When the time comes to spend some to buy something like property or fiat currency, the blockchain will serve as a record of when I acquired the coins so capital gains tax can be calculated and paid. Until then it's nobody's business except mine.
And you can get away with paying less capital gains tax, if the most recent paper wallet you are exchanging today is dated less than a week ago. I'll leave it to your imagination. You might even possibly register losses too, but that's unlikely since you wouldn't be buying fiat at that point.
Indeed. This is one reason I keep my coins in many small wallets.
As I've stated in many times in the past, I have no intention of selling any coins except if absolutely necessary. If an emergency were to occur during a dip and I needed to sell more than I could through an ATM for cash, at a price lower than the highest I'd paid, I'd definitely claim a loss.