiat first, and that would be complicating things quite in line with what you yourself just said. Further, converting bitcoins would inevitably cause you to pay some percentage to an exchange for the exchange itself as well as withdrawal of the proceeds (apart from risking your coins due to possible hacks and scams). As you can see, there are use cases when paying taxes directly with Bitcoin could be perfectly justifiable and convenient